chapter 8 Flashcards
(48 cards)
What is owner in severalty
when the title is owned by one person
What are the three ways fee simple estate ownership can be held?
severalty, co-ownership, trust
What is co-ownership
when the title is owned by two or more individuals
What is “trust” in fee simple ownership
when a third individual owns property on behalf of another person
what is tenancy in common
when two or more hold an undivided amount of property
What happens if a co-owner dies?
the property passes on to living heirs
what is Joint tenancy
two or more people hold equal shares of a property as a unit
In joint tenancy what happens if death of owner
Full ownership goes to one owner-one less person on deed :called right of survivership
Joint tenancy be clearly defined: T or F
True
Four things required for joint tenancy:
Four “unities” are required to create a joint tenancy:
- Unity of possession—all joint tenants holding an undivided right to possession
- Unity of interest—all joint tenants holding equal ownership interests
- Unity of time—all joint tenants acquiring their interests at the same time
- Unity of title—all joint tenants acquiring their interests by the same document
The four requirements for unities include the following:
- Title is acquired by one deed.
- The deed is executed and delivered at one time.
- The deed conveys equal interests to all of the parties.
- The parties hold undivided possession of the property as joint tenants.
A tenancy by the entirety may be terminated in several ways:
- By a court-ordered sale of the property to satisfy a judgment against the husband and wife as joint debtors (the tenancy is dissolved so that the property can be sold to pay the judgment)
- By the death of either spouse (the surviving spouse becomes sole owner in severalty)
- By agreement between both parties (through the execution of a new deed)
- By divorce (which leaves the parties as tenants in common)
What is separate property
Separate property is real or personal property that was owned solely by either spouse before the marriage
What is community property
Community property consists of all other property acquired by either spouse during the marriage.
When spouse dies what happens to community property?
Half is kept, half is spread to will
What is non-marital property?
Nonmarital property is property that was acquired prior to the marriage or by gift or inheritance at any time, even during the marriage.
A trust is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.
In a trust, the trustor is the person who creates the trust.
The beneficiary is the person who benefits from the trust. The trustee is the party who holds legal title to the property and is entrusted with carrying out the trustor’s instructions regarding the purpose of the trust.
What is a partnership
when two or more people carry as business for profit
What is a general partnership
All partners carry equal responsibitlieis/ share equal liabilities for damages and losses
What are limited partners
Each partner is only liable up to a certian amount of damage-only to extent of their investment
What did The Uniform Limited Partnership Act (ULPA) do
it created a legal way to fund a business and partner in realty
Definition of a corporation:
A corporation is a legal entity (an artificial person) created under the authority of the laws of the state from which it receives its charter.
A corporation is managed and operated by its board of directors.
The charter sets forth the powers of the corporation, including its right to buy and sell real estate (based on a resolution by the board of directors).
What is Illinois the Illinois Business Corporation Act and the federal Uniform Partnership Act
The laws that allow corporations to buy and sell real estate
Limited Liability Company:
Illinois Limited Liability Company Act in 1994, Illinois joined the majority of states that recognize limited liability companies as legitimate business organizations.
Gives tax cuts and benefits of partnerships
