Interest in RE

Question 1

*What is a freehold?

Answer 1

Ownership

Question 2

*What is fee simple absolute?

Answer 2

The default type of ownership. Own property absolutely

Question 3

*What is Fee Simple Defeasible?

Answer 3

• Ownership that is limited in some way. Something can cause you to lose ownership
• subject to a condition subsequent=lawsuit

Question 4

fee simple subject to a condition subsequent means?

Answer 4

lost of ownership when legal action is brought pursuant to the violation of limitation in fee simple defeasible

Question 5

life estates

Answer 5

fee simple ownership for your life.tenants deed will state who receives the life estate (usually a remainder) at death in a habendum clause

Question 6

what is an habendum clause

Answer 6

a clause that states who takes over a tenants life estate after their death

Question 7

*Life estate in reversion

Answer 7

transfers back to the original owner/grantor when a tenant dies

Question 8

*life estate is in remainder

Answer 8

passes to a 3rd party named by owner/grantor after tenant dies

Question 9

*pur autre vie

Answer 9

french for “another life”-based not on the life of the tenant but on another life (3rd party) named by the owner/grantor

Question 10

What is severalty?

Answer 10

only 1 owner

Question 11

co-ownership

Answer 11

ownership shared by 2 more people including corps

Question 12

*tenancy in common?

Answer 12

default form of co-ownership and is inheritable

Question 13

*joint tenancy

Answer 13

all owners must hold 4 unities:
1. unity of possessions ( all own equally)
2. unity of time (all buy at the same time)
3. unity of interest ( all have equal interest)
4.unity of title (all on deed at same time)
is not inheritable and last man standing claims which leads to survivorship

Question 14

*tenancy by the entirety

Answer 14

joint tenancy for married couples. Offers creditor protection, automatic homestead

Question 15

condominiums

Answer 15

• joint ownership of common areas and fee simple ownership of units
• sets up a master deed
• condo association
• condo fees

Question 16

cooperative (coop)

Answer 16

• co-ownership in apartment buildings
• own stock or shares in the company which gives proprietary lease to units
• sale of unit subject to approval

Question 17

trust

Answer 17

-created during a persons life or on their death. The person creating the tryst (trustor) conveys prop. to a trustee who cares for the trust assest on behalf of beneficiaries

Question 18

timeshares

Answer 18

divided time, rather than space in a property .

Question 19

securities

Answer 19

investments

-syndications are legal entities that invest in a 1 or > re

Question 20

REIT

Answer 20

REAL ESTATE INVESTMENT TRUST- method of investing in portfolios of re or re loans

Question 21

REMIC

Answer 21

REAL ESTATE MORTGAGE INVESTMENT CONDUITS- methods of investing in portfolios of re or re loans

Question 22

non-freehold

Answer 22

possession and use of someone else’s property- basic rental

Question 23

leasehold

Answer 23

written terms of possession for a fixed timeframe (lease) ex. 12 m lease

Question 24

tenancy at will

Answer 24

verbal permission to possess a prop w/o any specified term of interval. can be party can terminate

Question 25

periodic tenancy

Answer 25

automatically renews on some pre-agreed interval until terminated

Question 26

tenancy at sufferance

Answer 26

holdover tenancy w/o landloard/lessor consent. lessor must evict tenant

Question 27

what 3 words are interchangeable when discussing property

Answer 27

estate, tenancy, interest