Real Estate Unit 5

Front 1

Ownership in severalty

Back 1

occurs when property is owned by one individual, corporation, or other entity.

Front 2

co-owners

Back 2

When title to a parcel of real estate is held by two or more individuals, those parties are

Front 3

tenancy in common (TIC)

Back 3

Each tenant holds an undivided interest in the property.

Front 4

What is the unique difference in a joint tenancy

Back 4

The right of survivorship

Front 5

To create a joint tenancy, four elements or unities are needed, which can be remembered as PITT:

Back 5

Unity of possession

Unity of interest

Unity of time

Unity of title

Front 6

Unity of possession—

Back 6

all joint tenants hold an undivided right to possession.

Front 7

Unity of interest—

Back 7

all joint tenants hold an equal ownership interest.

Front 8

Unity of time—

Back 8

all joint tenants acquire their interests at the same time.

Front 9

Unity of title—

Back 9

all joint tenants acquire their interests by the same document.

Front 10

When is a joint tenancy destroyed

Back 10

when any one of the four unities of joint tenancy is terminated.

Front 11

Partition

Back 11

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

Front 12

Tenancy by the entirety

Back 12

is a special form of co-ownership used in some states that allows a spouse to inherit the other spouse's ownership interest upon death

Front 13

Community property laws

Back 13

consists of real and personal property acquired by either spouse during the marriage.

Front 14

Separate property

Back 14

generally is real or personal property that was owned solely by either spouse before the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage.

Front 15

Joint tenancy

Back 15

the holding of an estate or property jointly by two or more parties, the share of each passing to the other or others on death.

Can be created by conveying a deed or giving the property by will or living trust.

Front 16

Trust

Back 16

Is a legal agreement in which property is transferred by a trustor.

Front 17

trustor—

Back 17

the person who creates the trust.

Front 18

beneficiary—

Back 18

the person who benefits from the trust

Front 19

trustee

Back 19

the party who holds legal title to the property until it's giving to the beneficiary.

Front 20

fiduciary

Back 20

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

Front 21

What is the only asset of a land trust

Back 21

Real estate

Front 22

Why are land trusts created

Back 22

the conservation of farmland, forests and other wildlife habitats, coastal land, and scenic vistas.

Front 23

What is a distinguishing characteristic of a land trust

Back 23

the public records usually do not name the beneficiary

Front 24

How long does a land trust normally last

Back 24

20 years

Front 25

partnership

Back 25

is an association of two or more persons who carry on a business for profit as co-owners0

Front 26

limited partnership

Back 26

consists of one or more general partners, as well as limited partners. The business is run by the general partner or partners. The limited partners are not legally permitted to participate, with the result that each can be held liable for business losses only to the amount invested.

Front 27

corporation

Back 27

is a legal entity—an artificial person—created under the authority of the laws of the state from which it receives its charter.

Front 28

Llc

Back 28

offers its members the benefits of the limited liability of a corporation, the tax advantages of a partnership, and a flexible management structure.

Front 29

general partnership

Back 29

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

Front 30

Three types of property ownership

Back 30

Condominium

Cooperative

Timeshare

Front 31

Common elements

Back 31

the undivided share in the remainder of the building and land

Front 32

Condominium laws,

Back 32

often called horizontal property acts

Front 33

Assessments

Back 33

are special payments required of unit owners to address some specific expense, such as a new roof.

Front 34

cooperative

Back 34

, a corporation holds title to the land and the building.

Front 35

Model Real Estate Time-Share Act

Back 35

deals with time-share management and protections for purchasers of units.

Front 36

What happens when a person dies, withdraws or goes broke in a general partnership

Back 36

The entire business must be dissolved.

Front 37

What happens when a person dies, withdraws or goes broke in a limited partnership

Back 37

the partnership agreement may provide for the continuation of the organization

Front 38

Living trust

Back 38

Is established before death

Front 39

testamentary trust

Back 39

The trust established by a descendants will

Front 40

The death of one of the directors of a corporation

Back 40

does not affect title to property owned by the corporation

Front 41

Which of the following is TRUE of both joint tenancy and tenancy in common?

Back 41

Each tenant must join in a conveyance of title to the property.

Front 42

A fee simple estate may be held in three basic ways:

Back 42

in severalty,

in trust, or

in co-ownership.

Front 43

Time share

Back 43

refers to an arrangement in which several joint owners have the right to use a vacation property during an allotted period of time

Front 44

estate in land

Back 44

Is an interest in real property that allows possession either now or sometime in the future for a specific or unlimited duration.