NC Property Ownership and Interests Flashcards
A married couple in North Carolina holds title to their home as tenancy by the entireties. The husband dies. Who now has title to the property?
A)
His spouse, through intestate succession laws
B)
His remaining family members, in equal shares
C)
His spouse, through the right of survivorship
D)
Because he died testate, whomever he named in his will as heirs
C)
His spouse, through the right of survivorship
Explanation
A will cannot override the survivorship granted under tenancy by the entireties.
Reference: Property Ownership and Interests
If title to a farm is held in tenancy by the entirety, which of the following is TRUE?
A)
The shares may be unequal.
B)
Either spouse can partition the property.
C)
A specifically enforceable contract to sell the farm must be signed by spouses.
D)
A creditor of one spouse can assert a valid lien on the farm.
C)
A specifically enforceable contract to sell the farm must be signed by spouses.
Explanation
If only one spouse had signed such a contract, the buyer could not obtain specific performance against the nonsigning spouse. The creditor must be a creditor of the marital unit, which explains why lenders often insist on both spouses signing loan agreements or mortgages.
Reference: Property Ownership and Interests
Under the North Carolina Condominium Act of 1986, a developer must do all the following EXCEPT
A)
give the buyer the right of recession.
B)
provide the buyer with a set of bylaws.
C)
file a plat map or plan of the property.
D)
provide financing for the buyer.
D)
provide financing for the buyer.
Explanation
The developer is under no obligation to find financing for the buyer. The other three are required by the Act.
Reference: Property Ownership and Interests
When one buys a town-house, ownership of the dwelling includes
A)
everything held as joint tenants with the other owners.
B)
enclosed airspace only.
C)
to the centerline of the party walls.
D)
everything held as tenants in common.
C)
to the centerline of the party walls.
Explanation
Town-house form of ownership includes the real estate to the centerline of the party walls with the common areas typically owned as either tenants in common with other owners or owned by the HOA.
Reference: Property Ownership and Interests
A couple placed their real estate into a trust. They now want to sell one of the properties. Who needs to sign the contract and the deed?
A)
Both persons
B)
The trustee(s)
C)
One or the other
D)
Whomever the court names
B)
The trustee(s)
Explanation
The trust documents will name the trustee(s). If John and Mary are cotrustees, then they will both need to sign as trustees. If only one is the sole trustee, then that is who signs. If it is another named person or entity, then that is who signs. Read the trust documents.
Reference: Property Ownership and Interests
A married couple has owned property as tenants in common for 27 years. The husband died testate. Who now owns his interest in the property?
A)
Whomever he named in his will as heirs
B)
His remaining family members, in equal shares
C)
His spouse, through the right of survivorship
D)
His spouse, through intestate succession laws
A)
Whomever he named in his will as heirs
Explanation
Without a tenancy by entireties, there is no right of survivorship for the spouse. Testate means with a will, so after probate, unless contested, his share will be distributed as the will states.
Reference: Property Ownership and Interests
When a property is placed in a trust, the person/entity who can sign documents to sell that property is called
A)
the owner.
B)
the trustee.
C)
the seller.
D)
the trustor.
B)
the trustee.
Explanation
The trustee is the authorized person who can sign on behalf of the trust.
Reference: Property Ownership and Interests
If the real property owner is a corporation, then the individual authorized to sign the listing agreement is the
A)
president.
B)
person named by corporate resolution.
C)
treasurer.
D)
secretary.
B)
person named by corporate resolution.
Explanation
The corporate resolution will reflect the fact that the board of directors has authorized the transaction and has designated the person(s) authorized to sign.
Reference: Property Ownership and Interests
Under the North Carolina Condominium Act of 1986, the seller of a condominium (created after October 1, 1986, who is not the developer) must
A)
allow a seven-day contract cancellation period.
B)
provide the buyer with information on the association’s dues and assessments.
C)
record a plat map.
D)
do none of these.
B)
provide the buyer with information on the association’s dues and assessments.
Explanation
Allowing a seven-day contract cancellation period and recording a plat map are required by the developer, not the next owner; however, the owner must provide information to the buyer about the association dues and assessments.
Reference: Property Ownership and Interests
An ownership whereby the owner owns the unit and the land it sits on is BEST described as a
A)
time-share.
B)
town house.
C)
cooperative.
D)
condominium.
B)
town house.
Explanation
With a condominium, one owns enclosed air space. The land, buildings, and common areas are owned with the other owners as tenants in common. In a cooperative, one owns shares in the corporation and occupies the unit under a proprietary lease. A time-share is the right to occupy a unit over separated periods. It may or may not be tied to a freehold estate.
Reference: Property Ownership and Interests
A married couple in North Carolina is purchasing a home, and an attorney has been retained to handle the settlement and closing. Typically, the attorney would recommend the couple take title as
A)
tenants in common.
B)
joint tenancy.
C)
joint tenancy with the right of survivorship.
D)
tenancy by the entireties.
D)
tenancy by the entireties.
Explanation
Tenancy by the entireties is the most common form of ownership for a married couple in North Carolina.
Reference: Property Ownership and Interests
A married couple in North Carolina took title as tenancy by the entireties five years ago. They are now divorcing and will continue to jointly own the property. What type of ownership will exist when the divorce is final?
A)
Tenancy by the entireties
B)
Joint tenancy with the right of survivorship
C)
Tenants in common
D)
Joint tenancy
C)
Tenants in common
Explanation
Only a married couple may own as tenants by the entireties. Once the divorce is final, the ownership would change to tenants in common, with each owner having a share as defined in the divorce decree.
Reference: Property Ownership and Interests
The purchaser of any of the following units could have a fee simple interest EXCEPT
A)
for the purchase of a town house.
B)
for the purchase of a cooperative.
C)
for the purchase of a time-share.
D)
for the purchase of a condominium.
B)
for the purchase of a cooperative.
Explanation
A co-op purchaser would obtain a proprietary lease plus stock in the corporation or association that owns the entire building. The condo purchaser could own a fee interest in the air space, even if the land on which the condo was constructed was a long-term leasehold estate.
Reference: Property Ownership and Interests
When one buys a condominium form of ownership, ownership of the dwelling includes
A)
everything held as joint tenants with the other owners.
B)
everything held as tenants in common.
C)
to the centerline of the party walls.
D)
enclosed airspace only.
D)
enclosed airspace only.
Explanation
The condominium form of ownership includes enclosed air space, with the common areas typically owned as either tenants in common with other owners or owned by the HOA.
Reference: Property Ownership and Interests
Only spouses may hold title to real property as
A)
tenants in common.
B)
joint tenants.
C)
tenants by the entirety.
D)
tenants by the severalty.
C)
tenants by the entirety.
Explanation
The marital unit actually owns the property. Spouses could also hold title as joint tenants, tenants in common, or tenants by the severalty, if each holds different property separately. Tenancy by the entirety exists in a minority of states.
Reference: Property Ownership and Interests
