CH 6 Ownership of Real Property

Question 1

What is an estate in land?

Answer 1

the degree of ownership one holds in the land

Question 2

How did the feudal system of land ownership work?

Answer 2

all land was owned by a king or government while individuals were tenants

Question 3

How does the Allodial system work and who uses it?

Answer 3

individuals are entitled to own property without government control BUT government does retain some rights AND the USA uses it

Question 4

What is a freehold estate?

Answer 4

“I own the property” , lasts at least a lifetime and can be willed to heirs

Question 5

Types of freehold estates?

Answer 5

1. Fee Simple
2. Fee Defeasible
3. Life Estate
4. Fee Tail (NOT legal in the USA)

Question 6

Estates in real property are classified with respect to duration as one of the following:

Answer 6

estate. ..
1. …for life
2. …for years
3. …at will
4. …of inheritance or perpetual estate

Question 7

What is a leasehold estate?

Answer 7

“I rent the property” , usually a definite ending date and sometimes called “less than freehold estate”

Question 8

Types of leasehold estates?

Answer 8

1. Estate for years
2. Estate for period
3. Estate at will
4. Estate at sufferance

Question 9

What is Fee Simple / Fee Simple Absolute? (type of freehold estate)

Answer 9

owns the bundle of rights with highest degree of ownership, for unlimited duration and is inheritable

Question 10

What is Fee Simple Defeasible? (type of freehold estate)

Answer 10

owns the property on a condition, that if broken can cause reposition of the property

Question 11

A Voluntary Life Estate is also called what?

Answer 11

Conventional Life Estate

Question 12

Involuntary Life Estates are legal life estates, which are also called what?

Answer 12

marital right

Question 13

What is a Fee Tail? (kind of freehold estate)

Answer 13

property inheritable by a monarch , NOT legal in the USA

Question 14

When transferring title of real estate, what is the seller (grantor) able to decide?

Answer 14

what type of estate is transferred ie. life estate, fee simple, etc

Question 15

When transferring title of real estate, what is the buyer (grantee) able to decide?

Answer 15

how to take title to an estate

Question 16

What is a title?

Answer 16

the right to ownership of the land, and the evidence that such ownership exists

Question 17

Describe separate ownership / severalty…

Answer 17

ownership by one individual or a corporation who alone receives all the benefits and burdens of the property , also referred to as sole ownership

Question 18

What is vesting?

Answer 18

the method in which one holds title to property, involves placing a person’s name(s) on the deed, along with a description of the method by which that person(s) will hold title

Question 19

Three main forms of co-ownership /concurrent ownership:

Answer 19

1. tenancy in common
2. joint tenancy
3. community property

Question 20

What is Tenancy in Common (form of concurrent ownership (aka co-ownership)?

Answer 20

two or more people holding ownership at the same time with the right to individually possess, will to heirs, or sell without others permission (undivided interest)

Question 21

T OR F : In Tenancy in Common, interest in a property has to be equal?

Answer 21

False, interest can be equal but can also be un equal

Question 22

What does undivided interest in a property mean?

Answer 22

the property can not be physically divided up but all owners have an interest based on percentage of ownership in the property

Question 23

In Tenancy in Common, there is a “unity of possession”. What does this mean?

Answer 23

each owner has a right to possess and none can exclude others or claim a specific portion for theirselves

Question 24

In order for a joint tenancy to be legal and exist, the deed must clearly state what?

Answer 24

intention of the owners and the phrase “in joint tenancy” / “as joint tenants”

Question 25

Upon death of one of the joint tenants in a joint tenancy, what happens?

Answer 25

the joint tenancy is terminated

Question 26

Who is not permitted to enter into joint tenancies?

Answer 26

corporations

Question 27

In joint tenancy, there is a right to survivorship, what does this mean?

Answer 27

if one owner dies, their interest is passed on to the other joint tenants And NOT inherited by heirs

Question 28

Who is the grantee?

Answer 28

the buyer

Question 29

Who is the grantor?

Answer 29

the seller

Question 30

What is Community Property? (kind of concurrent ownership)

Answer 30

all property acquired by a husband and wife during their marriage and shared equally

Question 31

What is the difference between community property and separate property, in regards to community property laws?

Answer 31

community - anything acquired during the marriage

separate - anything either spouse acquired before the marriage or through gift or inheritance

Question 32

If there is no will stating the heir to community property, who does it automatically go to when a spouse dies?

Answer 32

the surviving partner

Question 33

What is Community Property with right of survivorship?

Answer 33

community property that transfers to remaining spouse when other passes away, WITH income tax benefits