Unit 4 - Forms of Real Estate Ownership

Question 1

• Common Elements:

Answer 1

The shared areas or facilities in a condominium property that are owned collectively by the unit owners as tenants in common.

Question 2

Community Property:

Answer 2

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

Question 3

Condominium:

Answer 3

A form of ownership where an individual holds fee simple title to a specific unit and shares ownership of common elements with other unit owners.

Question 4

Cooperative:

Answer 4

A form of ownership where a corporation holds title to the land and building, and individuals purchase shares in the corporation, becoming shareholders and receiving proprietary leases to occupy specific units.

Question 5

Co-ownership:

Answer 5

Ownership of real estate by two or more individuals, which can take forms such as tenancy in common or joint tenancy.

Question 6

• Corporation:

Answer 6

• A legal entity that can hold title to real estate, with ownership divided among shareholders who hold shares of stock in the corporation.

Question 7

General Partnership:

Answer 7

An association of two or more individuals who carry on a business for profit, with all partners participating in operation and management and sharing full liability for business losses and obligations.

Question 8

Joint Tenancy:

Answer 8

Co-ownership of property by two or more individuals with the right of survivorship, where the property passes to the surviving joint tenant(s) upon the death of a co-owner.

Question 9

Limited Liability Company (LLC):

Answer 9

A legal entity that combines the limited liability protection of a corporation with the tax advantages of a partnership, offering flexibility in management structure.

Question 10

Limited Partnership:

Answer 10

A partnership that consists of general partners who manage the business and have full liability, and limited partners who do not participate in management and have liability limited to their investment.

Question 11

Partition:

Answer 11

A legal action that can be initiated by one or more tenants in common or joint tenants to force the division or sale of a property.

Question 12

Partnership:

Answer 12

An association of two or more individuals who carry on a business for profit, with various forms such as general partnership or limited partnership.

Question 13

PITT:

Answer 13

An acronym representing the four unities required for joint tenancy: Possession, Interest, Time, and Title.

Question 14

Right of Survivorship:

Answer 14

The right of a surviving joint tenant(s) to inherit the interest of a deceased joint tenant, resulting in full ownership of the property.

Question 15

Separate Property:

Answer 15

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

Question 16

Severalty:

Answer 16

Ownership of property by a single individual or entity.

Question 17

Tenancy by the Entirety:

Answer 17

A form of co-ownership available only to spouses, where both spouses have equal and undivided interests in the property and the right of survivorship.

Question 18

Tenancy in Common (TIC):

Answer 18

Co-ownership of property by two or more individuals, where each has an undivided fractional interest and co-owners have unity of possession.

Question 19

Time-Share:

Answer 19

Ownership or use interest in a property during a specific period of time, typically weekly, allowing multiple purchasers to buy interests in real estate.

Question 20

Town House:

Answer 20

A style of housing that typically consists of individual units in a row or attached buildings, often with multiple floors.

Question 21

Trust:

Answer 21

A legal arrangement where the trustor transfers property to a trustee to hold and manage for the benefit of a designated beneficiary. The trustee acts as a fiduciary in carrying out the trustor’s wishes.