Chapter 7 - Forms of Real Estate Ownership

Question 1

Under what circumstances may the owner of a campground membership usually use the facilities?

Answer 1

Limited only by weather and access.

Question 2

What is the effect of Pennsylvania adopting the Uniform Partnership Act?

Answer 2

Partnerships are recognized as a legal entity.

Question 3

Who runs the business in a general partnership?

Answer 3

One or more general partners.

Question 4

A man owns one of 20 units in fee simple, along with a 5% ownership share in the parking facilities, recreation center, and grounds. What kind of property does he own?

Answer 4

Condominium

Question 5

Two sisters and their brother were concurrent owners of a parcel of real estate. The brother died, and his interest passed according to his will to become part of his estate. This brother was a …

Answer 5

-tenant in common

Question 6

A man conveys a vineyard in trust to his sister, with the instruction that any income derived from the vineyard is to be used for his daughter’s medical care. Which of the following statements MOST accurately describes the relationship of these parties?

Answer 6

The man is the truster, the sister is the trustee, and his daughter is the beneficiary.

Question 7

Ownership that allows possession for a specific time each year is a …

Answer 7

Time-Share

Question 8

Which of the following forms of ownership may be created by operation of law?

• Joint Tenancy
• Tenancy by the entirety
• Joint tenancy with right of survivorship
• Tenancy in Common

Answer 8

-Tenancy In Common

Question 9

A corporation may own real estate in all of the following manners EXCEPT

• in a trust
• in severalty
• in partnership
• in joint tenancy

Answer 9

-in Joint Tenancy

Question 10

A woman lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, she owns stock in the corporation and has a lease to an apartment. What type of ownership is this?

Answer 10

-Cooperative Unit

Question 11

An owner purchases an interest in a resort property. The owner is entitled to the right of possession only between July 10 and August 4 of each year. The owner most likely purchased a …

Answer 11

Time-Share Estate

Question 12

Which statement applies to both joint tenancy and tenancy by the entirety?

• There is no right to file a partition suit
• The last survivor becomes a severalty owner
• A deed signed by one owner will convey a fractional interest.
• A deed will not convey any interest unless signed by both spouses.

Answer 12

-A deed signed by one owner will convey a fractional interest.

Question 13

How does a condominium obtain the funds necessary to cover ongoing operating expenses and mortgage payments?

Answer 13

-Assess Unit Holders

Question 14

The owner of a condominium is responsible for paying monthly maintenance fee. If the owner fails to make this payment, the …

Answer 14

debt becomes a lien against the unit.

Question 15

What is a primary disadvantage of a corporation?

Answer 15

-Pays taxes twice

Question 16

In Pennsylvania, a conveyance made “to Arnold and Julia Haber, and Wife,” without further elaboration, creates a

Answer 16

tenancy by the entirety

Question 17

As a legal entity, a corporation continues to exist until …

Answer 17

it is formally dissolved

Question 18

What is the benefit of an S corporation ?

Answer 18

No corporate taxes

Question 19

Of five individuals who own a business, only one is active in operating a business. The other four owners contribute funds, but do not participate in the day-to-day operations. This form of ownership is …

Answer 19

-limited partnership

Question 20

Three co-owners cannot agree on the use and disposition of the property that they own together. Two want to sell and the third wants to keep the property. What if anything, can they do to solve their problem?

Answer 20

-They can file a partition suit.