National Ownership: Unit 4

When real property is held in a land trust, who controls the property? A.) The trustor B.) The trustee C.) The beneficiary D.) The property manager appointed by the trustee

The beneficiary

When an estate is held in a trust, who holds legal title? A.) The beneficiary B.) The trustor C.) The trustee D.) The grantor

The trustee

Time-share "ownership" is A.) illegal in most states B.) fee or leasehold ownership C.) a form of tenancy by the entireties D.) not an estate

fee or leasehold ownership

In contrast to a tenancy in common, in a joint tenancy A.) there is a single title to the property B.) there are as many titles to the property as there are co-owners C.) title is held by a corporate entity D.) co-owners who are married hold separate titles

there is a single title to the property

Which type of property ownership issues stock? A.) Shared housing B.) Condominium C.) Time-share D.) Cooperative

Cooperative

If Mary wants to sell her interest as a tenant in common but cannot find a buyer, what can she do to convert her interest to cash? A.) Sue to convert her share to a tenancy in severalty B.) Sell the property and pay the other owners their share C.) Initiate a partition suit D.) Nothing

Initiate a partition suit

When a tenant in common dies, what happens to the tenant's interest in the estate? A.) It is divided equally among the surviving tenants in common B.) The surviving tenants must buy the interest from the deceased tenant's heirs or sell their interests to the heirs C.) It becomes a joint tenancy D.) It passes by probate to the deceased tenant's heirs

It passes by probate to the deceased tenant's heirs

When a joint tenant dies, what happens to the tenant's interest in the estate? A.) It passes to the decedent's heirs, who become joint tenants B.) It passes as a tenancy in common to the decedent's heirs C.) The joint tenancy terminates and becomes a tenancy in common with the decedent's heirs and the surviving tenants as co-owners D.) It passes to the surviving joint tenants

It passes to the surviving joint tenants

How does a condominium association cover regular maintenance costs? A.) Special levy B.) Annual tax C.) Monthly assessment D.) Mortgage lien

Monthly assessment

When does a testamentary trust take effect? A.) At any specified time within the lifetime of the grantor B.) When the grantor's will is witnessed and dated C.) On the death of the grantor D.) When the beneficiary reaches legal age

On the death of the grantor

How many owners can there be in a tenancy in severalty? A.) One B.) Two, if married C.) Several D.) Any number

One

Which best describes ownership in severalty? A.) Ownership of several properties by one person B.) Ownership of property by two or more persons C.) Ownership of a property by one person D.) Ownership of several properties by two or more persons

Ownership of a property by one person

Larry, Moe and Curly own an investment property as tenants in common. Because of a recent business disagreement, Curly wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Curly may seek an equitable distribution of the property by filing what? A.) Lis pendens B.) Partnership agreement C.) Partition suit D.) Declaration of severalty

Partition suit

What type of lease does a cooperative stockholder have? A.) Short term lease B.) Net lease C.) Proprietary lease D.) Month to month lease

Proprietary lease

What are the two types of property addressed in community property laws? A.) Owned property and rented property B.) His property and her property C.) Real property and common property D.) Separate property and community property

Separate property and community property

Which of the following is NOT a feature of a living trust? A.) Can be revoked B.) Any competent adult can be trustee C.) Provides benefits while the trustor is alive D.) Takes effect when the trustor dies

Takes effect when the trustor dies

When real property is held in a land trust, who controls the trustee? A.) The trustee B.) The beneficiary C.) The mortgage company or bank D.) The trustor

The beneficiary

In a cooperative, who pays the mortgage? A.) The cooperative corporation B.) The board of directors C.) The shareholders D.) The management

The cooperative corporation

Who creates the cooperative association that buys a cooperative property? A.) The local cooperative board of regulation B.) The lending institution financing the development C.) The prospective tenants D.) The developer

The developer

In a condominium, who is responsible for maintaining the internal systems of an individual unit? A.) The condominium association B.) The developer C.) The individual unit owner D.) The management company

The individual unit owner

Which of the following is TRUE of a joint tenancy? A.) The tenants can determine the size of the share owned by each tenant B.) The size of the tenant's shares is determined by the amount of equity each has invested in the property C.) The tenants have an equal and indivisible ownership interest D.) There can be no more than two co-owners, and each has a fifty percent interest

The tenants have an equal and indivisible ownership interest

Which of the following is TRUE of a tenancy in common? A.) The co-owners must be married B.) The tenants share an indivisible interest C.) The tenants must acquire their interests at the same time D.) The tenants own equal shares of the estate

The tenants share an indivisible interest

A partition suit is used for which of the following? A.) Determination of party fences B.) To allow the construction of party walls C.) To force a division of property without all the owner's consent D.) To change a tenancy by the entireties to some other form of ownership

To force a division of property without all the owner's consent

A condominium owner actually owns A.) shares in a corporation and a proprietary lease in a physical unit B.) a tenancy in common interest in a unit and all common elements C.) a joint tenancy interest in a building and a tenancy in severalty in a unit D.) a fee simple interest in an airspace and tenancy in common interest in a share of common elements

a fee simple interest in an airspace and tenancy in common interest in a share of common elements

The two documents that create a condominium are the A.) declaration and by-laws B.) declaration and master deed C.) incorporation statement and management agreement D.) master deed and individual unit deeds

declaration and master deed

A kind of trust that can only be used with real property is the A.) estate in trust B.) testamentary trust C.) land trust D.) living trust

land trust

A condominium owner can A.) sell or mortgage the condominium unit without hindrance from individual owners of neighboring units B.) sell the interest in the physical unit separately from the interest in the common elements C.) exclude non-owners from the unit owner's pro rata portion of the common elements D.) exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit

sell or mortgage the condominium unit without hindrance from individual owners of neighboring units

A tenant in common can A.) sell, encumber or transfer his or her interest to an outside party without the consent of the other tenants in common B.) use his or her interest in the estate to encumber the entire estate C.) sell, encumber or transfer his or her interest only to the other tenants in common D.) sell, encumber or transfer his or her interest only with the consent of all the other tenants in common

sell, encumber or transfer his or her interest to an outside party without the consent of the other tenants in common

The owner of a unit within a cooperative actually owns A.) shares in a corporation or association and a proprietary lease in a physical unit B.) a fee simple interest in a physical unit plus a tenancy in common in common elements C.) a tenancy in common in a physical unit and the common areas D.) a ground lease in the physical unit's pro rata share of land and a proprietary lease in the unit

shares in a corporation or association and a proprietary lease in a physical unit

The most common form of co-ownership when the owners are not married is A.) tenancy in common B.) joint tenancy C.) tenancy by the entireties D.) tenancy in partnership

tenancy in common

Ownership of real estate by a single party is called A.) individual ownership B.) solitary possession C.) tenancy in severalty D.) simple tenancy

tenancy in severalty

In a cooperative, real property is owned only by A.) the individual unit owners B.) the individual unit owners and the cooperative association C.) the cooperative developer D.) the corporate entity of the cooperative association

the corporate entity of the cooperative association

The owner of a condominium unit is responsible for maintaining A.) hallways, corridors, and stairwells that provide access to the unit B.) all common elements on a rotating basis C.) structural components that support the unit's part of the building D.) the internal systems of the unit

the internal systems of the unit

If a joint tenant sells his or her interest to an outside party, A.) the new owner becomes a joint tenant B.) the new owner is a tenant in common C.) the joint tenancy terminates and all owners become tenants in common D.) the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner

the new owner is a tenant in common

The party who holds title to real estate placed in a living trust is A.) the grantor B.) the grantee C.) the beneficiary D.) the trustee

the trustee

A condominium owner's assessments for maintenance and operation are based on A.) the unit's pro rata share of floor space B.) the unit's pro rata share of the property value as defined in the declaration C.) the number of shares the owner purchased in the condominium association D.) the assessed value of the condominium unit

the unit's pro rata share of the property value as defined in the declaration

In a time-share freehold, owners acquire A.) undivided interests as tenants in common B.) a tenancy from period-to-period for a portion of a year C.) a pro rata share of a leased fee D.) a tenancy in severalty for a portion of a year

undivided interests as tenants in common

Which of the following would NOT terminate a joint tenancy? A.) One of the tenants gets married B.) One of the tenants declares bankruptcy C.) The property forecloses D.) One of the tenants sells his or her interest

One of the tenants gets married

One of the benefits offered by ownership in a tenancy by the entireties is A.) the estate is subject to foreclosure only for jointly incurred debts B.) the estate may be terminated only by mutual agreement C.) the estate is not subject to foreclosure D.) a co-owner may transfer his or her fractional interest without the consent of other co-owners

the estate is subject to foreclosure only for jointly incurred debts

Two individuals can own a house as tenants by the entireties if A.) they so elect at the time of acquiring title B.) they are blood relatives C.) they are married D.) they incorporate

they are married