Unit 4

Question 1

Tenancy in Severalty

Answer 1

property is owned by one individual, corporation or other entity

Question 2

Tenancy in co-ownership

Answer 2

held by two or more people

Question 3

Tenancy in common

Answer 3

each tenant holds an undivided interest in the property (do not have to own equal shares of the property)

Question 4

Joint Tenancy

Answer 4

property owned by two or more people whether married or unmarried owning equal shares of the property

Question 5

Right of survivorship

Answer 5

upon death of a joint tenant, the deceased’s interest transfers directly to the surviving joint tenant or tenants

Question 6

4 Unities for JTROS

Answer 6

1. Possession
2. Interest
3. TIme
4. Title

Question 7

Possession

Answer 7

all joint tenants hold an undivided right to possession

Question 8

Interest

Answer 8

all joint tenants hold an equal ownership interest

Question 9

Time

Answer 9

all joint tenants acquire their interests at the same time

Question 10

Title

Answer 10

all joint tenants acquire their interests by the same document

Question 11

unity of possession

Answer 11

each owner is entitled to possession and the use of the entire property, even though each holds only a fractional ownership interest

Question 12

If tenancy is not stated for co-owners, what time is it assumed to be?

Answer 12

common tenancy

Question 13

Do you need the permission of other owners to sell your interest in a joint tenancy?

Answer 13

no

Question 14

Partition Suit

Answer 14

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

Question 15

Tenancy by entirety

Answer 15

special form of co-ownership that allows a spouse to inherit the other spouse’s ownership interest upon death; each spouse owns the property 100%; no need to go through probate

Question 16

What is the default tenancy for married people

Answer 16

tenancy by entirety

Question 17

Community Property

Answer 17

property bought together as a married couple, should one of the spouses die, 50/50 ownership and they can will it away to their spouse or someone else

Question 18

Are community property rights recognized in TN

Answer 18

No

Question 19

Separate property

Answer 19

either spouse owned before they were married, and remains separate

Question 20

What are the community property rights?

Answer 20

1. separate property

2. community property

Question 21

Trust

Answer 21

device by which one person who owns the property transfers the ownership to someone else to hold or manage for the benefit of someone else

Question 22

Who are the 3 parties involved in a trust?

Answer 22

1. trustor
2. trustee
3. beneficiary

Question 23

Living Trust

Answer 23

created by agreement during the property owner’s lifetime

Question 24

Trustor

Answer 24

person who creates the trust

Question 25

Trustee

Answer 25

party who holds legal title to property in trust and is entrusted with carrying out the trustor's instructions regarding the purpose of the trust

Question 26

Beneficiary

Answer 26

person who benefits from a trust

Question 27

Fiduciary

Answer 27

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

Question 28

Testamentary trust

Answer 28

set up after death

Question 29

Land trust

Answer 29

still have trustor, trustee and beneficiary, but often the trustor and trustee are one in the same

Question 30

Ownership of business by yourself

Answer 30

sole proprietorship

Question 31

general partnership

Answer 31

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

Question 32

Limited partnership

Answer 32

one or more general partners + limited partner (invest in it and reap some profits but doesn’t help them run it; also called a silent partner; losses limited to the amount you’ve invested the business)

Question 33

Corporation

Answer 33

legal entity that can own real estate in its own name; owns in severalty

Question 34

Limited Liability Corporation

Answer 34

incorporates features of limited partnerships and corporations, make for personal asset protection and without need for board of directors

Question 35

What do you get ownership of in a condo?

Answer 35

interior airspace

Question 36

common area

Answer 36

anything outside the interior everyone owes a small share of and is owned by HOA

Question 37

Who is condo property administered by?

Answer 37

HOA

Question 38

Cooperative ownership

Answer 38

can’t tell the difference just by looking; the whole place is owned by a corporation and you buy into the corporation and you get a share of stock; has to give you a second document that allows you to have your proprietary lease

Question 39

What is the value of a unit in a cooperative ownership

Answer 39

value of stock

Question 40

Does a board of directors in a cooperative have the right to refuse someone's stock ownership?

Answer 40

yes

Question 41

Who is responsible is someone in a cooperative defaults on their taxes?

Answer 41

whole place

Question 42

where are cooperatives normally located?

Answer 42

urban areas

Question 43

time share ownership

Answer 43

permits multiple purchasers to buy relatively small interests in real estate, typically resort properties

Question 44

What are ways to buy into a time share

Answer 44

1. timeshare estate | 2. timeshare use

Question 45

Timeshare estate

Answer 45

get deed for your time interval ownership; yours forever, can will to heirs, can get a loan to buy

Question 46

Timeshare use

Answer 46

buy into timeshare but developer retains ownership and gives buyer limited time to use it

Question 47

Time share sales agent

Answer 47

person who sells or offers to sell timeshare intervals in a time-share program to a purchaser. All sales agents must have a time-share salesperson license. Pre-licensing requirements of 30 hour horse by the time-share broker

Question 48

What are the cancellation rights for the time share if you saw the property?

Answer 48

10 days if the prospective buyer had an on-site inspection of the property

Question 49

What are the cancellation rights for a time share if you did not see the property?

Answer 49

15 days if the prospective buyer did not have an on-site inspection of the property

Question 50

What type of license must time share agents have?

Answer 50

All agents must have a real estate license of some type (time-share license, affiliate broker license, or broker license)

Question 51

Who are time share deposits held by?

Answer 51

third party (attorney, bank, title company, etc.)

Question 52

What are the rules around time shares as a prize/gift?

Answer 52

1. If a sales presentation is required to qualify, it must be stated 2. At least 1 of each prize/gift must be given 3. The odds of winning the prize/gift must be stated 4. The retail value of each prize/gift must be stated

Question 53

What must time share developers have?

Answer 53

public offering disclosure statement

Question 54

What must prospective buyers do for a time share?

Answer 54

sign and date a receipt acknowledging they received this statement

Question 55

How long do time share developers need to keep their receipts and records of sales?

Answer 55

4 years

Question 56

What happens if any changes are made to a Public Offering Disclosure statement?

Answer 56

the Developer must submit them to the Tennessee Real Estate Commission within 10 days and the Developer cannot offer the time-share property to the public until TREC approves the change(s)