Unit 8

Question 1

Severalty

Answer 1

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

Question 2

Tenancy In Common

Answer 2

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. Unlike joint tenants, tenants in common have right of inheritance.

Question 3

Joint Tenancy

Answer 3

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 decedent’s interest passes to the surviving joint tenant or tenants by the right of survivorship.

Question 4

Right Of Survivorship

Answer 4

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. This. is the difference between joint tenancy and tenancy in common.

Question 5

What four unities are required to create a joint tenancy?

Answer 5

Unity of possession. All joint tenants hold an undivided right to possession of the property.
Unity of interest. All joint tenants hold equal ownership interests in the property.
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 deed.

Question 6

How do you end a joint tenancy?

Answer 6

Terminating any one of the four unities

Question 7

What happens when one co-owner wants to terminate and the other doesn’t?

Answer 7

Co-owners who wish to terminate their co-ownership may file an action in court (called a partition suit or suit to partition) to partition the property. Partition is a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination. If the court determines that the land cannot be divided physically into separate parcels without destroying its value, the court will order the real estate sold. The proceeds of the sale will then be divided among the co-owners according to their fractional interests.

Question 8

Partition

Answer 8

a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination.

Question 9

Tenancy By The Entirety

Answer 9

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 10

How can a tenancy by the entirety be ended?

Answer 10

• a court-ordered sale of the property to satisfy a judgment against the husband and the wife as joint debtors (the tenancy is dissolved so that the property can be sold to pay the judgment);
• the death of either spouse (the surviving spouse becomes sole owner in severalty);
• agreement between both parties through the execution of a new deed; or
• divorce, which leaves the parties as tenants in common.

Question 11

Is Illinois a community property state?

Answer 11

No

Question 12

Marital Property

Answer 12

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

Question 13

Trust

Answer 13

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 14

Trustor

Answer 14

Person who creates the trust

Question 15

Beneficiary

Answer 15

the person who benefits from the trust

Question 16

Trustee

Answer 16

the party who holds legal title to the property an is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust

Question 17

Partnership

Answer 17

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.

Question 18

General Partnership

Answer 18

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

Question 19

Limited Partnership

Answer 19

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 20

Limited Liability Company (LLC)

Answer 20

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 21

Joint Venture

Answer 21

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 22

Syndicate

Answer 22

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 23

Condominium

Answer 23

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 24

Cooperative

Answer 24

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 25

Proprietary Lease

Answer 25

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 26

Town House

Answer 26

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.