LEVEL 1

Question 1

What is the link between Syndicates & Joint Ventures?

Answer 1

Joint ventures tend to be one-and-done deals that dissolve when their first project is complete, while members of syndicates usually expect to join forces for multiple or ongoing projects.

Both, however, hold property in the same fashion.

Question 2

WHAT IS A REAL ESTATE INVESTMENT TRUST?

Answer 2

(REIT) is a company, organized as a trust, that owns (and typically operates) income-producing real estate or real estate assets. They provide a way for individual investors to earn a share of the income produced through commercial real estate without having to buy the properties.

Question 3

TYPES OF REITs

Answer 3

REITs generally fall into three categories:

Equity REITs

Mortgage REITs

Hybrid REITs

Most REITs are equity REITs.

Question 4

WHAT ARE THE CRITERIA FOR A REITs?

Answer 4

To qualify as a REIT, a company must operate in a certain manner, including:

Invest at least 75% of assets in real estate and cash

Distribute at least 90% of its taxable income to shareholders annually

Have shares that are fully transferrable

Have a minimum of 100 shareholders by the end of the first year

Be managed by a board of directors or trustees

Question 5

COOPERATIVES VS CONDOMINIUMS
SIMILARITIES AND DIFFERENCE

Answer 5

As opposed to condominiums and townhomes, cooperative owners purchase stocks or shares of the cooperative; they do not purchase a housing unit. Co-op owners have something in common with condo owners, though: they both have to pay assessments to fund the costs of repairs and maintenance.

Question 6

CONDOMINIUMS: WHAT IS OWNED AND NOT OWNED?

Answer 6

Condo owners do NOT own the land on which their unit stands, nor do they own the exterior of the building.

Condo owners DO, however, own the inside of their residential unit

Question 7

WHAT IS COMMON ELEMENTS?

Answer 7

Any common areas outside the unit are owned collectively by all unit owners. These areas, such as swimming pools, parking lots, and laundry rooms are often called common elements. A homeowner’s association or condo board is typically responsible for the maintenance of the common elements and the exterior of the building.

Question 8

TYPES OF OWNERSHIPS ASSOCIATED W/ CONDOS

Answer 8

Fee simple interest ownership of the interior of the individual unit

Tenancy in common ownership (undivided interest) of all common areas

Question 9

TYPES OF TOWNHOME OWNERSHIP

Answer 9

Fee simple interest ownership of the individual unit (including the roof, garage, private yard or patio, and the land beneath all of that)

Tenancy in common ownership of all common areas

Question 10

WHAT ARE TIMESHARES?

Answer 10

Timeshares are a form of shared property ownership. In a timeshare, multiple owners have the right to use a property (commonly located in a desirable vacation spot) for a specified period each year.

Question 11

WHAT IS FREEHOLD ESTATE?

Answer 11

INDIVIDUAL W/ INTEREST IN THE PROERY HAS SOME DEGREE OF OWNERSHIP

Question 12

TYPES OD FREEHOLD ESTATES

Answer 12

1. FEE SIMPLE ESTATE
2. DEFEASABLE FEE ESTATE=QUALIFIED FEE ESTATE
3. LIFE ESTATE

Question 13

WHAT IS FEE SIMPLE ESTATE?

Answer 13

OWNER HAS FULL PROPERTY RIGHTS IE OWN, CAN MAKE CHANGES, CAN SELL ECT

Question 14

WHAT IS QUALIFIED FEE ESTATE?

Answer 14

RIGHT TO A PROPERTY IS GRANTED BY THE OWNER (GRANTOR) AS UNDER CERTAIN CONDTION. PROPERTY CAN REVERT TO OWNER
1. AUTOMATICALLY= FEE ON CONTITION
2. FEE DETERMINABLE: MUST BE PROVEN IN COURT THAT CONDITION HAS BEEN VIOLATED

Question 15

WHAT IS FEE ON CONTITION?

Answer 15

ALLOWS PROPERTY TO BE REVERTED TO OWNER AUTOMATICALLY IF CONDITION NOT MET

Question 16

WHAT IS FEE DETERMINABLE?

Answer 16

ALLOWS PROPERTY TO BE REVERTED TO OWNER IF CONTITIONS VIOLATED HOWEVER MUST BE PROVEN IN COURT FIRST

Question 17

WHAT IS A LIFE ESTATE?

Answer 17

PROPERTY RIGHT IS GRANTED FOR THE DURATION OF MEASURING LIFE EITHER THE TENANT OF SOMEONE OTHER THAN THE TENANT

Question 18

WHAT IS PUR AUTRE VIE?

Answer 18

PROPERTY IS GRANTED AS LONG AS PEROSN X NOT THE TENANT IS ALIVE. WHEN X DIES PROPERTY REVERTS TO OWNER

Question 19

WHAT IS ORDINARY OR CONVENTIONAL LIFE ESTATE?

Answer 19

PROPERTY RIGHT GRANTED BY OWNER TO TENANT FOR THE DURATION OF THEIR MEASURING LIFE

Question 20

WHAT IS REMAINDER INTEREST?

Answer 20

PERSON WHO INHERITS A PROPERTY WHEN GRANTOR DIES

Question 21

TYPES OF OWNERSHIPS

Answer 21

1. SEVERALTY: SOLE OWNERSHIP
2. CO-OWNERSHIPS: MULTIPLE OWNERS
3. TRUST: ORGANIZATION

Question 22

SEVERALTY

Answer 22

SOLE OWNERSHIP BY INDIVIDUAL, LEGAL ENTITY, CORPORATION

Question 23

CO-OWNERSHIPS

Answer 23

1. TENANT IN COMMON
2. JOINT TENANCY
3. MARRIED COUPLE
   a) COMMUNITY PROPERTY
   b)TENANCY BY ENTIRETY

Question 24

WHICH TYPE OF CO-OWNERSHIP ALLOWS FOR UNEQUAL SHARE?

Answer 24

TENNANCY IN COMMON

Question 25

RIGHT OF INHERITANCE VS RIGHT OF SURVIVORSHIP?

Answer 25

INHERITANCE GOES TO HEIR (S) SURVIVORSHIP: EQUALLY DIVIDED AMONG REMAINING CO-OWNERS (i.e survivors) AFTER CO-OWNER'S DEATH

Question 26

WHICH TYPE OF CO-OWNERSHIP ALLOWS RIGHTS OF SURVIVORSHIP?

Answer 26

JOINT TENANCY

Question 27

WHICH TYPE OF CO-OWNERSHIP HAS ALL UNITIES?

Answer 27

JOINT TENANCY

Question 28

WHAT ARE THE 4 UNITIES ASSOCIATED WITH OWNERSHIP?

Answer 28

UNITY OF POSSESSION UNITY OF TIME UNITY OF INTEREST UNITY OF TITLE "PITTsburg"

Question 29

WHAT IS A TRADE FIXTURE?

Answer 29

personal property that is owned by and needed for a tenant’s business

Question 30

WHAT IS A CHATTEL?

Answer 30

PERSONAL PROPERTY

Question 31

WHATIS BUNDLE OF RIGHTS?

Answer 31

bundle of rights the ownership of land with all of the legal rights of possession, control, enjoyment, exclusion, and disposition

Question 32

WHAT IS PERSONAL PROPERTY?

Answer 32

any unattached, movable asset on the property not considered real estate (land plus improvements); aka chattel or personalty