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?

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

    What do tenants in common determine among themselves?

    <p>Electable ownership shares</p> Signup and view all the answers

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

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

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

    <p>False</p> Signup and view all the answers

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

    <p>Partition suit</p> Signup and view all the answers

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

    <p>joint tenancy</p> Signup and view all the answers

    How may joint tenants convey their interests to outside parties?

    <p>As tenant-in-common interests</p> Signup and view all the answers

    What are the defining characteristics of joint tenancy?

    <p>Unity of ownership, equal ownership.</p> Signup and view all the answers

    In most states, joint tenants enjoy _________________.

    <p>rights of survivorship</p> Signup and view all the answers

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

    <p>estate in severalty</p> Signup and view all the answers

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

    <p>The tenancy</p> Signup and view all the answers

    What are the four unities of joint tenancy?

    <p>All of the above</p> Signup and view all the answers

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

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

    Joint tenancy may not be created by operation of law.

    <p>False</p> Signup and view all the answers

    When is a joint tenancy terminated?

    <p>When any of the four unities is broken.</p> 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.

    <p>partition</p> Signup and view all the answers

    Who decides how title to real estate will be held?

    <p>The grantee or buyer.</p> Signup and view all the answers

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

    <p>spouses</p> Signup and view all the answers

    What is a feature of tenancy by the entireties?

    <p>Survivorship</p> Signup and view all the answers

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

    <p>True</p> Signup and view all the answers

    Tenancy by entireties terminates when there is:

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

    What does community property law distinguish?

    <p>Separate and community property.</p> Signup and view all the answers

    What does separate property consist of?

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

    Community property consists of?

    <p>All other property earned or acquired during the marriage.</p> Signup and view all the answers

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

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

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

    <p>Tenancy in partnership.</p> Signup and view all the answers

    How can partners modify rules under the UPA?

    <p>By mutual agreement.</p> Signup and view all the answers

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

    <p>Surviving partner or legal representative.</p> Signup and view all the answers

    What are advantages of estate in trust ownership?

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

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

    <p>The grantor or trustor.</p> Signup and view all the answers

    Who manages the estate in a trust?

    <p>The trustees.</p> Signup and view all the answers

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

    <p>Beneficiary.</p> Signup and view all the answers

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

    <p>By a deed, will, or trust agreement.</p> Signup and view all the answers

    What types of trusts may involve personal property?

    <p>Both A and B</p> Signup and view all the answers

    What is a distinct characteristic of a living trust?

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

    When does a testamentary trust take effect?

    <p>When the trustor dies.</p> Signup and view all the answers

    What establishes the testamentary trust?

    <p>Provisions of the decedent's will.</p> Signup and view all the answers

    Are testamentary trusts revocable or changeable?

    <p>False</p> Signup and view all the answers

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

    <p>When the youngest beneficiary reaches the specified age.</p> Signup and view all the answers

    What does the land trust apply to?

    <p>Real property.</p> Signup and view all the answers

    What is a defining characteristic of a land trust?

    <p>The ability to name oneself as the beneficiary.</p> Signup and view all the answers

    In a land trust, who controls the property?

    <p>The beneficiary.</p> Signup and view all the answers

    Are there records of the beneficiary in a land trust?

    <p>No.</p> Signup and view all the answers

    What is the term of a land trust?

    <p>Limited and must be renewed.</p> Signup and view all the answers

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

    <p>Personal property.</p> Signup and view all the answers

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

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

    Describe the main features of the concept of community property.

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

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

    <p>Anonymity; ease of transfer; ease of use as collateral.</p> Signup and view all the answers

    What is the unique aspect of a condominium?

    <p>Fee simple interest in the airspace contained within the unit.</p> Signup and view all the answers

    Common elements in a condominium include?

    <p>All of the above</p> Signup and view all the answers

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

    <p>Tenants in common.</p> Signup and view all the answers

    What documents are required to create condominium properties?

    <p>Condominium declaration and a master deed.</p> Signup and view all the answers

    What may the condominium declaration include?

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

    What do condominium declarations provide for?

    <p>Creation of an owners' association.</p> Signup and view all the answers

    What are condominium unit owners' assessments based on?

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

    In a cooperative, one owns shares in a?

    <p>Non-profit corporation.</p> Signup and view all the answers

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

    <p>There is no ownership interest in individual units.</p> Signup and view all the answers

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

    <p>Personal property.</p> Signup and view all the answers

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

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

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

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

    How is the co-op interest transferred?

    <p>By assigning both stock certificates and lease.</p> Signup and view all the answers

    Deeded time-share ownership is considered?

    <p>Real property.</p> Signup and view all the answers

    What is considered personal property in time-shares?

    <p>Vacation interval options.</p> Signup and view all the answers

    When is a time-share lease valid?

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

    In a freehold time-share, tenants are considered:

    <p>Tenants in common.</p> Signup and view all the answers

    What is the purpose of a partition suit?

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

    Who controls the property held in a land trust?

    <p>The beneficiary.</p> Signup and view all the answers

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

    <p>Trustee.</p> Signup and view all the answers

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

    <p>It passes to the surviving joint tenants.</p> Signup and view all the answers

    How are condominium owners' assessments for maintenance determined?

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

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

    <p>The trustee.</p> Signup and view all the answers

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

    <p>Sell or mortgage the condominium unit.</p> Signup and view all the answers

    What type of lease does a cooperative stockholder have?

    <p>Proprietary lease.</p> Signup and view all the answers

    Who creates the cooperative association that buys cooperative property?

    <p>The developer.</p> 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.

    Time-Share Ownership

    • 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.

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