4 - MO Ownership

Question 1

Tenancy in severalty

Answer 1

sole ownership of a freehold estate

Question 2

Co-Ownership

Answer 2

ownership by two or more owners

Question 3

Tenancy in common

Answer 3

co-tenants enjoy individual undivided interests, any ownership share possible; no survivorship

Question 4

Joint tenancy

Answer 4

equal, undivided interest, jointly owned, with survivorship

Question 5

tenancy by the entireties

Answer 5

equal, undivided interest jointly owned by husband and wife

Question 6

community property

Answer 6

• joint ownership of property by spouses as opposed to separate property
• separate, acquired before marriage or by gift or inheritance

Question 7

Tenancy in partnership

Answer 7

ownership by business partners

Question 8

Describe how joint tenancy is created

Answer 8

four unities to create time, title, interest, possession

Question 9

Trusts

Answer 9

Property granted by trustor to fiduciary trustee for benefit of beneficiary

Question 10

Living trust

Answer 10

personal and real property ownership taking effect during one’s lifetime (living trust) or after (testamentary trust)

Question 11

Identify the features of a land trust

Answer 11

grantor and beneficiary are same party; beneficiary uses, controls property, does not appear on public records

Question 12

Define condominium ownership

Answer 12

• freehold ownership of a unit of airspace plus undivided interest in common elements as tenant undivided interest in common elements as tenant in common
• may be sold, encumbered, or foreclosed without affecting other unit owners
• created by developer’s declaration

Question 13

Define cooperative ownership

Answer 13

ownership of shares in corporation, plus proprietary lease in unit; corporation has sole undivided ownership

Question 14

Define time-share ownership

Answer 14

lease or ownership interest in a property for periodic use by owners or tenants on a scheduled basis

Question 15

What are the primary differences between tenancy in common and joint tenancy?

Answer 15

Title – only one title in a joint tenancy, multiple titles in tenancy in common; ownership share – equal shares in joint tenancy, electable in tenancy in common; transferability – tenant in common may sell, encumber, etc., his or her share, but joint tenant’s interest becomes a tenancy in common interest if sold; survivorship – joint tenant’s interest goes to other joint tenants on death, but tenant in common’s interest for to heirs; creation – joint tenancy requires the four unities, otherwise a tenancy in common results.

Question 16

What are some of the apparent advantages of a land trust as a way of owning property?

Answer 16

Anonymity; ease of transfer; ease of use as collateral; potential benefits in treatment of estate on death of beneficiary (grantor).

Question 17

What are the primary differences between a condominium and a cooperative as forms of ownership?

Answer 17

Condo owner actually owns actually owns real property – airspace and share in common elements – while co-op owner owns shares in a corporation and proprietary lease; condo unit can be transferred, encumbered, or foreclosed as an entity, while co-op interest cannot be so handles, but only as an interest in the corporation; entire property is endangered by default of co-op share holder, but only individual unit is endangered by default of a condo owner