Unit 5 vocabulary

Question 1

severalty

Answer 1

occurs when property is owned by one individual, corporation, or other entity

Question 2

co-ownership

Answer 2

Most states commonly recognize various forms of

Question 3

tenancy in common (TIC),

Answer 3

each tenant holds an undivided interest in the property.

Question 4

Joint Tenancy

Answer 4

In property owned by two or more people, whether married or unmarried.

Question 5

right of survivorship.

Answer 5

The distinguishing feature of a joint tenancy is the

Question 6

PITT

Answer 6

Unity of possession—all joint tenants hold an undivided right to possession.
Unity of interest—all joint tenants hold an equal ownership interest.
Unity of time—all joint tenants acquire their interests at the same time.
Unity of title—all joint tenants acquire their interests by the same document.

Question 7

Partition

Answer 7

is a legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination.

Question 8

Tenancy by the entirety

Answer 8

is a special form of co-ownership used in some states that allows a spouse to inherit the other spouse’s ownership interest upon death. In this form of ownership, each spouse has an equal, undivided interest in the property.

Question 9

Separate property

Answer 9

generally is real or personal property that was owned solely by either spouse before the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage.

Question 10

Community property

Answer 10

consists of real and personal property acquired by either spouse during the marriage

Question 11

trust

Answer 11

is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

Question 12

partnership

Answer 12

is an association of two or more persons who carry on a business for profit as co-owners

Question 13

general partnership,

Answer 13

all the partners participate in the operation and management of the business and share full liability for business losses and obligations

Question 14

limited partnership

Answer 14

consists of one or more general partners, as well as limited partners.

Question 15

corporation

Answer 15

a legal entity—an artificial person—created under the authority of the laws of the state from which it receives its charter

Question 16

limited liability company (LLC)

Answer 16

is a relatively recent form of business organization in this country, becoming popular only since about 1980, although it has been used in Europe for over a century.

Question 17

condominium

Answer 17

form of ownership is used throughout the United States.

Question 18

common elements.

Answer 18

The individual unit owners also own a specified share of the undivided interest in the remainder of the building and land, known as

Question 19

town houses

Answer 19

that share a wall, and detached structures can all be condominiums.

Question 20

cooperative

Answer 20

holds title to the land and the building.

Question 21

Time-share

Answer 21

ownership permits multiple purchasers to buy relatively small interests in real estate, typically resort properties.