Podcast
Questions and Answers
What is an estate (ownership) in severalty?
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?
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?
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?
What type of property does a land trust apply to?
What are the three types of co-ownership recognized in Texas?
What are the three types of co-ownership recognized in Texas?
What are the defining characteristics of tenancy in common?
What are the defining characteristics of tenancy in common?
What are the defining characteristics of joint tenancy?
What are the defining characteristics of joint tenancy?
What happens to community property upon the death of a spouse?
What happens to community property upon the death of a spouse?
How do closely held corporations avoid considerable corporate taxation?
How do closely held corporations avoid considerable corporate taxation?
What is the liability for limited partners?
What is the liability for limited partners?
What are the four unities needed to create a joint tenancy?
What are the four unities needed to create a joint tenancy?
What form of ownership is a condominium?
What form of ownership is a condominium?
In what two ways can a bundle of rights be held?
In what two ways can a bundle of rights be held?
In a co-op, how is the value of a unit identified?
In a co-op, how is the value of a unit identified?
What must a person be to hold a real estate license in most states?
What must a person be to hold a real estate license in most states?
What are the numerous laws that affect the real estate industry?
What are the numerous laws that affect the real estate industry?
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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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