Chapter 2 Estates in Real Property and Forms of Ownership

Question 1

A type of partnership created for a single transaction or series a transactions is known as a:

Answer 1

Joint Venture

Joint ventures are formed for a single or series of individual business transactions. It is not intended to be a relationship of indefinite duration.

Question 2

Three statements about a corporation are:

Answer 2

1. A corporation formed under the laws of California is known as a domestic corporation.
2. The shares of stock issued to the owners of a corporation are securities that are regulated by the federal government.
3. A corporation is an artificial person

Question 3

Condominium ownership means that an owner:

Answer 3

owns the space within his/her unit and owns the surrounding common areas as a tenant in common with the other unit owners.

In a condominium, the interior space within each unit is owned by each individual owner in fee simple. The common spaces, such as the buildings themselves, parking, elevators, recreation areas and so forth are owned as tenants in common with all other unit owners.

Question 4

Ownership in severalty occurs when:

Answer 4

the property is owned by only one person.
Ownership in severalty is ownership by one person to the exclusion of all others, or “severed” from the ownership of all others.

Question 5

A deed in which the grantor states, “To Paul Grey for his life, and then to Sean Casey” creates what type of interest for Sean Casey?

Answer 5

an estate in remainder
When a grantor stipulates that the property will go to a person other than the grantor at the end of the measuring life, the other person has an estate in remainder and is known as the remainderman.

Question 6

All of the following statements are true regarding condominiums

Answer 6

1. a lien can attach to a separate unit.
2. each unit owner obtains separate financing to buy his/her unit.
3. the sale of a unit does not generally require the approval of other unit owners.

Question 7

3 characteristics of a fee simple estate

Answer 7

1. It is of an indefinite duration.
2. It can be inherited.
3. It can be transferred.

Question 8

An estate that can be voluntarily transferred by a will is a

Answer 8

fee simple estate

Question 9

A Real Estate Investment Trust (REIT):

Answer 9

1. avoids double taxation as long as at least 90% of its income is distributed to the shareholders who pay tax on the income.
2. involves one or more trustees who manage property for others, who are called beneficiaries.
3. is an unincorporated syndicate to finance large real estate projects.

Question 10

The type of concurrent ownership that requires unity of interest, unity of title, unity of time, and unity of possession that includes the right of survivorship is known as:

Answer 10

joint tenancy.

Question 11

The highest and most complete form of ownership estate in land is called:

Answer 11

fee simple absolute estate.

Question 12

3 statements concerning a life estate are:

Answer 12

1. A life estate can be sold, gifted, or traded to another by the life tenant.
2. All conveyances of a life estate must be in writing.
3. A life tenant may encumber the property of the life estate.

Question 13

An ownership interest in real property that has an indefinite (indeterminable) duration is known as a:

Answer 13

fee simple absolute.

Question 14

The statement(s) are true regarding cooperatives 2 of them:

Answer 14

1. If one tenant in a cooperative defaults on his/her share of the mortgage payment, the remaining tenants must cure the default.
2. A corporation owns the whole project and the persons who occupy the individual units are shareholders with a tenancy right to a particular unit under a proprietary lease.

Question 15

When an apartment building is converted to a condominium, need how much notice?

Answer 15

Each apartment tenant must be given 180 days notice of the conversion.

Question 16

The most basic form of concurrent ownership for unmarried persons recognized in California is:

Answer 16

tenancy in common.

Question 17

In California, unless otherwise provided for, married couples will take title to real property as:

Answer 17

community property.

Question 18

In California, condominium projects are generally regulated as:

Answer 18

subdivisions.

Question 19

A leasehold estate for a fixed term is an:

Answer 19

estate for years.

Question 20

Reversion, as applied to life estates, means the property:

Answer 20

returns to the grantor.