Unit 4 Quiz

When two or more individuals decide to buy a property together, it results in a

Co-ownership

According to some states, any real property that either spouse owns at the time of marriage remains separate property. Further, any real property acquired by either spouse during the marriage (except by gift or inheritance of with the proceeds of separate property) belongs to both of them equally. What is this form of ownership called?

Community Property

A man with two sons and a woman with two daughters are getting married, and they are buying a house together. They ask the real estate professional for advice about how to take title. What advice should the real estate professional offer?

Consult an attorney

A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called

Cooperative

In what way is tenancy by the entirety different from joint tenancy for a husband and wife?

One spouse can sell only with the other's consent.

Which of the following methods of ownership could result in double income taxation? a. corporation b. joint tenancy c. partnership d. S corporation

a. Corporation

The owners of an apartment in a condominium can do all of the following EXCEPT: a. Partition the common elements. b. Convey a freehold title to a grantee. c. Lease their unit. d. Hypothecate the apartment as security for a mortgage.

a. Partition the common elements

Under the condominium law all of the following are true about apartments EXCEPT: a. Rents are paid on the common elements. b. Taxes are assessed on individual apartments. c. Title insurance may be issued on individual apartments. d. Individual apartments may be mortgaged.

a. Rents are paid on common elements

Traditionally, one of the principal advantages of a condominium over a cooperative has been: Select one: a. Better location. b. Easier financing. c. Lower maintenance. d. Greater security.

b. Easier financing

The bylaws governing a property that is subject to the condominium law generally would include all of the following EXCEPT: a. The method by which each apartment owner's share of the common expenses will be collected. b. The percentage of common interest for each apartment c. Provisions for election of a board of directors of the association of apartment owners. d. Provisions for conducting association meetings.

b. The percentage of common interest for each apartment

A legal arrangement under which the title to real property is held to protect the interests of a beneficiary is a a. general partnership. b. Trust. c. corporation. d. limited partnership.

b. Trust

Which of the following is true of condominium ownership? a. It cannot be mortgaged. b. The corporation pays the real estate taxes. c. The limited common elements cannot be sold separately. d. The ownership cannot be willed.

c. The limited common elements cannot be sold separately

Which of the following events creates a tenancy in common? a. death of one of two joint tenants b. transfer of one joint tenant's interest to the other joint tenant. c. transfer of one joint tenant's interest to a third party. d. death of one of four joint tenants.

c. transfer of one joint tenant's interest to a third party

A joint tenant in real property who wishes to dispose of the interest: a. has no recourse except to buy out the other joint tenants. b. has no recourse except to sell the interest to other joint tenants. c. may not file for partition. d. may convey to a nontenant who becomes a tenant in common.

d. may convey to a nontenant who becomes a tenant in common

A woman owns Apt. 22 in the Blueridge condominium development. What part of the condominium does she own? a. The entire floor, walls and ceiling of the unit. b. The parking stall and swimming pool. c. An equal share of each unit in the Blueridge. d. The air space within Apt. 22.

d. The air space within Apt. 22

Tenancy with survivorship means

the tenancy interest will pass to the surviving tenants upon the death of one.

The owner of a condominium unit learns that a neighbor has failed to pay his real estate taxes. If this neighbor does not pay the taxes

a lien can be filed against the neighbors unit and his percentage of the common elements.

All of the following documents are used in the typical condominium project EXCEPT: a. A proprietary lease. b. Master deed. c. Association bylaws. d. A declaration.

a. A proprietary lease.