Chapter 6 - Forms of Ownership

Question 1

Severalty Ownership

Answer 1

Real property that is owned by only one person. Sole ownership.

Question 2

Community Property

Answer 2

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property.

Question 3

Joint Tenancy

Answer 3

Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

Question 4

Partition

Answer 4

A division of real or personal property or the proceeds therefrom among co-owners.

Question 5

Right of Survivorship

Answer 5

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.

Question 6

Tenancy by the Entireties

Answer 6

Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon death of one spouse it becomes the property of the survivor.

Question 7

Tenancy in Common

Answer 7

Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interest need not be equal.

Question 8

Beneficiary

Answer 8

The recipient of a gift of personal property by will.

Question 9

Land Trust

Answer 9

A legal agreement where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party.

Question 10

Living Trust

Answer 10

An agreement where the trustee holds the legal possession of an asset (e.g. real estate) that belongs to another person, the beneficiary, and it is created while the person is alive.

Question 11

Testamentary Trust

Answer 11

A trust which arises upon the death of the testator, and which is specified in his or her will.

Question 12

Trust

Answer 12

A legal relationship under which title to property is transferred to a person known as a trustee.

Question 13

Trustee

Answer 13

A person who holds title to property for the benefit of another called a beneficiary.

Question 14

Trustor

Answer 14

A person who conveys title to a trustee.

Question 15

Partnership

Answer 15

An arrangement in which two or more individuals share the profits and liabilities of a business venture.

Question 16

Corporation

Answer 16

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of having certain powers and duties of a natural person. Being created by law, it may continue for any length of time the law prescribes.

Question 17

Limited Liability Company (LLC)

Answer 17

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Question 18

Real Estate Syndicate

Answer 18

An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling capital for the acquisition of real property interests.

Question 19

Common Elements

Answer 19

Refers to the spaces in a building shared by residents of the building. These include lobbies, corridors, stairs, elevators, etc.

Question 20

Condominium

Answer 20

An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map or condominium plan.

Question 21

Cooperative

Answer 21

An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building.

Question 22

Time-Share

Answer 22

A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.