Chapter 4 Forms of real estate ownership

Question 1

One owner/ sole owner is cut off/severed from other owners

Answer 1

ownership in severalty

Question 2

Tenancy in common, jointy tenancy, tenancy by the etnirety and community property are types of

Answer 2

co-ownership

Question 3

Default mode of ownership. Undivided fractional interest. Universal right of possession. Only form of co-ownership with equal OR unequal ownership. Tenants presumed to own equal shares unless otherwise specified. Only co-ownership with willability.

Answer 3

Tenancy in common

Question 4

Property ownership by two or more people, married or unmarried. Equal interest in property. right of survivorship. Tenants receive interest at same time on ONE deed. If there are 2 owners and one dies, this form of co-ownership is terminated

Answer 4

Joint Tenancy

Question 5

Creating joint tenancy. If any of these aren’t true/implied/applied, the joint tenancy terminated

Answer 5

Possession, interest, time, title

Question 6

Legal way to dissolve the relationship between co-owners of real estate when the parties to not voluntarily agree to its termination

Answer 6

Partition

Question 7

Type of co-ownership reserved for married couples. Default mode for married couples. Like joint tenancy, but no partition. Owned like one unit. “marriage” owns the property.

Answer 7

Tenancy by the entirety

Question 8

Real or personal property that was owned solely by either spouse before the marriage or purchased with separate funds from the marriage

Answer 8

Separate property

Question 9

Device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party

Answer 9

Trust

Question 10

Person who creates the trust

Answer 10

trustor

Question 11

person benefiting from trust

Answer 11

beneficiary

Question 12

a person who acts in confidence or trust and has a special legal relationship with the beneficiary

Answer 12

Fiduciary

Question 13

Party who holds the legal title to the property and is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust

Answer 13

trustee

Question 14

These trsuts begin upon a person’s death

Answer 14

Living and testamentary trusts

Question 15

trust created by agreement during the property’s owner lifetime

Answer 15

living trust

Question 16

trust created by agreement established by will after owner’s death

Answer 16

testamentary trust

Question 17

Real estate is the only asset of a

Answer 17

land trust

Question 18

Association of two or more persons

Answer 18

partnership

Question 19

all partners participate in the operation and management of the business and share FULL LIABILITY for business losses and obligations

Answer 19

general partnership

Question 20

consists of one of more gneral partners. Not legally permitted to participate. “Silent partners”. Silent partners. Limited liability.

Answer 20

Limited partner

Question 21

Legal entity. Created under the authority of the laws of the state from which it receives its charter. Managed/operated by board of directors. selected by owners- the shareholders.

Answer 21

Corporations

Question 22

Type of corporate ownership. tax advantages, income flows directly to member(s).

Answer 22

LLC Limited Liability COmpany

Question 23

“Big Corp” Double taxation (negative). majority shareholders actively manage the corporation

Answer 23

C-corp

Question 24

Shareholders enjoy limited liability. 75 or fewer shareholders

Answer 24

S-corp

Question 25

Traded on wall street. Held in trust form for beneficiaries by a trustee

Answer 25

REIT Rewal Estate Investment Trust

Question 26

Hold fee simple for unit. specified share of undivided interest in the remainder of the building (common elements). Real estate taxes are assessed and collected on each unit as an individual property.

Answer 26

Condominium ownership

Question 27

The corporation holds title to the land and the building. Offers shares of stock tp prospective tenants. SHareholder in corporation. Own interest in corporation. Each shareholder affected by the financial stability of the others.

Answer 27

Cooperative ownership

Question 28

Annual Occupancy interval. “Buy 2 weeks of ownership”. Multiple purchasers to buy relatively small interests in real estate, typically resort porerties

Answer 28

Time share ownership.