Ownership

Question 1

What are the three main forms of ownership?

Answer 1

In severalty – Held by only one owner
In co-ownership – Held by two or more people
In trust – Held by a third party for the benefit of someone else

Question 2

What three types of co-ownership does Texas recognize?

Answer 2

Tenancy in common
Joint tenancy
Community property

Question 3

What does a living trust do?

Answer 3

Allows the trustor, during his or her lifetime, to convey title to a trustee for the benefit of a third party

Question 4

What are the four unities needed to create a joint tenancy?

Answer 4

Unity of time
Unity of title
Unity of interest
Unity of possession

Question 5

What happens to community property upon the death of a spouse?

Answer 5

Half of the deceased’s community property passes to the surviving spouse, and the other half passes to the decedent’s heirs.

Question 6

How do closely held corporations avoid considerable corporate taxation?

Answer 6

By not showing a profit

Question 7

What is the liability for limited partners?

Answer 7

They are liable only to the extent of their investment.

Question 8

Identify at least four ways that a business can be organized?

Answer 8

Sole proprietorship
Partnership
Joint venture
Corporation
Limited Liability company
Syndicate
Real estate investment trust

Question 9

What form of ownership is a condominium?

Answer 9

A condominium is a hybrid form of ownership which combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements.

Question 10

In most states a person must be how old to hold a real estate license?

Answer 10

18

Question 11

In what two ways can a bundle of rights be held?

Answer 11

Rights in the bundle may be held by one party or separated and held by different parties.

Question 12

In a co-op, how is the value of a unit identified?

Answer 12

The number of shares purchased reflects the value of the apartment unit in relation to the property’s total value.

Question 13

If a single party owns the fee or life estate

Answer 13

the ownership is an estate (ownership) in severalty.

Question 14

Co-Ownership

Answer 14

means that a parcel is owned by two or more persons or organizations. Co-owners are called co-tenants

Question 15

In Texas there are three types of co-ownership that are recognized:

Answer 15

Tenancy in common
Joint tenancy
Community property

Question 16

Tenancy in Common

Answer 16

is the most common form of co-ownership when the owners are not married. Co-tenants share an indivisible interest in the estate. All tenants in common have distinct and separable ownership of their respective interests.

Question 17

Joint Tenancy

Answer 17

two or more persons collectively own a property as if they were a single person. Rights and interests are indivisible and equal. Each has a shared interest in the whole property which cannot be divided up.

Question 18

In Texas, community property laws

Answer 18

state that the husband and wife are equal partners. Community property law distinguishes real and personal property into categories of separate and community property. Separate property belongs to one spouse; community property belongs to both spouses equally.

Question 19

Condiminium

Answer 19

a hybrid form of ownership of multi-unit residential or commercial properties. It combines ownership of a fee simple interest in the airspace within a unit with ownership of an undivided share, as a tenant in common, of the entire property’s common elements, such as lobbies, swimming pools, and hallways. A condominium unit is one airspace unit together with the associated interest in the common elements.

Question 20

The condominium unit can be held

Answer 20

jointly, in severalty, in trust, or in any other manner allowed by state law. Unit owners hold an exclusive interest in their individual apartments, and co-own common elements with other unit owners as tenants in common.

Question 21

In a cooperative, or co-op, the person owns shares in a

Answer 21

non-profit corporation or cooperative association, which in turn acquires and owns an apartment building as its principal asset. Along with this stock, the shareholder acquires a proprietary lease to occupy one of the apartment units.

Question 22

Businesses can

Answer 22

purchase, hold and sell property in much the same way as a private individual can.

Question 23

Businesses can be organized as

Answer 23

Sole proprietorship
Partnership
Joint venture
Corporation
Limited Liability company
Syndicate
Real estate investment trust