In dealing with a corporation, a real estate agent should study the bylaws to determine who has authority to act on behalf of the company. At least 75 percent of a REIT must be in real estate. Interests in REITs are usually regarded as securities. A REIT must have one hundred or more investors and is regulated by federal law. Condominiums A condominium is a development in which there is individual fee simple ownership of a unit and shared ownership of common areas with other owners as tenants in common.
Owners pay their own mortgages and taxes.
The land portion of a condominium development is regarded as a common area. Other commonly owned areas are for the use and benefit of all the owners. Limited common elements are commonly owned areas that are reserved for use by designated owners, such as parking spaces and storage rooms. A time-share is an undivided interest in a unit along with an exclusive right of occupancy for a designated period each year. Time-share interests can be leasehold estates, in which the right of occupancy ends after a stated number of years, or fee simple ownership.