Unit 4 Forms of ownership

Question 1

Ownership in severalty

Answer 1

Ownership by one individual, may be artificial person like a company

Question 2

Co- ownership

Answer 2

Two or more people. May take one of 4 forms

Question 3

Tenancy in Common (TIC)

Answer 3

Each tenant holds an undivided fractional interest and co-owners have unity over possession. Each interest can be sold, conveyed, mortgaged, transferred, and will be passed by will or state law when a co-owner dies. Or partition

Question 4

Partition

Answer 4

Forced division or sale of property. Legal action, can be brought by one or more of the tenants in common to force division or sale of property

Question 5

Joint Tenancy - PITT

Answer 5

-unity of POSSESSION
-unity of INTEREST
-unity of TIME
-unity of TITLE

Question 6

Joint Tenancy

Answer 6

Enjoy right of survivorship. Can be terminated by death of all but one joint tenant, who then owns property in severalty; CONYENANCE of a joint tenant’s interest, but only has that interest if there were more than 2 joint tenants originally; or PARTITION.

Question 7

Tenancy by the entirety

Answer 7

Available only to spouses and which carries a right of survivorship. Can be conveyed only by both spouses

Question 8

Community property

Answer 8

Property acquired during marriage that is not separate property and requires agreement of both spouses to be conveyed.

Question 9

Separate Property

Answer 9

Property owned by one spouse before marriage, or acquired by one spouse during marriage by gift, inheritance, or with proceeds of separate property.

Question 10

Trust

Answer 10

A legal arrangement in which property is transferred by the trustor (person created the trust) to a trustee, to be help for the identified beneficiary.

Question 11

Trustee

Answer 11

Acts as a FIDUCIARY in carrying out the wishes of the trustor

Question 12

Beneficiary in a land trust

Answer 12

is also the trustor, but the public record will not identify the beneficiary

Question 13

Partnership

Answer 13

An association of 2 or more persons who carry out business for profit as co-owners in a general or limited partnership

Question 14

General Partnership

Answer 14

All parties PARTICIPATE in operation and management, and partners share FULL LIABILITY for business losses and obligation

Question 15

Limited Partnership

Answer 15

Has both partners and limited partners. General partners run the business. Limited partners do not participate in running the business and are liable for business losses only up to the amount of the individual’s investment

Question 16

Limited Liability Company (LLC)

Answer 16

Offers members the benefits of the limited liability of the corporation, tax advantages of a partnership, and a flexible management structure.

Question 17

Condominium

Answer 17

Owner holds fee simple title to the airspace of a unit, as well as an undivided share in the remainder of the building and land, known as COMMON ELEMENTS (funded by fees charged to each unit owner), which may be referenced in what are called HORIZONTAL PROPERTY ACTS. Administered by an HOA

Question 18

Cooperative

Answer 18

Title to the land and the building is held by a corporation, which sells shares of stock to prospective tenants. A purchaser becomes a shareholder and received PROPRIETARY LEASE to the apartment for the life of the corporation. The stock is owned as personal property and not real estate.

Question 19

Corperation

Answer 19

Created by operation of law, whose rights of doing business are essentially the same as an individual. Operated by board of directors. Can own in severalty or tenants in common. Death never effects title