How homestead is Held

Question 1

Individual Ownership:

Answer 1

A form of property ownership in which one person is the owner of a property and has absolute control over the distribution and use of the land

Question 2

In Severalty:

Answer 2

Describes undivided ownership of an estate, with an interest that is exclusive from other owners

Question 3

There are three basic forms of ownership.

Property can be:

Answer 3

Individually owned 👤
Co-owned 👥
Held in trust 🔒

Question 4

Individual ownership is also called

Answer 4

Sole ownership

Question 5

Property that is owned by a single individual is sometimes referred to as being

Answer 5

held in severalty.

Question 6

Co-Ownership:

Answer 6

Ownership of a property by more than one person

Question 7

Joint Tenancy:

Answer 7

Co-ownership in which the parties have the right of survivorship — when one dies, the others receive that person’s portion of the estate

Question 8

Tenancy in Common:

Answer 8

Co-ownership in which each co-owner of the property holds their individual portion of the ownership interest in severalty

Question 9

Community Property:

Answer 9

Property owned by a married couple in which each spouse has ½ ownership of any property obtained during the marriage, plus a right of survivorship ownership after the death of either spouse

Question 10

The default way to take title as an unmarried couple is as

Answer 10

tenants in common (with no right of survivorship).

Question 11

Let’s break co-ownership down a little further.

There are three basic types:

Answer 11

Tenancy in common
Joint tenancy
Community property

Question 12

In a tenancy in common, each co-owner of the property holds their individual portion of the ownership interest in

Answer 12

Severally

Question 13

In a tenancy in common, each co-owner of the property holds their individual portion of the ownership interest in severalty.
This means that each individual co-owner can

Answer 13

sell, transfer, mortgage, or lease their interest in the property without the authorization of the other owners of the property,

as long as that owner’s actions do not endanger or abridge the rights of the other owners. And, of course, their choices must conform to state and federal laws.

Question 14

right of survivorship

Answer 14

means that when a joint tenant dies, the surviving joint tenants inherit the deceased co-owner’s ownership interest in the property.

Question 15

There are four unifying factors that distinguish a joint tenancy from other kinds of co-ownership, all of which must be present for the method of ownership to

Answer 15

qualify as a joint tenancy.

Question 16

The Four Unities of Joint Tenancy

Answer 16

1) units of interest
2) unity of time
3) unity of title
4) unity of possession

Question 17

Unity of title:

Answer 17

Joint tenants are required to acquire their property from the same transaction, and they must hold title under the same document, such as a deed or a will.

Question 18

Unity of possession:

Answer 18

Each joint tenant has an equal right to enjoy the use of each part of the property as well as the whole of the property. No joint tenant has a right to possess any part of the property exclusively.

Question 19

Unity of possession is the only unity required for

Answer 19

Tenants in common

Question 20

Unity of interest:

Answer 20

All of the joint tenants’ ownership interests and rights must be equal in their extent, nature, and duration.

Question 21

Unity of time:

Answer 21

Joint tenants are required to acquire their property ownership or ownership interests at the same time. Thus no additional joint tenants can be added to an established joint tenancy unless a contract is created defining a new joint tenancy arrangement.

Question 22

For joint tenancy to be established, all the owners have to sign a written contract. In Texas, tenancy in common is the

Answer 22

default position if nothing is specified.

Question 23

Only the following states recognize community property laws:

Answer 23

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

Question 24

Community property laws do not govern property that is received by an individual as an inheritance or gift and they do not apply to property acquired prior to the marriage. All such property is considered

Answer 24

Separate property

Question 25

if one spouse rents out their separate property, that income is considered

Answer 25

community property (unless there is an agreement specifying otherwise).

Question 26

Texas Law of Descent and Distribution determines

Answer 26

who gets what share of a deceased person’s property.

Distribution depends on whether the person is married, has children, and/or has surviving parents or siblings.

Question 27

Living Trust:

Answer 27

A trust created during someone’s life to manage their assets in life and in death

Question 28

Testamentary Trust:

Answer 28

A trust created through the use of a will when someone dies

Question 29

Land Trust:

Answer 29

A trust in which land is purchased to be held for a long period of time for the benefit of a named party

Question 30

Real Estate Investment Trust (REIT):

Answer 30

An account in which 100 people or more place funds for the trust to invest in real property and then return the profits back to the investors

Question 31

When a property is held in trust, an individual transfers

Answer 31

ownership of that property to another individual, who in turn manages that property for a third party.

Question 32

The transferor or creator of the trust is called the

Answer 32

Trust or

Question 33

The individual who receives the trust is called the

Answer 33

Beneficiary

Question 34

The manager of the trust, a.k.a. the third party, is called the

Answer 34

Trustee

Question 35

The trustee carries out the

Answer 35

trustor’s wishes by holding title to the trust and performing according to the trustor’s wishes concerning the property.

Question 36

There is such a thing as a revocable living trust that

Answer 36

may be changed by the beneficiaries at any time.

For example, a married couple may buy a resort property and put it in a revocable trust, naming themselves as the beneficiaries so that at some time in the future, they can sell the property.

Question 37

Selling Trusted Real Estate

After listing the property, the agent will market the home just as they would with any other place. At closing time, there would have to be a few extra documents signed by

Answer 37

the trustee for the trust to release the home and allow it to be sold to someone else.

Question 38

With land trusts, for example, a trustee would hold a parcel of real estate for the benefit of someone who is hoping

Answer 38

the property will go up in value.

Question 39

The commercial real estate agent could encounter

Answer 39

Real Estate Investment Trusts (REITs), which are made up of multiple investors investing in property.

Question 40

Corporation:

Answer 40

An entity that is doing business

Question 41

Syndicate:

Answer 41

Two or more people or companies that join together to create and run a real estate investment

Question 42

Limited Liability Corporation (LLC):

Answer 42

A type of corporation in which none of the owners of the company can be held personally liable for debt

Question 43

There are some general partnerships in which the partners will be liable

Answer 43

for all of the losses of the company.

Question 44

There are also limited partnerships in which the partners have their

Answer 44

personal assets protected and will only lose to the level of their investment.

Question 45

A business that purchases real estate could be an

Answer 45

LLC, an S-Corp, or a corporation.

Question 46

A partnership is created when

Answer 46

two or more parties agree to combine their property and talents to create a for-profit business.

Question 47

A general partnership combines two or more parties’

Answer 47

resources, assets, and expertise into a business unit.

…also creates financial and legal responsibilities for all of the partners.

Question 48

A limited partnership is made up of

Answer 48

both limited and general partners.

Limited partners function more as investors, supplying capital (money) but playing no role in the day-to-day operation and management of the business. Limited partners’ liability is generally limited to the amount of their investments in a business.

Question 49

Limited partners’ liability is generally

Answer 49

limited to the amount of their investments in a business.

Question 50

Uniform Partnership Act (UPA)

Answer 50

which is designed to bring various states’ partnership laws into accord.

Question 51

Although the UPA provides a helpful general outline to follow while drafting a partnership agreement, partners

Answer 51

create and define the key clauses that shape and regulate their unique partnerships.

Question 52

The relationship between limited and general partners must be set out in a written agreement if the partnership contract is to conform to the requirements of

Answer 52

the Uniform Limited Partnership Act (ULPA), later amended to become the Revised Uniform Limited Partnership Act (RULPA).

Question 53

when a corporation owns property, the property is owned

Answer 53

in severalty.

A corporation will “live” forever until it is dissolved.

Question 54

There can be no more than 100 shareholders in an

Answer 54

S-corporation

Question 55

The members have no interest or claim to the property that the company owns, plus

Answer 55

the interest that the member has is considered to be personal property.

Question 56

Co-ownership of a property can take the form of a:

Answer 56

tenancy in common
joint tenancy
community property
property held in partnership

Question 57

Without a contract or conveyance that clearly identifies their relationship as a joint tenancy, it may be presumed to be a

Answer 57

tenancy in common.

Question 58

Listing Agreement:

Answer 58

A contract between a principal and a broker to sell or lease a property

Question 59

Special Agent:

Answer 59

An agent that is contracted by the client to perform a certain act; typically the broker of the agent involved in buying/selling transactions

Question 60

Cooperating Broker:

Answer 60

The other broker or sales agent that shows the listed property to a buyer who subsequently purchases the property

Question 61

Associations usually have their own listing agreement form with a stipulation clause giving the listing broker

Answer 61

both the authority and an obligation to share the listing with other brokers by submitting the property information into the MLS database.

Question 62

A multiple listing service (also known by cool kids as an MLS) offers

Answer 62

advantages to the sellers, brokers, and buyers of real estate.

The seller receives greater exposure of their property through the MLS system and the property is, in turn, shown by a larger number of brokers and sales agents to a larger audience of buyers.