Undivided Interest

• When you have undivided interest in a piece of real estate, you have the same access and use of the property as the other owners, despite your share of interest. For example, you may own 50 percent or just 10 percent of the property. Yet your 10 percent ownership entitles you to the same use of the property as if you had a 50 percent share.
  
  

Community Property

• When you and your spouse own a home as community property, you each have an equal, undivided interest in the property. You cannot sell or mortgage the house without obtaining your spouse’s signature. The mortgage typically applies to the entire piece of property.
  
  

Condominium

• If you purchase a condominium, you own an undivided interest to the common areas of the complex, such as around the swimming pool. You have the same rights of use to the property as other owners in the complex. You have the right to place a mortgage lien against your condominium, which would generally apply to your undivided interest in the common area. Unlike a mortgage lien for community property, the lien would only apply to your share of the undivided interest. Your mortgage would not place a lien against the undivided interest shares of the other condominium owners.
  
  

Tenants in Common

• If you purchase real estate with one or more friends, one way to hold title is by tenants in common, with each owner having an undivided interest in the property. If you get in an argument with one of your friends, you can’t prevent them from using the property. But you are entitled to mortgage your share of the property without the permission of your fellow owners. Your mortgage only applies to your share in the property. If you default on the loan, the lender can foreclose on your share.