Chapter 7: Ownership of Real Estate REVIEW QUESTIONS

Question 1

A parcel of real estate was purchased by Howard Evers and Tina Chance. Evers paid one-third of the cost and Chance paid the balance. The seller’s deed received at the closing conveyed the property “to Howard Evers and Tina Chance,” without further explanation. Thus Evers and Chance are

Answer 1

tenants in common, each owning a one-half undivided interest.

Question 2

If property is held by two or more owners as tenants in common, upon the death of one owner the ownership of his or her share passes to the

Answer 2

heirs or whoever is designated under the deceased owner’s will.

Question 3

In New Jersey, a deed conveying property to a married couple, such as to “Frank Peters and Marcia Peters, husband and wife,” creates a

Answer 3

tenancy by the entirety.

Question 4

Which of the following statements applies equally to joint tenants and tenants by the entirety?

Answer 4

The survivor becomes complete owner.

Question 5

Della and her cousin, Zeke, inherited their grandfather’s farm. Zeke lives there, refuses to pay the taxes, and gives Della no rent. Della can

Answer 5

sue for partition.

Question 6

Pete and Joe own an apartment building as joint tenants. If Pete sells his interest to Clem

Answer 6

Clem and Joe become tenants in common.

Question 7

John and Mary buy a home together right after their wedding. If the deed states nothing to the contrary, they are

Answer 7

tenants by the entirety

Question 8

Jim and Joe buy a small shopping plaza together. If the deed states nothing to the contrary, they are

Answer 8

tenants in common.

Question 9

X, Y, and Z are joint-tenant owners of a hunting lodge. Z dies, leaving everything to his wife. Which statement is TRUE?

Answer 9

X and Y are now the only owners of the property.

Question 10

Rita and her friend Larry want to buy a house together and ensure that if one dies the other inherits automatically. They should take title as

Answer 10

joint tenants.

Question 11

Sandy and Neva bought a store together as joint tenants. Neva dies, leaving everything she owns to her daughter. Sandy now owns the store

Answer 11

in severalty

Question 12

An artificial person created by legal means is known as a

Answer 12

corporation

Question 13

The four unities required to create a joint tenancy in New Jersey include all of the following EXCEPT

Answer 13

partnership

Question 14

X, Y, and Z each invest $1,000 in a new business. X and Y do not participate in the operation of the new venture, but agree to let Z make all the decisions regarding its day-to-day management. If the business experiences a $6,000 loss, how is liability shared under these facts?

Answer 14

As limited partners, X and Y are liable only to the extent of their investment.

Question 15

Common elements include

Answer 15

stairwells.
the swimming pool.
foyers.

Question 16

The term CC&R refers to

Answer 16

covenants, conditions, and restrictions.

Question 17

The owner of a cooperative apartment receives

Answer 17

shares in a corporation

Question 18

The right to reject prospective new owners is held by the board of directors of a

Answer 18

cooperative

Question 19

Jerry owns a fee simple interest in his apartment, together with a specified undivided percentage of common elements. His building is organized as a

Answer 19

condominium.

Question 20

Dorothy bought an apartment and received shares in a corporation and a proprietary lease to her unit. Her building is organized as a

Answer 20

cooperative

Question 21

A board of directors commonly reserves the right to approve or disapprove of potential buyers in which form of joint ownership?

Answer 21

Cooperative

Question 22

Stock in a cooperative apartment is usually considered

Answer 22

personal property

Question 23

The term reserves refers to

Answer 23

funds set aside for major repairs in the future.

Question 24

Long-term stability of residence is most characteristic of

Answer 24

a cooperative.

Question 25

The Lackeys have a right to live in unit 6B only between March 3 and March 15 of every year. The rest of the year, others have the exclusive right to live in the unit. The type of ownership arrangement described by these facts is most likely

Answer 25

a time-share.