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CLI Prelicensing > Unit 4 > Flashcards

Unit 4 Flashcards

1
Q

Tenancy in Severalty

A

property is owned by one individual, corporation or other entity

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2
Q

Tenancy in co-ownership

A

held by two or more people

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3
Q

Tenancy in common

A

each tenant holds an undivided interest in the property (do not have to own equal shares of the property)

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4
Q

Joint Tenancy

A

property owned by two or more people whether married or unmarried owning equal shares of the property

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5
Q

Right of survivorship

A

upon death of a joint tenant, the deceased’s interest transfers directly to the surviving joint tenant or tenants

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6
Q

4 Unities for JTROS

A
  1. Possession
  2. Interest
  3. TIme
  4. Title
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7
Q

Possession

A

all joint tenants hold an undivided right to possession

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8
Q

Interest

A

all joint tenants hold an equal ownership interest

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9
Q

Time

A

all joint tenants acquire their interests at the same time

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10
Q

Title

A

all joint tenants acquire their interests by the same document

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11
Q

unity of possession

A

each owner is entitled to possession and the use of the entire property, even though each holds only a fractional ownership interest

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12
Q

If tenancy is not stated for co-owners, what time is it assumed to be?

A

common tenancy

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13
Q

Do you need the permission of other owners to sell your interest in a joint tenancy?

A

no

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14
Q

Partition Suit

A

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

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15
Q

Tenancy by entirety

A

special form of co-ownership that allows a spouse to inherit the other spouse’s ownership interest upon death; each spouse owns the property 100%; no need to go through probate

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16
Q

What is the default tenancy for married people

A

tenancy by entirety

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17
Q

Community Property

A

property bought together as a married couple, should one of the spouses die, 50/50 ownership and they can will it away to their spouse or someone else

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18
Q

Are community property rights recognized in TN

A

No

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19
Q

Separate property

A

either spouse owned before they were married, and remains separate

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20
Q

What are the community property rights?

A
  1. separate property

2. community property

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21
Q

Trust

A

device by which one person who owns the property transfers the ownership to someone else to hold or manage for the benefit of someone else

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22
Q

Who are the 3 parties involved in a trust?

A
  1. trustor
  2. trustee
  3. beneficiary
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23
Q

Living Trust

A

created by agreement during the property owner’s lifetime

24
Q

Trustor

A

person who creates the trust

25
Q

Trustee

A

party who holds legal title to property in trust and is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust

26
Q

Beneficiary

A

person who benefits from a trust

27
Q

Fiduciary

A

person who acts in confidence or trust and has a special legal relationship with the beneficiary

28
Q

Testamentary trust

A

set up after death

29
Q

Land trust

A

still have trustor, trustee and beneficiary, but often the trustor and trustee are one in the same

30
Q

Ownership of business by yourself

A

sole proprietorship

31
Q

general partnership

A

all partners participate in the operation and management of the business and share full liability for business losses and obligations

32
Q

Limited partnership

A

one or more general partners + limited partner (invest in it and reap some profits but doesn’t help them run it; also called a silent partner; losses limited to the amount you’ve invested the business)

33
Q

Corporation

A

legal entity that can own real estate in its own name; owns in severalty

34
Q

Limited Liability Corporation

A

incorporates features of limited partnerships and corporations, make for personal asset protection and without need for board of directors

35
Q

What do you get ownership of in a condo?

A

interior airspace

36
Q

common area

A

anything outside the interior everyone owes a small share of and is owned by HOA

37
Q

Who is condo property administered by?

A

HOA

38
Q

Cooperative ownership

A

can’t tell the difference just by looking; the whole place is owned by a corporation and you buy into the corporation and you get a share of stock; has to give you a second document that allows you to have your proprietary lease

39
Q

What is the value of a unit in a cooperative ownership

A

value of stock

40
Q

Does a board of directors in a cooperative have the right to refuse someone’s stock ownership?

A

yes

41
Q

Who is responsible is someone in a cooperative defaults on their taxes?

A

whole place

42
Q

where are cooperatives normally located?

A

urban areas

43
Q

time share ownership

A

permits multiple purchasers to buy relatively small interests in real estate, typically resort properties

44
Q

What are ways to buy into a time share

A
  1. timeshare estate

2. timeshare use

45
Q

Timeshare estate

A

get deed for your time interval ownership; yours forever, can will to heirs, can get a loan to buy

46
Q

Timeshare use

A

buy into timeshare but developer retains ownership and gives buyer limited time to use it

47
Q

Time share sales agent

A

person who sells or offers to sell timeshare intervals in a time-share program to a purchaser. All sales agents must have a time-share salesperson license. Pre-licensing requirements of 30 hour horse by the time-share broker

48
Q

What are the cancellation rights for the time share if you saw the property?

A

10 days if the prospective buyer had an on-site inspection of the property

49
Q

What are the cancellation rights for a time share if you did not see the property?

A

15 days if the prospective buyer did not have an on-site inspection of the property

50
Q

What type of license must time share agents have?

A

All agents must have a real estate license of some type (time-share license, affiliate broker license, or broker license)

51
Q

Who are time share deposits held by?

A

third party (attorney, bank, title company, etc.)

52
Q

What are the rules around time shares as a prize/gift?

A
  1. If a sales presentation is required to qualify, it must be stated
  2. At least 1 of each prize/gift must be given
  3. The odds of winning the prize/gift must be stated
  4. The retail value of each prize/gift must be stated
53
Q

What must time share developers have?

A

public offering disclosure statement

54
Q

What must prospective buyers do for a time share?

A

sign and date a receipt acknowledging they received this statement

55
Q

How long do time share developers need to keep their receipts and records of sales?

A

4 years

56
Q

What happens if any changes are made to a Public Offering Disclosure statement?

A

the Developer must submit them to the Tennessee Real Estate Commission within 10 days and the Developer cannot offer the time-share property to the public until TREC approves the change(s)

CLI Prelicensing (23 decks)

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