Chapter 5 Yellow Text--Forms of R/E Ownership

Question 1

Severalty

Answer 1

Ownership by one owner, corporation or other entity

Question 2

Community Property

Answer 2

Laws are based on the idea that spouses, rather than merging into one entity are equal partners in the marriage.

Question 3

Ownership by trust

Answer 3

property held for the benefit of another

Question 4

Tenancy in Common (TIC)

Answer 4

each tenant holds an undivided interest in the property and each is entitled to possession and use of the entire property even though they only own a fraction of the property.

Question 5

Joint Tenancy

Answer 5

property owned by two or more people married or not. Has the Right of Survivorship.

Question 6

Right of Survivorship

Answer 6

Upon the death of a joint tenant, the deceased’s interest transfers directly to the surviving joint tenant or tenants. No legal action required other than the a copy of the death certificate being made part of the legal record. (69)

Question 7

PITT or the four elements/unities that are needed to create a joint tenancy:

Answer 7

P-Unity of Possession-all joint tenants hold an undivided right to possession.
I-Unity of Interest-all joint tenants hold and equal ownership interest.
T-Unity of Time- all joint tenants acquire their interests at the same time.
T-Unity of Title- all joint tenants acquire their interests by the same document.

Question 8

Terminating a Joint Tenancy

Answer 8

is destroyed when any one of the 4 unities is terminated.

Question 9

Partition

Answer 9

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

Question 10

Tenancy by entirety

Answer 10

a special form of co-ownership used in some states that allows a spouse to inherit the other spouse’s ownership interest upon death. Spouses who are tenants by entirety have the right of survivorship.

Question 11

Separate Property

Answer 11

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 12

Trust

Answer 12

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

Question 13

trustor

Answer 13

the person who creates the trust

Question 14

beneficiary

Answer 14

the person who benefits from the trust

Question 15

trustee

Answer 15

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

Question 16

fiduciary

Answer 16

a person who acts in confidence or trust and has a special legal relationship with the beneficiary.

Question 17

Living Trust

Answer 17

A trust set up during the property owner’s lifetime to provide for their financial interests.

Question 18

testamentary trust

Answer 18

established by will after the owners death.

Question 19

Land Trust

Answer 19

Real Estate is the only asset of a land trust.

Created for the conservation of forests, farmland, and other wildlife habitats, coastal land and scenic vistas.

Question 20

Partnership

Answer 20

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

Question 21

General Partnership

Answer 21

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

Question 22

Limited Partnership

Answer 22

consists of one or more general partners, as well as limited partners. they do not participate in the running of the business, just in the financial investment, and therefore their risk is limited.

Question 23

Coroporation

Answer 23

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

it can own real estate in severalty or as a tenant in common with other natural or artificial persons.

Question 24

Limited Liability Companies (LLC)

Answer 24

offers the benefits of the limited liability of a corporation, the tax advantages of a partnership and a flexible management structure.

Question 25

Condominium

Answer 25

ownership with horizontal property acts. The owner owns a fee simple title to the unit.

Question 26

Common elements

Answer 26

the individual condo owners specified share of the undivided interest in the remainder of the building.

Question 27

HOA

Answer 27

Home Owners Association, administers the the Condominium and is made up of unit owners.

Question 28

Cooperative

Answer 28

A corporation holds title to the land and building. Which in turn offers stock to prospective tenants.

Question 29

Time Share

Answer 29

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

Question 30

Time share estate

Answer 30

includes a real property interest in a specified unit for a particular period of the year or it can be a designated share of ownership of the property expressed as a fractional interest or number of points.

Question 31

Time share use

Answer 31

a contract right under which the developer owns the real estate. but only for a certain number of years after which the rights terminate.

Question 32

Model R/E Time-Share Act

Answer 32

deals with the time-share management and protections for purchasers of units.