Unit 11: How Home Ownership Is Held

Question 1

beneficiary

Answer 1

1. The person for whom a trust operates or
   in whose behalf the income from a trust estate is drawn. 2. A lender who lends money on real estate and takes back a
   note and trust deed from the borrower.

Question 2

common elements

Answer 2

Parts of a property that are necessary
or convenient to the existence, maintenance, and safety of
a condominium or are normally in common use by all of
the condominium residents. Each condominium owner has
an undivided ownership interest in the general and limited
common elements.

Question 3

community property

Answer 3

A system of property ownership
based on the theory that each spouse has an equal interest
in the property acquired by the efforts of either spouse
during marriage.

Question 4

community property right of survivorship

Answer 4

declaration made by husband and wife that community
property will go to the survivor upon the death of one
party; eliminates probate.

Question 5

condominium

Answer 5

The absolute ownership of an apartment
or a unit (generally in a multi-unit building) based on a
legal description of the airspace the unit actually occupies,
plus an undivided interest in the ownership of the
common elements, which are owned jointly with the other
condominium unit owners.

Question 6

cooperative

Answer 6

A residential multiunit building whose
title is held by a corporation that is owned by and operated
for the benefit of persons living within the building, who
are stockholders of the corporation, each possessing a
proprietary lease.

Question 7

co-ownership

Answer 7

A broad category of ownership by more
than one person. Examples are tenants in common and
joint tenants.

Question 8

corporation

Answer 8

An entity or organization, created by
operation of law, whose rights of doing business are
essentially the same as those of an individual. The entity has
continuous existence until it is dissolved according to legal
procedures.

Question 9

deed in trust

Answer 9

A form of deed by which real estate is

conveyed to a trustee.

Question 10

general partnership

Answer 10

An association of two or more individuals
who carry on a continuing business for profit as co-owners.
In a general partnership, each general partner shares in the
administration, profits, and losses of the operation. In a
limited partnership, the operation is administered by one or
more general partners and funded, by and large, by limited
or silent partners, who are by law responsible for losses
only to the extent of their investments. A limited liability
partnership limits an individual partner’s liability arising
from negligence on the part of another partner.

Question 11

joint tenancy

Answer 11

Ownership of real estate between two
or more parties who have been named in one conveyance
as joint tenants. Upon the death of one joint tenant, the
deceased’s interest passes to the surviving joint tenant or
tenants by the right of survivorship. Not automatically
created in Texas.

Question 12

limited liability company (LLC)

Answer 12

A business organization in
which a member or a manager is not generally held liable
for debts, obligations, or liabilities of the company.

Question 13

partition

Answer 13

The division of cotenants’ interests in real
property when the parties do not agree to terminate
the co-ownership voluntarily; takes place through court
procedures.

Question 14

right of survivorship

Answer 14

The right for a surviving joint
tenant(s) to acquire the interest of a deceased joint tenant;
also applies to community property right of survivorship.

Question 15

separate property

Answer 15

Under community property law,
property owned solely by either spouse before the marriage;
acquired by gift or inheritance during the marriage, by
purchase from separate funds, by sale of separate property,
by settlement or judgment for personal injury, or by written
contract with a spouse.

Question 16

severalty

Answer 16

Ownership of real property by one person or

one legal entity only; also called sole ownership.

Question 17

sole proprietorship

Answer 17

A method of owning a business in
which one person owns the whole business and reports all
profits and losses on his personal income tax return.

Question 18

syndicate

Answer 18

A combination of people or firms formed to
accomplish a business venture of mutual interest by pooling
resources. In a real estate investment syndicate, the parties
own and/or develop property with the main profit generally
arising from the sale of the property.

Question 19

tenancy in common

Answer 19

A form of co-ownership by which
each owner holds an undivided interest in real property as
if the sole owner. Ownership shares need not be equal; and
upon the death of an owner, the interest passes to heirs.

Question 20

time-sharing

Answer 20

A form of ownership where permission is
given to use certain property for certain intervals of time;
may be fee simple title or merely a right to use (license).

Question 21

trust

Answer 21

A fiduciary arrangement whereby property is
conveyed by a trustor to a person or institution, called a
trustee, to be held and administered on behalf of another
person, called a beneficiary.

Question 22

undivided interest

Answer 22

A unity of possession among co-owners or co-tenants.