Chapter 7 - Ownership of Real Estate Flashcards
Common Elements
Parts of a property that are necessary or convenient to the existence,maintenance, and safety of a condominium or re normally in common use by all of the condominium residents.
Board of directors
Elected managing body of a corporation, specifically of a cooperative apartment building.
Condominium
The absolute ownership of an apartment or a unit plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium owners.
Conversion
A landlord who desires to convert a rental apartment building into a condominium must obtain approval of the planned conversion by the state of New Jersey at least three years and two months before conversion may start. Certain tenants with disabilities and those aged 62 or older may not be evicted during a conversion. Tenants so protected must have occupied premises for at least two years before the conversion and have incomes no higher than three times their county’s per capita income or in any case, no higher than $50,000. If they meet the qualifications they are allowed to continue for up to 40 years.
Cooperative
Title is held by a corporation. each purchaser of an apartment in a building receives stock in the corporation and a proprietary lease. which gives the purchaser the right to occupy his or her apartment.
Accumulation of funds or reserves for future repairs and emergency payments offer some protection to the cooperative as a whole.
Corporation
Formof ownership of cooperatives.
Devisee
Person named in a will where title to property passes.
General partnership
Group in which each partner shares complete liabiltity.
Horizontal Properties Act
Law regulating the creation of condo’s.
Joint tenancy
Ownership of real estate between two or more parties who have been named in one conveyance specifically as joint tenants. Upon the death of a joint tenant, his or her interest passes to the surviving joint tenants or tenant.
Limited liability company
LLC - Organization that combines the simplicity and tax treatment of a partnership with the protection from liability offered by a corporation.
Partition
The division that is made of real property between those who own an undivided interest. If a tenant wants to dissolve a co-ownership but the other tenants do not want to voluntarily agree to its termination, he or she may file a suit.if possible the land would be divided into separate parcels (physical partition). If the court determines that the land cannot be divided into parts,it orders the real estate to be sold and the proceeds divided among the co-owners, according to their fractional interests (judicial partition).
Partnership
An association of two or more individuals who carry on a continuing business for profit as co-owners. A general partnership is atypical form of joint venture , in which the general partner shares in the administration, profits, and losses of the operations. A limited partnership is administered by one or more general partners and funded by limited silent partners who are responsible for losses only to the extent of their investments.
Proprietary lease
A written lease in a cooperative apartment building, held by the tenant/shareholder, giving the right to occupy a particular unit.
Reserves
Funds held by a cooperative corporation to fund emergency and other needs of the cooperative apartment building.
Right of survivorship
Main feature of joint tenancy is that it carries the right of survivorship. The death of one joint tenant of a property simply means there is one less person in the group; the remaining joint tenants receive the share owned by the deceased tenant. This transfer occurs automatically. In contrast to tenants in common, the surviving joint tenants cannot devise their interest in a property. As each successive tenant dies, the surviving joint tenants acquire the interests of the deceased joint tenant. Only the last joint tenant survivor can dispose of the property by will, because that person now has the estate in severalty.
Sole proprietorship
Ownership of a business by one person.
Tenancy by the entirety
the joint ownership of property by husband and wife during marriage. Upon death of one spouse, the survivor becomes the owner of the property.
Tenancy in common
A form of joint co-ownership by which each own has an undivided interest in real property as if she or he were sole owner. Each owner has the right of partition. tenants in common have no rights of survivorship. Each owner can sell or convey or transfer that interest without the consent of the other co-owners.
Tenancy in severalty
Tittle is held by one person (or entity). he term severalty means all interest is severed from others. When that person dies, title will pass to their heirs or devisees.
Time-sharing
Ownership of real estate for only a portion of the year.
Title
Evidence that the owner of land is in lawful possesion therof; evidence of ownership.
Town house
Term used to describe an architectural style in which buildings share a party wall. Town house developments can be condominiums,or elements can be fee simple,including the land beneath the building. In some cases, the town house owners owns a share in the commom elements.
