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Unit 8: Forms of Real Estate Ownership > Assessment > Flashcards

Assessment Flashcards

1
Q

The ownership of real estate by one individual

A

Severalty

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2
Q

A form of property ownership in which owners hold undivided fractional interests that are inheritable by their heirs

A

Tenancy in Common

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3
Q

A form of ownership in which multiple owners hold property with a right of survivorship

A

Joint tenancy

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4
Q

A legal method for dissolving a co-ownership

A

Partition

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5
Q

A special form of co-ownership for married couples

A

Tenancy by the entirety

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6
Q

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

A

Trust

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7
Q

A form of trust established by will after the owner’s death

A

Testamentary Trust

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8
Q

An association of two or more persons who carry on a business for profit as co-workers

A

Partnership

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9
Q

The evidence of the right to occupy a unit in a cooperative

A

Proprietary Lease

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10
Q

The rules determining the operation and management of a cooperative

A

Bylaws

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11
Q

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

A

Partition

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12
Q

Title held by one individual

A

Severalty

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13
Q

Ownership of individual unit in building and percentage of the common areas

A

Condominium

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14
Q

Property acquired during a marriage is considered to be obtained by mutual effort

A

Community property

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15
Q

This right is a characteristic of joint tenancy

A

Right of survivorship

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16
Q

Property owned by two or more people with the right of survivorship

A

Joint tenancy

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17
Q

Building that is owned by a corporation with unit occupants receiving a proprietary lease right

A

Cooperative

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18
Q

What are the 3 basic forms of co-ownership?

A

1) Tenancy in common
2) Joint tenancy
3) Tenancy by the entirety

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19
Q

A disadvantage of ___ business ownership of income property is double taxation.

A

Corporate

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20
Q

A(n) ___ combines the most attractive features of limited partnerships and corporations.

A

Limited Liability Company (LLC)

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21
Q

A business organization in which all members participate in the operation and management of the business and share full liability for business losses and obligations

A

General partnership

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22
Q

A business organization that is a legal entity managed and operated by a board of directors

A

Corporation

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23
Q

On the death of a joint tenant, the deceased’s interest transfers directly to the remaining joint tenants by ___.

A

Right of survivorship

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24
Q

A business organization that combines the tax advantages of limited partnerships and the limited liability of corporations

A

Limited Liability Company

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25
Q

In a community property state, real or personal property that was owned solely by either spouse prior to marriage, or acquired by inheritance while married

A

Separate property

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26
Q

A form of property ownership in which each owner holds an undivided interest in certain common elements in addition to holding individual property in fee simple

A

Condominium

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27
Q

Special payments required of condominium unit owners to address specific expenses

A

Assessments

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28
Q

Recurring fees required of condominium unit owners to cover basic maintenance and operations

A

HOA fees

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29
Q

A real property interest in a specified unit for a particular period of the year

A

Time share estate

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30
Q

A contract right under which a developer retains ownership of property and the purchaser receives the right to occupy and use the facilities for a certain period

A

time share use

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31
Q

A limited liability company combines the most attractive features of land trusts and testamentary trusts. true or false?

A

False

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32
Q

A major advantage of ___ trusts is that they reduce the time and costs of probate

A

Living

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33
Q

An owner can transfer or sell a condominium unit to anyone, unless the condominium association provides for a(n)…

A

Right of first refusal

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34
Q

A time share ___ includes the right to use the property for a certain specified period of time

A

Estate

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35
Q

Ownership of a cooperative interest is ___ property.

A

Personal

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36
Q

The management and operation of a cooperative are determined by the ___ of the ___ that owns the property

A

Bylaws of the corporation

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37
Q

Condo owners hold their units in ___.

A

Fee simple

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38
Q

Condo owners hold common elements as ___.

A

Tenants in common

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39
Q

If a partner in a general partnership dies, withdraws, or goes bankrupt, the common law result would be to ___ the partnership

A

dissolve

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40
Q

In a(n) ___, a corporation holds title to the land and building then offers shares of stock to prospective purchasers

A

cooperative

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41
Q

Condominium property is administered by an association of unit owners called a(n) ___.

A

Homeowners association (HOA)

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42
Q

The person who creates a trust is called the ___.

A

Trustor

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43
Q

The ___ transfers property to the trustee.

A

Trustor

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44
Q

The ___ is entrusted to carry out the instructions regarding the property held in a trust

A

Trustee

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45
Q

The ___ is the party that benefits from a trust.

A

Beneficiary

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46
Q

When buying into a cooperative, the purchaser becomes a shareholder in the corporation by virtue of ___.

A

Stock ownership

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47
Q

When buying into a cooperative, the purchaser receives a(n) ___ to the apartment.

A

Proprietary lease

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48
Q

How long does a proprietary lease last?

A

For the life of the corporation

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49
Q

Under ___ ownership, each unit becomes a separate parcel of real estate that is owned in fee simple and may be transferred to whomever the owner chooses.

A

Condominium

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50
Q

___ trusts have become a major estate planning tool used to minimize the time and costs of probate

A

Living

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51
Q

Members of an LLC enjoy the ___ offered by a corporate form of ownership.

A

Limited liability

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52
Q

An LLC offers the ___ advantages of a partnership.

A

Tax

53
Q

Corporations are subject to ___ taxation

A

Double

54
Q

In a community property state, ___ property includes all property - both real and personal, acquired by either party during the marriage

A

community

55
Q

In a community property state, ___ property is acquired by either spouse by inheritance or gift

A

Separate

56
Q

In a tenancy by the entirety, neither spouse can convey a half interest to a(n) ___.

A

third party

57
Q

In a tenancy by the entirety, neither spouse may take court action to ___ or divide the property

A

Partition

58
Q

In a tenancy by the entirety, spouses can convey title only by a deed that is…

A

signed by both spouses

59
Q

Co-tenants may terminate their co-ownership by asking a court to ___ the property

A

partition

60
Q

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

A

Partition

61
Q

When a joint tenant conveys interest in the jointly held property to a new owner, the new owner becomes a(n) ___.

A

tenant in common

62
Q

When a joint tenant conveys interest in the jointly held property to a new owner, the unities of ___ and ___ are destroyed.

A

Time and title

63
Q

What are the 4 unities characteristic of a joint tenancy?

A

Possession
Interest
Time
Title

64
Q

When title to a single parcel of real estate is held by 2 or more individuals, the parties may be called ___

A

Co-owners (concurrent owners)

65
Q

A joint tenancy continues ___ until there is only one owner left.

A

indefinitely

66
Q

A joint tenancy continues indefinitely, until there is only one remaining owner. The remaining owner then will hold the title…

A

in severalty

67
Q

The ownership of an undivided fractional interest in a property is characteristic of a(n) ___.

A

Tenancy in common

68
Q

In a tenancy in common, each tenant holds a(n) ___ interest in the property

A

undivided fractional interest

69
Q

In a tenancy in common, co-owners have unity of ___.

A

possession

70
Q

Unity of ___ means that each owner is entitled to hold the whole property.

A

Possession

71
Q

In a tenancy in common, ___ is divided.

A

Ownership interest

72
Q

In a(n) ___, property is owned by two or more owners with the right of survivorship

A

Joint tenancy

73
Q

___ means that there is only one owner of a property

A

Severalty

74
Q

What type of ownership occurs when property is owned by one corporation?

A

Ownership in severalty

75
Q

What are the 3 basic ways in which a fee simple estate may be held?

A

1) In severalty
2) In co-ownership
3) in trust

76
Q

A ___ estate may be held in severalty, in co-ownership, and in trust

A

fee simple

77
Q

The four unities of possession, interest, time, and title are associated with ___.

A

Joint tenancy

78
Q

The difference between tenancy in common and joint tenancy is that ___ is inheritable

A

Tenancy in common

79
Q

The difference between tenancy in common and joint tenancy is that ___ is characterized by the right of survivorship

A

Joint tenancy

80
Q

Three women were concurrent owners of a parcel of real estate. When one woman died, her interest according to her will became part of her estate. The deceased was a(n) ___.

A

Tenant in common

81
Q

A legal agreement under which the title to real property is held to protect the interests of a beneficiary is a(n) ___.

A

Trust

82
Q

Maintaining and operating a cooperative is paid for by the ___ from charges assessed to ___.

A

Paid for by the corporation
Charges assessed to unit owners

83
Q

A man purchases an interest in a house. He is entitled to the right of possession only between July 10 and August 4 of each year. What type of ownership was most likely purchased?

A

Time share estate

84
Q

Because a corporation is a legal entity, real estate owned by it is…

A

In severalty

85
Q

Which of these is a form of co-ownership?
A) Joint tenancy
B) Severalty
C) Sole owner
D) Tenancy at will

A

Joint tenancy

86
Q

A married couple owns a mansion with a right of survivorship. This is most likely…

A

An estate by the entirety

87
Q

Two people are co owners of a small office building with the right of survivorship. One of the owners dies intestate and leaves nothing to be distributed to his heirs. What form of ownership would explain why the surviving co-owner acquired the deceased’s interest?

A

Joint tenancy

88
Q

A(n) ___ proves one’s right to live in a cooperative

A

Proprietary lease

89
Q

A proprietary lease proves one’s right to live in a(n) ___.

A

Cooperative

90
Q

A similarity between joint tenancy and tenancy by the entirety is that the survivor becomes a(n) ___ owner.

A

severalty

91
Q

If property is held by 2 or more owners as tenants with survivorship rights, the interest of a deceased co-tenant will be passed to the…

A

surviving owner(s)

92
Q

Which of the following would not require special deed language to create in Illinois?
a) tenancy in common
b) life estate pur autre vie
c) joint tenancy
d) tenancy by the entireties

A

Tenancy in common

93
Q

The names of the beneficiaries of a land trust must not be revealed by the trustee to ___ when applying for a license or permit affecting the entrusted real estate.

A

any Illinois Agency

94
Q

The names of the beneficiaries of a land trust must not be revealed by the trustee to any Illinois agency when…

A

applying for a license or permit affecting the entrusted real estate

95
Q

Every co-owner of real estate in Illinois has the right to file a suit for partition when the property is held in ___ or ___.

A

joint tenancy or tenancy in common

96
Q

Title to land in Illinois may be held and conveyed in the name of a(n) ___.

A

partnership

97
Q

If the deed of conveyance to Illinois land transfers title to two or more co-owners without defining the charcter of the co-ownership, the co owners are ___.

A

tenants in common

98
Q

In Illinois, to convert an apartment building to co-ownership, the owner must record a ___ with a ___.

A

Condominium declaration with a three-dimensional plat

99
Q

Abby and Bob held title to an apartment building in Illinois as joint tenants with rights of survivorship. Abby and Bob had an argument, and Abby didn’t like the possibility that Bob would acquire total ownership of the building if Abby died. Therefore, Abby executed a deed to herself as a tenant in common and later willed this interest to Chris. Abby’s actions legally ___ the joint tenancy.

A

Severs

100
Q

Which of the following cannot take title as a joint tenant with right of survivorship?
A) Spouses
B) Two female business partners
C) Two brothers in a partnership
D) A corporation

A

A corporation

101
Q

When 2 or more individuals decide to buy a property together, it results in ___.

A

Co-ownership

102
Q

Three siblings bought a farm together. The deed listed all of their names but failed to designate any form of concurrent ownership. What form of ownership are they presumed to have taken?

A

Tenancy in common

103
Q

What form of ownership is employed when one person transfers ownership to someone else to hold and manage for a third person?

A

Trust

104
Q

A couple is getting married. They each have two children and they are buying real estate together. They ask the real estate professional for advice about how to take title. What advice should the real estate professional offer?

A

Advise they consult an attorney

105
Q

A will provided that the local banker take care of the deceased’s estate until the children of the deceased reach age 25. What kind of trust is this?

A

Testamentary Trust

106
Q

What kind of ownership do the horizontal property acts regulate?

A

Condominiums

107
Q

Shareholders in a cooperative receive shares of stock that entitle them to…

A

a proprietary lease

108
Q

Membership camping is similar to ___.

A

Timeshare use

109
Q

In a large high rise condominium, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are called ___.

A

Common elements

110
Q

Two people own an apartment building together as joint tenants. They share equally in the expenses and profits. One day, one of the owners decides to end the relationship. If that owner signs and delivers a deed to the buyer, the buyer and the other owner will be ___.

A

Tenants in common

111
Q

In February, a seller conveyed an undivided one-half interest in a parcel of land to buyer A. In March, the seller conveyed the remaining one-half interest to buyer B. The deed to buyer B included the statement: “Buyer B is to be a joint tenant with buyer A.” Both deeds were recorded. Based on these facts, Buyer A and Buyer B are ___.

A

Tenants in common

112
Q

Three people own a large parcel of undeveloped land in joint tenancy. One of them wants to build a shopping center on the property, while the other two want to use it as an organic farm. The individual who wants to build on the land tries to buy the other tenants’ interests, but they refuse to sell. What is the individuals best option?

A

File a suit for partition

113
Q

A resident owns and lives year round in a cottage in a lakefront community. The resident’s ownership of the cottage is in fee simple. The resident also owns an undivided percentage interest in a parking lot, a golf course, and a swimming pool, all located in the development. Based on these facts, the resident’s ownership is probably best described as…

A

a condominium

114
Q

Three friends agree to purchase and operate a property as a permanent investment. Two friends each contribute $50,000. The third contributes $30,000 and agrees to manage the day-to-day operations of the business, which the friends call “Property Group Partners.” Only the third friend has any right to participate in the operation of the venture. Based on these facts, what type of business organization have the friends established?

A

Limited partnership

115
Q

Three friends agree to purchase and operate a property as a permanent investment. Two friends each contribute $50,000. The third contributes $30,000 and agrees to manage the day-to-day operations of the business, which the friends call “Property Group Partners.” Only the third friend has any right to participate in the operation of the venture. If a structure on the property collapses, resulting in injury and property damage worth $275,000, what will be the liability of the friend who contributed $50,000?

A

$50,000

116
Q

A limited partner is limited in liability to the amount of…

A

the original investment

117
Q

It is true of a(n) ___ that the surviving spouse automatically becomes the sole owner of the property upon the death of the other spouse.

A

Tenancy by the entirety

118
Q

Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the trustor?

A

Mary

119
Q

Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the beneficiary?

A

The grandchild

120
Q

Mary creates a trust fund to pay for her grandson’s education. The trust is operated by an attorney who makes payments directly to the school. Based on the facts, who is the trustee?

A

The attorney

121
Q

A company is a legal entity, created by charter under the laws of the state. The company is managed and operated by a board and is permitted to buy and sell real estate. When one of its directors dies, the company continues to operate. Because of its structure, the company’s income is subject to double taxation. The company is best described as a(n) ___.

A

Corporation

122
Q

When a corporation takes complete ownership of property, it is considered to be what type of ownership?

A

Ownership in severalty

123
Q

In tenancy in common, if the fractions of ownership are not stated in the deed, how are they determined?

A

Each tenant is presumed to hold equal shares

124
Q

In a land trust, the beneficiary is usually also the ___.

A

Trustor

125
Q

___ ownership includes undivided interest in common elements and a fee simple title of the unit

A

Condominium

126
Q

___ ownership includes undivided interest in common elements, a relatively small interest in real estate, and occupancy and use for limited periods

A

Time share

127
Q

In this type of ownership, real estate is owned by a corporation

A

Cooperative

128
Q

This type of ownership includes a proprietary lease

A

Cooperative

Unit 8: Forms of Real Estate Ownership (6 decks)

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