Real Estate Law Unit 4: Sole Ownership

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Questions and Answers

What is it called when a single party owns the fee or life estate?

tenancy in severalty

Co-owners are also called?

co-tenants

What are the three main forms of co-ownership?

Tenants in Common

Joint Tenancy

Tenancy by the Entireties

All of the above (correct)

What are the defining characteristics of tenancy in common?

Two or more owners, identical rights, interests individually owned. Signup and view all the answers

What do tenants in common determine among themselves?

Electable ownership shares Signup and view all the answers

What happens to a deceased co-tenant's estate?

It passes by probate to the decedent's heirs. Signup and view all the answers

It is necessary for tenants in common to acquire their interests at the same time.

False Signup and view all the answers

What can a co-owner request if no co-owners will buy their interest?

Partition suit Signup and view all the answers

In a ________________, two or more persons collectively own a property as if they were a single person.

joint tenancy Signup and view all the answers

How may joint tenants convey their interests to outside parties?

As tenant-in-common interests Signup and view all the answers

What are the defining characteristics of joint tenancy?

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

In most states, joint tenants enjoy _________________.

rights of survivorship Signup and view all the answers

When only one joint tenant survives, the survivor's interest becomes an ___________________, and the joint tenancy is terminated.

estate in severalty Signup and view all the answers

What presents an advantage to tenancy in common compared to joint tenancy?

The tenancy Signup and view all the answers

What are the four unities of joint tenancy?

All of the above Signup and view all the answers

What happens if the conveyance does not name the parties as joint tenants with rights of survivorship?

The estate will be considered a tenancy in common. Signup and view all the answers

Joint tenancy may not be created by operation of law.

False Signup and view all the answers

When is a joint tenancy terminated?

When any of the four unities is broken. Signup and view all the answers

A _______________ suit is a legal avenue for an owner who wants to dispose of his or her interest against the wishes of other co-owners.

partition Signup and view all the answers

Who decides how title to real estate will be held?

The grantee or buyer. Signup and view all the answers

Tenancy by the entireties is a form of ownership reserved exclusively for?

spouses Signup and view all the answers

What is a feature of tenancy by the entireties?

Survivorship Signup and view all the answers

Can a married couple take title any other way than tenancy by the entireties?

True Signup and view all the answers

Tenancy by entireties terminates when there is:

Death of either spouse, divorce, mutual agreement, foreclosure. Signup and view all the answers

What does community property law distinguish?

Separate and community property. Signup and view all the answers

What does separate property consist of?

Property owned by either spouse at the time of marriage, or acquired through inheritance or gift. Signup and view all the answers

Community property consists of?

All other property earned or acquired during the marriage. Signup and view all the answers

A spouse may gain an equitable interest in separate property if?

Community property funds were used to discharge any debt on the separate property. Signup and view all the answers

What is the form of ownership held by business partners as per the UPA?

Tenancy in partnership. Signup and view all the answers

How can partners modify rules under the UPA?

By mutual agreement. Signup and view all the answers

Upon a partner's death, their right in specific partnership property vests in the?

Surviving partner or legal representative. Signup and view all the answers

What are advantages of estate in trust ownership?

Control over asset distribution, reducing taxes, avoiding probate, asset protection. Signup and view all the answers

In an estate in trust, who is referred to as the fee owner?

The grantor or trustor. Signup and view all the answers

Who manages the estate in a trust?

The trustees. Signup and view all the answers

What is the benefactor of the estate called in an estate in trust?

Beneficiary. Signup and view all the answers

An estate in trust must be created in one of three ways:

By a deed, will, or trust agreement. Signup and view all the answers

What types of trusts may involve personal property?

Both A and B Signup and view all the answers

What is a distinct characteristic of a living trust?

It allows conveying title to a trustee for a third party's benefit during the trustor's lifetime. Signup and view all the answers

When does a testamentary trust take effect?

When the trustor dies. Signup and view all the answers

What establishes the testamentary trust?

Provisions of the decedent's will. Signup and view all the answers

Are testamentary trusts revocable or changeable?

False Signup and view all the answers

When do testamentary trusts have a definite beginning and ending date?

When the youngest beneficiary reaches the specified age. Signup and view all the answers

What does the land trust apply to?

Real property. Signup and view all the answers

What is a defining characteristic of a land trust?

The ability to name oneself as the beneficiary. Signup and view all the answers

In a land trust, who controls the property?

The beneficiary. Signup and view all the answers

Are there records of the beneficiary in a land trust?

No. Signup and view all the answers

What is the term of a land trust?

Limited and must be renewed. Signup and view all the answers

The beneficiary's interest in a land trust is considered:

Personal property. Signup and view all the answers

What are the primary differences between tenancy by the entireties and joint tenancy?

Tenancy by the entireties requires co-owners to be married; it can only have two owners. Signup and view all the answers

Describe the main features of the concept of community property.

Applies to legally married spouses; distinguishes between community property and separately owned property. Signup and view all the answers

What are some apparent advantages of a land trust as a way of owning property?

Anonymity; ease of transfer; ease of use as collateral. Signup and view all the answers

What is the unique aspect of a condominium?

Fee simple interest in the airspace contained within the unit. Signup and view all the answers

Common elements in a condominium include?

All of the above Signup and view all the answers

Unit owners in a condominium hold exclusive interest in their apartments, and co-own common elements as:

Tenants in common. Signup and view all the answers

What documents are required to create condominium properties?

Condominium declaration and a master deed. Signup and view all the answers

What may the condominium declaration include?

Legal description and/or name of the property. Signup and view all the answers

What do condominium declarations provide for?

Creation of an owners' association. Signup and view all the answers

What are condominium unit owners' assessments based on?

The unit's pro rata share of the property value. Signup and view all the answers

In a cooperative, one owns shares in a?

Non-profit corporation. Signup and view all the answers

What is a primary distinction between co-ops and condominiums?

There is no ownership interest in individual units. Signup and view all the answers

In a co-op, the unit owner's interest is considered?

Personal property. Signup and view all the answers

Why is it called a proprietary lease in a co-op?

Because the tenant is an owner (proprietor) of the corporation. Signup and view all the answers

What can happen if individual shareholders do not pay monthly assessments in a co-op?

It can destroy the investment of all other co-op owners. Signup and view all the answers

How is the co-op interest transferred?

By assigning both stock certificates and lease. Signup and view all the answers

Deeded time-share ownership is considered?

Real property. Signup and view all the answers

What is considered personal property in time-shares?

Vacation interval options. Signup and view all the answers

When is a time-share lease valid?

During the leaseholder's lifetime and until the end of the lease term. Signup and view all the answers

In a freehold time-share, tenants are considered:

Tenants in common. Signup and view all the answers

What is the purpose of a partition suit?

To force a division of property without all owners' consent. Signup and view all the answers

Who controls the property held in a land trust?

The beneficiary. Signup and view all the answers

Who holds legal title when an estate is held in a trust?

Trustee. Signup and view all the answers

What happens to a tenant's interest in the estate when a joint tenant dies?

It passes to the surviving joint tenants. Signup and view all the answers

How are condominium owners' assessments for maintenance determined?

Based on the unit's pro rata share of the property value as defined in the declaration. Signup and view all the answers

What party holds title to real estate placed in a living trust?

The trustee. Signup and view all the answers

What can a condominium owner do without hindrance from other unit owners?

Sell or mortgage the condominium unit. Signup and view all the answers

What type of lease does a cooperative stockholder have?

Proprietary lease. Signup and view all the answers

Who creates the cooperative association that buys cooperative property?

The developer. Signup and view all the answers

Study Notes

Sole Ownership and Co-Ownership

Tenancy in severalty occurs when a single party owns the fee or life estate.
Co-tenants refer to multiple individuals or legal entities owning an estate in land.
Three forms of co-ownership include Tenants in Common, Joint Tenancy, and Tenancy By the Entireties.

Tenancy in Common

Allows any number of owners, sharing indivisible interest.
Co-tenants possess identical rights but cannot claim exclusive ownership of any property portion.
Interests can be sold or transferred independently without consent from other co-tenants.
Shares of the estate can be elected among co-tenants.
When a co-tenant dies, their estate passes through probate to heirs instead of to other co-tenants.

Joint Tenancy

Joint tenancy features indivisible ownership among co-owners and requires four unities: time, title, interest, and possession.
Joint tenants own equal shares; if one dies, rights pass to surviving joint tenants (rights of survivorship).
A joint tenancy can terminate if any unity is broken, including any sale or foreclosure.
Joint tenants may convey interests only as tenancies in common.

Tenancy by the Entireties

Exclusively for married couples, allowing them to hold property together.
Title automatically passes to the surviving spouse upon death.
Fractional interests cannot be individually transferred, and property cannot be foreclosed for individual debts.

Community Property

Divides property into separate and community property categories.
Separate property includes assets owned prior to marriage, inheritances, and gifts, while community property encompasses all property acquired during marriage.
Spouses retain ownership of community property during marriage, and half is preserved for the surviving spouse.

Land Trust

Applies only to real property, allowing individuals to name themselves as beneficiaries.
Beneficiaries control property, including occupancy and any generated income.
The trust must be regularly renewed or the property sold.

Condominium Ownership

Includes exclusive interest in individual units and co-ownership of common elements as tenants in common.
Created through condominium declaration and master deed, outlining property and ownership details.
Owners pay monthly assessments for property maintenance based on their unit's value share.

Cooperative (Co-op) Ownership

Ownership is represented by shares in a non-profit corporation, with no individual unit ownership.
Proprietary leases allow co-op unit owners to live in their respective units but are dependent on corporate governance.
Individual shareholders' failure to pay can jeopardize the entire co-op's financial stability.

Deeded time-share ownership is considered real property, while vacation interval options are classified as personal property.
Freehold time-share ownership makes tenants in common, holding undivided interests.

Partition Suit

A legal action that facilitates the division of property without unanimous consent from all owners.
Available for co-owners who wish to separate their interests in the property.

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Description

Explore the concepts of tenancy in severalty and co-ownership through this set of flashcards. Learn key terms like co-tenants and the different forms of co-ownership. Perfect for students of real estate law and property ownership principles.