Real Estate Test Unit 4

Question 1

common elements

Answer 1

parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or a normally in common use by all the condominium residents. Each condominium owner has an undivided ownership interest in the common elements

Question 2

community property

Answer 2

a system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage. a holdover of Spanish law found predominantly in the western U.S. states; the system was unknown under English common law

Question 3

condominium

Answer 3

the absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, or a separate dwelling unit in a multiunit development, plus an undivided interest in the ownership of the common elements in the building or development, which are owned jointly with the other condominium unit owners

Question 4

conveyance

Answer 4

a term used to refer to any document that transfers title to real property. the term is also used in describing the act of transferring

Question 5

cooperative

Answer 5

a residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of people living within the building who are the beneficial owners of the trust or shareholders of the corporation, each possessing a proprietary lease to a property unit

Question 6

co-ownership

Answer 6

title ownership held by two or more persons

Question 7

corporation

Answer 7

an entity or organization, created by operation of law, whose rights of doing business are essentially the same as those of an individual. the entity has continuous existence until it is dissolved according to legal procedures

Question 8

fiduciary

Answer 8

one in whom trust and confidence is placed; a reference to a real estate professional employed under the terms of a listing contract or buyer representation agreement

Question 9

joint tenancy

Answer 9

ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. upon the death of a joint tenant, the decedent’s interest usually passes to the surviving tenant or tenants by the right of survivorship

Question 10

land trust

Answer 10

a trust in which property is conveyed, and in which real estate is the only asset

Question 11

living trust

Answer 11

a trust that is created during the truster’s lifetime

Question 12

Model Real Estate Time Share Act

Answer 12

an act that governs the management, use, and termination of time-share units

Question 13

partition

Answer 13

the division of cotenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through a court procedure

Question 14

partnership

Answer 14

an association of two or more individuals who carry on a continuing business for profit as co-owners. under the law, a partnership is regarded as a group of individuals rather than as a single entity separate from the individual owners.

Question 15

PITT

Answer 15

the four unities of tenants in a joint tenancy: possession, interest, time, and title

Question 16

separate property

Answer 16

under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance during the marriage, or purchased with separate funds after the marriage

Question 17

severalty

Answer 17

ownership of real property by one person only; also called sole ownership

Question 18

tenancy by the entirety

Answer 18

the joint ownership, recognized in some states, of property acquired by husband and wife during marriage. upon the death of one spouse, the survivor becomes the owner of the property

Question 19

tenancy in common (TIC)

Answer 19

a form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. each individual owner has the right to partition. unlike joint tenants, tenants in common have the right to inheritance

Question 20

testamentary trust

Answer 20

a trust that is established by will after one’s death

Question 21

time-share

Answer 21

a form of ownership interest that may include an estate interest in property and that allows use of the property for a fixed or variable time period

Question 22

town house

Answer 22

type of residential dwelling with 2 floors that is connected to one or more dwellings by a common wall or walls. title to the unit and lot vest in the owner who shares a fractional interest with other owners in any common areas

Question 23

trust

Answer 23

fiduciary arrangement whereby property is conveyed to a person or institution

Question 24

trustee

Answer 24

one to whom something is entrusted and who holds legal title to property and administers the property for the benefit of a beneficiary. can also be a member of a board entrusted with the administration of an institution or organization, such as a cooperative

Question 25

trustor

Answer 25

a borrower in a deed of trust loan transaction; one who places property in a trust. also called a grantor or settler

Question 26

Uniform Partnership Act

Answer 26

law that provides for the continuation of an existing business if a partner in a general partnership dies, withdraws, or goes bankrupt

Question 27

unity of ownership

Answer 27

the four unities that are traditionally needed to create a joint tenancy - unity of title, time, interest, and possession

Question 28

unity of possession

Answer 28

co-owners of a tenancy in common are each entitled to possession and use of the entire property, even though each hold only a tractional ownership interest