Unit quiz 5 Flashcards
The person who creates a trust conveys real or personal property to a
A)benefactor.
B)beneficiary.
C)trustor.
D)trustee.
D ) Trustee
A corporation is a legal entity, recognized as an artificial person. Property owned solely by the corporation is owned in
A)severalty.
B)trust.
C)partnership.
D)survivorship tenancy.
A)severalty.
The term person does not always refer to a natural individual—a human; the law regards a corporation as an artificial person. Because this is so, a (?) can own real estate in severalty (alone).
Corporation
A legal arrangement under which the title to real property is held to protect the interests of a beneficiary is a
A)limited partnership.
B)corporation.
C)trust.
D)general partnership.
C ) Trust
Trusts protect
beneficiaries
Partnerships can protect
limited partners
corporations can protect
stockholder-owners.
Because a corporation is a legal entity, it can own real estate
A)only as a tenant in common.
B)only in severalty.
C)in severalty or as a tenant in common.
D)only in trust.
C)in severalty or as a tenant in common.
A trust is a legal arrangement in which property is held for the benefit of a third party by a(n)
A)attorney-in-fact.
B)trustor.
C)trustee.
D)beneficiary.
C)trustee.
The trustor creates trust that is held for the benefit of the beneficiary who will ultimately benefit from the trust. A third party, the trustee, holds legal title to the property and is entrusted with carrying out the trustor’s instructions.
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
A)planned unit development.
B)cooperative.
C)condominium.
D)time-share.
B)cooperative.
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 forms of property ownership are controlled by the
A)title insurance customary practices.
B)state.
C)local governments.
D)federal government.
B)state.
The owner of a condominium unit learns that a neighbor has failed to pay real estate taxes. If this neighbor does not pay the taxes,
A)a lien can be filed against the condominium, including all the units.
B)a lien can be filed only against the common areas of the condominium.
C)the taxing authority can order the condominium to be dissolved.
D)a lien can be filed against the neighbor’s unit and percentage of the common elements.
D)a lien can be filed against the neighbor’s unit and percentage of the common elements.
The term severalty comes from the fact that
A)a corporation usually consists of several shareholders.
B)there are several owners.
C)the term severe refers to government ownership.
D)a sole owner is severed or cut off from other owners.
D)a sole owner is severed or cut off from other owners.
Which of the following is MOST likely evidence of ownership in a cooperative?
A)Existence of a reverter clause
B)Right of first refusal
C)Shareholder’s stock
D)Tax bill for an individual unit
C)Shareholder’s stock
The documents that show ownership in a cooperative are shares of stock in the cooperative corporation and
a proprietary lease.
