Unit 1 Chapter 6

Question 1

Tenancy in severalty

Answer 1

sole ownership of a freehold estate

Question 2

Tenancy in common

Answer 2

co-tenants enjoy an individually owned, undivided interest; any ownership share
possible; no survivorship

Question 3

Joint tenancy

Answer 3

equal, undivided interest jointly owned by two or more parties, with survivorship; requires four unities to create: time, title, interest, possession; joint tenants can sell their interest, but the interest becomes a tenancy in common with remaining joint tenants

Question 4

Tenancy by the entireties

Answer 4

equal, undivided interest jointly owned by husband and wife

Question 5

Community property

Answer 5

per state law, joint ownership of property by spouses as opposed to separate property

Question 6

Separate Property

Answer 6

acquired before marriage or by gift or inheritance, personal injury claims, purchase from separate funds, by sale of separate property, or written contract with the spouse

Question 7

Tenancy in partnership

Answer 7

ownership by business partners

Question 8

Living trust and testamentary trust

Answer 8

personal and real property ownership created to take effect during one’s lifetime (living trust) or after one’s lifetime (testamentary)

Question 9

Land trust

Answer 9

real property ownership where grantor and beneficiary are same party; beneficiary uses, controls property, does not appear on public records

Question 10

CONDOMINIUMS

Answer 10

freehold ownership of a unit of airspace plus an undivided interest in the common elements
as tenant in common with other owners
• Interests and rights, obligations - may be sold, encumbered or foreclosed without affecting other unit
owners
• Creation and declarations - created by developer’s declaration and recorded master deed; declaration
includes definitions of land, common elements, units, shares of ownership, plans for governance, bylaws,
covenants and restrictions
• Organization and management – owners’ association with board of directors oversees management,
engages management companies and agents
• Owner responsibilities – maintain unit systems and condition; insure contents of unit; pay common area
assessments and pro rata share of management and other costs

Question 11

COOPERATIVES

Answer 11

ownership of shares in owning corporation, plus proprietary lease in a unit; corporation has
sole, undivided ownership
• Interests, rights, obligations – no individual real property interest; personal property interests subject to
control by owning corporation; pay pro rata share of corporation’s expenses, monthly assessments; unit
can be sold
• Organization and management – cooperative association establishes rules and restrictions;
shareholder-elected board of directors operates the property, controls use of units

Question 12

TIME SHARES

Answer 12

a lease or ownership interest in a property for the purpose of periodic use by the owners or tenants on a scheduled basis

Question 13

Deeded ownership

Answer 13

real property, owned for the period specified in purchase contract; includes right to use a specific unit at a specific time each year; time-share unit can be transferred; time-share owners own the resort

Question 14

Interval ownership

Answer 14

personal property, owned for a specified number of years; right-to-use a non-specific unit for specified intervals; often convertible to points which can be transferred; developer owns the resort

Question 15

Leasehold

Answer 15

agreement to rent a property on a scheduled basis over the duration of the lease term; right to use returns to resort at end of lease period

Question 16

Freehold

Answer 16

tenants in common own undivided interests in real property; usually may transfer, rent, exchange

Question 17

Regulation

Answer 17

most states have specific regulations for time-shares regarding disclosure requirements, rescission, advertising