4.3 Ownership Vocab

Question 1

Tenancy in Severalty:

Answer 1

An estate in real property owned by a single party.
If a single party owns the fee or life estate, the ownership is a tenancy in severalty. Synonyms are sole ownership, ownership in severalty, and estate in severalty. When the would-be sole owner is a husband or wife, state laws may require homestead, dower or elective share rights to be released to allow ownership free and clear of any marriage-related claims.
The estate of a deceased tenant in severalty passes to heirs by probate.

Question 2

Tenancy in Common:

Answer 2

An estate where each co-owner owns an electable share of the property and can transfer this share to any other party. Does not include right of survivorship; interests of deceased owners pass to heirs.

Question 3

Joint Tenancy:

Answer 3

A form of real property ownership in which co-owners share all rights and interests equally and indivisibly; entails right of survivorship. Parties must establish tenancy at the same time and with a single deed.

Question 4

Four Unities:

Answer 4

To create a joint tenancy, all owners must acquire the property at the same time, use the same deed, acquire equal interests, and share in equal rights of possession. These are referred to as the four unities:

1. Unity of time: all parties must acquire the joint interest at the same time
2. Unity of title: all parties must acquire the property in the same deed of conveyance
3. Unity of interest: all parties must receive equal undivided interests
4. Unity of possession: all parties must receive the same rights of possession

Question 5

Partition:

Answer 5

A lawsuit requesting the court to alter or cancel the interests of a co-owner in a parcel of real property. Initiated when co-owners do not agree to make the change voluntarily.

Question 6

Tenancy by the Entireties:

Answer 6

Tenancy by the entireties is a form of ownership reserved exclusively for husband and wife. It features survivorship, equal interests, and limited exposure to foreclosure.

Question 7

Community Property:

Answer 7

A system of property ownership established by law which generally defines rights of property ownership of spouses; community property is co-owned by spouses, and separate property is owned by a single spouse. Generally, property acquired during the marriage with jointly held funds is community property.

Question 8

Tenancy in Partnership:

Answer 8

Tenancy in partnership is a form of ownership held by business partners, as provided by the Uniform Partnership Act. The partnership tenancy grants equal rights to all partners, but the property must be used in connection with the partnership’s business. Individual rights are not assignable.

Question 9

Trust:

Answer 9

A fiduciary relationship between a trustor and trustee. The trustor conveys legal title to property to the trustee, who holds and manages the estate for the benefit of another party, the beneficiary ( in a land trust, trustor and beneficiary are the same person).

Question 10

Trustor:

Answer 10

The trustor conveys legal title to property to the trustee.
In an estate in trust, a fee owner– the grantor or trustor– transfers legal title to a fiduciary– the trustee– who holds and manages the estate for the benefit of another party, the beneficiary. The trust may be created by a deed, will, or trust agreement.

Question 11

Trustee:

Answer 11

In an estate in trust, a fee owner– the grantor or trustor– transfers legal title to a fiduciary– the trustee– who holds and manages the estate for the benefit of another party, the beneficiary. The trust may be created by a deed, will, or trust agreement.
The trustee has fiduciary duties to the trustor and the beneficiary to maintain the condition and value of the property. The specific responsibilities and authorities are set forth in the trust agreement.

Question 12

Beneficiary:

Answer 12

A party named to benefit from the yield or disposition of an asset identified in a trust, insurance policy, or will.

Question 13

Living Trust:

Answer 13

A trust established during one’s lifetime in which the trustor conveys legal title to property to a trustee and names another party as beneficiary. The trustee discharges management duties and the beneficiary receives all profit and gain net of the trustee’s fees.

Question 14

Land Trust:

Answer 14

A trust in which a trustor conveys a fee estate to a trustee and names himself or herself as beneficiary. The beneficiary in turn controls the property and the actions of the trustee.

Question 15

Condominium:

Answer 15

An estate distinguished by fee simple ownership of the airspace of a unit plus an undivided interest with the other unit owners in the overall property’s common elements.

Question 16

Airspace:

Answer 16

A condominium is a hybrid form of ownership of multi-unit residential or commercial properties. It combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements, such as lobbies, swimming pools, and hallways.
A condominium unit is one airspace unit together with the associated interest in the common elements.

Question 17

Common Elements:

Answer 17

Common elements are all portions of the property that are necessary for the existence, operation, and maintenance of the condominium units. Common elements include:
• the land (if not leased)
• structural components of the building, such as exterior windows, roof, and foundation
• physical operating systems supporting all units, such as plumbing, power, communications installations, and central air conditioning
• recreational facilities
• building and ground areas used non-exclusively, such as stairways, elevators, hallways, and laundry rooms

Question 18

Cooperative:

Answer 18

Ownership of shares in a cooperative association which acquires a multi-unit dwelling as its primary asset. Shareholders also receive a proprietary lease on a unit for the duration of their share ownership.

Question 19

Proprietary Lease:

Answer 19

A cooperative owner’s lease on a unit in the cooperative building. The lease runs concurrently with the owner’s ownership interest in the cooperative.

Question 20

Time-Share:

Answer 20

A fee or leasehold interest in a property that is shared by owners who have use of the property at different times.