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

MA RE Licenscure Exam > Chapter 5 Yellow Text--Forms of R/E Ownership > Flashcards

Flashcards in Chapter 5 Yellow Text--Forms of R/E Ownership Deck (32)
1

Severalty

Ownership by one owner, corporation or other entity

2

Community Property

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

3

Ownership by trust

property held for the benefit of another

4

Tenancy in Common (TIC)

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.

5

Joint Tenancy

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

6

Right of Survivorship

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)

7

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

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.

8

Terminating a Joint Tenancy

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

9

Partition

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

10

Tenancy by entirety

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.

11

Separate Property

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.

12

Trust

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.

13

trustor

the person who creates the trust

14

beneficiary

the person who benefits from the trust

15

trustee

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.

16

fiduciary

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

17

Living Trust

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

18

testamentary trust

established by will after the owners death.

19

Land Trust

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.

20

Partnership

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

21

General Partnership

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

22

Limited Partnership

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.

23

Coroporation

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.

24

Limited Liability Companies (LLC)

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

25

Condominium

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

26

Common elements

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

27

HOA

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

28

Cooperative

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

29

Time Share

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

30

Time share estate

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.

31

Time share use

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

32

Model R/E Time-Share Act

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