Chapter 3 Review-How can real estate be owned

Question 1

What is it called when you have ownership by one person or legal entity?

Answer 1

Ownership by severalty

Question 2

What is it called when a property is owned by two or more people and is characterized by the unity of “possession”?

This type of tenancy gives each party the right to possess and use the entire property.

Answer 2

Tenants-in-common

Question 3

What is it called when a property is owned by two or more people and is characterized by the right of “survivorship”?

When one owner dies, his or her shares is automatically transferred to the other owners.

Answer 3

Joint tenancy

Question 4

True or False:

Tenants-in-common ownership is an inheritable estate?

Answer 4

True!
The owner has the right to give it to whomever they choose in his or her will.
This is the only form of ownership where the shares or interest can be unequal.

Question 5

What are the four characteristics of Joint Tenancy?

Answer 5

Unities of time
Title
Interest
Possession

Question 6

_________ __ ___ _______ can only be held by people that are married. In the eyes of the law, each spouse owns 100% of the property. Upon the death of one spouse the property automatically transfers to the other spouse.
Unities of time, title, interest, possession, and person are necessary to create this.

Answer 6

Tenancy by the entirety.

Not observed as law in Maine

Question 7

In ______________ _________ estates, marriage is seen as a partnership and any property purchased with commingled funds with the marriage are equally owned by each spouse.

Answer 7

Community Property

Question 8

When co-owners cannot agree upon how the property should be divided, one owner may file a _____ ___ ____________, which will allow the court system to determine the division.

Answer 8

petition for partition or suit for partition

Question 9

___________________ ownership blends ownership of an individual unit with ownership of other elements as tenants-in-common with all the other owners.

Answer 9

Condominium

Question 10

When you own a condo, the common elements are owned by _______?

Answer 10

Everyone

Question 11

When you own a condo, the limited common elements are used by ___________?

Answer 11

The unit owner only

Question 12

A leasehold condominium means?

Answer 12

The land is leased

The purchaser should determine if the lease is 99 years and renewable forever or if it ends at a certain time.

Question 13

An owner of a time share purchases the right to use the property or a set period of time, usually ________________ increments.

Answer 13

weeklong

Question 14

With a timeshare, if the weeks are sold as fractional ownership, the person would receive a _________ to the property.

Answer 14

deed

Question 15

What is a cooperative?

Answer 15

It’s when a company is formed to purchase a building.

Question 16

When buying into a cooperative property (aka, co-op), the buyers purchase what?

Answer 16

stock in the company and have a proprietary lease to an apartment

Question 17

Each co-op owner must pay his or her share of what?

Answer 17

mortgage payment, property taxes and maintenance

Question 18

REIT stands for what?

-these are publicly traded investments entities that pool money of investors who want to invest in real estate.

Answer 18

Real Estate Investment Trusts

Question 19

A __________ __ ___________ is a legal entity established by an investor or property owner.

Answer 19

Deed in Trust

Question 20

What are the three parties in a Deed in Trust?

A deed in trust is established for the management of property.

Answer 20

Trustor, Trustee and Beneficiary

Question 21

Types of Co-ownerships are?

Answer 21

Tenants in Common
Joint Tenancy
Tenants by the Entirety
Community Property

Question 22

Types of Shared Ownerships?

Answer 22

Condominium
Cooperatives
Time Shares

Question 23

Another word for Co-Ownership?

Answer 23

Concurrent

Question 24

The landowner creating a condominium is called what?

Answer 24

Declarant