Property Ownership Flashcards
Define Condminium
A multi-unit building where the occupants each own their individual units and receive a deed granting ownership of the property.
Condominium ownership would NOT be used on which of the following?
A. An apartment building
B. A cooperative apartment
C. Townhouses
D. An office park
B. A cooperative apartment
Define Cooperative
A multi-unit building where the people who occupy the units own stock in a corporation, thereby receiving a right to lease the unit from the cooperative itself.
The main difference between a cooperative and condominium is that:
A a cooperative owner obtains fee simple title to the unit
B a cooperative owner pays their own taxes and mortgage on the unit
C a condominium owner owns and finances their own unit
D a condominium owner receives a proprietary lease
C. A condominium owner owns and finances their own unit
Notes: A cooperative owner does not receive fee simple title or pay their own taxes and mortgage. A condominium owner does not receive a proprietary lease.
Time share ownership would be most evidenced by: A joint tenancy B tenancy in common C tenancy in the entireties D cooperative ownership
B. Tenancy in Common
Define Joint Tenancy
A form of ownership where two or more parties own property together; carries the right of survivorship (when an owner dies, the ownership interest goes to the surviving owners, not the heirs of the deceased)
Define Tenancy in Common
An individual interest in group ownership; the ownership interest can be unequal, the parties all share possession, and the heirs of the deceased receive the property upon the death of one of the owners (ownership does NOT transfer to the other co-owners)
Define Tenancy in the Entireties
Signifies ownership by married couples only.
A person that has stock ownership in an apartment and a proprietary right to lease that space would be participating in a : A condominium B cooperative C time share D alienation
B. Cooperative
Define Alienation
In a real estate context, this relates to the word transfer; e.g., in a mortgage, an alienation clause allows the lender to call the loan due and payable if a property is sold or transferred, in other words, making the loan non-assumable
The main difference a manager would need to realize between managing a condominium and an apartment complex is that in a condominium:
A the manager would not have to maintain the common areas
B the need for swimming pool regulations would not be as great
C the people who reside there are unit owners
D the residents are still considered to be tenants
C. the people who reside there are unit owners
Define Regulations
Government regulations relating to subdivisions; e.g., most cities require streets, sewers, easements, etc.
The common areas in a condominium are owned by the unit owners under: A joint tenancy B severalty C tenancy in the entireties D tenancy in common
D. tenancy in common
Define Severalty
A situation where one person only owns the property; also, how corporations take title
Which of the following statements is true regarding a condominium?
A Stock is used to transfer ownership
B The owners have a proprietary lease
C Ownership must be done under joint tenancy
D The owners have an undivided interest in the common areas
D The owners have an undivided interest in the common areas
Define Interest
Rental charge for using someone else`s money
When ownership is conveyed through the transfer of shares of stock, this is: A joint tenancy B tenants in common C condominium D cooperative
D cooperative
A condominium development with a long standing established homes association would be governed by the: A long established tenants B association of unit owners C developer of the condominium D state licensing agency
B association of unit owners
Define Developer
Improves the lots
What is the greatest type of interest an owner can receive in a condominium? A Fee simple B Leasehold C Right of free use D Stock
A. Fee simple
What interest does a condominium owner have in common with other condominium owners?
A Divided interest in the common properties
B Undivided interest in the limited common properties
C Undivided interest in the common areas
D Undivided interest in the master deed plan
C Undivided interest in the common areas
Which of the following items would automatically transfer with the sale of property? A Trade fixtures B Plumbing fixtures C A free standing appliance D Emblements
B. Plumbing fixtures
Define Emblements
Growing crops in the field; allows the seller to come back and harvest after the sale. Considered to be personal property.
Define Trade Fixtures
Items installed by a commercial tenant for business use and are considered personal property.
Harvesting of crops that require annual planting means that the crops are considered to be: A real property B personal property C fixtures D trade fixtures
B personal property
Define Real Property
Land plus all appurtenances.
Define Chattel
Another word for personal property; comes from the word “cattle”
Define FIxture
Going from personal to real property; item that was once personal property but is now attached
Define Estate
The degree, quantity, nature and extent of ownership interest in real property.
Converting real property into personal property would be called a(n): A chattel B annexation C severance D fixture
C severance
Define Severance
Going from real to personal property; e.g., cutting down a tree
Define Personal Property
Anything that is easily movable; e.g., camera, grill, etc.
Define Personal Property
Anything that is easily movable; e.g., camera, grill, etc.
A fixture would be defined as:
A » chattel
B » an item that is attached to a building
C » personal property
D » covenants that run with the land
B » an item that is attached to a building
Define Land
A spot on the earth that goes down to the center of the earth and up to infinity
A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller’s personal property to remain with the house. The personal property would transfer to the buyer under which of the following conditions?
A » If it fit into a particular spot in the house
B » If it was included in the contract
C » If it was verbally stated by the listing broker
D » If it was verbally agreed to between the seller and buyer
B » If it was included in the contract