Real Property Ownership Flashcards
Association Fees
Monthly fees paid by each condominium or cooperative owner for common area expenses such as utilities, management, building maintenance, hazard and liability insurance for the common areas of the property, and other amenities.
Beneficiary
One who receives a benefit. In real estate, usually the lender in a trust deed.
Board Package Application materials for admission to a cooperative that includes financial qualifications, employment verification, letters of reference, and other material as requested by a cooperative board.
Bylaws
Rules and regulations that govern the activities of condominium and cooperative associations, including the purpose of the building, rules for elections and voting, and frequency of board of directors or shareholders meetings
CC&Rs
A declaration of covenants, conditions, and restrictions; usually recorded by a developer to create a general plan of private restrictions for a subdivision.
Common Areas
The land and improvements in a condominium, planned unit development, or cooperative that all residents use and own as tenants in common, such as the parking lot, hallways, and recreational facilities.
Community Property
Property accumulated by a married couple through the efforts of either during their marriage. Not recognized in Illinois.
Condominium
A property developed for co- ownership, with each co-owner having a separate interest in an individual unit, combined with an undivided interest in the common areas of the property and air space consisting of the area between the walls, floor, and ceiling.
- fee simple ownership of individual unit (with entire bundle of rights) with a tenants in common ownership of common areas; can sell unit but not common areas separate; each owner has his own tax bill and mortgage
Condominium Declaration
The document that must be filed in the public record when property is developed as, or converted to, a condominium
Cooperative
A type of property ownership under which residents have the right to occupy a unit by purchasing stock shares via proprietary lease in the corporation that owns the property.
-There is only one tax bill for the whole property and they are financially interdependent; shareholder pays a prorated share of the building’s expenses, including property taxes for the whole building
Co-Ownership
Any form of ownership in which two or more people share title to property, holding undivided interests. Also called Co- Tenancy or Concurrent Ownership.
Corporation
Corporation A legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners for liability or tax purposes
General Partnership
A partnership in which each member has an equal right to manage the business and share in the profits, as well as equal responsibility for partnership’s debts
Horizontal Property Acts
A generic name given to state laws that create the legal framework that allows a condominium form of ownership and make it possible for lenders to provide mortgages on condominiums, for tax authorities to assess property taxes, etc.
Joint Tenancy
Each co-owner has an equal, undivided interest in the land and right of survivorship.
Requires Unities of Possession, Interest, Time, Title.
Joint Venture
Two or more individuals or companies joining together for one project or a series of related projects, but not as an ongoing business.
Land Trust
A trust in which real estate is the only asset. The beneficiary has the right to possess the property as well as to the income or proceeds from its sale. The trustee manages the real estate as directed by the beneficiary.
Limited Common Areas
Areas in a condominium or cooperative owned by all but used by only one owner (e.g., a balcony or designated parking space.)
Limited Liability Company (LLC)
A business ownership structure that offers its owners the advantage of limited liability (like corporations) and partnership-like taxation, in which profits are passed through to the owners and taxed on their personal income tax returns
