Unit 3-Ownership and Title transfer

Question 1

Ownership by an individual is known as an Estate in_______.

Answer 1

Severalty–upon death, property goes to heir’s or devisees

Question 2

T or F: Legal Entities can own in severalty.

Answer 2

True–2 or more people or firms may join as an entity to own real estate(a syndication) i.e. corporation, trust, REIT(invest. trust)

Question 3

In a ________ ___________, all partners have EQUAL say and liability.

Answer 3

General Partnership

Question 4

In a ________ ___________, the limited partners’ liability is equal to their share of ownership.

Answer 4

Limited Partnership

Question 5

In this form of ownership 2 or more people share ownership with UNDIVIDED interests. Because their share is fractional but undivided, they have equal rights of possession

Answer 5

Concurrent(multiple) Ownership/Co-ownership

Question 6

Should RE professionals ever give legal advise to buyer’s on the most appropriate form of ownership?

Answer 6

NO, seek legal council

Question 7

This form of co-ownership has no rights of survivorship to other owner’s, and is usually the default in most states unless otherwise stated in deed.

Answer 7

Tenancy in Common–interests go to heirs or devisees

Question 8

T or F: Shares of ownership can be unequal in a Tenancy in common and is subject to probate

Answer 8

True

Question 9

A partition lawsuit may help divide property amongst owners in a ________.

Answer 9

Tencancy in common

Question 10

This form of co-ownership DOES have a right of survivorship to other owners.

Answer 10

Joint-Tenancy

Question 11

To become a joint tenancy is must be specified in a __________.

Answer 11

Deed–and ownership shares MUST be equal in joint tenancy

Question 12

In this form of co-ownership, interests go to co-owners without going through probate.

Answer 12

Joint Tenancy

Question 13

T or F: Joint Tenancy overrides a will, and the joint tenancy affidavit must be recorded.

Answer 13

True

Question 14

T or F: Four Unities of Possession, Interest, Title, and Time(PITT) must be present in joint tenancy.

Answer 14

True

Question 15

Any property acquired by either spouse during marriage is considered _______ _________.

Answer 15

community property

Question 16

Condos, cooperatives, and other forms of common interest ownership are often regulated under a state’s_______________________.

Answer 16

Common interest ownership act

Question 17

T or F: Seller’s DO NOT have disclosure requirements to buyer’s related to the sale of common interest property.

Answer 17

False–usually some CCR’s, Covenants, Conditions, and Restrictions

Question 18

Real estate ownership type where portions are designated for separate ownership and the remainder is designated for common ownership and use(common elements).

Answer 18

Condo-could be residential or commercial, uses common elements

Question 19

T or F: Condos are created by a declaration, describing the legal and physical structure along with any restrictions on use.

Answer 19

True

Question 20

Shared walls separating ownership interests are called _______ _______.

Answer 20

Party Walls, Declaration states these common and limited common elements

Question 21

_________ elements are owned by all unit owners in a condo as tenants in common.

Answer 21

Common

Question 22

Parking spaces, storage units, and balconies in a condo are considered __________common elements

Answer 22

Limited

Question 23

T or F: Each Condo unit is a member of the OA or HOA can impose and collect assessments(association fees), which creates a foreclosable lien on the unit

Answer 23

True

Question 24

HOA may set rules for rentals, hold meetings, collect fees but DO NOT _________ land.

Answer 24

Develop

Question 25

Do Condos have separate Title and Taxation?

Answer 25

Yes--Deed transfers fee simple interest in unit plus undivided interest in common elements; all owners share ownership of common elements in tenants in common.

Question 26

Town homes are similar to condos in unit ownership and HOAA, but usually include the land ________ and ________ the unit.

Answer 26

Under and Around

Question 27

Owners are stockholders in this form of co ownership.

Answer 27

Cooperative

Question 28

T or F: Cooperatives are owned by a corporation and the buyer receives a proprietary lease, no deed, no ownership.

Answer 28

True-stockholders/tenants pay assessments and association fees, the corporation owns the real estate

Question 29

A __________is where a purchaser buys interest in real estate and receives a right to use property for certain periods of time.

Answer 29

time-share-usually a resort property

Question 30

In a time share, purchasers own units as ____________.

Answer 30

Tenants in common

Question 31

The act of conveying or transferring title of a real estate ownership(title) is referred to as _________.

Answer 31

Alienation

Question 32

A _________grant is from individuals, using a deed.

Answer 32

Private

Question 33

A _______ grant is from government to individuals, using a land patent.

Answer 33

Public

Question 34

A ______________ is from individuals to the government.

Answer 34

Dedication

Question 35

The two parties in conveying deeds are referred to as the _________and __________.

Answer 35

Grantor and Grantee

Question 36

Purpose of the deed is the voluntary transfer of ________ between Grantor and Grantee.

Answer 36

Title

Question 37

The ___________of real property will always be required to provide WRITTEN deed.

Answer 37

Seller

Question 38

Deeds ____________guarantee or prove ownership.

Answer 38

DO NOT--they also don't need to be recorded for title transfer; it passes upon acceptance by the grantee.

Question 39

Acceptance by the grantee is when _______ transfers.

Answer 39

Title

Question 40

A competent grantor is 18, sane, and _______.

Answer 40

Sober

Question 41

A deed was only signed by 1 owner, is it conveyable?

Answer 41

No, must be signed by all owners

Question 42

T or F: There are 7 essentials elements of a deed

Answer 42

True-Competent Grantor, execution by grantor, Identifiable Grantee, Delivery & Acceptance by Grantee, Legal Description, Consideration, Words of Conveyance

Question 43

Earnest Money _________ consideration.

Answer 43

IS NOT

Question 44

The words of conveyance are the ________ clause.

Answer 44

Granting

Question 45

Consideration is _______ or something of value, one dollar and other good and valuable consideration.

Answer 45

Money

Question 46

"to have and hold forever" would convey a _______ _______ estate.

Answer 46

Fee Simple Absolute estate

Question 47

The habendum clause conveys the _______ estate

Answer 47

Freehold

Question 48

The ________warranty deed provides the greatest protection for the grantee and includes the most promises or covenants

Answer 48

General

Question 49

The _________ warranty has 5 covenants and warranties of title.

Answer 49

General

Question 50

When a grantor owns and has the right to convey title, this is the Covenant of ___________.

Answer 50

Seisin

Question 51

A warranty that the grantee will not be disturbed by others claiming an interest on title is known as the Covenant of _____________.

Answer 51

Quiet Enjoyment

Question 52

T or F: The Covenant against encumbrances means there are no undisclosed encumbrances

Answer 52

True

Question 53

When the grantor guarantees future cooperation in signing additional documents it is known as the Covenant of ________________.

Answer 53

Further assurances

Question 54

T or F: A "warranty forever" guarantees defense of title against claims such as liens or easements

Answer 54

True--is in the General warranty

Question 55

What 2 warranties does a special(limited) warranty contain?

Answer 55

Seisin(owns and can convey) and will protect against defects or encumbrances arising DURING the GRANTOR's ownership period.

Question 56

This type of deed is the best for the seller(grantor).

Answer 56

Quitclaim

Question 57

In this type of deed, there are no covenants or warranties, "what I have, you now have", usually used to clear title.

Answer 57

Quitclaim deed

Question 58

This deed does NOT warranty against liens or encumbrances but WARRANTS the grantor's right to convey title.

Answer 58

Bargain and Sale deed

Question 59

This deed transfers title at the end of a foreclosure proceeding or statutory redemption period

Answer 59

Sheriff's deed/trustee's deed/certificate of sale

Question 60

This deed is used when the borrower pays off a loan secured by a deed of trust.

Answer 60

Reconveyance deed

Question 61

The process of distributing all of a deceased person's assets is called ____________.

Answer 61

Probate

Question 62

T or F: A will MUST go through probate in order for the devisee to receive real property.

Answer 62

True--the person who has a will is the testator,

Question 63

The ACT of transferring a deceased person's interest in real property to another deed is called ________.

Answer 63

Devise---the person receiving is the devisee

Question 64

With a will, all heirs are known and there is no chance of ______.

Answer 64

Escheat

Question 65

The act of transferring a deceased person's interest in PERSONAL property to another in a bill of sale is a ____________.

Answer 65

Bequest

Question 66

T or F: Intestate succession means the deceased has NO will.

Answer 66

True

Question 67

If a person has no will, states will use ________to determine heirs/descendants for property to pass to.

Answer 67

State Laws of Descent

Question 68

Adverse possession and easements by prescription are types of involuntary ___________.

Answer 68

Alienation

Question 69

If all parties know of and agree on possession or use, it cannot be __________ possession.

Answer 69

Adverse

Question 70

T or F: Owners who do not inspect their property regularly may lose rights of ownership if another possesses or uses the property for a statutory period of time.

Answer 70

True

Question 71

T or F: ONCHA, adverse possession is recognized by courts after Open, Notorious(hostile), Continuous, and Actual possession for a set period of time.

Answer 71

True

Question 72

This easement is recognized by the courts, OCEAN must be present as well, more with USE of one's land.

Answer 72

Easement by prescription

Question 73

Most states require a seller provide a seller's property ___________.

Answer 73

Disclosure

Question 74

_________, never the broker, must complete the disclosure to the best of their current knowledge.

Answer 74

Seller's

Question 75

A __________ ________or defect is one that, if known, may change a buying decision.

Answer 75

Material Fact

Question 76

A ________ _________ is a hidden fact that is not easily discovered by an inspection.

Answer 76

Latent defect

Question 77

Seller and _________ must disclose visible and latent material defects(facts)

Answer 77

Brokers

Question 78

Upon discovery of a material defect, a ________must IMMEDIATELY disclose it to all parties to the transaction or potential transaction

Answer 78

Broker

Question 79

The _________ will be held responsible if Broker visually inspects, found no obvious defects, and seller misrepresents a latent defect.

Answer 79

Seller

Question 80

A form of concurrent ownership in which each tenant owns an undivided ownership share in the entire property and has no right of survivorship is __________.

Answer 80

Tenants in common

Question 81

T or F: To be valid, a deed must have a property description.

Answer 81

True