Assessment Flashcards
The ownership of real estate by one individual
Severalty
A form of property ownership in which owners hold undivided fractional interests that are inheritable by their heirs
Tenancy in Common
A form of ownership in which multiple owners hold property with a right of survivorship
Joint tenancy
A legal method for dissolving a co-ownership
Partition
A special form of co-ownership for married couples
Tenancy by the entirety
A device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party
Trust
A form of trust established by will after the owner’s death
Testamentary Trust
An association of two or more persons who carry on a business for profit as co-workers
Partnership
The evidence of the right to occupy a unit in a cooperative
Proprietary Lease
The rules determining the operation and management of a cooperative
Bylaws
A legal way to dissolve the relationship when the parties do not voluntarily agree to its termination
Partition
Title held by one individual
Severalty
Ownership of individual unit in building and percentage of the common areas
Condominium
Property acquired during a marriage is considered to be obtained by mutual effort
Community property
This right is a characteristic of joint tenancy
Right of survivorship
Property owned by two or more people with the right of survivorship
Joint tenancy
Building that is owned by a corporation with unit occupants receiving a proprietary lease right
Cooperative
What are the 3 basic forms of co-ownership?
1) Tenancy in common
2) Joint tenancy
3) Tenancy by the entirety
A disadvantage of ___ business ownership of income property is double taxation.
Corporate
A(n) ___ combines the most attractive features of limited partnerships and corporations.
Limited Liability Company (LLC)
A business organization in which all members participate in the operation and management of the business and share full liability for business losses and obligations
General partnership
A business organization that is a legal entity managed and operated by a board of directors
Corporation
On the death of a joint tenant, the deceased’s interest transfers directly to the remaining joint tenants by ___.
Right of survivorship
A business organization that combines the tax advantages of limited partnerships and the limited liability of corporations
Limited Liability Company
In a community property state, real or personal property that was owned solely by either spouse prior to marriage, or acquired by inheritance while married
Separate property
A form of property ownership in which each owner holds an undivided interest in certain common elements in addition to holding individual property in fee simple
Condominium
Special payments required of condominium unit owners to address specific expenses
Assessments
Recurring fees required of condominium unit owners to cover basic maintenance and operations
HOA fees
A real property interest in a specified unit for a particular period of the year
Time share estate
A contract right under which a developer retains ownership of property and the purchaser receives the right to occupy and use the facilities for a certain period
time share use
A limited liability company combines the most attractive features of land trusts and testamentary trusts. true or false?
False
A major advantage of ___ trusts is that they reduce the time and costs of probate
Living
An owner can transfer or sell a condominium unit to anyone, unless the condominium association provides for a(n)…
Right of first refusal
A time share ___ includes the right to use the property for a certain specified period of time
Estate
Ownership of a cooperative interest is ___ property.
Personal
The management and operation of a cooperative are determined by the ___ of the ___ that owns the property
Bylaws of the corporation
Condo owners hold their units in ___.
Fee simple
Condo owners hold common elements as ___.
Tenants in common
If a partner in a general partnership dies, withdraws, or goes bankrupt, the common law result would be to ___ the partnership
dissolve
In a(n) ___, a corporation holds title to the land and building then offers shares of stock to prospective purchasers
cooperative
Condominium property is administered by an association of unit owners called a(n) ___.
Homeowners association (HOA)
The person who creates a trust is called the ___.
Trustor
The ___ transfers property to the trustee.
Trustor
The ___ is entrusted to carry out the instructions regarding the property held in a trust
Trustee
The ___ is the party that benefits from a trust.
Beneficiary
When buying into a cooperative, the purchaser becomes a shareholder in the corporation by virtue of ___.
Stock ownership
When buying into a cooperative, the purchaser receives a(n) ___ to the apartment.
Proprietary lease
How long does a proprietary lease last?
For the life of the corporation
Under ___ ownership, each unit becomes a separate parcel of real estate that is owned in fee simple and may be transferred to whomever the owner chooses.
Condominium
___ trusts have become a major estate planning tool used to minimize the time and costs of probate
Living
Members of an LLC enjoy the ___ offered by a corporate form of ownership.
Limited liability
An LLC offers the ___ advantages of a partnership.
Tax
Corporations are subject to ___ taxation
Double
In a community property state, ___ property includes all property - both real and personal, acquired by either party during the marriage
community
In a community property state, ___ property is acquired by either spouse by inheritance or gift
Separate
In a tenancy by the entirety, neither spouse can convey a half interest to a(n) ___.
third party
In a tenancy by the entirety, neither spouse may take court action to ___ or divide the property
Partition
In a tenancy by the entirety, spouses can convey title only by a deed that is…
signed by both spouses
Co-tenants may terminate their co-ownership by asking a court to ___ the property
partition
___ is a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination
Partition
When a joint tenant conveys interest in the jointly held property to a new owner, the new owner becomes a(n) ___.
tenant in common
When a joint tenant conveys interest in the jointly held property to a new owner, the unities of ___ and ___ are destroyed.
Time and title
What are the 4 unities characteristic of a joint tenancy?
Possession
Interest
Time
Title
When title to a single parcel of real estate is held by 2 or more individuals, the parties may be called ___
Co-owners (concurrent owners)
A joint tenancy continues ___ until there is only one owner left.
indefinitely
A joint tenancy continues indefinitely, until there is only one remaining owner. The remaining owner then will hold the title…
in severalty
The ownership of an undivided fractional interest in a property is characteristic of a(n) ___.
Tenancy in common
In a tenancy in common, each tenant holds a(n) ___ interest in the property
undivided fractional interest
In a tenancy in common, co-owners have unity of ___.
possession
Unity of ___ means that each owner is entitled to hold the whole property.
Possession
In a tenancy in common, ___ is divided.
Ownership interest
In a(n) ___, property is owned by two or more owners with the right of survivorship
Joint tenancy
___ means that there is only one owner of a property
Severalty
What type of ownership occurs when property is owned by one corporation?
Ownership in severalty
What are the 3 basic ways in which a fee simple estate may be held?
1) In severalty
2) In co-ownership
3) in trust
A ___ estate may be held in severalty, in co-ownership, and in trust
fee simple
The four unities of possession, interest, time, and title are associated with ___.
Joint tenancy
The difference between tenancy in common and joint tenancy is that ___ is inheritable
Tenancy in common
The difference between tenancy in common and joint tenancy is that ___ is characterized by the right of survivorship
Joint tenancy
Three women were concurrent owners of a parcel of real estate. When one woman died, her interest according to her will became part of her estate. The deceased was a(n) ___.
Tenant in common
A legal agreement under which the title to real property is held to protect the interests of a beneficiary is a(n) ___.
Trust
Maintaining and operating a cooperative is paid for by the ___ from charges assessed to ___.
Paid for by the corporation
Charges assessed to unit owners
A man purchases an interest in a house. He is entitled to the right of possession only between July 10 and August 4 of each year. What type of ownership was most likely purchased?
Time share estate
Because a corporation is a legal entity, real estate owned by it is…
In severalty
Which of these is a form of co-ownership?
A) Joint tenancy
B) Severalty
C) Sole owner
D) Tenancy at will
Joint tenancy
A married couple owns a mansion with a right of survivorship. This is most likely…
An estate by the entirety
Two people are co owners of a small office building with the right of survivorship. One of the owners dies intestate and leaves nothing to be distributed to his heirs. What form of ownership would explain why the surviving co-owner acquired the deceased’s interest?
Joint tenancy
A(n) ___ proves one’s right to live in a cooperative
Proprietary lease
A proprietary lease proves one’s right to live in a(n) ___.
Cooperative
A similarity between joint tenancy and tenancy by the entirety is that the survivor becomes a(n) ___ owner.
severalty
If property is held by 2 or more owners as tenants with survivorship rights, the interest of a deceased co-tenant will be passed to the…
surviving owner(s)
Which of the following would not require special deed language to create in Illinois?
a) tenancy in common
b) life estate pur autre vie
c) joint tenancy
d) tenancy by the entireties
Tenancy in common
The names of the beneficiaries of a land trust must not be revealed by the trustee to ___ when applying for a license or permit affecting the entrusted real estate.
any Illinois Agency
The names of the beneficiaries of a land trust must not be revealed by the trustee to any Illinois agency when…
applying for a license or permit affecting the entrusted real estate
Every co-owner of real estate in Illinois has the right to file a suit for partition when the property is held in ___ or ___.
joint tenancy or tenancy in common
Title to land in Illinois may be held and conveyed in the name of a(n) ___.
partnership
If the deed of conveyance to Illinois land transfers title to two or more co-owners without defining the charcter of the co-ownership, the co owners are ___.
tenants in common
In Illinois, to convert an apartment building to co-ownership, the owner must record a ___ with a ___.
Condominium declaration with a three-dimensional plat
Abby and Bob held title to an apartment building in Illinois as joint tenants with rights of survivorship. Abby and Bob had an argument, and Abby didn’t like the possibility that Bob would acquire total ownership of the building if Abby died. Therefore, Abby executed a deed to herself as a tenant in common and later willed this interest to Chris. Abby’s actions legally ___ the joint tenancy.
Severs
Which of the following cannot take title as a joint tenant with right of survivorship?
A) Spouses
B) Two female business partners
C) Two brothers in a partnership
D) A corporation
A corporation
When 2 or more individuals decide to buy a property together, it results in ___.
Co-ownership
Three siblings bought a farm together. The deed listed all of their names but failed to designate any form of concurrent ownership. What form of ownership are they presumed to have taken?
Tenancy in common
What form of ownership is employed when one person transfers ownership to someone else to hold and manage for a third person?
Trust
A couple is getting married. They each have two children and they are buying real estate together. They ask the real estate professional for advice about how to take title. What advice should the real estate professional offer?
Advise they consult an attorney
A will provided that the local banker take care of the deceased’s estate until the children of the deceased reach age 25. What kind of trust is this?
Testamentary Trust
What kind of ownership do the horizontal property acts regulate?
Condominiums
Shareholders in a cooperative receive shares of stock that entitle them to…
a proprietary lease
Membership camping is similar to ___.
Timeshare use
In a large high rise condominium, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are called ___.
Common elements
Two people own an apartment building together as joint tenants. They share equally in the expenses and profits. One day, one of the owners decides to end the relationship. If that owner signs and delivers a deed to the buyer, the buyer and the other owner will be ___.
Tenants in common
In February, a seller conveyed an undivided one-half interest in a parcel of land to buyer A. In March, the seller conveyed the remaining one-half interest to buyer B. The deed to buyer B included the statement: “Buyer B is to be a joint tenant with buyer A.” Both deeds were recorded. Based on these facts, Buyer A and Buyer B are ___.
Tenants in common
Three people own a large parcel of undeveloped land in joint tenancy. One of them wants to build a shopping center on the property, while the other two want to use it as an organic farm. The individual who wants to build on the land tries to buy the other tenants’ interests, but they refuse to sell. What is the individuals best option?
File a suit for partition
A resident owns and lives year round in a cottage in a lakefront community. The resident’s ownership of the cottage is in fee simple. The resident also owns an undivided percentage interest in a parking lot, a golf course, and a swimming pool, all located in the development. Based on these facts, the resident’s ownership is probably best described as…
a condominium
Three friends agree to purchase and operate a property as a permanent investment. Two friends each contribute $50,000. The third contributes $30,000 and agrees to manage the day-to-day operations of the business, which the friends call “Property Group Partners.” Only the third friend has any right to participate in the operation of the venture. Based on these facts, what type of business organization have the friends established?
Limited partnership
Three friends agree to purchase and operate a property as a permanent investment. Two friends each contribute $50,000. The third contributes $30,000 and agrees to manage the day-to-day operations of the business, which the friends call “Property Group Partners.” Only the third friend has any right to participate in the operation of the venture. If a structure on the property collapses, resulting in injury and property damage worth $275,000, what will be the liability of the friend who contributed $50,000?
$50,000
A limited partner is limited in liability to the amount of…
the original investment
It is true of a(n) ___ that the surviving spouse automatically becomes the sole owner of the property upon the death of the other spouse.
Tenancy by the entirety
Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the trustor?
Mary
Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the beneficiary?
The grandchild
Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the trustee?
The attorney
A company is a legal entity, created by charter under the laws of the state. The company is managed and operated by a board and is permitted to buy and sell real estate. When one of its directors dies, the company continues to operate. Because of its structure, the company’s income is subject to double taxation. The company is best described as a(n) ___.
Corporation
When a corporation takes complete ownership of property, it is considered to be what type of ownership?
Ownership in severalty
In tenancy in common, if the fractions of ownership are not stated in the deed, how are they determined?
Each tenant is presumed to hold equal shares
In a land trust, the beneficiary is usually also the ___.
Trustor
___ ownership includes undivided interest in common elements and a fee simple title of the unit
Condominium
___ ownership includes undivided interest in common elements, a relatively small interest in real estate, and occupancy and use for limited periods
Time share
In this type of ownership, real estate is owned by a corporation
Cooperative
This type of ownership includes a proprietary lease
Cooperative
