Ownership & Restrictions

Question 1

Define: Estate

Answer 1

ownership right of group or individual to piece of real property.

Question 2

What are the two classifications of estates?

Answer 2

freehold estates and less than freehold estates.

Question 3

Define: Freehold Estate

Answer 3

is to be held for an intermediate period of time, such as in

Question 4

Define: Real Property

Answer 4

actual land and anything permanent including buildings, roads, and trees.

*real property also generally includes air, water, and mineral rights.

Question 5

Define: Personal Property

Answer 5

anything that is movable and not a fixture on real property, basically if it can be moved without damage.

Question 6

Define: Fixture

Answer 6

piece of personal property affixed to real property in such a way that it is now considered real property. Examples of fixtures include a new toilet or a tree planted by the owner of the real property.

Question 7

Explain: Cooperative OR a Co-op

Answer 7

a group of individuals who own a piece of property together.

Question 8

How does ownership work in a co-op?

Answer 8

generally each owner owns a certain number of shares, these shares give the owner exclusive use of an individual unit or room and shared use of a common space.

*each owner pays taxes and maintenance fees based on number of shares held.

Question 9

How is the Co-op governed?

Answer 9

a board is elected from the shareholders to govern rules and policies.

Question 10

How is a Co-Op financed?

Answer 10

either a mortgage or a co-op loan.

Question 11

Does anyone really have ownership of the co-op?

Answer 11

Since each owner owns shares of the co-op no one owner can claim exclusive ownership of any part of the property above any other owner.

Question 12

What is an inherited freehold estate?

Answer 12

transfers to another person upon the owner’s death by a will or according to the state’s law of distribution.

Question 13

What is the Law of Distribution?

Answer 13

when a person fails to leave a will, this is the legal procedure for distributing what they have left.

Question 14

What is a freehold estate that is no inherited?

Answer 14

it will vanish upon the death of the owner or go to another person as per the conditions of the original creation of the estate.

*can be divided into subclassifications of Life Estates and estates pur autre vie.