Part 5

Question 1

Ownership by a single owner or single entity.

Answer 1

Ownership in severalty

1 of 3 ownership forms

Question 2

A __________ is a legal entity composed of individuals conducting business as if they were a single person.

Answer 2

Corporation.

Ownership in severalty > Corporation

Question 3

A corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real property is called what?

Answer 3

Real estate investment trust (REIT)

Ownership in severalty > Real estate investment trust (REIT)

Question 4

A private or public partnership that pools funds for the acquisition and development of real estate projects or other business ventures is called what? They can also operate as a partnership, limited partnership, corporation, or a REIT.

Answer 4

Syndication.

Ownership in severalty > Syndication

Question 5

When property is held by two or more individuals and is categorized into four types what is it called?

Answer 5

Co-ownership

1 of 3 ownership forms

Question 6

Real estate may be owned by two or more people. Each owner possesses an undivided fractional interest in the property held under a ___________ __________ __________.

2a. The property is not physically divided.

2b. The ownership interest is divided, and the co-owners are entitled to possession of the whole property.

4b. Upon the death of a co-owner, the undivided interest passes in accordance to the will of that owner.

Answer 6

tenancy in common

Co-ownership > tenancy in common

Question 7

Justin owns a property with three other people. When Justin dies, his interest will be passed according to his will and be part of his estate. In this property, Justin is a what?

Answer 7

Tenant in common.

Question 8

Williams owns property with Campbell by tenancy in common. When Williams dies, her interest in the property will go to who?

Answer 8

her heirs or according to her will.

Question 9

_______ _______ involves two or more people holding real estate but w/ right to survivorship. When a tenant dies under this co-ownership, the interests are passed to the other surviving tenant(s) and not to the heirs or according to a will.

Answer 9

Joint tenancy

Co-ownership > Joint tenancy

Question 10

Joint tenancy has a right of survivorship feature shared with what other form of ownership?

Answer 10

tenancy by the entirety

Question 11

Form of co-ownership for married couples in which each spouse has an equal, undivided interest in the property is called what? Husband and wife have rights of survivorship.

Answer 11

Tenancy by the entirety.

Co-ownership > tenancy by the entirety

Question 12

What is it called when real estate is transferred to another person (called a fiduciary) to hold or manage for the benefit of a third party?

Answer 12

A trust.

1 of 3 ownership forms

Question 13

An individual, couple, or organization who places the legal title of the property in a trust is called what?

Answer 13

Trustor

Question 14

A third party who is legally responsible for managing assets or property for the benefit of another party is called what?

Answer 14

Trustee

Also known as a fiduciary

Question 15

A person or group of people who are designated to receive benefits from a trust, such as the trust’s property, income, or other advantages is called what?

Answer 15

Beneficiary

Question 16

Rick and Alice set up a living trust for their children involving a rental property they own. In this type of agreement, the children are legally referred to as the what?

Answer 16

Beneficiary.

Question 17

The person has the responsibility for holding/managing the property in a trust.

Answer 17

Fiduciary

a.k.a. Trustee

Question 18

The Acme Corporation set up a land trust in a property it owns and conveys it to a nonprofit organization for a specified period of time. What best identifies Acme’s position in the trust?

Answer 18

Acme is the trustor.

Question 19

Owners of an individual ___________ unit hold a fee simple title

Answer 19

Condominium unit hold complete and irrevocable ownership of land and any buildings on it.

Question 20

Condominium owners also hold an undivided interest in the remaining condominium real estate, known as ___________ __________ .

Answer 20

common elements.

Question 21

Land
Community buildings
Swimming pools
Tennis courts
Boat slip for waterfront properties
Parking spaces

All describe which common elements?

Answer 21

Common elements outside the building.

Does not include public streets and sidewalks that give access to the condominium property

Question 22

Lobby
Hallways
Elevators
Underground garage
Exercise room
Balconies
Laundry
Storage areas

All describe which common elements?

Answer 22

Common elements inside the building.

Question 23

Under ___________ ____________ a corporation actually owns the real estate and individuals own shares of stock in the corporation.

Answer 23

cooperative ownership

Question 24

Purchasing a cooperative unit means you are buying what?

Answer 24

shares of stock.

Question 25

A fee simple interest in condominium ownership with accompanying rights. The ownership rights are limited to a specified time period, but the owner can still mortgage, lease, sell, or bequeath the rights is called what?

Answer 25

A timeshare.

Question 26

A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development. They are not an ownership type.

Answer 26

Planned Unit Development.

Question 27

Development that seeks to meet the needs of the present w/o compromising the ability of future generations to meet their needs.

Answer 27

Sustainable development.

Question 28

The party that gives the mortgage is called?

Answer 28

Mortgagor.

The mortgagor is the borrower

Question 29

1. Ownership in severalty
2. Co-ownership (aka concurrent ownership)
3. Trusts

This list describes what?

Answer 29

3 primary groups of ownership forms

Question 30

Tenancy in common
Joint tenancy
Tenancy by the entirety
Community property

This list describes what?

Answer 30

Four types of co-ownership

Question 31

Nine states use this system for property owned by husband and wife. Each spouse has an undivided one-half interest in property acquired during the marriage. In contrast to joint tenancy, when one spouse dies, the survivor is entitled to one-half of the ____________ ____________. The other half is distributed according to the will of the deceased. If there is no will, the interests will go to the surviving spouse (or other heirs) depending upon applicable laws of the state.

Answer 31

community property rights

Co-ownership > community property

Question 32

___________ ___________ is a legal arraignment that lets you decide how your assets are managed and distributed, both during your lifetime and after you die. This type of trust “owns” the property you put into it, while often still letting you control the trust assets.

Answer 32

Living trust

Trust > Living trust

Question 33

___________ ___________ is a legal arraignment where real estate is the only asset in the trust. The property title is conveyed to a trustee, but the trustor in this case is also the beneficiary. The trustor has a beneficial interest in the property, and that interest is actually treated as personal property.

Answer 33

Land trust

Trust > Land trust

Question 34

The Hawthorns bought a condominium unit in a resort area for $500,000. They use the condo for one month out of every year and during the remaining months, they rent it out through an agreement with the property management. This is an example of what type of ownership?

Answer 34

condominium