Flashcards on Tenants in Common in Real Estate

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Questions and Answers

What is an estate (ownership) in severalty?

Community property

Ownership by a single party (correct)

Joint ownership

Trust ownership

Which of the following best describes co-ownership?

Ownership in a trust

Ownership by two or more persons or organizations (correct)

Ownership by a single person

Ownership by a corporation

What does a living trust do?

It allows the trustor to convey title to a trustee for the benefit of a third party during his or her lifetime.

What type of property does a land trust apply to?

Real property. Signup and view all the answers

What are the three types of co-ownership recognized in Texas?

Tenancy in common, joint tenancy, community property. Signup and view all the answers

What are the defining characteristics of tenancy in common?

Two or more owners, identical rights, interests individually owned, electable ownership shares, no survivorship, no unity of time. Signup and view all the answers

What are the defining characteristics of joint tenancy?

Unity of ownership, equal ownership, transfer of interest, survivorship. Signup and view all the answers

What happens to community property upon the death of a spouse?

Half of the deceased's community property passes to the surviving spouse and the other half passes to the decedent's heirs. Signup and view all the answers

How do closely held corporations avoid considerable corporate taxation?

By not showing a profit. Signup and view all the answers

What is the liability for limited partners?

They are liable only to the extent of their investment. Signup and view all the answers

What are the four unities needed to create a joint tenancy?

Unity of time, unity of title, unity of interest, unity of possession. Signup and view all the answers

What form of ownership is a condominium?

Hybrid ownership Signup and view all the answers

In what two ways can a bundle of rights be held?

By one party or separated and held by different parties. Signup and view all the answers

In a co-op, how is the value of a unit identified?

The number of shares purchased reflects the value of the apartment unit in relation to the property's total value. Signup and view all the answers

What must a person be to hold a real estate license in most states?

Eighteen (18) years of age or older. Signup and view all the answers

What are the numerous laws that affect the real estate industry?

All of the above Signup and view all the answers

Study Notes

Ownership Types

Estate in Severalty: Sole ownership type; property is separate property if owned by a spouse; ownership severed from co-ownership scenarios.
Co-ownership involves two or more individuals or entities owning a property; referred to as co-tenants.
Types of Co-ownership in Texas: Includes tenancy in common, joint tenancy, and community property.

Living Trusts

Living Trust: Allows trustor to convey title to a trustee for a beneficiary's benefit, managing property and income.
Land Trust: Only applies to real property; the trustor conveys fee estate to the trustee while retaining beneficiary rights to control the property.

Tenancy Types

Tenancy in Common: Most common for unmarried owners; features identical rights, individually owned interests, and no survivorship.
Joint Tenancy: Collective ownership as a single entity; rights and interests are equal, with indivisible shared interest and survivorship clause.
Community Property: Property acquired during marriage is jointly owned; separate property includes assets owned before marriage or received as a gift.

Business Structures

Business Organization Types: Sole proprietorship, partnership, joint venture, corporation, limited liability company, syndicate, real estate investment trust.
Limited Partners Liability: Limited to the extent of their investments.

Real Estate Regulations

Texas Uniform Condominium Act: Owners hold fee simple title to units and a share in common elements, with limitations on partitioning.
Laws Impacting Real Estate: Includes contract, property, agency, license, federal regulations, tax, zoning, and environmental laws.

Agent Responsibilities

Agents must adhere to the duties specified, acting in the principal's best interest without conflicts, and cannot engage in self-dealing.

Licensing Requirements

Real Estate Agent Licensing: Must be a U.S. citizen or lawful resident, 18+, complete a course, pass an exam, submit fees, undergo fingerprinting, gain board approval, and obtain broker sponsorship.

Additional Ownership Considerations

Condominiums: Hybrid ownership combining fee simple interest in unit airspace with undivided share in common elements.
Bundle of Rights: Rights can be jointly held or divided among different parties.
Cooperative Units Value: Determined by the number of shares purchased, reflecting unit value in relation to total property value.

Community Property Distribution

Upon a spouse's death, their half of community property passes to the surviving spouse and the other half to heirs.

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Description

This quiz covers key terms and concepts from Chapter 5 of Real Estate studies, including ownership types like severalty and co-ownership. Understanding these definitions is essential for navigating property law and ownership structures. Test your knowledge with these flashcards!