Unit 4: forms of real estate ownership

Question 1

common elements

Answer 1

Parts of a property that are necessary to a convenient to the existence , maintenance, and safety of a condominium or are normally in common use by all he condo residents Each condo owner has an undivided ownership interest in the common elements.

Question 2

community property

Answer 2

A system of property ownership based on the theory that each spouse has an e

Question 3

condominium

Answer 3

The absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, or a separate dwelling unit in a multiunit development, plus an undivided interest in the ownership of the common elements in the building or development, which are owned jointly with the other condo unit owners.

Question 4

conveyance

Answer 4

A term used to refer to any document that transfers title to real property. The term is also used in describing the act of tranfering.

Question 5

cooperative

Answer 5

A residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of people living within the building who are the corporation, each possessing a proprietary lease to a property unit.

Question 6

co-ownership

Answer 6

Title ownership held by two or more person

Question 7

corporation

Answer 7

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

Question 8

fiduciary

Answer 8

One in whom trust and confidence is placed; a reference to a real estate professional emplyed under the terms of a listing contract or buyer representation agreements.

Question 9

joint tenancy

Answer 9

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

Question 10

land trust

Answer 10

A trust in which property is conveyed, and in which real estate is the only asset.

Question 11

living trust

Answer 11

a trust that is created during the trustor’s lifetime

Question 12

model real estate time-share act

Answer 12

an act that governs the management, use, and termination of time-share units

Question 13

partition

Answer 13

the division of contenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through a court procedure.

Question 14

partnership

Answer 14

An association of two or more individuals who carry on a continuing business for profit as co-owners. under the law, a partnership is regarded as a group of individuals rather than a single entity separate from the individual owners. A general partnership is a typical form of join venture in which each general partner shares in the administration, profits, and losses of the operation. A limited partnership is 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 by law responsible for losses only to the extent of their investments

Question 15

PITT

Answer 15

The four unities of tenants in joint tenancy: possession, interest, time, and title.

Question 16

separate property

Answer 16

Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance during the marriage, or purchased with separate funs after the marriage.

Question 17

severalty

Answer 17

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

Question 18

tenancy by the entirety

Answer 18

The join ownership, recognized in some states, of property acquired by husband and wife during marriage. upon the death of one spouse, the survivor becomes the owner of the property

Question 19

tenancy in common

Answer 19

A form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. Each individual owner has the right to partition. Unlike join tenants, tenants in common have the right inheritance.

Question 20

testamentary trust

Answer 20

A trust that is established by will after one’s death.

Question 21

time-share

Answer 21

A form of ownership interest that may include an estate in property and that allows use of the property for a fixed or variable time period.

Question 22

town house

Answer 22

A type of resdential dwelling with two floors that is connected to one or more dwelling with two floors that is connected to one more dwellings by a common wall or wals. Title to the unit and lot vest in the owner who shares a fractional interest with other woners in any common areas.

Question 23

Trust

Answer 23

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, called beneficiary. The on who conveys the trust is called the trustor.

Question 24

trustee

Answer 24

One to whom something is entrusted and who hold legal title to property and administers the property for the benefit of a beneficiary. Can also be a member of a board entrusted with the administration of an institution or organization, such as a cooperative.

Question 25

trustor

Answer 25

A borrower in a deed of trust loan transaction; one who places property in a trust. Also called a grantor or settler.

Question 26

Uniform partnership act

Answer 26

Law that provides for the continuation of an existing business if a partner ina general partnership dies, withdraws, or goes bankrupt

Question 27

unity of ownership

Answer 27

The four unities that are traditionally needed to create a joint tenancy– unity of title, time, interest and possession

Question 28

unity of possession

Answer 28

Co owners of a tenancy in common are each entitled to possession and use of the entire property, even though each hold only a fraction ownership interest.