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75 Cards in this Set
- Front
- Back
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Most states require in order to create a joint tenancy, the unities of what 4 things must be present? |
PITT: Possession, Interest, Time and Title |
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A _________ tenancy may only be created through a deed or a will and the document must state this intention very clearly and specifically. It is never presumed or implied. |
Joint |
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Name the unity described as follows: Each joint tenant has an undivided interest in the property as a whole, not as a collection of individual parts. Each is entitled to use and enjoyment of the entire property, not to a particular portion of it. This unity is the only unity shared by both tenants in common and joint tenants |
Possession |
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What type of tenancy might end if one co-owner's interest is sold to satisfy a judgment or mortgage lien? |
joint tenancy * If the debtor dies before the creditor obtains satisfaction the other joint tenants acquire the share free and clear and the creditor is out of luck. |
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When agreement on a method for dissolving the tenancy cannot be reached, one or more of the co tenants, without the consent of the others, can file what type of suit in court? |
partition suit |
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What 2 types of co-ownership are not recognized in GA? |
Tenancy by the entirety Community property |
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In what type of tenancy do a husband and wife become one person and cannot own anything individually? (Each spouse effectively owns the entire estate and neither can file a partition action.) |
Tenancy by the entirety |
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This form of ownership is identical to joint tenancy in that it requires possession, interest, time and title. Name this form of ownership. |
Tenancy by the entirety |
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Tenancy by the entirety is exclusively for what type of people? |
husbands and wives |
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If in tenancy by the entirety a husband and wife divorce but continue to own property, they become what type of tenants? |
tenants in common |
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Tenancy by the entirety differs from joint tenancy in how many distinct ways? |
3 |
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In what type of tenancy can the spouse NOT sell, mortgage or lease his/her interest without the consent of the other? Neither can sue for partition while the marriage lasts. |
Tenancy by the entirety |
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In this type of tenancy, a creditor cannot force sale of half the property to satisfy either spouse's personal or business debts. The right to force a sale only exists if both the husband and wife were liable for the debt. |
Tenancy by the entirety |
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_____________ ___________ is another form of co-ownership that applies only to husband and wife as long as they are legally married. Recognized in only 9 states, it originates from Spanish law that treats married couples as equal partners, rather than the English law tradition of considering them 1 person. This concept provides each spouse with a one-half interest in any property acquired during the marriage, regardless of which spouse holds legal title. |
community property |
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In this type of co-ownership, property acquired by either spouse before the marriage or property acquired specifically by one spouse during the marriage by gift or inheritance, is not included. This is considered to be separate property and can be sold, mortgaged or leased without the consent of the spouse. |
community property |
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A __________ is an association of 2 or more people who join forces for business purposes. |
partnership |
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In a ____________ partnership, each partner is jointly and severally (individually) liable for the partnership obligations but creditors must first collect from the partnership before pursuing the individual partners. ("the worker bees") |
general |
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No partner can obligate the partnership to sell, mortgage, lease or otherwise convey any legal interest in partnership property without the consent of the other partners. One exception to this rule is when _________________________ is the ordinary business of the partnership. Any partner can then sign a conveyance document. |
buying and selling real estate |
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In a ___________ partnership one or more general partners carry on the management of the business and have the same obligations as in a general partnership. They are essentially just investors and have no management involvement. Their liability is limited to their investment. |
limited |
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This type of partner is held liable for losses without limitation. |
general |
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A general or limited partnership formed to complete a particular business project, with no intent to establish a permanent relationship, is called a __________ ____________. |
joint venture |
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This type of business entity, popular in GA, is formed by filing articles of organization with the Secretary of State. |
LLC Limited Liability Company |
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Investors are called members, not stockholders, in this type of business entity. Their profits are not taxed at the corporate level. |
LLC Limited Liability Company |
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This type of business entity does not have eternal life. When firm no longer exists, it is over. |
LLC Limited Liability Company |
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In this type of business entity, the members' ownership interests are classified as personal and are freely transferable. |
LLC Limited Liability Company |
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This type of business entity can be dissolved in various ways, including, by a predetermined time set in the operating agreement, by the fulfillment of events specified in the operating agreement or by an entry of a decree of judicial dissolution upon application by a member. |
LLC Limited Liability Company |
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a _______ is created when a property owner (the trustor) places the title to the property in the hands of someone else (the trustee) for the benefit of a third party (the beneficiary). It is created through a written instrument that may be a formal ______agreement , a will, or a deed. |
trust |
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A last will and testament is what type of trust? |
testamentary |
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The one who leaves the estate in the hands of a trustee is called the ______. They might do this because the heir is a minor or a person who is unaccustomed to business decisions. |
testator |
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A _________ trust is created by agreement during the trustor's lifetime, possibly as a way of avoiding probate costs or minimizing tax liabilities. |
living |
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This type of trust is usually created by a trustor who will also be the beneficiary and who will retain control over management of the property. Because the legal and equitable title is in the trustee's name, they are popular among multiple owners who seek protection against the effects of a divorce, judgment, bankruptcy or to guard secrecy when assembling parcels for development. |
land trust |
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A REIT must have a minimum of _____ investors (beneficiaries) to qualify for certain income tax benefits. The REIT pays no income tax on profits as long as 90% of the income generated is passed through to the beneficiaries each year. Managed by a board of trustees who invest in real property or mortgage loans. |
100 |
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A ______ is not a legal form of ownership but a descriptive term for a group of individuals or firms who get together for the purpose of investing or dealing in real estate. (Cannot take title. Not a legal entity) |
syndicate |
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_____________ ownership allows multiple owners to hold fee simple title to their individual units. All other parts of the land and buildings are shared and used in common with the other owners. These areas are called common elements. |
Condominium |
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In a condominium, the owners are what type of tenants in the common areas? They have equal rights of possession but do not have the right to partition these areas. |
tenants in common |
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State laws, called ________ ________ ________, provide for the creation and protection of condo ownership. |
horizontal property acts |
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The _____ _______ is the principal conveyance doc used to create the condominium. It includes the complete legal description and thoroughly describes the entire condominium entity. |
master deed |
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The _______ includes a complete description of each unit, the percentage of interest in the common elements that attaches to each unit, a description of common areas and limited common areas, and a statement of permitted uses. |
declaration |
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A _______ is a detailed site plan that includes plans and specifications for buildings to be constructed. |
plat |
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________ establish the framework for the formation of a homeowners association that will have the responsibility for running the community. |
By-laws |
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The developer of a condo must turn over management to an owner's association when _____% of the units are sold or after ______ years from the date the declaration was recorded. |
80% 3 |
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The ______ _________ act became law in October, 1975. It requires extensive disclosures and allows the buyer of a new condo unit a 7 day right of recission. (to back out of the deal) The recission time period begins once the buyer has received the mandatory disclosure package. This right doe NOT apply to resale units. |
Georgia Condominium |
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Especially in resort areas, we find another application of condominium ownership called ____________ or interval ownership. An apartment is sold to multiple owners, each of whom owns it for just one period of the year. |
time-sharing |
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As in a condo, the same is true for this type of ownership that the purchaser has the right to back out 7 days from receipt of the public offering statement. |
time share |
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Still another form of concurrent ownership, a ________, occurs when an existing or to be constructed building is owned in severalty by a non-profit corporation. Individuals who wish to occupy units in the building buy shares of stock in the corporation and with the stock they acquire a proprietary lease on the unit of their choice. |
cooperative |
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A ________ lease assures an individual of the right to use that apartment for as long as they own the stock or for the life of the corporation. |
proprietary |
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The shares of stock and the proprietary lease held by a cooperative owner are personal property. A transfer of ownership is not done by deed but by an __________ of these interests. |
assignment |
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The occupant of a co-op has a __________ property interest, not a _________ property interest. |
personal real |
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The the board of directors cannot violate Fair Housing rules, they can - as is NOT the case in subdivisions or condominium developments - participate in choosing the neighbors-to-be. (snob appeal) What type of ownership is this called? |
Cooperative ownership (co-op) |
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The right of survivorship is associated with: A) tenancy in common and condominium ownership B) tenancy by the entirities and joint tenancy C) tenancy in common and joint tenancy D) tenancy by the entirities and community property |
B) tenancy by the entirities and joint tenancy |
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A joint tenancy would be changed to a tenancy in common by: A) one joint tenant giving his/her interest to the other B) the death of one of three joint tenants C) one of two joint tenants selling his/her interest to a third person D) the death of one of two joint tenants |
C) one of two joint tenants selling his/her interest to a third person |
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Which of the following may own property in severalty? A) Husband and wife together B) Corporation C) A partnership D) A father and a son together |
B) Corporation |
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Title held by a husband and a wife may include all of the following forms of ownership EXCEPT: A) severalty B) tenancy by the entirities C) joint tenancy D) tenancy in common |
A) severalty |
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The ownership unities of time, title, interest, and possession are required in order to create: A) an undivided interest in the property as a whole B) separate ownership C) concurrent ownership D) the right of survivorship |
D) the right of survivorship |
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A broker is asked by a husband and wife how they should take title to the home they are buying. The broker should: A) recommend they consult an attorney B) recommend they ask the lender C) explain the difference between joint tenancy and tenancy in common so they can decide for themselves D) ask them what they want in terms of liability and survivorship and then suggest the best method according to the laws of their particular state. |
A) recommend they consult an attorney |
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Smith, Jones, and Black are joint tenants. Smith sells his interest to White. With regard to the conveyance: A) Jones, Black, and White are now joint tenants. B) Jones, Black and White are no tenants in common. C) White owns 1/3 interest as a tenant in common with Jones and Black who still own 1/3 each as joint tenants. D) Smith cannot legally convey an interest without a partition suit terminating the co-ownership obligations. |
C) White owns 1/3 interest as a tenant in common with Jones and Black who still own 1/3 each as joint tenants. |
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Harper, Murphy, and Jackson own an investment property as tenants in common. Because of a recent business disagreement, Jackson wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Jackson may seek an equitable distribution of the property by filing a : A) lis pendens B) partnership agreement C) partition suit D) declaration of severalty |
C) partition suit
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The land on which high rise condominiums stands is owned by: A) a nonprofit corporation C) a syndicate D) a limited partnership |
B) the individual unit owners as tenants in common |
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A deed in favor of James and Rosen with stated proportionate interests of 1/3 and 2/3 respectively, without the right of survivorship, creates: A) a joint tenancy B) tenancy in common C) severalty ownership of the property D) a general partnership |
B) tenancy in common |
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Laura occupies an apartment in a multiple unit building. Each month she pays the association an assessment for her share of the mortgage payment, property taxes, and a fee for building maintenance. The form of ownership that Laura shares with the other individual unit owners is called: A) a condominium B) time-sharing C) limited partnership D) a cooperative |
D) a cooperative |
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which of the following is not compatible with joint tenancy? A) Probate B) Survivorship C) Equality of rights D) Rights of possession |
A) Probate |
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Certain unities are necessary for the creation of a joint tenancy. They are: A) possession and interest B) place and time C) time and survivorship D) survivorship and possession |
A) possession and interest |
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A form of condominium ownership especially desirable for properties in resort areas where each unit is sold to multiple buyers is called: A) proprietary leasing B) condominium cooperative C) time sharing D) condominium syndicates |
C) time sharing |
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Which of the following tenancies refers to ownership? A) in common B) at will C) at sufferance D) for years |
A) in common |
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What is the one unity in a tenancy in common ownership?: A) Interest B) Possession C) Time D) Title |
B) Possession |
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Prior to John's marriage to Mary, he owned 40 acres of land. While they were married, John paid 85,000 for a new home and Mary inherited an apartment building valued at $220,000. If they live in a state that recognizes community property ownership, which of the following represents their community property?: A) Forty acres of land B) Home C) Apartment building D) None of the above |
B) Home |
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A married woman and an unmarried man may not own real estate as: A) tenants in common B) joint tenants C) tenants by the entirities D) general partners |
C) tenants by the entirities |
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Phil, Tom, and Bill form a partnership to buy investment property. Their first purchase is a duplex. Phil and Tom invest $15,000 each. Bill agrees to accept all management responsibilities and liability for the partnership. What kind of partnership did they form?: A) general B) limited C) special D) trust |
B) limited |
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The owner of a cooperative unit: A) owns stock in a nonprofit corporation B) holds fee simple title that may be sold, mortgaged or leased C) owns the unit in fee simple with an undivided interest in the common elements D) holds title in partnership with the other unit owners |
A) owns stock in a nonprofit corporation |
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A creditor may seek satisfaction of a debt from the personal assets of each co-owner of: A) a general partnership B) a limited partnership C) a cooperative D) all of the above |
A) a general partnership |
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Kristin has purchased a condominium apartment in Happy Gardens. Which of the following statements about Kristin's ownership rights is true?: A) She is entitled to the exclusive use of the lawn in front of her unit B) She has no liability if another owner in her building is foreclosed. C) Her monthly mortgage payment includes principal, interest, taxes and hazard insurance D) She can deduct the cost of swimming pool upkeep from her monthly maintenance fee if she does not swim. |
B) She has no liability if another owner in her building is foreclosed. |
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A cooperative owner is assured of the exclusive use of an individual unit for the life of the corporation through the use of a: A) trust agreement B) cooperative declaration C) proprietary lease D) partnership agreement |
C) proprietary lease |
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A form of ownership that involves one party holding title for the benefit of another who retains full control over the property is a: A) real estate investment trust B) land trust C) syndicate D) limited partnership |
B) land trust |
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The Director's of a condominium owners' association are elected by: A) the officers B) the owners C) the occupants D) the management company |
B) the owners |
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In this type of ownership, there is just one large property tax bill for the entire project and usually one large mortgage payment. Each occupants pays a proportionate share of these costs plus any other management expenses. Because of this, default by one or more of the stockholders can increase the burden on the others. * |
Cooperative |
