Module 5 Flashcards
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)
Estate in Severalty
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)
Joint Tenancy
A venture that is owned by one individual
Sole Proprietorships
A broad category of ownership by more than one person (ex: Tenants in Common and Joint Tenants)
Co-Ownership
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)
Community Property
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.
Partnership
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)
Tenancy in Common
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
Trusts
Ownership by a corporation (an entity that can own real estate and other assets)
Corporate Ownership
A business venture owned by one individual
Sole proprietorship
A business venture created with an agreement between more than one person
Partnership
Entity created for the benefit of another
Trusts
A sole individual or entity owns real estate
Estate in Severalty
Ownership of real estate by two or more entities in the undivided interests
Tenancy in Common
The first and most common type of Co-Ownership is called
Tenancy in Common`
Inherited property may remain
separate property
True or False: An inter vivos trust is created during the life of the trustor.
T
True or False: The tax and legal aspects of a trust are the same as a sole proprietor.
T
True or False: Beneficiaries in a testamentary trust are commonly spouses and children of the deceased.
T
True or False: The Rule Against Perpetuities encourages that land be kept in families instead of being freely transferable.
F
True or False: A trustee has a fiduciary duty to manage the trust for the benefit of the beneficiaries.
T
True or False: The beneficiary in a trust is in control of the property and works on behalf of the trustor. The beneficiary
F
True or False: Trusts are used to perpetuate the ownership of real estate in a family bloodline.
T
True or False: The beneficiary in the trust must make decisions that are in the best interest of the trustee.
F
True or False: A trust is an entity created for the benefit of another.
T
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)
Timeshare
A less common type of ownership by more than one is _________tenancy.
Joint
A/n ________ trust is a trust that is created by will, and is effective upon the death of the decedent.
Testamentary
Texas is one of nine states that adhere to the concept of ________ property.
Community
An estate in _________ involves ownership of real estate by one individual or entity.
Severalty
Condominiums are established under laws referred to as ________ property acts.
Horizontal
Property owned by a married person that is not community property is called _______ property.
Seperate
The Rule Against _________ reflects the broader societal interest in avoiding the creation of a “landed class” and ensuring that real estate is widely available.
Perpetuities
An ________ trust is a trust created during the lifetime of the trustor.
Inter vivos
All trusts include an individual, known as a/n ________ who places title to real property into the control of a trustee.
Trustor
The ________ partner’s liability is limited to the amount he or she invested in the partnership.
Limited
___________ involves ownership of real estate by two or more entities.
Co-ownership
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.
Timeshare
A property is owned by two unmarried individuals without rights of survivorship. The form of ownership is most likely ________
Tenancy in common
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 _____
Dwayne, because he is a joint tenant
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 ________
Community property
