Ownership of real estate by business organizations

Question 1

Sole proprietorship

Answer 1

When one person owns a piece of property and title, in that persons name, this is ownership in severalty, because ownership interest is severed from all others.

Question 2

Partnership Estate

Answer 2

Choose either tenancy in common or joint tenants

Tenancy in common :
you may sell your interest or interest may be passed down to heirs does not have the right of survivorship, the other owners don’t automatically get your share of ownership upon death. Must pass ownership of their percentage of the property in a will.

Joint tenants :
The right of survivorship, your partner gets full ownership, or your partner dies. You get full ownership.

Question 3

What are two types of partnerships?

Answer 3

General partnership :
personal liability to partnership debts that exceed the partnership assets. General partners are jointly and separately liable for these debts. The creditors will hold either partner liable.

Limited partner:
Always has one or more general partners who assume liability, the other partners are limited in their liability related to the amount of money they have contributed. Limited partners are also limited in authority to protect their immunity from the partner deaths, they may not participate in managing the partnership.

Limited partnerships are a common form of holding real estate, usually the general partner is the one who discovers the investment opportunity, and brings it to the limited partners for their funds.

Question 4

Corporation estate

Answer 4

Corporations have tax rate separate from individual tax rates. They can hold, transfer title to real property, and give, or hold a mortgage to secure a debt owed to the corporation. Property owned by corporation is on in severalty, a.k.a. property owned by a sole proprietorship. The corporation bylaws give authority to name to individuals who may sign documents on his behalf.

Corporations may be subchapter
S : (function as corporation text as a partnership) does not pay corporate, income taxes, avoids double taxation. May deduct losses from their income taxes, representing their share of losses.

C : ( must pay corporate income tax to the IRS, pay double taxation, once at the corporate level, and once again for the shareholder level)

Question 5

Limited liability company’s LLCs
Limited liability, partnership’s LLP’s
Estate

Answer 5

Favorable forms of business, in terms of taxation and liability. Owners who are called members, not shareholders, are not personally liable for LLC/LLP obligations, are taxed as partnerships, and do not require a general partner.

Question 6

Syndicates and joint ventures Estate

Answer 6

Syndicate
Groups of investors, pulling their money in pursuit of a single investment goal. Organized by a sponsor who does the investment lake work and property manager who asked many investors to join real estate investments. The sponsor can be in an individual or business organization. (Add here to the rules and regulations of securities and exchange commission.)

Joint venture, temporary organization formed by two or more parties to invest in real estate or other investments. Participants may be a corporation, partnership, LLCs, or other entities. The parties may hold title as joint tenants or tenants in common.

Question 7

Sole proprietorship

Can be conducted and title of property using your own name

Characteristic
Or
Not a characteristic

Answer 7

Characteristic

Question 8

Sole proprietorship, business can be conducted and title of property held using your name in combination with business name.
Characteristic
Or
non-characteristic

Answer 8

Characteristic

If you operate as a sole proprietorship, your business legal name is your full name. You can indicate other words along with your full name however, you must include your full personal name, if you have a sole proprietorship.

Question 9

Sole proprietorship
Business can be conducted, and title of property held in your business name.

Characteristic, or non-characteristic.

Answer 9

Non-characteristic

Question 10

Sole proprietorship, ownership of property is owned in severalty
Characteristic
Non characteristic

Answer 10

Characteristic

Question 11

Sole proprietorship, ownership of property can be in the form of tenancy in common
Characteristic
Non-characteristic

Answer 11

Not a characteristic

Question 12

Partners participate in partnership management
General partners
Or
Limited partners

Answer 12

General partners

Question 13

Silent partner is a general partner or limited partner?

Answer 13

Limited partner

Question 14

Personally liable (both jointly and separately) if partnership that succeed partnership assets
General partners
Or
Limited partners

Answer 14

General partners

Question 15

Not liable if partnership debts exceed partnership assets
General partners
Or
Limited partners

Answer 15

Limited partners

Question 16

Does a corporation exist only in law (is intangible)
Characteristic
Not a characteristic

Answer 16

Characteristic

Question 17

Is a corporation, physical, brick, and martyr establishment
Characteristic
Not a characteristic

Answer 17

Not a characteristic

Question 18

Corporation, shareholders, get taxed at both the corporate an individual level
Characteristic
Non-characteristic

Answer 18

Characteristic

Question 19

Can corporations receive, hold, transfer title to real property, and make it hold to a mortgage to secure a debt owed by the corporation
characteristic
Not a characteristic

Answer 19

Characteristic

Question 20

Does a corporation exist as a subcontractor S corporation or C corporation?
Characteristic
Not a characteristic

Answer 20

Characteristic

Question 21

Tito asks 150 friends to invest in a strip mall, they would all make 22% on their investment within eight months. Which type of organization best describes Tito scenario?
Sole proprietor
Corporation
Limited liability company
Syndicate

Answer 21

Syndicate

Question 22

What is a joint venture organization?

Answer 22

Two or more people come together for the single, temporary purpose of buying real estate, improving the properties, and selling for profit

Remember, temporary

Question 23

Condo Estate

Answer 23

Fee simple ownership, owns real estate, best bundle of ownership, the unit and all the space inside the unit belongs to you, and you also share ownership in the common areas.

Question 24

Co-ops Estate

Answer 24

Is a nonprofit Cooperative corporation that owns the land, buildings, and all rights and interests in the corporation. Individual, shareholders, a.k.a. unit owner/residence, don’t on real estate, they don’t hold title to the property, and they don’t receive a deed for the unit. They owned corporate shares which are personal property.

Residence pay a monthly or annual maintenance fee to the board of directors that manage the cooperative, attend meetings, share work on the property, is a community day-to-day living.

Not on as real property, only as personal property, and cannot sell home without offering to the community before putting it on the market.

Question 25

Title to land and building is held by a corporation Cooperative ownership Condominium ownership

Answer 25

Cooperative ownership If you buy into a cooperative, you do not hold title to any land or building. You own shares of organization, but the cooperation actually holds the title.

Question 26

Title to unit held by unit owner Cooperative ownership Condominium ownership

Answer 26

Condominium ownership

Question 27

You own Personal property and not estate Cooperative ownership Condominium ownership

Answer 27

Cooperative ownership

Question 28

Real property Cooperative ownership Condominium ownership

Answer 28

Condominium ownership

Question 29

Ownership may be transferred similar to other properties Cooperative ownership Condominium ownership

Answer 29

Condominium ownership With condominium ownership, you on the unit, just not the common areas of the building. As such, you can sell your unit similar to any other real property you own.

Question 30

Ownership may follow occupancy agreement, and Can be approved/disapproved by the board Cooperative ownership Condominium ownership

Answer 30

Cooperative ownership

Question 31

John and Dale are married in San Francisco, and soon purchase a condo. They’ll take the title to it by default as ————— according to California law Community property Joint tenants Tenants by the entirety Tenants in common

Answer 31

Community property

Question 32

In California, and estate for years is———— Annual chattel Chattel annual Chattel real Personal interest

Answer 32

Chattel real An estate for years, such as year-long lease is known as title real in California

Question 33

Which of the following is NOT a characteristic of corporation? Corporations are recognize legal entities Corporations are tangible and nontaxable Corporations are taxable Corporations have tax rate separate from individual tax rates

Answer 33

Corporations are tangible and nontaxable

Question 34

Lucas, Ivan, Chad and Tom, own a property as joint tenants. After a few years, Ivan sells his interest to Beth (with permission from Lucas, Chad and Tom). Chad dies intestate but is survived by a wife, Amy. Tom also then passes away, but wills his property to Monique. Who owns the property after Tom’s death? Lucas Lucas and Tom Lucas, Monique, and Amy Lucas, Tom, Amy, and Monique

Answer 34

Lucas Joint tenants are allowed to sell their interests, so Beth becomes a property owner when Ivan sold his interest. However, joint tenancy is not inheritable, but instead includes the right of survivorship. I Tom’s and Chad interest passed to Lucas and Beth.

Question 35

Limited liability, companies in limited liability, partnership, or favorable forms of business——— Owners of LLC or LLP are personally liable for LLC/LLP obligations They are taxed as partnerships They don’t require a general partner They’re considered temporary and can be quickly dissolved

Answer 35

They don’t require a general partner LLC/O LPs don’t require general partners, who assume liability, jointly, and separately

Question 36

Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Len shared the home with Stella’s nephew Drew, to whom Stella willed her share of property. What type of ownership is this? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Answer 36

Tenancy in common

Question 37

Siblings Julia and Jean are co-owners of a small retail building in which a tanning salon is currently operating. Jean really wants to leave his ownership interest to his son when he dies, but the way in which they on the property doesn’t allow him to do so. What type of ownership do they have? Joint tenancy Tenancy at the entirety Tenancy in common Tenancy in severalty

Answer 37

Joint tenancy

Question 38

Which of the following describes an estate for an unknown period of time, with either party, permitted to terminate the lease by giving notice to the other? Estate at will Estate for years Leasehold estate Life estate

Answer 38

Estate at will An estate at will is an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other.