Unit 5 Exam Flashcards
Real properties owned by public entities, such as cities, counties, states, and public agencies are generally owned in
severalty.
Why?
Real properties owned by public entities, such as cities, counties, states, and public agencies are generally owned in severalty.
The person who creates a trust conveys real or personal property to a
The answer is trustee.
Why
The person who creates a trust conveys real or personal property to a trustee, with the understanding that the trustee will assume certain duties.
A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called
The answer is cooperative.
Why?
In a cooperative, a corporation holds title to the property and offers stock shares to the residents, who then receive a proprietary lease to the apartment.
The real property interest that takes the form of personal property is the
The answer is cooperative unit ownership.
Why?
Because it involves receiving shares of stock and a leasehold—both of which are considered by common law to be personal property—cooperative ownership is personal, not real, property.
The term severalty comes from the fact that
The answer is a sole owner
is severed or cut off from other owners.
Why?
The term severalty comes from the fact that a sole owner is severed or cut off from other owners.
A person who owns one unit in a multiunit structure together with a specified undivided interest in the common elements owns a
condominium
Why?
A person who holds a fee simple title to a unit and a specified share of the undivided interest in the common elements owns a condominium.
One of the distinguishing characteristics of a land trust is that
The answer is public records
Why?
usually do not name the beneficiary. One of the distinguishing characteristics of a land trust is that the public records usually do not name the beneficiary.
A married couple co-owns a farm and has the right of survivorship. This arrangement is MOST likely
The answer is an estate by the entirety.
Why?
Married persons may own property together as tenants in common, joint tenants, or as community property. Being more than one person, a couple cannot own in severalty. The right of survivorship is a distinguishing feature of tenancy by the entirety, which some states recognize as a form of joint tenancy reserved for a married couple.
Which statement applies to both joint tenancy and tenancy by the entirety?
The answer is the last survivor
Why?
becomes a severalty owner. Tenancy by the entirety is a type of joint tenancy recognized by some states that is reserved for married couples. In both, there is a right of survivorship. The last survivor becomes sole (severalty) owner.
Which of the following is NOT a form of co-ownership?
The answer is ownership in severalty.
Why?
When just one individual owns property, the form of ownership is known as ownership in severalty.
Three people are joint tenants with rights of survivorship in a tract of land. One owner conveys his interest to a friend. Which statement is TRUE?
The answer is the other two owners remain joint tenants.
Why?
When one of three joint tenants sells to a new person, the other two remain joint tenants with respect to each other. The new person is a tenant in common and is not owner in severalty of the entire property because severalty is sole ownership.
