Chapter 3 - Ownership

Question 1

What are the two types of property ownership?

Answer 1

Severally ownership and

Concurrent ownership

Question 2

What are all the types of concurrent ownerships?

Answer 2

1. Tenancy in common
2. Joint Tenancy
3. Tenancy by Entirety

Question 3

Describe tenancy in common.

Answer 3

Co-owners that do not share the same title and do not have to share equal interest to a property but do share undivided interest.

The shares of tenants in common are inheritable.

Question 4

Describe joint tenancy.

Answer 4

The co-tenants jointly own the estate and though they can sell, lease or mortgage their interest they cannot will it.

They share equal and undivided interest in the land.

Question 5

What are the 4 “unities” in joint tenancy?

Describe them.

Answer 5

1. Possession- each tenant has undivided interest in the property.
2. Interest- tenants must hold equal interest.
3. Time- all tenants must acquire their interest at the same time.
4. Title- any joint tenant can sell, lease, or mortgage their share without permission but cannot will it.

Question 6

Describe Tenancy by the Entirety.

Answer 6

Same as joint tenancy except it is exclusively for husband and wife, neither spouse can sell, lease, or mortgage interest without he consent of the spouse and a creditor cannot force the sale of the house unless both the husband and wife are liable for the debt.

Question 7

What is community property?

Answer 7

Another form of ownership that applies only to husband and wife and only as long as they are married.

Question 8

What are the 7 types of Tenancy in Partnership?

Answer 8

1. General Partnership.
2. Limited Partnership.
3. Limited Liability Company.
4. Trusts.
5. Syndicates.
6. Condominium Ownership.
7. Cooperative Ownership.

Question 9

Describe General Partnership.

Answer 9

Each partner is jointly and severally liable for the partnership obligations but creditors must first collect from the partnership before pursuing the individual partners.

Question 10

Describe Limited Partnership.

Answer 10

Partners have the same obligations as general partnership but their liability is limited to their investment.

Question 11

What is Joint Venture?

Answer 11

A general or limited partnership formed to complete a particular business project, with no intent to establish a permanent relationship.

Or

A temporary partnership (general or limited).

Question 12

Describe Limited Liability Company.

Answer 12

Managers and employees are not personally liable for the company’s debts.
The members’ Ownership interests are classified as personal property and are freely transferable.

Question 13

What are all the different kinds of trusts?

Answer 13

1. Testamentary trusts.
2. Living trusts.
3. Land trusts.
4. Real estate investment trust.

Question 14

What is a trust?

Answer 14

When a property owner places the title to the property in the hands of someone else for the benefit of a third party.

Question 15

Describe Testamentary trusts.

Answer 15

It is created by will after the owner’s death.

Question 16

Describe Living Trusts.

Answer 16

Created by agreement during the trustor’s lifetime, possibly as a way of avoiding probate costs or minimizing tax liabilities.

Question 17

Describe Land Trust.

Answer 17

The holding of real property, created by a traitor who will also be the beneficiary and who will retain control over management of the property.

Question 18

Describe Real Estate investment trusts.

Answer 18

Must have a minimum of 100 investors (beneficiaries) and is managed by a board of trustees who invest in real property or in mortgage loans.

Question 19

What is a syndicate?

Answer 19

It is not a legal form of ownership but a descriptive term for individuals or firms who invest in real property.

Question 20

Describe condominium partnership.

Answer 20

Allows multiple owners to hold fee simple title to their individual units.

Question 21

What are common elements when owning a condominium?

Answer 21

The common areas used in a condominium.

Question 22

What is a Master deed?

Answer 22

The principal conveyance document used to create the condominium.

Question 23

What is included in the Master deed?

Answer 23

The complete legal description and thoroughly describes the entire condominium entity.

Question 24

What is in a declaration?

Answer 24

A complete description of each unit.

Question 25

What is a plat?

Answer 25

Detailed site plan. Includes plans and specifications for buildings to be constructed.

Question 26

Describe By-laws.

Answer 26

They establish the framework for the formation of a homeowners association.

Question 27

What is the Georgia Condominium Act?

Answer 27

Law allowing first buyer of a new condominium unit a 7 Day right of rescission.

Question 28

What does the public offering statement disclose?

Answer 28

All material facts including details of the management and operation of the project as well as the right of rescission.

Question 29

Describe Cooperative Ownership.

Answer 29

Another form of concurrent ownership. Occurs when an existing or to-be-constructed building is owned in severally by a non-profit corporation.

Question 30

A co-op owner is assured of the exclusive use of an individual unit for the life of the corporation through the use of what?

Answer 30

Proprietary lease.