Ch 7 Quiz Definitions Flashcards
True or False? When a property is leased, two separate estates are created.
TRUE. Partial Interest. When a property is leased, it creates two separate estates or interests. One belongs to the owner of the property and the other belongs to the tenant.
A leasehold interest may have value when
the contract rent is less than market rent
A fee simple estate is NOT reserved
for married couples only
Joint tenancy has the right of survivorship. What does this mean?
when a joint tenant dies, his/her share goes to the surviving joint tenants.
“The right to perform a specific action on a property owned by another” is the definition of
affirmative easement
“An easement preventing a property owner from certain, otherwise permitted, uses of his or her land” is the definition of
negative easement
An easement that has, by definition, both dominant and servient tenements is
an easement appurtenant
A remainderman is found in which type of estate?
life interest
What form of concurrent ownership allows a person to sell off their interest without the approval or knowledge of the other owners?
tenants in common
“The right to use another’s land for a stated purpose “ is the definition of
easement
A property has a market value of $300,000. The owner has a first mortgage of $200,000 and a second mortgage of $40,000. What is the market value of the fee simple estate?
300000
Which form of ownership does NOT have the right of survivorship?
tenancy in common
“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of
fee simple
Which of the following is NOT a partial estate?
fee simple
A drainage easement is an example of a(n)
negative easement. Easements II. That would be a negative easement as it would prevent the owner from otherwise using that portion of his property.
Bob grants a life interest in his property to his mother, Mary. As long as Mary is alive, Bob’s interest in the property is referred to as a (an)
estate in remainder
During the life of the holder of the life interest, the interest is called an Estate in Remainder.
When appraising a property that is subject to a life interest, an appraiser is MOST likely to use
a discount based on a mortality table
A leasehold interest belongs to the
tenant
True or False? Fee simple estate is not limited by the governmental powers of taxation, eminent domain, police power, and escheat.
FALSE
“A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas” is the definition of a
condominium
A property is owned as tenancy in severalty. How many owners are there?
- Individual ownership. In spite of the name, which seems to imply several owners, tenancy in severalty means only one owner.
Syndications are
either private or public partnerships
Tenancy in severalty involves ____________ owner(s).
only one
A limited partnership has
both general and limited partners
What is a corporation or trust that functions like a mutual fund for real estate, by combining the capital of many investors to acquire real estate?
REIT
Martha wants to purchase a property with her three sons. She wants a 70% ownership interest, and her sons will each have a 10% interest. What form of ownership will best suit her needs?
tenancy in common
A leasehold interest belongs to the
tenant
The most desirable form of timesharing is called ___________ timesharing.
fee
Which is the fullest and most complete type of estate?
fee simple
A facade easement is a type of________________ easement.
historic preservation
“A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas” is the definition of a
condominium
Which type of ownership can only be held by a married couple?
tenancy by the entirety
“The right to perform a specific action on a property owned by another” is the definition of
affirmative easement
“Type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development; usually includes common area and common area maintenance obligations in the form of owners association dues” is the definition of
PUD
“An estate held by two or more persons, each of whom has an undivided interest” is the definition of
tenancy in common
What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?
cooperative
“Divided or undivided rights in real estate that represent less than the whole” is the definition of
partial interest
