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RE > PRINCIPLES AND PRACTICES CHP5 > Flashcards

PRINCIPLES AND PRACTICES CHP5 Flashcards

1
Q

A married couple decides to buy some investment property together. The wife wants to make sure that if she dies, her daughter from a previous marriage will be able to inherit her interest in the property. How should the couple take title to the property?

A. joint tenants

B. tenants by the entireties

C. tenants in common

D. tenants in severalty

A

C. tenants in common

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2
Q

Which of these unities is required for there to be tenancy in common?

A. interest

B. possession

C. time

D. title

A

B. possession

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3
Q

Joe and his friend Larry buy a $250,000 house together as tenants in common. Joe pays $200,000, and Larry pays $50,000. The deed indicates that Joe owns 80% interest, and Larry owns 20% interest. How much of that property can Larry occupy?

A. 25%

B. 50%

C. 100%

D. whatever Joe and Larry agree to

A

C. 100%

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4
Q

Jack and Jill just got married, and Jack moves into the house Jill owned in severalty prior to the wedding. Which of these unities is present with respect to the current ownership of the house?

A. interest

B. person

C. time

D. title

A

B. person

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5
Q

When a couple gets married, they decide to sell each of their homes and buy one house together. The wife’s house sells for $700,000; the husband’s house sells for $300,000; and they’re going to buy a $1 million house. If the wife wants a 70% interest in the new house, what form of ownership must they take?

A. joint tenancy with right of survivorship

B. tenancy by the entireties

C. tenancy in common

D. tenancy in severalty

A

C. tenancy in common

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6
Q

A married couple is getting divorced and decides to sell their house. Before the house sells, however, the divorce is finalized, and the judge awards the house to the husband as part of the divorce settlement. When the new deed is prepared, what is the husband’s likely interest in the house?

A. joint tenant

B. tenant by the entireties

C. tenant in common

D. tenant in severalty

A

D. tenant in severalty

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7
Q

Four friends co-own a property as joint tenants. When three of the friends are killed in a car accident, what is the remaining owner’s interest in the property?

A. joint tenant with 100% interest

B. owner in severalty

C. 25% as tenant in common with the heirs of deceased owners

D. The estate ends at the death of the majority of the co-owners.

A

B. owner in severalty

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8
Q

Kim, Sal, and Lois own a house as tenants in common. When Sal dies, her 25% interest

A. goes to her heirs.

B. goes to Kim and Lois, split equally.

C. goes to Kim and Lois in proportion to their ownership interests.

D. It’s impossible to know.

A

A. goes to her heirs.

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9
Q

Amy and Ben each own a one-third interest in a property as joint tenants with right of survivorship. Doug owns a one-third interest in the property as a tenant in common with them. When Ben dies, what happens to his interest in the property?

A. It goes to Amy, who now has a two-thirds interest.

B. It goes to Ben’s heirs, leaving Amy and Doug with their one-third interest.

C. It is split equally, so Amy and Doug each have a 50% interest.

D. It must go to probate court for a determination.

A

A. It goes to Amy, who now has a two-thirds interest.

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10
Q

Joint tenancy is severed when

A. the leasehold expires.

B. one of the owners files for bankruptcy.

C. one of the owners sells their interest to a third party.

D. one of the parties becomes disabled.

A

C. one of the owners sells their interest to a third party.

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11
Q

What is the only form of co-ownership that permits the division of property in unequal proportions?

A. joint tenancy with right of survivorship

B. severalty

C. tenancy by the entireties

D. tenancy in common

A

D. tenancy in common

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12
Q

ABC, Inc., just bought an old warehouse to turn into a state-of-the-art bakery. How does ABC take ownership of the property?

A. in severalty

B. joint tenants

C. real estate investment trust

D. tenants in common

A

A. in severalty

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13
Q

Which type of business entity pays a share of the profits to its beneficiaries?

A. corporation

B. joint venture

C. REIT

D. syndicate

A

C. REIT

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14
Q

If a partnership does not pay its debts, the creditors may collect from the personal assets of the

A. general partners only.

B. limited partners only.

C. limited partners and general partners.

D. stockholders.

A

A. general partners only.

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15
Q

What is a primary advantage to owning property in severalty?

A. flexibility

B. joint occupancy

C. limited liability

D. shared risk

A

A. flexibility

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16
Q

A downtown condominium offers many amenities, such as a gym, tennis court, and swimming pool. These common elements are MOST LIKELY owned by

A. the condominium developer.

B. a corporation in which the unit owners own stock.

C. the owners of the units that are adjacent to the amenities.

D. the unit owners as tenants in common.

A

D. the unit owners as tenants in common.

17
Q

Every owner in the condo community has a designated parking space. This is an example of a(n)

A. alternative leasing.

B. common area.

C. declaration.

D. limited common area.

A

D. limited common area.

18
Q

Which statement regarding ownership in a condominium is TRUE?

A. Each owner has a proprietary lease.

B. The government levies property taxes against each owner directly.

C. A unit owner may not will the property to anyone.

D. A unit owner must take title as a joint tenant with other owners.

A

B. The government levies property taxes against each owner directly.

19
Q

A tenant has a proprietary lease on an individual unit An Royal Tower Residences. Most likely, what does the tenant own?

A. a condominium unit

B. a deeded timeshare

C. shares in a cooperative unit

D. shares in a real estate investment trust

A

C. shares in a cooperative unit

20
Q

The co-owner of a property in Orlando is permitted to stay there only the first week of December and the third week of June every year. This MOST LIKELY describes a

A. cooperative.

B. condominium.

C. leasehold estate.

D. timeshare.

A

D. timeshare.

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