Unit 8 - Forms of Real Estate Ownership

Question 1

Common Elements

Answer 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 of the condominium residents. Each condominium owner has an undivided ownership interest in the common elements.

Question 2

Condominium

Answer 2

The absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.

Question 3

Cooperative

Answer 3

A residential multiunit building whose title is held by a trust or a corporation that is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholders of the corporation, each possessing a proprietary lease.

Question 4

Co-ownership

Answer 4

Ownership held by two or more persons.

Question 5

Corporation

Answer 5

An entity 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.

Question 6

General Partnership

Answer 6

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

Question 7

Joint Tenancy

Answer 7

(Ownership is equal) and has to be created at the same time)

Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants.

Upon the death of a joint tenant, the interest passes to the surviving joint tenant or tenants by the right of survivorship.

possession, interest, time, and title. (PITI)

All concurrent ownership is created by one deed.

Question 8

Joint Venture

Answer 8

The joining of two or more people to conduct a specific business enterprise. A joint venture is similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than for a continuing business relationship.

Question 9

Limited Liability Company (LLC)

Answer 9

A business structure that combines the most attractive features of limited partnerships and corporations. The members of an LLC enjoy the limited liability offered by a corporate form of ownership and the tax advantages of a partnership.

Question 10

Limited Partnership

Answer 10

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

Question 11

Marital Property

Answer 11

All property acquired after the date of marriage for the duration of the marriage, except by gift or will.

Question 12

partition action

Answer 12

A partition action is a legal claim meant to divide ownership of a piece of real property. A partition action is not a lawsuit to decide who is the rightful owner of a piece of property (such as an action to quiet title).

Question 13

Partnership

Answer 13

An association of two or more individuals who carry on a continuing business for profit as co-owners. Under the law, a partnership is regarded as a group of individuals rather than as a single entity. See also general partnership and limited partnership.

Question 14

Proprietary Lease

Answer 14

A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder’s right as a tenant to an individual apartment.

Question 15

Right Of Survivorship

Answer 15

The right by which, upon the death of a joint tenant, the decedent’s interest passes to the surviving joint tenant or tenants by the right of survivorship.

Question 16

Severalty

Answer 16

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

Question 17

Syndicate

Answer 17

A combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources. In a real estate investment syndicate, the parties own and/or develop property, with the main profit generally arising from the sale of the property.

Question 18

Tenancy By The Entirety

Answer 18

The spousal joint ownership of the principal residence acquired during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.

Question 19

Tenancy In Common

Answer 19

A form of co-ownership by which each owner holds an undivided fractional interest in real property as if she were sole owner. Each individual owner has the right to partition. Tenants in common have right of inheritance. Ownership does not have to be equal (ie. 70% and 30% ownership). (most common type of home ownership)

All concurrent ownership is created by one deed.

Question 20

Time-share

Answer 20

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

Question 21

Town House

Answer 21

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 for the common areas.

Question 22

Trust

Answer 22

A fiduciary arrangement whereby property is conveyed to a person or 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.

Question 23

PITT

Answer 23

Multiple Owenership:
Possession
Interest
Title
Time

Question 24

Concurrent estate

Answer 24

Where property is owned by more than one person. Also called co-tenancy, is any of various ways in which property is owned by more than one person at a time.