Module 5

Question 1

Who is the mortgagee?

Answer 1

the lender

Question 2

The mortgagor is the?

Answer 2

borrower

Question 3

Ownership forms divide into what 3 groups?

Answer 3

1. Ownership in severalty
2. Co-Ownership (concurrent ownership)
3. Trust

Question 4

The reality is that ownership in severalty means________

Answer 4

just one person or at least one entity, such as a corporation.

Question 5

REITs must have at least ____ investors and the REIT allows these individual investors to pool their funds to acquire real estate.

Answer 5

100

Question 6

A private or public partnership that pools funds for the acquisition and development of real estate projects or other business ventures.

Answer 6

Syndication

Question 7

With ______, property is held by two or more individuals and is categorized into four types.

Answer 7

Co-ownership

Question 8

What are the 4 types of co-ownership?

Answer 8

1. Tenancy in common
2. Joint Tenancy
3. Tenancy by the entirety
4. Community property

Question 9

1. Real estate owned by two or more people as tenants in common.
2. Own an undivided fractional interest
3. Property is not physically divided.
4. Each co-owner holds a separate interest and can sell, mortgage, or transfer this interest without consent of the other co-owners.
5. Upon death, the undivided interest passes in accordance to the will of that owner.

Answer 9

Tenancy in common

Question 10

Business partnerships generally own real estate under__________

Answer 10

Tenancy in common

Question 11

When title to real estate is conveyed to two people, and the deed does not specify the form of tenancy, it is assumed as

Answer 11

tenancy in common

Question 12

The distinguishing characteristic of this type of ownership is known as the right of survivorship.

Answer 12

Joint tenancy

can involve multiple persons and they don’t have to be married.

Question 13

This type of ownership was specifically created for two individuals who are married.

Answer 13

Tenancy by the entirety.

also has right of survivorship

Question 14

This type of ownership is also designed for married couples but, the property owned by the couple is divided into two categories: separate property and community property.

Answer 14

Community property rights.
Essentially, separate property is what you owned before you entered the marriage, whereas community property is real estate that is purchased during the marriage.

Question 15

The players in a trust are_______

Answer 15

The trustor,
The trustee
The beneficiary

Question 16

This is a unique form of co-ownership for married couple in which each spouse has an equal, undivided interest in the property.

Answer 16

Tenancy by the entirety

Avoids probate for the surviving spouse

Question 17

9 states use this system for property owned by husband and wife. Each spouse has undivided one-half interest in property acquired during the marriage. In contrast to joint tenancy, when one spouse dies, the survivor is entitled to one-half of the community property. The other half is distributed according to the will of the deceased. If there is no will, the interest will go to the surviving spouse(or thier heirs)

Answer 17

Community property rights

Question 18

A_______ trust is created by an agreement while the property owner is alive.

Answer 18

Living trust

Question 19

A_______ trust is established by the will of the property owner after his or her death

Answer 19

Testamentary trust

Question 20

Real estate is the only asset in a land trust.
The trustor in the case is also the beneficiary. The trustor has a beneficial interest in the property and that interest is actually treated as personal property.

Answer 20

Land trust

Provides tax and privacy advantages.

Question 21

How condominiums function

Answer 21

1. Owner holds a fee simple title to an individual condo unit.
2. Each condo has its own legal description and taxes.
3. Condo owners also hold an undivided interest in the common elements

Question 22

What makes a property a condominium is

Answer 22

its legal declaration. It can look like a single-family house, or a townhouse or a low-rise building

Question 23

Under _____ownership a corporation actually owns the real estate and individuals own shares of stock in the corporation.

Answer 23

Cooperative ownership

Question 24

A fee simple interest in condominium ownership, with accompanying rights. The ownership rights are limited to a specified time period, but the owner can still mortgage, lease, sell, or bequeth the rights.

Answer 24

Timeshare

Question 25

PUD's can include

Answer 25

Condominiums, townhouses, apartments and even single-family residences.

Question 26

PUD's have

Answer 26

common elements and association dues.

Question 27

de minimus planned unit development

Answer 27

the common elements don't add significantly to the value of the individual properties in the PUD. Low association dues.

Question 28

A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development.

Answer 28

Planned unit development

Question 29

PUD's were created to provide more efficient use of land.

Answer 29

PUDs cluster residences into tighter spaces and then allow larger open spaces that all owners in the PUD can share. NOT an ownership type

Question 30

______ ownership is a fee simple estate, but in this case the property owner actually owns an air lot.

Answer 30

Condominium ownership

Question 31

Ownership held by an individual or single entity is called

Answer 31

ownership in severalty

Question 32

The party that gives a mortgage is called

Answer 32

the mortgagor

Question 33

Williams owns property with Campbell by tenancy in common. When Williams dies her interest in the property will go to

Answer 33

her heirs or according to her will

Question 34

In a basic trust, the fiduciary is known as the

Answer 34

trustee

Question 35

Elevators, tennis courts, and hallways in a condominium are

Answer 35

common elements

Question 36

Purchasing a cooperative unit means you are buying

Answer 36

shares of stock

Question 37

An ownership interest in real estate that allows the use of the property facilities for a specified period of time is called

Answer 37

timeshare ownership

Question 38

Joint tenancy has a right of survivorship feature shared with what other form of ownership?

Answer 38

tenancy by the entirety

Question 39

Concurrent ownership is also known as

Answer 39

Co-ownership

Question 40

All real estate is subject to what four powers of government?

Answer 40

1. Taxation 2. Eminent domain, 3. Police power, 4. Escheat

Question 41

When real estate is taxed based on its property values, it is called

Answer 41

Ad valorem tax

Question 42

The U.S. Constitution precludes the federal government from taxing real property directly, reserving that right instead for state and local governments. True or false?

Answer 42

True

Question 43

If a property sells between the time a special assessment becomes of record and the time it is actually levied, it is referred to as a

Answer 43

Pending special assessment.

Question 44

________ is the government's right to take or acquire privately held land for public use.

Answer 44

Eminent domain The acquisition process is called condemnation

Question 45

The inherent power of government to regulate property in order to protect public health, safety, and general welfare.

Answer 45

Police Power

Question 46

Four guiding principles of police power

Answer 46

1. Police power is intended to protect health, safety, and general welfare of the public. 2. in a nondiscriminatory manner. 3. Should not negatively impact the value 4. Should provide a benefit to the public through policy

Question 47

______ are a form of police power used to control growth and development.

Answer 47

Comprehensive plans

Question 48

_____ Public regulation of the use of private land through application of police power; accomplished by establishing districts or areas with uniform requirements relating to lot coverage, setbacks, type of improvement, density ect.

Answer 48

Zoning

Question 49

A ______ allows for open space between two land uses.

Answer 49

buffer strip

Question 50

_____ allows for an exception from what is generally accepted as a land-use in a specific area. (supposed to be the exception, not the norm.

Answer 50

Spot zoning

Question 51

What are the general zoning classifications?

Answer 51

``` Agricultural Residential Commercial Industrial Mixed Use Public ```

Question 52

______pertains to a use that at one time conformed to the zoning ordinance, but not does not comply

Answer 52

Legally nonconforming

Question 53

There are (how man) building codes used in the United States?

Answer 53

4

Question 54

The right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs.

Answer 54

Escheat

Question 55

The condition of dying with a valid will

Answer 55

Testate

Question 56

The condition of dying without leaving a valid will

Answer 56

Intestate

Question 57

Liens break down into what two general categories?

Answer 57

General liens (attaches to all the assets of the debtor) Specific liens (attaches to an individual property)

Question 58

Government liens are considered _______ liens

Answer 58

Specific

Question 59

If a contractor or builder works on a property and then does not get paid, they can file a

Answer 59

mechanics' lien against the property

Question 60

When a lien is attached to real property, it does not necessarily prevent the transfer of title.

Answer 60

Indeed, a lien transfers with the property

Question 61

______ is a legal term signifying pending litigation that can affect the ownership title to real estate.

Answer 61

Lis pendens Lis pendens is not a lien; it's simply a notice of a potential lien in the near futures.

Question 62

An __________ is a lien that allows a creditor with an interest in an otherwise unsecured property to prevent the debtor from conveying title while the dispute is being decided in court.

Answer 62

An attachment

Question 63

The form of legal description most often used west of the Mississippi River is_______

Answer 63

Rectangular survey

Question 64

Sam Gates wants to buy a summer home with his sister Jean. Because they are both retired and have no heirs, they want to be sure that if one of them dies, the interest of the deceased will pass to the other sibling. Which form of ownership should they use to acquire title?

Answer 64

Joint Tenancy

Question 65

``` Common elements in condominium ownership include all of the following except the A. Elevator B. Land C. Shareholder stock D. Swimming Pool ```

Answer 65

Shareholder stock

Question 66

``` McKibbin has been approved to have a possessory interest in a property and is given a proprietary lease. What kind of ownership does McKibbin have? A. condominium ownership B. Cooperative ownership C. Leasehold ownership D. timeshare ownership ```

Answer 66

B. Cooperative ownership