Chapter 08 forms of real estate ownership

Question 1

Serveralty

Answer 1

Title is held by individual or corporation

Question 2

Co ownership

Answer 2

Title is held by two or more individuals

Question 3

Estate in trust

Answer 3

A neutral individual holds the title for the benefit of another

Question 4

Tenancy in common

Answer 4

• All owners own an equal share unless specified in the deed
• all owners have possession of whole property
• Each owner can transfer share freely
• When co ownership is unspecified, Tenancy in common is the default

Question 5

Joint Tenancy

Answer 5

Right of survivorship:

Upon death of joint tenant, shares go to surviving joint tenants

Question 6

Creating a joint tenancies

Answer 6

Four units necessary to create a joint tenancy (PITT):

• unity of possession
• Unity of interest
• Unity of time (all acquire interest at same time)
• Unity of document ( all on the same document)

Question 7

Terminating a joint tenancy

Answer 7

• If any units are destroyed
• if joint tenants transfer ownership to another, previous joint tenants remain JT, but their relationship with new party is a tenancy in common.

Question 8

Partition suit

Answer 8

Partition is a legal way to terminate a joint tenancy when not all parties agree. If the court decide that property cannot be physically broken up into separate parts, they order property to be sold and proceeds to be split.

Question 9

Tenancy by the entirety

Answer 9

Ownership by married couples.

• Surviving spouse inherits property
• neither can transfer deed without permission from the other

Question 10

Trust

Answer 10

A device by which one person transfers ownership of property to hold or manage for the benefit of a 3rd party

Question 11

Trustor

Answer 11

The person who creates the trust

Question 12

Trustee

Answer 12

The party who holds legal title and is trusted to carry out trustors instructions

Question 13

Beneficiary

Answer 13

Person who benefits from trust

Question 14

Testamentary trust

Answer 14

Established by will after death

Question 15

Living trust

Answer 15

Created by trustor during their lifetime

Question 16

Land trust

Answer 16

• Real estate is the only asset
• Trustor is usually the beneficiary
• Beneficiary retains rights and control
• often used for conservation or secretiveness

Question 17

Partnership

Answer 17

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

• General partnership
• limited partnership

Question 18

General Partnership

Answer 18

All partners participate and share full liability

Question 19

Limited Partnership

Answer 19

Consist of one or more general partners and limited partners.

Limited partners are not legally permitted to participate.

Question 20

Corporations

Answer 20

• Legal entity (artificial person)
• Created under laws particular state
• Managed by board of directors
• can own property in severalty or tenants in common

Question 21

Limited liability company (LLC)

Answer 21

Combines the benefits of corporations and limited partnership.

Question 22

Condominium ownership

Answer 22

Condominium laws ( horizontal properties acts) are enacted by the state and give owners fee simple title.

Owners have share of common area

Shared elements are tenants in common

Question 23

Right of refusal

Answer 23

When Hoa requires owner to ofer other owners property first at same price before listing it with the public

Question 24

Time share

Answer 24

Time share estate: no expiration

Time share use: Expires