Unit 8

Question 1

Fee simple estate can be held 3 ways:

Answer 1

severalty - one individual or corp
co-ownership by 2 or more
trust - a third individual holds title for the benefit of another

Question 2

Tenants in common

Answer 2

2 or more and each person holds an undivided fractional interest, possession of whole property, can sell without consent of others and portion passes according to their will or state statute; this is default ownership; can sell or convey your portion without other person having a say

Question 3

joint tenants

Answer 3

owned by 2 or more w/ unity of ownership, includes rights of survivorship;

Question 4

4 unities required for joint tenancy

Answer 4

possession
interest
time @ same time
title

Question 5

Requirements for unities

Answer 5

title acquired by 1 deed
deed executed and delivered at one time
conveys equal interests
individual possession

Question 6

IL allows sole owner to deed to herself and others as joint tenants, not tenants in common

Answer 6

TRUE

Question 7

Terminating joint tenancy

Answer 7

destroyed when one of the 4 unities is terminated

Question 8

Termination by Partition Suit

Answer 8

Partition is legal way to dissolve relationship when they don’t voluntarily agree; court will separate or sell property and divide proceeds

Question 9

Tenancy by the Entirety

Answer 9

in Illinois allowing husbands and wives use this special form for primary residence. Has rights of survivorship. Only convey by both parties signing deed and no right to partition or divide; provides some protection from creditors if against only one party

Question 10

Tenancy by the Entirety terminated by:

Answer 10

court ordered to satisfy judgement
death of either spouse
agreement
divorce

Question 11

Community Property

Answer 11

husband and wife equal partners; any property acquired during marriage is equally obtained

Question 12

Trust - Living and Land

Answer 12

Device by which a person transfers ownership to someone to hold or manage for benefit of third party

Question 13

Land Trusts

Answer 13

trust in which real estate is only asset

Question 14

in IL beneficiary’s name must be revealed in land trust when

Answer 14

• to housing authority for complaints
• when applying for license or permit
• if trustee named as defendant in lawsuit
• arson investigation

Question 15

Land Trust Term

Answer 15

usually 20 years

Question 16

Living and Testamentary Trusts

Answer 16

property owner establishes trust to provide for his financial care or that of family. May continue for lifetime or certain age

Question 17

REIT

Answer 17

Real Estate Investment Trust - investors get tax benefits

Question 18

Business Organization Ownership Types:

Partnership

Answer 18

2 or more persons who carry on business

Question 19

Corporation

Answer 19

legal entity, exists until formally dissolved

Question 20

LLC

Answer 20

limited liability of corp and tax advantages of partnership

Question 21

syndicates

Answer 21

join together but not legal entity

Question 22

joint ventures

Answer 22

join together for one project

Question 23

Condo Ownership

Answer 23

own fee simple title to unit, undivided interest in common elements as tenants in common and no right to partition; pay association fees

Question 24

Coop

Answer 24

corporation holds title and offer shares of stock to potential tenants

Question 25

Townhouse ownership

Answer 25

any type of housing with common walls

Question 26

Time Share

Answer 26

multiple purchasers by shares in real estate with fixed time To Sell must have license unless: exchange company existing time share owner who refers no more than 20 prospective purchasers and receives no more than $1000 for referrals and limits activities to referrals

Question 27

Time Share Estate

Answer 27

fee simple interest | limited to contractural period

Question 28

Time Share Use

Answer 28

right to use and occupy for certain # of years