Riverside Abstract

Among the different modes of real estate ownership change, those that are probably most familiar to you are transmission by sale, donation, exchange and inheritance. All of them affect the market to a greater or lesser degree, but transmission by sale and purchase is the one with the highest incidence. From liability pitfalls to tax advantages, each type of property ownership brings unique benefits and drawbacks – and it’s important to be fully aware of them before you invest. In this post, Riverside Abstract, a title insurance company from Brooklyn, will explore the different types of property ownership in real estate.

Real Estate Investment Trust (REIT) is a financial asset that is quoted in the same way as a stock, which allows an investor to have exposure to the real estate sector of the US economy. In other words, if we buy shares of a REIT we are investing indirectly in houses, apartments, hotels, office buildings, etc. Unlike direct investment in real estate , which has a liquidity problem, a REIT provides liquidity, because we can buy and sell our shares at any time in the open market. REITs are exempt from federal taxes at the company level.