Unit 4

Question 1

Ownership by more than one person is called ownership in severalty.

Answer 1

False

Question 2

Co-owners can also be called concurrent owners.

Answer 2

True

Question 3

A joint tenancy can be created by conveying a deed or giving the property by will or living trust.

Answer 3

True

Question 4

In tenancy in common, each tenant holds a divided fractional interest in the property.

Answer 4

False

Question 5

The death of a shareholder in a corporation results in the dissolution of the corporation.

Answer 5

False

Question 6

A general partnership is dissolved and must be reorganized if one partner dies, withdraws, or goes bankrupt.

Answer 6

True

Question 7

The individual unit owners of a condominium own the common elements as tenants in common.

Answer 7

True

Question 8

Condominium laws are often called vertical property acts.

Answer 8

False

Question 9

An ownership interest that is based on annual occupancy intervals is

Answer 9

a time-share.

Question 10

A brother and sister were co-owners of a lot. The sister became the sole owner automatically when the brother died. The form of ownership they had was

Answer 10

Joint Tenancy

Question 11

A broker who is asked how a married couple should take title would advise them

Answer 11

to seek legal advice.

Question 12

A married couple co-owns a farm and has the right of survivorship. This arrangement is MOST likely

Answer 12

an estate by the entirety.

Question 13

A tenancy in common differs from a joint tenancy in that

Answer 13

tenants in common may have unequal interests.

Question 14

When parties own property as tenants in common, each owner

Answer 14

has equal rights of possession with the other owners.

Question 15

A primary feature of property held in joint tenancy is that

Answer 15

there is right of survivorship.

Question 16

A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called

Answer 16

cooperative.

Question 17

A trust is a legal arrangement in which property is held for the benefit of a third party by

Answer 17

a trustee.

Question 18

Eight heirs are now the owners of a farm as tenants in common. This means that

Answer 18

use of the property can be determined by agreement of all the owners.

Question 19

Two people are co-owners of a small office building with the right of survivorship. One of the co-owners dies intestate and leaves nothing to be distributed to heirs. Which of the following would explain why the surviving co-owner acquired the deceased’s interest?

Answer 19

Joint tenancy

Question 20

The forms of property ownership are controlled by

Answer 20

the state.

Question 21

A corporation is a legal entity, recognized as an artificial person. Property owned solely by the corporation is owned in

Answer 21

severalty.

Question 22

The trust established by a decedent’s will is

Answer 22

a testamentary trust.

Question 23

Which of the following is MOST likely evidence of ownership in a cooperative?

Answer 23

Shareholder stock

Question 24

Which of the following refers to ownership by one person?

Answer 24

Severalty

Question 25

The unities required to create a joint tenancy include

Answer 25

unity of possession.

Question 26

Title to a property is held by two or more individuals; this property is held in

Answer 26

co-ownership.