LEVEL 2 TERMS

Question 1

Fee simple defeasible

Answer 1

A property where ownership is based on the condition that the property is used for a certain purpose or under specific conditions- if these conditions are broken, ownership reverts back to original owner.

Question 2

Fee simple estate

Answer 2

Maximum ownership of real property. Freely transferable, freely inheritable.

Question 3

Freehold estate

Answer 3

A form of ownership with a length to it.

Question 4

Homestead Laws

Answer 4

Laws which protect a homeowner from loss of their principal residence from the claims of creditors.

Question 5

Legal life estate

Answer 5

Any life estate created from a fuction of a law rather than the actions or desires of a property owner.

Question 6

Leasehold estate

Answer 6

An interest in the occupation of a property, established through a lease.

Question 7

Life estate

Answer 7

A type of estate limited to the duration of a measuring life.

Question 8

Pur autre vie

Answer 8

A life estate characterized by ownership lasting only for the duration of a designanted party’s lifetime.

Question 9

Remainder interest

Answer 9

The interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based.

Question 10

Reversionary interest

Answer 10

The interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)

Question 11

Ownership in severalty

Answer 11

Individual or sole ownership (also known as tenancy in severalty)

Question 12

Co-ownership

Answer 12

Ownership shared with another person (also called concurrent ownership)

Question 13

Ownership in trust

Answer 13

Where a trust holds property for a person until they are ready to pass it on to their heir or beneficiary.

Question 14

Undivided interest

Answer 14

A type of interest that gives each co-owner the right of posession of the whole property, not simply a portion of it.

Question 15

Right of survivorship

Answer 15

Statutory principle of survivorship tenancy, which means that when co-owner dies, their ownership interests reverts to their surviving co-owners.

Question 16

Unity of possession

Answer 16

Every owner can use all of the property.

Question 17

Unity of Interest

Answer 17

Each co-owner owns an equal share.

Question 18

Unity of Time

Answer 18

All co-owners purchased the property at the same time.

Question 19

Unity of Title

Answer 19

All co-owners purchased the property with the same instrument (deed or a will).

Question 20

Community property

Answer 20

A system of property co-ownership, most commonly applied to married couples, which describes what is joint property and what is individual property.

Question 21

Joint tenancy

Answer 21

Co-ownership in which the parties have an equal and undivided interest in the property; includes the right of survivorship rather than inheritance.

Question 22

Tenancy in common

Answer 22

Co-ownership with individual, undivided interest in the property; includes rights of inheritance rather than survivorship.

Question 23

Trustor

Answer 23

Creator of the trust.

Question 24

Trustee

Answer 24

The person entrusted to hold and manage the assets.

Question 25

Beneficiary

Answer 25

The individual who receives the benefits or assets of the trust. (A trust, will, or insurance policy).

Question 26

Tangible property

Answer 26

Possessions that physically exist such as a house or a bagel.

Question 27

Intangible property

Answer 27

Stocks, patents, and other incorporeal things.

Question 28

Living trusts

Answer 28

Trusts created when a trustor is still alive.

Question 29

Revocable trusts

Answer 29

Can be changed after they are formed.

Question 30

Irrevocable trusts

Answer 30

Can’t be changed after they are formed.

Question 31

Testamentary trusts

Answer 31

Come into being when the trustor dies. They do not prevent assets into going into probate.

Question 32

Land trusts

Answer 32

Trusts where land is held by a trust for a long period of time. They can be used to avoid liens, hide the owner of a parcel of land, or transfer land as part of a will, among other uses.

Question 33

General partnership

Answer 33

A business entity in which all co-owners actively share power, liability, responsibilities, and profit.

Question 34

Limited partnership

Answer 34

A business entity composed of both general and limited partners- the general partners manage the business and limited partners are passive investors.

Question 35

Sole proprietorship

Answer 35

Ownership of a business by a lone individual (or a married couple acting as a single person)

Question 36

Trust

Answer 36

A legal entity where control of some asset or property is transferred by a grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary).