Unit 4 Key Terms

Question 1

Parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium or are normally in common use by all the condominium residents. Each owner has an undivided ownership interest in them. (ie land, courtyard, lobby, hallways, elevators, pools tennis courts, gym)

Answer 1

Common elements

Question 2

A system of property ownership based on the theory that each spouse (rather then merging into one entity) has an equal interest in the property acquired by the efforts of either spouse DURING the marriage.

Answer 2

Community property

Question 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 unit owners.

Answer 3

Condominium

Question 4

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 beneficial owners of the trust or shareholders of the corporation, each possessing a proprietary lease to a property unit.

Answer 4

Cooperative

Question 5

Title ownership held by two or more persons

Answer 5

Co-ownership

Question 6

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 continuous existence until it is dissolved according to legal procedures.

Answer 6

Corporation

Question 7

A form of joint venture in which each ______ shares the administration, profits and losses of the operation.

Answer 7

General partnership

Question 8

Ownership of real estate between two or more parties who have been named in one conveyance as _______. Upon the death of a joint tenant, the decedents interest usually passes to the surviving party or parties by the right of survivorship. The last survivor takes the title in severalty and has all the rights of a sole ownership and can pass the property to any heirs.

Answer 8

Joint tenancy

Question 9

A form of business organization that combines the most attractive features of limited partnerships and corporations. They enjoy tax advantages and are not subject to the double taxation of a corporation.

Answer 9

Limited liability company LLC

Question 10

A business arrangement whereby the operation is administered by one or more general partners and funded, by a large, by limited or silent partners, who are by law responsible for losses only to the extent of their investments.

Answer 10

Limited partnership

Question 11

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

Answer 11

Partition

Question 12

The four unities of tenants in joint tenancy:

Answer 12

PITT:
Possession
Interest 
Time 
Title

Question 13

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

Answer 13

Right of survivorship

Question 14

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 fund after the marriage.

Answer 14

Separate property

Question 15

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

Answer 15

Severalty

Question 16

The joint ownership, of property acquired by husband and wife DURING the marriage. Upon death of one spouse, the survivor becomes the owner of the property.

Answer 16

Tenancy by the entirety

Question 17

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 joint tenants, _________ have the right of inheritance.

Answer 17

Tenancy in common TIC

Question 18

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

Answer 18

Time-share

Question 19

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

Answer 19

Town house

Question 20

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 a beneficiary. The one who conveys the trust is called the trustor.

Answer 20

Trust