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.