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44 Cards in this Set
- Front
- Back
Ownership in severalty |
occurs when property is owned by one individual, corporation, or other entity. |
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co-owners |
When title to a parcel of real estate is held by two or more individuals, those parties are |
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tenancy in common (TIC) |
Each tenant holds an undivided interest in the property. |
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What is the unique difference in a joint tenancy |
The right of survivorship |
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To create a joint tenancy, four elements or unities are needed, which can be remembered as PITT: |
Unity of possession Unity of interest Unity of time Unity of title |
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Unity of possession— |
all joint tenants hold an undivided right to possession. |
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Unity of interest— |
all joint tenants hold an equal ownership interest. |
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Unity of time— |
all joint tenants acquire their interests at the same time. |
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Unity of title— |
all joint tenants acquire their interests by the same document. |
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When is a joint tenancy destroyed |
when any one of the four unities of joint tenancy is terminated. |
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Partition |
is a legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination. |
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Tenancy by the entirety |
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 |
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Community property laws |
consists of real and personal property acquired by either spouse during the marriage. |
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Separate property |
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. |
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Joint tenancy |
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. |
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Trust |
Is a legal agreement in which property is transferred by a trustor. |
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trustor— |
the person who creates the trust. |
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beneficiary— |
the person who benefits from the trust |
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trustee |
the party who holds legal title to the property until it's giving to the beneficiary. |
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fiduciary |
a person who acts in confidence and has a special legal relationship with the beneficiary. |
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What is the only asset of a land trust |
Real estate |
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Why are land trusts created |
the conservation of farmland, forests and other wildlife habitats, coastal land, and scenic vistas. |
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What is a distinguishing characteristic of a land trust |
the public records usually do not name the beneficiary |
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How long does a land trust normally last |
20 years |
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partnership |
is an association of two or more persons who carry on a business for profit as co-owners0 |
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limited partnership |
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. |
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corporation |
is a legal entity—an artificial person—created under the authority of the laws of the state from which it receives its charter. |
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Llc |
offers its members the benefits of the limited liability of a corporation, the tax advantages of a partnership, and a flexible management structure. |
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general partnership |
all the partners participate in the operation and management of the business and share full liability for business losses and obligations. |
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Three types of property ownership |
Condominium Cooperative Timeshare |
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Common elements |
the undivided share in the remainder of the building and land |
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Condominium laws, |
often called horizontal property acts |
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Assessments |
are special payments required of unit owners to address some specific expense, such as a new roof. |
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cooperative |
, a corporation holds title to the land and the building. |
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Model Real Estate Time-Share Act |
deals with time-share management and protections for purchasers of units. |
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What happens when a person dies, withdraws or goes broke in a general partnership |
The entire business must be dissolved. |
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What happens when a person dies, withdraws or goes broke in a limited partnership |
the partnership agreement may provide for the continuation of the organization |
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Living trust |
Is established before death |
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testamentary trust |
The trust established by a descendants will |
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The death of one of the directors of a corporation |
does not affect title to property owned by the corporation |
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Which of the following is TRUE of both joint tenancy and tenancy in common? |
Each tenant must join in a conveyance of title to the property. |
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A fee simple estate may be held in three basic ways: |
in severalty, in trust, or in co-ownership. |
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Time share |
refers to an arrangement in which several joint owners have the right to use a vacation property during an allotted period of time |
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estate in land |
Is an interest in real property that allows possession either now or sometime in the future for a specific or unlimited duration. |