Unit 4 real estate Flashcards


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1

Severalty

Title to a farm is held by one person

2

Severalty

Large corporation holds title to land on which its headquarters is built

3

Co-ownership

Spouses hold title to property jointly

4

Co-ownership

Title held by two or more individuals

5

Co-ownership

Brother and sister each hold title for vacation property together

6

Severalty

Title held by one individual or corporation

7

Co-owners can also be called concurrent owners.

true

8

Ownership by more than one person is called ownership in severalty.

false

9

What interest will the buyer of Jennifer's interest receive?

One-third undivided interest as a tenant in common with Carmen and Walt

10

Is it possible for Jennifer's interest to be sold?

depends on state law

11

Was there any other way for Carmen, Jennifer, and Walt to take title to the property that would have avoided any conflict when Jennifer needed to move?

Yes, they could have taken title as tenants in common.

12

Unity of title

all joint tenants acquire their interests by the same document

13

unity of possesion

all joint tenant can enter and use the property

14

unity of time

all joint tenants acquire ownership simentanously

15

unity of interest

all joint tenants are equal owners

16

A joint tenancy can be created by conveying a deed or giving the property by will or living trust.

true

17

In tenancy in common, each tenant holds a divided fractional interest in the property.

False

18

Limited partnership

The death of an owner may not affect title if provided in the agreement.

This is a popular method of organizing investors with small investments and limited personal risk.

19

Limited liability company

Combines the most attractive features of limited partnerships and corporations.

20

General partnership

Dissolved and must be reorganized if one owner dies.

All owners are fully liable for business losses and obligations.

21

Corporation

The death of one owner never affects title to the property.

This can hold title to real estate in severalty.

22

A general partnership is dissolved and must be reorganized if one partner dies, withdraws, or goes bankrupt.

true

23

The death of a shareholder in a corporation results in the dissolution of the corporation.

False

24

Cooperative

Corporation holds title and offers stock shares

Proprietary leases give the right to occupy the units

25

Condominium

Owner of each unit holds fee simple title to unit

Ownership includes a percentage of the building's common elements

26

Time-share

Occupants may have either a real property estate or an occupancy use interest

Use limited to a contractural period

27

The individual unit owners of a condominium own the common elements as tenants in common.

true

28

Condominium laws are often called vertical property acts.

False

29

A tenancy in common differs from a joint tenancy in that

tenants in common may have unequal interests.

30

A person who owns one unit in a multiunit structure together with a specified undivided interest in the common elements owns

a condominium.

31

Which statement applies to both joint tenancy and tenancy by the entirety?

The last survivor becomes a severalty owner.

32

A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called

cooperative.

33

The trust established by a decedent's will is

a testamentary trust.

34

An estate left the decedent's farm to eight grandchildren. Because no form of ownership was specified in the decedent's will, each of the grandchildren receives

a one-eighth interest in the property as a tenant in common.

35

Property owned by a married person

can belong to the spouses together or be the separate property of one spouse.

36

The real property interest that takes the form of personal property is

cooperative unit ownership.

37

The condominium form of property ownership can be used for

detached structures.

38

Real properties owned by public entities, such as cities, counties, states, and public agencies are generally owned in

severalty.

39

A broker who is asked how a married couple should take title would advise them

to seek legal advice.

40

Which of the following is TRUE regarding community property rights?

Any property acquired during a marriage is considered to be obtained by mutual effort.

41

The person who creates a trust conveys real or personal property to

a trustee.

42

An ownership interest that is based on annual occupancy intervals is

a time-share.

43

A trust is a legal arrangement in which property is held for the benefit of a third party by

a trustee

44

Title to a property is held by two or more individuals; this property is held in

co-ownership.

45

A neutral individual holds title for the benefit of another when property is held in

trust

46

An advantage of cooperative ownership of a dwelling is that

there are income tax advantages.

47

Ownership in severalty is property

that has a single owner.

48

Ownership of property by two people is considered

concurrent ownership.

49

The term severalty comes from the fact that

a sole owner is severed or cut off from other owners.

50

Depending on the type of trust and its purpose, the trustor, trustee, and beneficiary

can all be either people or legal entities.