Unit 4: Forms Of Real Estate Ownership

Question 1

4 TYPES OF REAL ESTATE OWNERSHIP

Answer 1

1.Sole ownership or tenancy of severalty
2. Tenancy by the entireties
3. Tenants in common
4. Joint tenancy

Question 2

As a real estate agent we can explain the various types of ownership but we cannot provide

Answer 2

Legal advice

Question 3

What are the three basic ways people can own real estate

Answer 3

1. Severalty (One person)
2. Co-ownership (2 or more people)
3. Trust- separate legal entity who manages money for the benefit of its beneficiaries

Question 4

This type of ownership involves one person or corporation; one legal owner

Answer 4

Severalty (severed or cut off from other owners)

Question 5

What are the four different ways to co-own by two or more people

Answer 5

1. Tenants in common (no right of survivorship) can be unequal ownership
2. Joint Tenancy- Have the right of survivorship
3. Tenancy by the entirety- Co-owners must be married-ownership stays between the spouses
4. Community property- In these several community property states, marriage by itself makes the new spouse an automatic co-owner.

Question 6

Requirements to create joint tenancy must have these 4 unities

Answer 6

1. Unity of possession- all have undivided rights
2. Unity of interest- equal ownership interest (3 people 1/3, 1/3, 1/3)
3. Unity of time- Must have acquired it together on the same day
4. Unity of sale- Deed must involve all.

Question 7

This type of ownership does NOT include right of survivorship

Answer 7

`Tenancy in common (mostly used in business purchases) can have unequal ownership among the parties and can will their portion at death.

Question 8

This is when ownership of real estate is by business organizations

Answer 8

A partnership

Question 9

What are two types of partnerships?

Answer 9

1. General partnership- All partners participate in the operation and management and share full liability for losses and obligations( shared responsibilities_
2. Limited partnership- You can only lose what you invested-not required to participate.

Question 10

This is a separate legal entity; an artificial person; managed by its board of directors (own stock) in it

Answer 10

Corporation- disadvantage is double taxation-when you make a profit and then when you take money out pay again.

Question 11

This separates the individual from the business. An advantage is secrecy and No double taxes

Answer 11

LLC (Limited Liability Companies)

Question 12

When you own this type of real estate you get a unit deed and have ownership from the walls in and use of common areas

Answer 12

Condominium

Question 13

This type of real estate is held by a corporation, no individual ownership; you own a share of stock only

Answer 13

Cooperative ownership

Question 14

In MA If a rental property is sold to make condos, they have first right of refusal

Answer 14

Condominium conversion

Question 15

This document proves that the condo owner is up to date on their fees

Answer 15

6D certificate