Chapter 2: Estates In Real property & Forms Of Ownership Flashcards
In California, condominium projects are generally regulated as:
subdivisions.
(To establish a condominium, a developer must record a condominium plan and declaration. The rules and regulations establishing a condominium are generally quite similar to those rules and regulations that apply to the creation of subdivisions.)
The type of concurrent ownership that requires unity of interest, unity of title, unity of time, and unity of possession that includes the right of survivorship is known as:
joint tenancy
In a community property state, each spouse has the right to will their 50% ownership interest to someone other than their spouse, and a tenancy in common has no right of survivorship. Therefore, joint tenancy is the only correct answer.
Which following statement(s) are true regarding cooperatives?
Check all that apply …
- If one tenant in a cooperative defaults on his/her share of the mortgage payment, the remaining tenants must cure the default.
-A corporation owns the whole project and the persons who occupy the individual units are shareholders with a tenancy right to a particular unit under a proprietary lease
(The shares purchased by a cooperative unit possessor are personal property. The interests of the shareholder in the unit are possessory rights under a proprietary lease. One blanket mortgage is taken out by the corporation for the entire project with the payments financed by the long term purchase of shares. Thus, a defaulting payment on the purchase of shares renders a portion of the underlying blanket loan in default which must be cured by the remaining tenants or shareholders.)
Which one of the following is NOT a characteristic of a fee simple estate?
It is free of all encumbrances.
(A fee simple estate may be freely encumbered. It does not have to be free of all encumbrances.)
A Real Estate Investment Trust (REIT)
- avoids double taxation as long as at least 90% of its income is distributed to the shareholders who pay tax on the income.
-involves one or more trustees who manage property for others, who are called beneficiaries.
-is an unincorporated syndicate to finance large real estate projects.
When an apartment building is converted to a condominium, which of the following is TRUE?
Each apartment tenant must be given 180 days notice of the conversion.
(One regulation designed to protect the current tenants when an apartment building is converted to a condominium project requires that each tenant must be given 180 days’ written notice of the conversion.)
All of the following statements are true regarding condominiums, EXCEPT:
the seller’s interest in common elements will be sold separately from the unit.
(A condominium owner’s interest in the common elements always transfers automatically to the purchaser upon the sale of the unit)
Which of the following statements concerning a life estate is false?
The duration of a life estate is always the governing lifetime of the life tenant.
(The duration of a life estate can be the lifetime of any individual named by the grantor. It does not need to be the lifetime of the life tenant.)
Which statement about a corporation is FALSE?
Shareholders in a corporation are personally liable for corporate debt.
(Individual shareholders in a corporation share in the profits but have no personal liability for corporate debt)
In California, unless otherwise provided for, married couples will take title to real property as:
community property
(California is a community property state and, as such, all property acquired during the marriage is community property except property acquired by inheritance, will, or gift.)
