Unit 3: Ownership of Real Property

Question 1

A fee simple estate and a life estate are:

Answer 1

Freehold Estates

Question 2

The highest form of ownership is

Answer 2

The fee simple absolute

Question 3

Victor and Karen are not married but together own community property because they are

Answer 3

Registered Domestic Partners

Question 4

A fee simple estate that may be lost when some act is performed is:

Answer 4

A fee simple on condition of subsequent

Question 5

A fee simple estate that has no conditions is:

Answer 5

a fee simple absolute

Question 6

If Greenacre is deeded by Lou to Mary for Mary’s life, Mary has:

Answer 6

A life estate

Question 7

If Greenacre is deeded by Lou to Mary for Mary’s life, Lou has:

Answer 7

an estate in reversion

Question 8

When Aunt Winfred died, she left a life estate in Whiteacre to her nephew George. When George dies, Whiteacre will go to George’s daughter Elizabeth. Elizabeth is:

Answer 8

A remainderman

Question 9

If Greenacre is deeded by Lou to Mary for the life of Nancy, Nancy has:

Answer 9

No interest

Question 10

The owner of a life estate can

Answer 10

Sell only the life estate

Question 11

Joint tenants have unity of

Answer 11

Time, title, interest, and possession

Question 12

Jessica and John own Blackacre as joint tenants. Jessica’s will specifies that on her death her interest in Blackacre is to go to her sister Mona. When Jessica dies:

Answer 12

John will be the sole owner of Blackacre.

Question 13

Three joint tenants share an interest in a property. If one Joint tenant’s share is sold using the proper legal formalities, the new owner will then be:

Answer 13

A tenant in common with the other joint tenants.

Question 14

Community Property is:

Answer 14

All property acquired by a spouse or registered domestic partner that is not separate property.

Question 15

One of the forms of concurrent ownership is:

Answer 15

Tenancy in partnership

Question 16

A partner has:

Answer 16

The right to possession of partnership property for partnership purposes.

Question 17

Absolute control, as well as absolute liability, belongs to:

Answer 17

A sole proprietor

Question 18

When doing business in California, a corporation chartered in California is:

Answer 18

A domestic corporation

Question 19

Title to a spouse’s marital property can be transferred upon death by use of

Answer 19

A living Trust

Question 20

A limited partner is:

Answer 20

Not liable for partnership debts beyond the amount invested.

Question 21

Estate=

Answer 21

Ownership

Question 22

Freehold Estate

Answer 22

Indefinite duration of ownership. Fee Simple, Fee Simple Defeasible, and Life Estate.

Question 23

Fee Simple Estate

Answer 23

Type of freehold estate. The highest form of modern land ownership. Ownership of the building and the land. No conditions are attached to the ownership.

Question 24

Fee Simple Defeasible

Answer 24

Type of freehold estate. Ownership of building and land but with a condition. Sometimes called Fee Simple Subject to Power of Termination. Breach of conditions can result in loss of title.

Question 25

Life Estate

Answer 25

Type of freehold estate. Estate lasts only as long as the life of the person listed on the deed or will that creates the estate.

Question 26

2 Things holder of life estate cant do

Answer 26

- Will it to someone else | - Commit waste upon the property

Question 27

Estate in Reversion

Answer 27

I sell you a property on a life estate. You die, the property reverts back to me. If I die first, when you die, the property goes to my heirs.

Question 28

Estate in Remainder

Answer 28

(Off to the side) I sell or give property to you on a life estate. Once you die, it goes to the Betty Ford Clinic for substance abuse.

Question 29

Lease Hold Estate

Answer 29

Less than a freehold estate. Not ownership but for use only.

Question 30

Ownership in Severalty

Answer 30

Separate ownership by one person

Question 31

Concurrent Ownership

Answer 31

Ownership by two or more entities at the same time.

Question 32

3 Types of Concurrent Ownership

Answer 32

- Joint tenancy - Community property - Tenancy in Partnership

Question 33

Right of survivorship

Answer 33

Upon the death of one of the joint tenants, the deceased share goes to the surviving tenant. Escapes probate and existing unsecured debt. Cannot will your share.

Question 34

Joint Tenancy

Answer 34

A special form of co-ownership.

Question 35

Joint Tenancy Unities Acronym (TTIP)

Answer 35

T- Unity of Time (each takes title at the same time) T- Unity of Title ( each receives title through the same deed) I- Unity of Interest (each owns an equal share) P- Unity of Possession ( each has the right to use all of the property)

Question 36

Tenancy in Common

Answer 36

No right of survivorship. Only have Unity of Possession. You can will your share.

Question 37

When no vesting is mentioned in the deed and the parties are not married, the law will presume:

Answer 37

Tenancy in Common

Question 38

Community Property

Answer 38

real or personal property acquired by a spouse during the marriage or by a registered domestic partner.

Question 39

Separate Property

Answer 39

Possessions acquired before marriage

Question 40

Community Property with right of survivorship

Answer 40

The deceased share goes to the surviving tenant (same as joint tenancy)

Question 41

Business Ownership of Real Estate- Sole Proprietorship

Answer 41

Simplest form. You're personally liable.

Question 42

Business Ownership of Real Estate- Corporation

Answer 42

A separate, legally recognized entity, apart from owners. Limits liability of officers, directors, and shareholders.

Question 43

Business Ownership of Real Estate- S-Corp

Answer 43

Avoids double taxation

Question 44

Business Ownership of Real Estate- Partnership

Answer 44

Like two sole proprietors coming together to share liability.

Question 45

Business Ownership of Real Estate- Limited Partnership

Answer 45

A general partner makes decisions with unlimited liability. Limited Partners are only liable for up to the amount invested.

Question 46

Limited Liability Company (LLC)

Answer 46

Another corporate structure but taxes and fees are higher than a partnership.

Question 47

Real Estate Investment Trust (REIT)

Answer 47

Holds various forms of real estate or mortgages for the benefit of investors who own shares of the trust.