(Ch. 5) Method of Ownership

Question 1

1. A conveys property to B and C who are unrelated and not joint tenants. If B dies:

(A) C is the sole owner.
(B) B’s share goes to his heirs
(C) the property reverts back to A
(D) E comes into the picture.

Answer 1

(B)

B and C held as tenants in common

Question 2

2. Which of the following statements apply equally to joint tenant and tenant by the entirety?

A) there is no right to file a partition suit
B) The survivor becomes owner.
C) A deed signed by one will convey fractional interest.
D) A deed will not convey any interest unless signed by both spouses.

Answer 2

(B)

In Tenancy by the entirety, the martial unit owns the property: therefore, both spouses must act to partition or sell

Question 3

3. When a person owns property to the exclusion of all other persons, he is said to hold the property in:

A)personalty.
B)common.
C) severalty
D)The secret.

Answer 3

(C)

Sole ownership is called “Severalty”

Question 4

4. A tenancy in common must have unity of:

A) time
B) title
C) Interest
D) possession

Answer 4

(D)

Each tenant has undivided interest to possess the whole

Question 5

5. Co-ownership of property by a husband and wife can take any of the following forms except a:

A) tenancy in common
B) Tenancy by the entirety
C) joint tenancy
D) tenancy in severalty

Answer 5

(D)

Husband and wife can I own severalty , because serveralty is limited to one owner

Question 6

6. When used in connection with ownership interest, the term “partition” means:

A) a formal written request signed by a group of petitioners
B) court action by which owners of property seek to sever their common ownership
C) a bearing wall in a building
D) a non-bearing wall in the building

Answer 6

(B)

Only allowed in Tenancy in or with joint tenancy

Question 7

7. A joint tenant may NOT:

A) sell his interest.
B) give away his interest
C) encumber his interest
D) devise his interest

Answer 7

(D)

At death there is no interest in his estate to Will

Question 8

8. Your customer plans to get divorced shortly before closing of a property she and her boyfriend just purchased and asks you about how to hold title to the property. You should suggest she:

A) get divorced first
B) conceal the pending divorce
C) consult an attorney
D) choose joint tenancy

Answer 8

(C)

Real estate licensees should not give legal advice

Question 9

9. When purchasing real estate, the form or method of ownership (severally, tenants in common or joint tenants) should be determined by:

A) the broker
B) the buyer and his attorney
C) the seller
D) the law of the state in which the real estate is located

Answer 9

(B)

It is the unauthorized practice of law for a broker to determine the Tenancy, though he should discuss the various differences

Question 10

10. If title to a farm is held as tenants by the entirety, which of the following is true?

A) A valid contract of sale on the farm must be signed by both of the spouses that are selling
B) A creditor of one spouse can assert a valid lien on the farm
C) The husband can devise his interest
D) Spouses have no survivorship rights

Answer 10

(A)

The buyer could not obtain specific performance without both signatures. A creditor would have to be a creditor of both spouses

Question 11

11. When a person who owns real estate in severalty dies testate, his property:

A) goes entirely to the surviving joint tenant
B) is probated and distributed according to the will
C) Would be sold vested in the remaining tenant in common
D) revert to the country by escheat

Answer 11

(B)

Testate means having me a valid will

Question 12

12. Property purchased by a brother and sister with full survivorship would be:

A) Tenancy in common
B) Joint Tenancy
C) Tenancy by entirely
D) Sevalty

Answer 12

(B)

Tenancy by the entirety is limited to husband-and-wife

Question 13

13. One of the features of owning real property as tenants in common is:

A) each co-owner must have equal interest
B) each owner may not will his interest
C) each co-owner may acquire interest at different times
D) the last survivor owns property in severalty

Answer 13

(C)

A, B and D are true of joint tenancy

Question 14

14. Two sisters, Mary and Rose, inherit real estate from their mother with no stipulation except that one third is to go to Mary and 2/3 to Rose. Which of the following is true?

A) Mary and Rose are joint tenants of the property
B) Rose may not mortgage her interest in the property without Mary’s consent
C) upon Mary’s death her part of the property reverts to Rose
D) upon rose’s death, her share passes to her heirs or devisees

Answer 14

(D)

Mary and Rose were tenants in common because of equal shares

Question 15

15. A woman and her brother whole property in joint tenancy. The woman deed her part to herself and her husband, Therefore:

A) the deed to the husband is invalid
B) the joint tenacy is broken
C) All three now hold title in joint tenancy
D) join tenacy remains the same

Answer 15

(B)

The brother has a 1/2 undivided tenacy in common interest

Question 16

16. One of the advantages of joint tenancy is:

A) it cannot be terminated without the consent of each tenant
B) tenants may own different fractional shares
C) it avoid delays and expenses of probate
D) it can only exist between husband and wife

Answer 16

(C)

The property passes outside probate estate

Question 17

17. Property owned by a tenant in common passes at death:

A) to his co-tenant or tenants
B) to his estate
C) By right of survivorship
D) By escheat

Answer 17

(B)

No survivorship rights

Question 18

18. A joint tenant may NOT:

A) sell his interest
B) give away his interest
C) encumbered his interest
D) sell the property

Answer 18

(D)

He may sell his interest but not “the property”

Question 19

19. Where two brothers hold title to property, one with a 1/3 interest and the other a 2/3 interest, title would most likely be held as:

A) Joint Tenacy
B) Tenacy by entirely
C) tenancy in common
D) Tenacy in severalty

Answer 19

(C)

Equal shares required with joint tenancy

Question 20

20. A corporation cannot hold title to real property in New Jersey with another as a joint tenant because:

A) it is a violation of the Securities Act.
B) of its perpetual existence
C) it is difficult to list all stockholders in the deed
D) a corporation cannot convey title to real property

Answer 20

(B)

The corporation would always be the last survivor

Question 21

21. A, B, and C own property as joint tenants. C dies and B sells his interest in the property to D. The property is now owned:

A) as joint tenant by A, D and C’s widow E. his heir.
B) A and D as joint tenant
C) A and D as tenants in common, each with a 1/2 interest
D) A and D and B’s wife

Answer 21

(C)

Upon the death of C, A and B owned the property as joint tenants. When B sold his interest to D, A and D became tenants in common

Question 22

22. Hanna Marsh and Max Haver buy a house together. They are a young, unmarried couple and want to know how they should take title so that if one of them dies, that person’s heirs will inherit the property interest. Their attorney will most likely recommend:

A) joint tenacy
B) tenacy at will
C) tenacy by the entirety
D) tenancy in common

Answer 22

(D)

Because of no survivorship rights

Question 23

23. A deed in favor of Norman and Rosalie with the stated proportionate interests of 2/3 and 1/3 respectively:

A) creates a tenancy in common
B) creates a valid joint tenacy
C) creates a severalty interest for each
D) is void

Answer 23

(A)

Cannot be joint tenancy because of unequal shares. Cannot be severalty because of two owners

Question 24

24. A tenancy by the entirety exists:

A) automatically when names of husband and wife appear on the deed
B) whenever there is right of survivorship among concurrent owners
C) when two or more people own the entire property
D) after the owners have been divorced

Answer 24

(A)

Automatic in New Jersey

Question 25

25. The person for whom a trust is created is called the:

A) fiduciary
B) trustee
C) trustor
D) beneficiary

Answer 25

(D)

The beneficiary benefits from the trust. The trustor creates it

Question 26

26. Tenant by the entirety:

A) each own a portion of the property
B) may seek an action for partition
C) have the right of survivorship
D) may share unequal interests

Answer 26

(C)

Automatic in New Jersey unless spouses indicate otherwise

Question 27

27. In New Jersey, condominiums are regulated by: Commission

A) the NJ Real Estate
B) the NJ Condominium Bureau
C) the NJ Departure of Community Affairs
D) the Horizontal Property Act

Answer 27

(D)

The permissive legislation that creates condos

Question 28

28. Which of the following statements is (are) true regarding timeshare estate?

A) Individuals who sell timeshare estates must be licensed by the New Jersey Real Estate Commission
B) The purchaser of a timeshare estates will receive a deed
C) Developers who sell timeshare estates in New Jersey must comply with the provisions of the New Jersey Real Estate Act if they market the units in New Jersey
D) All of the above statements are true

Answer 28

(D)

All statements are true

Question 29

29. Which of the following statements is NOT true?

A) An inter vivos trust is created by a beneficiary
B) A testamentary trust is created by a will
C) A trust transfers property of a trustor to trustee
D) A testamentary trust becomes effective when the trustor dies

Answer 29

(A)

And inter vivos trust is created by a trustor

Question 30

30. All of the following statements are true EXCEPT:

A) A Subchapter S corporation is taxed as a partnership
B) A Subchapter S corporation does not have to pay corporate income tax
C) The shareholders in a corporation generally have direct control of the corporation’s affair
D) A corporation that is not Subchapter S is classified as a C Corporation.

Answer 30

(C)

Shareholders have limited control