Ch 4 Ownership

Question 1

1. When a single individual or entity owns a fee or life estate in a real property, the type of ownership is
   a. tenancy in severalty.
   b. tenancy by the entireties.
   c. absolute fee simple.
   d. legal fee simple.

Answer 1

a. tenancy in severalty.

Question 2

2. Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is
   a. joint tenancy.
   b. equal ownership.
   c. tenancy in common.
   d. estate in severalty.

Answer 2

c. tenancy in common.

Question 3

7. The distinguishing features of a condominium estate are
   a. ownership of a share in an association that owns one’s apartment.
   b. tenancy in common interest in airspace and common areas of the property.
   c. fee simple ownership of the airspace in a unit and an undivided share of the entire property’s common areas. d. fee simple ownership of a pro rata share of the entire property.

Answer 3

c. fee simple ownership of the airspace in a unit and an undivided share of the entire property’s common areas.

Question 4

10. One difference between a cooperative estate and a condominium estate is that
    a. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.
    b. the condominium owner must pay expenses as well as rent.
    c. the coop owner owns stock and a freehold real estate interest whereas the condominium owner simply owns real estate.
    d. the condominium owner owns the common elements and the airspace whereas the coop owner only owns the apartment.

Answer 4

a. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.

Question 5

11. A unique feature of a land trust is that
    a. the trustee controls both the trustor and the beneficiary.
    b. the trustee takes ownership of both land and improvements.
    c. the identity of the beneficiary may not be identified. d. the properties in the trust are probated in the states where the properties are located.

Answer 5

c. the identity of the beneficiary may not be identified.