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Real Estate Licence - Study > Section 2 - Chapter 5: Sole Ownership, Joint Ownership and Trusts > Flashcards

Section 2 - Chapter 5: Sole Ownership, Joint Ownership and Trusts Flashcards

1
Q

What are the different types of Property Ownership?

A
  1. Sole Ownership (Tenancy in Severalty)
  2. Joint Ownership/JTROS (Tenancy In Common or Joint Tenancy)
  3. Trusts
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2
Q

How is Title held in a TENANCY IN SEVERALTY (Sole Ownership of Property?)

A

Title is held in a FEE SIMPLE ESTATE or in a LIFE ESTATE in the name of one “real” person or in the name of one “artificial” person (like a corporation)

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3
Q

Does real property owned in an ESTATE IN TENANCY pass on to heirs?

A

Yes

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4
Q

Is real property owned in an ESTATE IN TENANCY subject to PROBATE upon death of the owner?

A

Yes

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5
Q

What is a JOINT TENANCY or JOINT ESTATE?

A

An ESTATE owned by 2 or more persons - each with the RIGHT OF SURVIVORSHIP.

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6
Q

What is JTROS?

A

JOINT TENANCY RIGHT OF SURVIVORSHIP

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7
Q

How many titles exist in a JTROS?

A

Only 1. And that TITLE is a UNIT, with all persons owning EQUAL SHARES. Title is held as if all the owners made up one single person.

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8
Q

DOES JTROS escape PROBATE?

A

Yes. When one tenant dies, the remaining joint tenants AUTOMATICALLY receive his interest by RIGHT OF SURVIVORSHIP.

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9
Q

What are the FOUR UNITIES?

A

To create a JOINT TENANCY, the FOUR UNITIES must occur SIMULTANEOUSLY to all owners:

  1. UNITY OF TITLE
  2. UNITY OF TIME
  3. UNITY OF INTEREST
  4. UNITY OF POSSESSION JOINT
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10
Q

UNITY OF TITLE

A

ALL Joint Tenants must acquire title from SAME DEED or WILL

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11
Q

UNITY OF TIME

A

ALL Joint Tenants must be NAMED at the same time. New names cannot be added later. If a new name needs to be added, you must form a new JOINT TENANCY.

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12
Q

UNITY OF INTEREST

A

ALL Joint Tenants own ONE SINGLE INTEREST, together and EQUALLY.

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13
Q

UNITY OF POSSESSION

A

ALL Joint Tenants MUST HAVE UNDIVIDED POSSESSION OF THE WHOLE PROPERTY. They must ALL have the use of the entire property.

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14
Q

When can a JOINT TENANT’s interest be severed?

A

ONLY by DEATH or VALID CONVEYANCE. A WILL cannot defeat their interest.

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15
Q

What happens if one JOINT TENANT dies?

A

Then the SHARES of the remaining JOINT TENANTS INCREASE.

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16
Q

How can a JOINT TENANCY be TERMINATED?

A

By MUTUAL CONSENT of ALL PARTIES or by SALE ONLY.

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17
Q

Can a SOLE member of the JOINT TENANCY sell their individual interest?

A

YES. But they can’t WILL it to Heirs.

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18
Q

A person who buys the INDIVIDUAL INTERESTS of a single member of a JOINT TENANCY is called a _____?

A

TENANT-IN-COMMON

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19
Q

TENANCY BY THE ENTIRETIES (ESTATE BY THE ENTIRETIES)

A

A special joint tenancy between HUSBAND and WIFE that places TITLE TO PROPERTY in the MARITAL UNIT. EACH SPOUSE OWNS THE ENTIRE ESTATE. IT IS NOT RECOGNIZED in the state of Georgia.

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20
Q

Does TENANCY BY ENTIRETIES escape PROBATE?

A

YES. If one spouse dies, the survivor automatically, by law, succeeds to SOLE OWNERSHIP.

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21
Q

Can the creditors of one spouse, force the sale of property held by ENTIRETIES?

A

NO. This is why mortgages require both husband and wife to sign the documents.

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22
Q

How is a TENANCY BY ENTIRETY terminated?

A

By MUTUAL AGREEMENT between husband and wife, DIVORCE or a SALE (joint conveyance).

23
Q

WHAT IS TENANCY IN COMMON (ESTATE IN COMMON)?

A

Two or more people own property together. It is the most common form of co-ownership and is the assumed type of ownership unless some other form of tenancy is clearly specified.

24
Q

Do CO-TENANTS hold title to property in their OWN NAMES?

A

Yes. They hold title to property in FEE SIMPLE in their own names.

25
Q

Do CO-TENANTS have EQUAL or UNEQUAL OWNERSHIP Interests?

A

They may have EQUAL or UNEQUAL ownership interests, but each co-tenant has a UNITY OF POSSESSION

26
Q

What is UNITY OF POSSESSION?

A

UNITY OF POSSESSION means that ALL JOINT TENANTS have a common right to possess and enjoy the property. It’s the only one out of the 4 UNITIES, that is required for a TENANCY-IN-COMMON.

27
Q

Can one CO-TENANT exclude another CO-TENANT?

A

No.

28
Q

Can one CO-TENANT claim ownership of a specific part of the property over another CO-TENANT?

A

No

29
Q

Is it TRUE that even if TENANTS-IN-COMMON own UNEQUAL shares in a piece of property, their percentage of ownership is a percentage of the whole?

A

Yes.

30
Q

What is a PARTITION SUIT?

A

LEGAL PROCEEDING undertaken to divide a single piece of property that is owned in shares (TENANTS IN COMMON) by 2 or more people.

31
Q

What it TENANCY IN SEVERALTY (SOLE OWNERSHIP)?

A

Owning REAL ESTATE BY YOURSELF. Comes from the word SEVER; to CUT-OFF all other interests in the property.

32
Q

Does a TENANCY IN COMMON ownership pass on to heirs?

A

YES. If a co-owner dies, their share of ownership passes on to their heirs.

33
Q

Does a GENERAL PARTNERSHIP have to be in writing?

A

NO. A GENERAL PARTNERSHIP does not have to be in writing. All owners are general partners and each is liable for debts and obligation of the partnership.

34
Q

What is a PARTNERSHIP (Tenancy in Partnership)?

A

Two or more people or companies combining to do business. Partnerships are often created to put ownership in REAL ESTATE in the name of the partnership.

35
Q

What are the 2 TYPES OF PARTNERSHIP TENANCIES?

A

GENERAL and LIMITED.

36
Q

Does a GENERAL PARTNERSHIP have to be in writing?

A

GENERAL PARTNERSHIP does not have to be in writing. All owners are general partners and each is liable for debts and obligation of the partnership.

37
Q

Does a LIMITED PARTNERSHIP have to be in writing?

A

YES. Partnership is usually filed with SECRETARY of STATE (in your state capital).

38
Q

What is the set-up of a LIMITED PARTNERSHIP?

A

It is composed of one or more general partners and one or more limited partners.

39
Q

What are the responsibilities of GENERAL PARTNERS?

A

They control the operation of the business and are individually and totally liable for debts and obligations.

40
Q

Who are the main players of a TRUST?

A

TRUSTOR-owns the property and conveys it to the trustee
TRUSTEE-person who holds the TITLE and manages it on behalf of the beneficiary
BENEFICIARY-receives the benefits and proceeds of the TRUST, like rental income on an apartment building.

41
Q

If a LIMITED PARTNER takes part in the control of the business (General Partner responsibilities), will she become as liable as a GENERAL PARTNER?

A

YES. Individually and Totally.

42
Q

What is a TRUST?

A

A THIRD PARTY who holds real estate for the benefit of someone else.

43
Q

Who are the main players of a TRUST?

A

TRUSTOR-owns the property and conveys it to the trustee
TRUSTEE-person who receives the property and administers it on behalf of the beneficiary
BENEFICIARY-receives the benefit of the property, like rental income on an apartment building.

44
Q

Does a TRUSTEE have a FIDUCIARY duty?

A

YES. They have a duty to protect, preserve and enhance the value of a property.

45
Q

Can a LAND TRUST hide the identity of a property owner?

A

YES. If a buyer wants to maintain confidentiality, he can place TITLE to a piece of REAL PROPERTY in a LAND TRUST. The name of the LAND TRUST will appear on the title instead of the owner’s name

46
Q

What are the ways a TRUST can be established?

A

By a WILL, a TRUST AGREEMENT, or by a DEED IN TRUST.

47
Q

Can a TRUSTOR and BENEFICIARY be the same person?

A

Yes. Like when an public office holder places certain assets in a BLIND TRUST in order to escape CONFLICT OF INTEREST charges.

48
Q

How do SYNDICATES usually acquire their funding?

A

They often raise money from investors. This usually requires a SECURITY LICENSE.

49
Q

Does ownership in a TRUST require a special kind of DEED?

A

YES. Called a TRUST DEED or DEED IN TRUST.

50
Q

What do both TENANCY IN COMMON and JOINT OWNERSHIP have in common (aside that there is more than one party involved in both)?

A

POSSESSION is the only other thing they have in common (aside from the fact that there’s more than one party involved in both)

51
Q

How do syndicates usually acquire their funding?

A

They often raise money from investors. This usually requires a SECURITY LICENSE.

52
Q

Can FEE SIMPLE TITLE be held in a TRUST?

A

YES.

53
Q

The 4 UNITIES are required in order to create a WHAT?

A

An UNDIVIDED INTEREST in the property as a whole

54
Q

What is VOLUNTARY LIEN?

A

A LIEN that is entered into by agreement of the parties.

Real Estate Licence - Study (12 decks)

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