Unit 4

Question 1

What are the three types of ownership

Answer 1

severalty (one owner)
co-ownership
trusts

Question 2

Can a corporation or other entity own a property in severalty

Answer 2

yes

Question 3

What are the types of co-ownership

Answer 3

Tenancy in common (TIC)
Joint tenancy
Tenancy by the entirety
Community property

Question 4

What are some names for individuals that co-own

Answer 4

tenants in common

joint tenants

Question 5

when are the differences between the types of co-ownerships likely to become apparent

Answer 5

when the property is conveyed or one of the owners dies

Question 6

How does possession and ownership rights work for tenants in common (TIC)

Answer 6

everyone is entitled to possess the entire property but they each have specific fractions of ownership

Question 7

If the deed for a TIC doesnt specify the fractional interest of each owner, then what is assumed

Answer 7

each have an equal share of the property

Question 8

Can a co-owner TIC sell or mortgage their interest without the consent of the other owners

Answer 8

yes

Question 9

Can a co-owner of a TIC sell or mortgage the entire property

Answer 9

no

Question 10

When two or more single individuals or couples acquire real estate and the form of ownership is not indicated, what type of ownership is it usu considered

Answer 10

TIC

Question 11

In what situation has the TIC become popular to us e

Answer 11

in expensive areas because it allows multiple people to have a condo style ownership without converting the multifamily property into a condo

Question 12

What is joint tenancy

Answer 12

everyone owns separate interest in the property but after each death of an owner the survivors acquire the deads interest without legal action

Question 13

What is the ownership style after there is only one survivor left in a joint tennacy

Answer 13

they now own the property in severalty

Question 14

Can a joint tenancy be created by the state

Answer 14

no

Question 15

What four elements or unities are needed to create joint tenancy

Answer 15

Unity of possession—all joint tenants hold an undivided right to possession.
Unity of interest—all joint tenants hold an equal ownership interest.
Unity of time—all joint tenants acquire their interests at the same time.
Unity of title—all joint tenants acquire their interests by the same document.

Question 16

How do you remove joint tenancy

Answer 16

remove one of the four unities

Question 17

So if one of the four joint tenants sells their title, what happens to the ownership style for everyone

Answer 17

the new owner becomes a tenant in common and the remaining joint tenants keep their joint tenancy with each other

Question 18

What is a partition

Answer 18

a legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination

Question 19

What if co-owners are going through a partition and the property cannot be physically divided without destroying its value

Answer 19

they property will be sold and the profits split

Question 20

What is a tenancy by the entirety

Answer 20

Tenancy of a married couple who have a right of survivorship if one dies

Question 21

What are some thigns that typically cannot happen in a tenancy by the entirety

Answer 21

One party cannot convey a one-half interest

they have no right to partition or divide the property

Question 22

What is the idea behind community property law

Answer 22

spouses are equal partners in a marriage rather than one entity

Question 23

What is assumed when buying a property in a marriage under community property laws

Answer 23

that it was acquired in a mutual effort

Question 24

What is probate

Answer 24

the process of reviewing a will

Question 25

Does does co-ownership override

Answer 25

a will

Question 26

Where does joint tenancy need to be listed

Answer 26

on the deed

Question 27

What is a general partnership

Answer 27

everybody participates in the operation and management of the business
everyone shares full liability for business losses and obligations

Question 28

What is a limited partnership

Answer 28

consists of general and limited partners
the generals run the business
the limited partners are not allowed to participate in business but are liable to losses up to the amount they have invested

Question 29

What is the uniform partnership act and what is something it does

Answer 29

it allows continuation of a business by letting it reform with new general partners after a general partner dies, goes bankrupt or withdraws

Question 30

What are the condo laws also called

Answer 30

horizontal property acts

Question 31

What do the condo laws specify

Answer 31

the owner of each unit has a fee simple title to their unit and undivided interest in the common elements

Question 32

The undivided interest int he common elements between the condo owners are considered what type of ownership

Answer 32

TIC

Question 33

Because condo ownership is a fee simple estate they owners have a right to sell their condo, but what might get in the way of this right

Answer 33

if the condo assoc. includes a right of first refusal, then the owner would have to offer the same price sought after to the other owners before they could accept outside offers

Question 34

What is a limited common elements

Answer 34

things are used exclusively by an individual owner but still are subject to the condo assoc’s restrictive covenant

Question 35

What are examples of limited common elements

Answer 35

patios
self storage units
balconies

Question 36

What is a time share

Answer 36

a right to occupy the facility for a certain period in the year for a fixed number of years