Module 5

Question 1

Ownership of real property by one person or one legal entity only; also called sole ownership (the owner is “severed” or “set apart” from all others)

Answer 1

Estate in Severalty

Question 2

Ownership of real estate between two or more parties who have been named as joint tenants. Upon the death of one joint tenant, his or her interest passes to the surviving joint tenant or tenants by the right of survivorship (not automatically created in Texas)

Answer 2

Joint Tenancy

Question 3

A venture that is owned by one individual

Answer 3

Sole Proprietorships

Question 4

A broad category of ownership by more than one person (ex: Tenants in Common and Joint Tenants)

Answer 4

Co-Ownership

Question 5

A system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage. This system stemmed from Germanic tribes and, through Spain, coming to the Spanish colonies of North and South America (system was unknown under English Common Law)

Answer 5

Community Property

Question 6

An association of two or more individuals who carry on a continuing business for profit as co-owners. (1. General - each partner shares in the administration, profits and losses of the operation; 2. Limited - a business arrangement where the operation is administered by one or more General Partners and funded, by and large, by Limited or Silent partners, who are by law responsible for losses only to the extent of their investment)

A Limited Liability partnership limits one individual partner’s liability arising from negligence on the part of another partner.

Answer 6

Partnership

Question 7

A form of co-ownership (most common) by which each owner holds an undivided interest in real property as if he/she were the sole owner. Each individual owner has the right to partition (unlike Joint Tenants, Tenants in Common have no right of survivorship)

Answer 7

Tenancy in Common

Question 8

An entity created for the benefit of another; an arrangement whereby title to property is conveyed by a Trustor (or Grantor) to a person named as a Trustee, who manages it for another person named as the Beneficiary

Answer 8

Trusts

Question 9

Ownership by a corporation (an entity that can own real estate and other assets)

Answer 9

Corporate Ownership

Question 10

A business venture owned by one individual

Answer 10

Sole proprietorship

Question 11

A business venture created with an agreement between more than one person

Answer 11

Partnership

Question 12

Entity created for the benefit of another

Answer 12

Trusts

Question 13

A sole individual or entity owns real estate

Answer 13

Estate in Severalty

Question 14

Ownership of real estate by two or more entities in the undivided interests

Answer 14

Tenancy in Common

Question 15

The first and most common type of Co-Ownership is called

Answer 15

Tenancy in Common`

Question 16

Inherited property may remain

Answer 16

separate property

Question 17

True or False: An inter vivos trust is created during the life of the trustor.

Answer 17

T

Question 18

True or False: The tax and legal aspects of a trust are the same as a sole proprietor.

Answer 18

T

Question 19

True or False: Beneficiaries in a testamentary trust are commonly spouses and children of the deceased.

Answer 19

T

Question 20

True or False: The Rule Against Perpetuities encourages that land be kept in families instead of being freely transferable.

Answer 20

F

Question 21

True or False: A trustee has a fiduciary duty to manage the trust for the benefit of the beneficiaries.

Answer 21

T

Question 22

True or False: The beneficiary in a trust is in control of the property and works on behalf of the trustor. The beneficiary

Answer 22

F

Question 23

True or False: Trusts are used to perpetuate the ownership of real estate in a family bloodline.

Answer 23

T

Question 24

True or False: The beneficiary in the trust must make decisions that are in the best interest of the trustee.

Answer 24

F

Question 25

True or False: A trust is an entity created for the benefit of another.

Answer 25

T

Question 26

A ______________ features part ownership of a property coupled with the right to its exclusive use for a specified number of days per year, without the responsibility of full ownership (sometimes referred to as Interval Ownership)

Answer 26

Timeshare

Question 27

A less common type of ownership by more than one is _________tenancy.

Answer 27

Joint

Question 28

A/n ________ trust is a trust that is created by will, and is effective upon the death of the decedent.

Answer 28

Testamentary

Question 29

Texas is one of nine states that adhere to the concept of ________ property.

Answer 29

Community

Question 30

An estate in _________ involves ownership of real estate by one individual or entity.

Answer 30

Severalty

Question 31

Condominiums are established under laws referred to as ________ property acts.

Answer 31

Horizontal

Question 32

Property owned by a married person that is not community property is called _______ property.

Answer 32

Seperate

Question 33

The Rule Against _________ reflects the broader societal interest in avoiding the creation of a “landed class” and ensuring that real estate is widely available.

Answer 33

Perpetuities

Question 34

An ________ trust is a trust created during the lifetime of the trustor.

Answer 34

Inter vivos

Question 35

All trusts include an individual, known as a/n ________ who places title to real property into the control of a trustee.

Answer 35

Trustor

Question 36

The ________ partner’s liability is limited to the amount he or she invested in the partnership.

Answer 36

Limited

Question 37

___________ involves ownership of real estate by two or more entities.

Answer 37

Co-ownership

Question 38

A/n ____________ features part ownership of a property coupled with the right to its exclusive use for a specified number of days per year, without the responsibility of full ownership.

Answer 38

Timeshare

Question 39

A property is owned by two unmarried individuals without rights of survivorship. The form of ownership is most likely ________

Answer 39

Tenancy in common

Question 40

Dwayne and Beth, each single persons, own a parcel of land as joint tenants. Beth has a will leaving her entire estate to her brother, Jason. Upon Beth’s death, her interest in the land passes to _____

Answer 40

Dwayne, because he is a joint tenant

Question 41

Jill and Adkins are married and live in Texas. They saved for a number of years and purchased a home. In this case, the form of ownership is most likely to be ________

Answer 41

Community property