section 4 ownership

Question 1

When a single individual or entity owns a fee or life
estate in a real property, the type of ownership is
a. tenancy in severalty.
b. tenancy by the entireties.
c. absolute fee simple.
d. legal fee simple.

Answer 1

a. tenancy in severalty.

Question 2

Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is
a. joint tenancy.
b. equal ownership.
c. tenancy in common.
d. estate in severalty.

Answer 2

c. tenancy in common.

Question 3

The “four unities” required to create a joint tenancy include which of the following conditions?
a. Parties must acquire respective interests at the same time.
b. Parties must be legally married at the time of acquiring interest.
c. Parties must be family members.
d. Parties must have joint financial resources.

Answer 3

a. Parties must acquire respective interests at the same time.

Question 4

Unlike tenants in common, joint tenants
a. own distinct portions of the physical property.
b. cannot will their interest to a party outside the tenancy.
c. may own unequal shares of the property.
d. cannot sell their interest to outside parties.

Answer 4

b. cannot will their interest to a party outside the tenancy.

Question 5

In a community property state, a basic distinction is made between
a. property acquired together and property acquired separately over the duration of the marriage.
b. property owned privately versus property owned by the state.
c. property acquired during a marriage and property already owned by each party at the time of marriage.
d. property acquired during the marriage and property acquired after the marriage.

Answer 5

c. property acquired during a marriage and property already owned by each party at the time of marriage

Question 6

Who are the essential parties involved in an estate in trust?
a. Owner, trustor and lawyer
b. Owner, trustor and trustee
c. Trustee, title company, and beneficiary
d. Trustor, trustee and beneficiary

Answer 6

d. Trustor, trustee and beneficiary

Question 7

The distinguishing features of a condominium estate are
a. ownership of a share in an association that owns one’s apartment.
b. tenancy in common interest in airspace and common areas of the property.
c. fee simple ownership of the airspace in a unit and an undivided share of the entire property’s common areas.
d. fee simple ownership of a pro rata share of the entire property.

Answer 7

c. fee simple ownership of the airspace in a unit and an undivided share of the entire property’s common area

Question 8

Who owns the property in a time-share estate?
a. Ownership is shared by the developer and the broker.
b. The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.
c. A real estate investment trust holds a fee simple estate.
d. A general partner holds a fee simple interest and interval estates are owned by limited partners.

Answer 8

b. The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.

Question 9

Which of the following is true of a cooperative?
a. A cooperative may hold an owner liable for the unpaid operating expenses of other owners.
b. The owners have a fee simple interest in the airspace of their respective apartments.
c. Owners may retain their apartments even if they sell their stock in the cooperative.
d. The proprietary lease is guaranteed to have a fixed rate of rent over the life of the lease term.

Answer 9

a. A cooperative may hold an owner liable for the unpaid operating expenses of other owners.

Question 10

One difference between a cooperative estate and a condominium estate is that
a. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.
b. the condominium owner must pay expenses as well as rent.
c. the coop owner owns stock and a freehold real estate interest whereas the condominium owner simply owns real estate.
d. the condominium owner owns the common elements and the airspace whereas the coop owner only owns the apartment.

Answer 10

a. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium

Question 11

A unique feature of a land trust is that
a. the trustee controls both the trustor and the beneficiary.
b. the trustee takes ownership of both land and improvements.
c. the identity of the beneficiary may not be identified.
d. the properties in the trust are probated in the states where the properties are located.

Answer 11

c. the identity of the beneficiary may not be identified

Question 12

An estate in real property owned by a single party.
If a single party owns the fee or life estate, the ownership is a tenancy in severalty.
Synonyms are sole ownership, ownership in severalty, and estate in severalty. When the
would-be sole owner is a husband or wife, state laws may require homestead, dower or
elective share rights to be released to allow ownership free and clear of any marriage-related claims.
The estate of a deceased tenant in severalty passes to heirs by probate.

Answer 12

tenancy in severalty

Question 13

An estate where each co-owner owns an electable share of the property and can transfer this share to any other party. Does not include right of survivorship; interests of deceased owners pass to heirs.

Answer 13

tenancy in common

Question 14

A form of real property ownership in which co-owners share all rights and interests equally and indivisibly; entails right of survivorship, Parties must establish tenancy at the same time and with a single deed.

Answer 14

joint tenancy

Question 15

To create a joint tenancy, all owners must acquire the property at the same time, use the same deed, acquire equal interests, and share in equal rights of possession. These are referred to as the four unities:
1. Unity of time: all parties must acquire the joint interest at the same time
2. Unity of title: all parties must acquire the property in the same deed of conveyance
3. Unity of interest: all parties must receive equal undivided interests
4. Unity of possession: all parties must receive the same rights of possession

Answer 15

four unities

Question 16

A lawsuit requesting the court to alter or cancel the interests of a co-owner in a parcel of real property. Initiated when co-owners do not agree to make the change voluntarily.

Answer 16

partition

Question 17

Tenancy by the entireties is a form of ownership reserved exclusively for husband and wife. It features survivorship, equal interests, and limited exposure to foreclosure.

Answer 17

tenancy by the entireties

Question 18

A system of property ownership established by law which generally defines rights of property ownership of spouses; community property is co-owned by spouses, and separate property is owned by a single spouse. Generally, property acquired during the marriage with jointly held funds is community property.

Answer 18

community property

Question 19

Tenancy in partnership is a form of ownership held by business partners, as provided by the Uniform Partnership Act. The partnership tenancy grants equal rights to all partners, but the property must be used in connection with the partnership’s business. Individual
rights are not assignable.

Answer 19

Tenancy in Partnership

Question 20

A fiduciary relationship between a trustor and trustee. The trustor conveys legal title to property to the trustee, who holds and manages the estate for the benefit of another party, the beneficiary (in a land trust, trustor and beneficiary are the same person)

Answer 20

trust

Question 21

The trustor conveys legal title to property to the trustee.
In an estate in trust, a fee owner…- the grantor or trustor…- transfers legal title to a fiduciary-
- the trustee- who holds and manages the estate for the benefit of another party, the beneficiary. The trust may be created by a deed, will, or trust agreement.

Answer 21

trustor

Question 22

In an estate in trust, a fee owner– the grantor or trustor– transfers legal title to a party, the beneficiary. The trust may be created by a deed, will, or trust agreement.
The trustee has fiduciary duties to the trustor and the beneficiary to maintain the condition and value of the property. The specific responsibilities and authorities are set forth in the trust agreement.

Answer 22

trustee

Question 23

the trustee- who holds and manages the estate for the benefit of another

Answer 23

fiduciary

Question 24

A party named to benefit from the yield or disposition of an asset identified in a trust, insurance policy, or will.

Answer 24

beneficiary

Question 25

A trust established during one’s lifetime in which the trustor conveys legal title to property to a trustee and names another party as beneficiary. The trustee discharges management duties and the beneficiary receives all profit and gain net of the trustee’s fees.

Answer 25

Living Trust

Question 26

A trust in which a trustor conveys a fee estate to a trustee and names himself or herself as beneficiary. The beneficiary in turn controls the property and the actions of the trustee.

Answer 26

land trust

Question 27

An estate distinguished by fee simple ownership of the airspace of a unit plus an undivided interest with the other unit owners in the overall property’s common elements,

Answer 27

condominium

Question 28

A condominium is a hybrid form of ownership of multi-unit residential or commercial properties. It combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements, such as lobbies, swimming pools, and hallways. A condominium unit is one airspace unit together with the associated interest in the common elements.

Answer 28

airspace

Question 29

Common elements are all portions of the property that are necessary for the existence, operation, and maintenance of the condominium units. Common elements include:
-the land (if not leased)
-structural components of the building, such as exterior windows, roof, and foundation
-physical operating systems supporting all units, such as plumbing, power, communications installations, and central air conditioning
-recreational facilities
-building and ground areas used non-exclusively, such as stairways, elevators, hallways, and laundry rooms

Answer 29

common elements

Question 30

Ownership of shares in a cooperative association which acquires a multi-unit dwelling as its primary asset. Shareholders also receive a proprietary lease on a unit for the duration of their share ownership.

Answer 30

cooperative

Question 31

A cooperative owner’s lease on a unit in the cooperative building. The lease runs concurrently with the owner’s ownership interest in the cooperative.

Answer 31

proprietary lease