Ch. 5

Question 1

Common Elements

Answer 1

Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all the condominium residents. Each condominium owner has an undivided ownership interest in the common elements.

Question 2

Community Property

Answer 2

A system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage. A holdover of Spanish law found predominantly in the western U.S. states; the system was unknown.

Question 3

Condominium

Answer 3

The absolute ownership of a unit in a multi-unit building based on a legal description of the airspace the unit actually occupies, or a separate dwelling unit in a multi-unit development, plus an undivided interest in the ownership of the common elements in the building or development, which are owned jointly with the other condominium unit owners.

Question 4

Cooperative

Answer 4

A residential multi-unit building whose title is held by a trust or corporation that is owned by and operate for the benefit of people living within the building who are the beneficial owners of the trust or shareholders of the corporation, each possessing a proprietary lease to a property unit.

Question 5

Co-Ownership

Answer 5

Title ownership held by tow or more persons.

Question 6

Corporation

Answer 6

An entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures.

Question 7

General Partnership

Answer 7

A typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operation.

Question 8

Joint Tenancy

Answer 8

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest usually passes to the surviving joint tenant or tenants by the right of survivorship.

Question 9

Limited Liability Company (LLC)

Answer 9

A form of business organization that combines the most attractive features of limited partnerships and corporations.

Question 10

Limited Partnership

Answer 10

A business arrangement whereby the operation is administered by one or more general partners and funded, by and large, by limited or silent partners, who are by law responsible for losses only to the extent of their investments.

Question 11

Partition

Answer 11

The division of cotenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through a court procedure.

Question 12

Partnership

Answer 12

An association of two or more individuals who carry on a continuing business for profit as co-owners. Under the law, a partnership is regarded as a group of individuals rather than as a single entity separate from the individual owners.

Question 13

PITT

Answer 13

The four unities of tenants in a joint tenancy: possession, interest, time, and title.

Question 14

Right of Survivorship

Answer 14

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest usually passes to the surviving joint tenant or tenants by the right of survivorship.

Question 15

Separate Property

Answer 15

Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance during the marriage, or purchased with separate funds after the marriage.

Question 16

Severalty

Answer 16

Ownership of real property by one person only; also called sole ownership.

Question 17

Tenancy by the Entirety

Answer 17

The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.

Question 18

Tenancy in Common (TIC)

Answer 18

A form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. Each individual owner has the right to partition. Unlike joint tenants, tenants in common have the right of inheritance.

Question 19

Time-Share

Answer 19

A form of ownership interest that may include an estate interest in property and hat allows use of the property for a fixed for variable time periord.

Question 20

Town House

Answer 20

A type of residential dwelling with two floors that is connected to one or more dwellings by a common wall or walls. Title to the unit and lot vest in the owner who shares a fractional interest with other owners in any common areas.

Question 21

Trust

Answer 21

A fiduciary arrangement whereby property is conveyed to a person or an institution, called a trustee, to be held and administered on behalf of another person called a beneficiary. The one who conveys the trust is called the trustor.