Chapter 8 - Ownership

Question 1

What 3 ways can a Fee Simple estate be held in?

Answer 1

1. Severalty
2. Co-Ownership
3. Trust

Question 2

Severalty

Answer 2

Title is held by one individual single owner

Question 3

Co-ownership

Answer 3

Title is held by two or more individuals

Question 4

Trust

Answer 4

Third institution or individual holds title for the benefit of another

Question 5

Tenancy (Tenants) in common

Answer 5

A fractional interest in a property. Each of the co-owners have unity of possession - they are entitled to possession of the whole property. Has the right of inheritance

Question 6

Joint Tenancy

Answer 6

Cannot be inherited. It is a survivorship and ownership is equal. All the owners together, create one unit and have title.
A will has no effect on a deceased joint tenants property.

Question 7

What are the four “unities” required to create a Joint Tenancy?

Answer 7

1. Unity of possession - undivided possession of the property
2. Unity of interest - deed conveys equal interests to all the parties
3. Unity of time - deed is executed and delivered at one time
4. Unity of title - title is acquired by one deed by all joint tenants.

Question 8

Tenancy by the entirety

Answer 8

Allowed only between husband and wife. Each own an equal share.

Question 9

Wisconsin Marital Property Act of 1986

Answer 9

Property acquired during their marriage in the state of Wi is owned equally.

Question 10

Interest-bearing common trust account

Answer 10

A firm that holds client funds. It is a firm’s responsibility to deposit all real estate trust funds received by the firm or licensee associated with the firm in a real estate trust account within 48 hours.

Question 11

Trust

Answer 11

an institution or instrument used to hold and be administered on behalf of another party.

Question 12

Land Trusts

Answer 12

an agreement whereby the owner of real property where real estate is the only asset.

Question 13

Listing Trust

Answer 13

a trust created while grantor is alive.

Question 14

Testamentary Trust

Answer 14

A trust established by will after the owner’s death

Question 15

Partnership

Answer 15

Business alliance of two or more individuals who carry on a business for profit as co-owners

Question 16

General partnership

Answer 16

a Typical form of joint venture in which a general partner shares full liability, profits, losses and administration of operating.

Question 17

Limited partnership

Answer 17

a business arrangement whereby the operation is administered by one or more general partner and funded by and large, by limited or silent partners.

Question 18

Corporations

Answer 18

a legal entity registered with the state. Elects a board of directors to oversee operations and activities, through the corporation itself is its own separate entity.

Question 19

Limited Liability Companies (LLC)

Answer 19

Form of ownership created for federal tax purposes with limited liability protections for its owners along with tax advantages associated with partnership

Question 20

Condominium Ownership

Answer 20

Form of ownership and NOT a specific building type of property. The owner of each unit holds a fee simple title and sole ownership of that unit. Each owner has a share of the undivided interest in the rest of the building and land.

Question 21

Cooperative ownership (co-op)

Answer 21

where a corporation holds title to the building or land and then offers shares of stock to multiple prospective residents in a multi-unit housing complex

Question 22

Town House Ownership

Answer 22

attached home that is not considered to be a condominium.