Chapter 4 Flashcards
main goal of real estate land use planning
to create organized and thriving communities by balancing development with preservation and ensuring wise use of land resources.
airspace
the three-
dimensional space above a
property that is owned or
controlled by the property
owner
beneficiary
the person or
entity designated to receive
the benefits of a trust,
including income, assets, or
other property held in the
trust. Beneficiaries may be
individuals, organizations, or
charities named in the trust
agreement
common
elements
parts
of a condominium or
cooperative property that are
jointly owned and shared
by all unit owners. These
may include common areas
such as hallways, elevators,
parking lots, and
recreational facilities.
community
property
legal
concept that applies to the
ownership of property acquired
by married couples in certain
states. Under community
property laws, property
acquired during the marriage is
considered jointly owned by
both spouses, regardless of
who earned or purchased
the property.
condominium
type of real
estate property where
individual units within a larger
building or complex are
individually owned, while
common areas and amenities
are shared by all unit owners.
cooperative
A cooperative, or co-op, is a
type of real estate ownership
where individuals purchase
shares in a corporation or
association that owns the
entire property. Shareholders
have the right to occupy a
specific unit within the property
under a proprietary lease.
corporation
legal entity
created under state law that
is separate and distinct from
its owners (shareholders).
Corporations can own
property, enter into
contracts, and engage in
business activities on behalf
of their shareholders.
four
unities
essential elements required
to create a joint tenancy:
unity of time, title, interest,
and possession. These
unities ensure that joint
tenants have equal rights and
interests in the property.
joint
tenancy
form of
property ownership where two
or more individuals own equal
shares of the property with the
right of survivorship. If one joint
tenant passes away, their
ownership interest
automatically transfers to the
surviving joint tenants.
land
trust
type of trust
specifically created to hold and
manage real estate assets,
such as land or real property.
Land trusts are often used to
provide privacy, asset
protection, and ease of transfer
of real estate interests.
Limited
liability
company
(LLC) is a business structure
that combines the limited
liability protection of a
corporation with the flexibility
and tax advantages of a
partnership. In real estate,
LLCs are commonly used to
own and manage properties
while shielding the owners’
personal assets from
business liabilities.
living
trust
also known as a
revocable trust or inter vivos
trust, is a trust created during
the trustor’s lifetime to hold
and manage assets for the
benefit of the beneficiaries.
Living trusts are often used to
avoid probate and provide for
the management and
distribution of assets upon the
trustor’s incapacity or death.
partition
legal process
used to divide co-owned
property among its owners
when they cannot agree on
how to use or manage the
property. It allows each co-
owner to obtain a separate
share of the property,
enabling them to sever their
co-ownership interests.
partnership
business
structure where two or more
individuals or entities join
together to operate a business
or investment venture. In real
estate, partnerships are often
formed to jointly own and
manage properties, with each
partner sharing in the profits,
losses, and responsibilities.
