# ii. Ownership Structures & Legal Entities Ownership structures and legal entities define how real estate assets are held, governed, financed, and transferred. These frameworks determine liability, control, tax treatment, investor rights, and how capital flows through a property across its lifecycle. #### **Beneficial Owner** The individual or entity that ultimately enjoys the economic benefits of an asset, even if legal title is held by another party. #### **Co-Investment** An ownership arrangement where multiple parties jointly invest capital into a property or entity. #### **Common Equity** Ownership interests that sit lowest in the capital structure and receive returns after debt and preferred equity obligations are met. #### **Delaware Statutory Trust (DST)** A legal entity commonly used in U.S. real estate to facilitate fractional ownership, often for 1031 exchange purposes. #### **Equity Ownership** An ownership interest representing a residual claim on a property’s income and value after liabilities. #### **Fee Simple Ownership** The most complete form of property ownership, granting full legal rights subject only to government regulation. #### **General Partner (GP)** The managing partner in a partnership structure, typically responsible for operations and decision-making. #### **Joint Venture (JV)** A partnership where two or more parties combine capital, expertise, or assets to own or operate a property. #### **Legal Owner** The entity or individual whose name appears on the title and holds formal legal ownership of a property. #### **Leasehold Interest** A right to use or occupy a property for a specified period under a lease agreement, without owning the underlying land. #### **Limited Liability Company (LLC)** A flexible legal entity that limits owner liability while allowing pass-through taxation in many jurisdictions. #### **Limited Partner (LP)** A passive investor in a partnership structure with limited liability and no day-to-day control. #### **Limited Partnership (LP)** A legal structure with at least one general partner managing the asset and one or more limited partners providing capital. #### **Master Lease Structure** An arrangement where a single tenant leases an entire property and may sublease portions to others. #### **Ownership Interest** A defined stake in a property or entity, typically represented as a percentage or number of units or shares. #### **Preferred Equity** An ownership interest that has priority over common equity in receiving distributions but typically lacks control rights. #### **Property Title** The legal documentation establishing ownership rights to a real estate asset. #### **Real Estate Investment Trust (REIT)** A regulated investment vehicle that owns and operates income-producing real estate and distributes most income to shareholders. #### **Special Purpose Vehicle (SPV)** A standalone legal entity created to isolate risk and hold a specific asset or project. #### **Syndication** A structure where a sponsor pools capital from multiple investors to acquire or operate a property. #### **Tenancy in Common (TIC)** A form of shared ownership where multiple parties hold undivided interests in a property. #### **Trust Structure** An ownership arrangement where a trustee holds and manages assets on behalf of beneficiaries. #### **Ultimate Beneficial Ownership (UBO)** The identification of individuals who ultimately control or benefit from an asset or entity, often required for compliance. #### **Voting Rights** Contractual rights that determine how ownership interests participate in governance and major decisions. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://info.building.inc/lexicon/real-estate-fundamentals/ii.-ownership-structures-and-legal-entities.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.