Ownership of Property
Since partners often contribute property for the use of the partnership, the question of ownership of this property is sometimes difficult. For example, if a partner purchases personal property with his own money, but the property is used exclusively by the partnership, then it could be questionable whether this property is the partner’s separate property or whether it is the partnership’s property. The UPA creates a presumption that property acquired with partnership funds is partnership property, unless the partners intend otherwise. The RUPA extends this presumption and adds a presumption that if one or more partners purchase property in their own name and without use of partnership funds, the property is considered the separate property of the partner or partners. This is true even if the property is used for partnership purposes.
Both the partnership and individual partners can hold legal title to real property, and both the UPA and the RUPA contain provisions prescribing the conveyance of real property by partners or the partnership. Under the RUPA, partners and partnerships have the option of filing and recording a statement indicating the authority of the partners to transfer real property in the name of the partnership.