Chapter 8: Forms Of Real Estate Ownership Flashcards
Title is held by two or more individuals
Co-ownership
Where title is held by one individual
Severalty
Where a third party individual holds title for the benefit of another
Trust
Each tenant hold an undivided fractional interest in the property
Tenancy in common
Owned by two or more people. Title is held through all the owners, collectively, constitute one unit.
Joint tenancy. Includes right of survivorship
How do you create joint tenancy
Created only by the intentional act of conveying a deed or giving the property by will
The four unities necessary to create a joint tenancy
Possession
Interest
Time
Title
A legal way to dissolve the relationship when the parties do not voluntarily agreed to its termination
Partition
Each spouse has an equal, undivided interest in the property
Tenancy by the entirety
Based on the idea that a husband-and-wife, rather than merging into one entity, are equal partners in the marriage
Community property
A real or personal property that was owned solely by either spouse before the marriage
Separate property
A device by which one person transfers ownership of property to someone else to hold our manage for the benefit of a third-party
Trust
An association of two or more persons who carry on a business for profit as co-owners
Partnership
All the partners participate in the operation and management of the business and share full liability for business losses and obligation
General partnership
Consist of one or more general partners as well as the limited partners
Limited partnership
A legal entity created under the authority of the laws of the state from which it receives its charter
Corporation
Two or more people are ferns join together to make and operate a real estate investment
Syndicate
Formal partnership in which two or more people are firms carry out a single business project
Joint venture
Combines the most attractive features of the limited partnerships and corporations
Limited liability company
The unit owners own a specified share of the undivided interest in the remainder of the building and land
Common elements
The owner of each unit holds a fee simple title to the unit
Condominium
A corporation holds title to the land and building. The corporation offer shares of stocks to prospective tenant’s
Cooperative
The purchaser becomes a shareholder in the corporation by virtue of the stock ownership to the apartment for the life of the corporation
Property lease
The four unities of possession, interest, time, and title are associated with what?
Joint tenancy
What is the difference between tenancy in common and joint tenancy?
Tenancy in common is an inheritable estate; joint tenancy is characterized by the right of survivorship
Three women were concurrent owners of a parcel of real estate. When one woman died, her interest, according to her will, became part of her estate. The deceased was?
Tenant in common
A legal arrangement under which the title to real property is held to protect the interest of a beneficiary is a what?
Trust
A man purchases an interest in the house. He is entitled to the right of possession only between July 10 and August 4 of each year. What type of ownership did the man purchase?
Timeshare estate
Because the corporation is a legal entity real estate owned by it is owned in?
Severalty
What is the form of coownership?
Joint tenancy
A married couple owns a mansion with the right of survivorship there’s is most likely?
And estate by the entirety
Two people are co-owners of a small office building with the right of survivorship. One of the co-owner dies intestate and leaves nothing to be distributed to his heirs. What would explain why the second co-owner acquired the deceased interest
Joint tenancy
What best prove someone’s right to live in a cooperative
Shareholder stock certificate
What applies to both joint tenancy and tenancy by the entirety?
The survivor becomes a Severalty owner
If property is held by two or more owners as tenants with survivorship rights, the interest of a deceased cotenant will be passed to the?
Surviving owners
How does the cooperative obtain the funds necessary to cover ongoing operating expenses and mortgage payments?
Assesses shareholders
The owner of a condominium did not pay the monthly maintenance fee what would most likely occur?
Homeowners association will place a lien against the unit
What is true about condominium ownership?
Limited common element cannot be sold separately
Person purchases a fee simple estate and has an undivided interest in common elements. What does this person own?
Condominium
Acquisition of real estate by a group that includes one or more sponsors and several investors is called?
Syndication
Tenancy with survivorship means?
The tendency interest may be held by the remaining tenants upon death
Two men and a woman are joint tenants. The woman sells her interest to her sister. What is the relationship of the sister and the two men?
Tenants in common
Under the condominium form of ownership, the owners interest in the unit would normally be?
A fee simple estate
The Severalty owner of a parcel of land sells it to a buyer. The buyer insist that the owners wife join and signing the deed. The purpose of obtaining the wife’s signature is too?
Terminate any rights the wife may have in the property
Woman no longer needs a large house, and she decides to sell her house and move into cooperative apartment building. In a cooperative if she will?
Become a stockholder in the corporation
In a limited partnership?
The General partners run the business
What do the terms general partnership, limited partnership, and corporation have in common?
They represent possible forms of ownership by real estate by business organizations
Property held as tenancy by the entirety requires?
Must be husband-and-wife
The owner of the condominium unit learned that a neighbor has failed to pay his real estate taxes. If the neighbor does not pay the taxes?
A lien can be filed against the neighbors unit and his percentage of the common elements
Joint tenancy with right of survivorship maybe created?
By deed
A person owns one unit in a multiunit structure together with the specified undivided interest in the common elements. The ownership interest is best described as?
Condominium
To create a joint tenancy relationship in the ownership of real estate, there must be unities of?
Possession
Time
Interest
Title
Under the community property laws of the state in which they live, a husband and wife may do all of the following?
Each also own separate property
Not convey community property without the other’s consent
Not encumbered community property without the other’s consent
A community property state, separate property is owned?
Solely by either spouse before the marriage or acquired by gift or inheritance by either spouse during the marriage
In a gift of parcel of real estate, one of the two owners was given an undivided 60% interest and the other received an undivided 40% interest. The two owners hold their interest as?
Tenants in common
Equal rights of possession or characteristic of what?
Tenancy in common
Tenancy by the entirety
Joint tenancy
A man and woman owned a combination apartment building with a smaller bar and Grill on the premises. They share their profits and losses on their venture equally, but they did not own the business under any written partnership agreement. One day, the woman died of a heart attack. If, after her death, the man continue to own the same undivided interest in the real estate as he did before her death and no more, then?
They were tenants in common
Three people are joint tenants who own a parcel of land. The first person conveys his interest to a longtime friend. After the conveyance, the remaining two people?
Remain joint tenants owning a two thirds interest
An ownership interest that is based on annual occupancy intervals is?
Timeshare
A man and woman are co-owners of a fee simple interest in a small office building. The man dies intestate and leaves no estate to be distributed to his heirs. The woman is neither related to the man nor a creditor of him. What would explain why the woman acquired his interest in the property?
Joint tenancy
A woman lives in a multiunit building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, the woman owns stock in the corporation and has a lease to her apartment. This type of ownership is called?
Cooperative
Trust is a legal arrangement in which the title to property is held for the benefit of a third-party it by?
trustee
The owner of a fee simple estate who conveys the real estate but reserve the life estate in the entire property for himself has a?
Reversionary interest
Two people bought a store building and took title as joint tenants. One died testate. The other now owns the store?
In servality
