Unit 4

Question 1

Severalty

Answer 1

Ownership of real property by one person only; also called sole ownership

Question 2

Co-ownership

Answer 2

When the title to a parcel of real estate is held by two or more individuals.

Question 3

Tenancy in common

Answer 3

A form if co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. The co-owners have “unity of possession” and use of the entire property, even though each holds only fractional ownership interest. It is the ownership interest, not the property, that is divided.

Question 4

Two or more owners
Each has undivided interest in the property
Shares can be equal or unequal
Interests can be conveyed seperately

Answer 4

Tenancy in common

Question 5

Joint tenancy

Answer 5

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decendent’s interest usually passes to the surviving tenant(s) by the right of survivorship.

Question 6

Two or more owners
Each has undivided and equal interest
Right of survivorship
Terminated by transfer of interest

Answer 6

Joint tenancy

Question 7

4 elements or unities are needed to create a joint tenancy… (PITT)

Answer 7

-Unity of possession
-unity of interest
-unity of time
-unity of title

Question 8

Unity of possession

Answer 8

All joint tenants hold an undivided right to possession

Question 9

Unity of interest

Answer 9

All joint tenants hold an equal ownership interest

Question 10

Unity of time

Answer 10

All joint tenants acquire their interests at the same time

Question 11

Unity of title

Answer 11

All joint tenants acquire their interests by the same document

Question 12

Partition

Answer 12

The devision if co-tenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through a court procedure.

Question 13

A legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination; if the court determines that the parcel of land cannot physically be divided inti separate parcels without destroying its value, the court will order the real estate be sold and the proceeds be divided between co-owners. This is an example of…

Answer 13

Partition

Question 14

Tenancy by the entirety

Answer 14

A special form of co-ownership used in some states that allows a spouse to inherit the other spouse’s ownership upon death. In this form of ownership, each spouse has an equal, undivided interest in the property. Entirety refers to the fact that owners are considered one indivisible unit because early common law viewed a married couple as one legal person.

Question 15

Available to spouses
Survivor inherits the other spouse’s share

Answer 15

Tenancy by the entirety

Question 16

Community property

Answer 16

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

Question 17

Available to spouses
All property that is not separate property
Each spouse’s interest transferrable by will

Answer 17

Community property

Question 18

Separate property

Answer 18

Generally is real or personal property that was owned solely by either spouse BEFORE the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage.

Question 19

Trust

Answer 19

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

Question 20

A device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party

Answer 20

A trust

Question 21

A living trust

Answer 21

Trust created by agreement during the property owner’s lifetime

Question 22

Testamentary trust

Answer 22

Established by will after the owner’s death

Question 23

Quick note

Answer 23

Neither a living trust nor a testamentary trust is related to the document called a living will, which deals with the right ti refuse medical treatment

Question 24

The person who CREATES the trust CONVEYES real or personal property to a trustee (usually a corporate trustee), with the understanding that the trustee will assume certain duties.

Answer 24

These duties may include the care and investment of the trust assets to produce an income. After paying the trust’s operating expenses and trustee’s fees, the income is paid to or used for the benefit of the beneficiary.

Question 25

Land trust

Answer 25

-Frequently created fir the conservation of farmland, forests and other wildlife habitats, coastal land, and scenic vistas.
-trustor is usually also the beneficiary
-beneficiary retains management and right of possession as well as the right to any income produced by the property or proceeds from its sale.
-may be used for secrecy as public records usually do not name the beneficiary

Question 26

Quick note

Answer 26

Holding property in a trust is not just an option for those who wish to keep their ownership of property private from s public view. A living trust can be used ti transfer title to property without the formality of either a will or a probate proceeding.

Question 27

Partnership

Answer 27

An association if two or more persons who carry on a business for profits as co-owners.

Question 28

General partnership

Answer 28

A typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operations.

Question 29

Limited partnership

Answer 29

A business arrangement whereby the operation is administered by one or more general partners and funded, by and large, by limited or silent partners, who are responsible for losses only to the extent if their investments

Question 30

Partnership notes

Answer 30

-business is ran by general partner(s)
-limited partners are not legally permitted to participate, with the result that each can be held liable for business losses only to the amount invested.
-limited partnerships are popular methods of organizing investors because it permits investors with small amounts to participate in large real estate projects with minimum personal risk.

Question 31

More partnership notes

Answer 31

If a partner in a general partnership dies, withdraws, or goes bankrupt, the traditional common law result would be to dissolve the partnership, which could be recognized as a partnership of the surviving partners in order to conduct business.
-uniform partnership act
-in a limited partnership, the partner agreement may provide for the continuation of the organization after the death or withdrawal of one of the partners

Question 32

Coorperation

Answer 32

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

Question 33

Limited liability company (LLC)

Answer 33

A form of business organization that combines the most attractive features of limited partnerships and corporations.

Question 34

Condominium description

Answer 34

Single units located in mow-rise and high-rise complexes, as stand alone units or town houses.

Question 35

Cooperative description

Answer 35

Single units in low-rise or high-rise complexes.

Question 36

Time share description

Answer 36

Multiple purchasers buy interests in real estate- usually resort or hotel property. Each purchaser had the right ti use unit for set time each rear or a number of usage points

Question 37

Condominium ownership

Answer 37

Owners have fee title to interior space of units and share title to common areas.

Question 38

Cooperative ownership

Answer 38

Tenants own shares in a corporation, partnership, or trust that holds title to the building. Tenants have proprietary leases and the right to occupy their respective units.

Question 39

Time-share ownership

Answer 39

Time-share estate is a fee simple interest. Time-share use agreement is personal property that expires after a specified time period.

Question 40

Condominium transfer

Answer 40

Single units are transferred by deed, will, or living trust.

Question 41

Corporate transfer

Answer 41

Shares are personal property. Shareholders may sell or transfer shares. Transfer of shares may be restricted by laws.

Question 42

Time-share transfer

Answer 42

All interest in a time-share estate must be conveyed by deed or will by the owner. An interest in time-share use is personal property that may or may not be transferable according to the contract.

Question 43

Governance of condominium

Answer 43

Declaration of condominium and board if directors elected by homeowners.

Question 44

Governance of corporate

Answer 44

Bylaws of the corporation and board if directors elected by shareholders.

Question 45

Governance of time-share

Answer 45

The developer