Ch. 5 Forms of Real Estate Ownership

Question 1

common elements

Answer 1

undivided interest in the remainder of the bldg and land in a condominium

Question 2

community property

Answer 2

real and personal property acquired by either spouse during the marriage

Question 3

condominium

Answer 3

form of ownership is used throughout the US/each unit holds fee simple title to the unit/each individual unit owner also owns a specified share of the undivided interest in the remainder of the bldg and land, known as common elements

Question 4

cooperative

Answer 4

A residential multiunit bldg whose title is held by a trust or corporation that is owned by and operated for the benefit of the people living within the bldg who are 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 two or more persons

Question 6

general partnership

Answer 6

all the partners participate in the operation and management of the business and share full liability for business losses and obligations

Question 7

joint tenancy

Answer 7

property owned by two or more people whether married or unmarried /the deceased’s interest transfers directly to the surviving joint tenant or tenants/Right of Survivorship/to create a joint tenancy must have PITT

Question 8

limited partnership

Answer 8

consists of one or more general partners, as well as limited partners/the limited partners are not legally permitted to participate with the result that each can be held liable for business losses only to the amount invested

Question 9

partition

Answer 9

legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination

Question 10

partnership

Answer 10

an association of two or more persons who carry on a business for profit as co-owners

Question 11

PITT

Answer 11

possession, interest, time and title, PITT is needed to create a joint tenancy

Question 12

right of survivorship

Answer 12

in ‘joint tenancy’ the death of a tenants interest passes to the surviving joint tenant

Question 13

separate property

Answer 13

real or personal property that was owned solely by either spouse before marriage or acquired by gift of inheritance by one spouse during the marriage, or purchased with separate funds during the marriage

Question 14

severalty

Answer 14

when property is owned by one individual, corporation, or other entity

Question 15

tenancy by the entirety

Answer 15

allows a spouse to inherit the other spouse’s ownership interest upon death

Question 16

tenancy in common (TIC)

Answer 16

each tenant holds an undivided interest in the property /the co-owners have unity of possession, meaning that each owner is entitled to possession and use of the entire property, even though each holds only a fractional ownership interest

Question 17

time-share

Answer 17

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

Question 18

town house

Answer 18

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 lost vest in the owner who shares a fractional interest with other owners in any common area

Question 19

trust

Answer 19

a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of the third party

Question 20

trustor

Answer 20

person who creates the trust

Question 21

trustee

Answer 21

party who holds legal title to the property and is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust

Question 22

REIT

Answer 22

Real Estate Investment Trust

Question 23

corporation

Answer 23

a legal entity-an artificial person-created under the authority of the laws of the state from which it receives its charger