Unit 1 Chapter 6 Review

Question 1

Who decides how title to real estate will be held?

Answer 1

The grantee or buyer decides. The seller decides the type of estate transferred.

Question 2

What are the primary differences between tenancy in severalty and co-ownership?

Answer 2

The primary difference is the number of owners—one vs. two or more. Secondarily, the treatment of the estate on the death of an owner. In a severalty, the estate passes to heirs by probate. In a co-ownership, the estate may pass to heirs (tenancy in common) or to surviving co-owners (joint tenancy, tenancy by the entireties, tenancy in partnership) or to a combination (community property).

Question 3

What are the primary differences between tenancy in common and joint tenancy?

Answer 3

Title– only one title in a joint tenancy, multiple titles in tenancy in common; ownership share– equal shares in joint tenancy, electable in tenancy in common; transferability– tenant in common may sell, encumber, etc., his or her share, but joint tenant’s interest becomes a tenancy in common interest if sold; survivorship– joint tenant’s interest goes to other joint tenants on death, but tenant in common’s interest goes to heirs; creation– joint tenancy requires the four unities, otherwise a tenancy in common results.

Question 4

What are the primary differences between tenancy by the entireties and joint tenancy?

Answer 4

Tenancy by the entireties requires co-owners to be married; tenancy by the entireties can have only two owners; a tenant by the entireties cannot convey his or her interest separately to an outside party.

Question 5

What are the primary differences between a condominium and a cooperative as forms of ownership?

Answer 5

Condo owner actually owns real property– airspace and share in common elements– while co-op owner owns shares in a corporation and proprietary lease; condo unit can be transferred, encumbered or foreclosed as an entity, while co-op interest cannot be so handled, but only as an interest in the corporation; entire property is endangered by default of co-op share holder, but only individual unit is endangered by default of a condo owner.