Unit 7

Question 1

Ownership in Severalty

Answer 1

title is held by one individual or company

Question 2

Co Ownership

Answer 2

title is held by two or more people

1. Tenancy in common
2. Joint tenancy
3. Tenancy by the entireties
4. Community property

Question 3

Tenancy in common

Answer 3

Each tenant holds an undivided fractional interest in the property. Default. Can sell, convey, mortgage, or transfer their individual interest without consent from the other co-owner. At death each owners interest transfers according to their will, heirs, or living trust.

Question 4

Joint Tenancy

Answer 4

Owned by two or more people. Right of survivorship- upon death of a joint tenant the deceased interest transfers directly to the surviving tenant or tenants. Just one less owner. Must be clearly stated.

• unity of. possession
• unity of interest
• unity of time
• unity of title

Requirements

• Title is acquired by one document or deed
• the deed is executed and delivered at one time
• the deed conveys equal interests to all of the parties
• the parties hold undivided possession of the property as joint tenants

Question 5

Partition

Answer 5

Legal way to dissolve the relationship when the parties do not voluntarily agree to the termination of co ownership.

Question 6

Tenant by Entirety

Answer 6

Legally Married- Spouse gets other spouses interest when they die.  Terminated by 
Judgement sale
Death
Agreement
Divorce

Question 7

Community Property Rights

Answer 7

Real and personal property acquired by either spouse during marriage. Partners in marriage are equal. Property is obtained by mutual effort. Will their property to whoever they choose. No automatic right to survivorship.

Question 8

Separate property

Answer 8

Real or personal property that was owned solely by either spouse before the marriage by gift or inheritance during the marriage as well as any property purchased with separate funds during the marriage. No signature from the other spouse is needed when mortgaging or conveying the property.

Question 9

Trust

Answer 9

device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.
Trustor- creates the trust
Beneficiary- The who benefits from the trust
Trustee- fiduciary, holds legal title carry out the trusters wishes
Living trust and testamentary trust.

Question 10

Land Trust

Answer 10

Real estate is the only asset. Beneficiary is usually also the truster. Often created for conservation of farmland, costal land, and scenic vistas. Loan with no recorded mortgage Additional probate costs and inheritance taxes can be avoided.

Question 11

Partnership

Answer 11

An association of two or more people who carry on a business for a profit as co owners. In PA it is not a legal entity and technically cannot own real estate. individual partners must hold title as tenants in common or joint tenants.

Question 12

General Partnership

Answer 12

All partners participate to some extent in the operation and movement of business and share full personal liability for business losses and obligations

Question 13

Limited Partnership

Answer 13

consist of one or more general partners and limited partners. Limited partners are not legally permitted to participate in the business and each can be held liable for business losses only to the amount invested.

Question 14

Uniform Partnership Act

Answer 14

partnership is recognized as a legal entity and can hold title in the partnerships name.

Question 15

Corporation

Answer 15

An artificial person created under the laws the state from which it receives its charter. Manged and operated by a board of directors. Can own real estate in severalty or as a tenant in common. Continues to exist until it is formally dissolved. They get double taxation on profit.

Question 16

S Corporation

Answer 16

100 or fewer shareholders offers small businesses many of the benefits of a corporation but avoids double taxation.

Question 17

Limites Liability Corporation (LLC)

Answer 17

Combines attractive features of a limited partnerships and corporations. Enjoy limited liability offered by corporate form of ownership and tax advantages of a limited partnership. Flexible management structures without the complicated requirements of corporations or the restrictions of limited partnerships.

Question 18

Condominium Ownership

Answer 18

Owners have free simple title to the unit and share title to common areas. Governed by the declaration of condominium and elected boards of directors (HOA). Should examine association fees, assessment fees, and rules before getting one. If a fee is missed then the debt becomes a lien against the unit

• 15 days before a sales contract they must get a public offering statement
• If newly converted they have a two year warranty against structural defects and common elements. They must also get a report
• Succeeding purchasers must be given a copy of the condominium declaration

Question 19

Pennsylvania Uniform Condominium Act

Answer 19

It is created and established when the owner of an existing building or the developer of unimproved property executes and records a declaration of condominium. Requires protective purchasers be provided with enough info about the operation of the condominium association including fees, covenants and restrictions that will affect their ownership

Question 20

Cooperative Ownership

Answer 20

Corporation holds title to the land and the building. They offer shares of stock to prospective tenants. Tenant owners. They have proprietary leases. The cooperative tenant owners do not own real estate instead they own interest in a corporation that only has one asset; the building. Governed by bylaws of the corporation and elected board of directors or trustees. Default on payment will burden the remaining shareholders.

Question 21

Time share ownership/ time share use

Answer 21

Multiple purchasers buy interests in real estate. Each purchaser has the right to use the property for a set time each year. It is fee simple interest ownership. Time share use agreement is personal property that expires after a specified time period. It is governed by a developer.