Ch. 5 Methods of Ownership Quiz

C) consult an attorney.

Your customer plans to get divorced shortly before closing of a property she and her boyfriend just purchased and ask you about how to hold title to the property. You should suggest she: A) get divorced first. B) conceal the pending divorce. C) consult an attorney. D) choose joint tenancy.

B) B's share goes to his heirs.

A conveys property to B and C who are unrelated and not joint tenants. If B dies: A) C is the sole owner. B) B's share goes to his heirs. C) the property reverts back to A. D) E comes into the picture.

B) of its perpetual existence.

A corporation cannot hold title to real property in New Jersey with another as a joint tenant because: A) it is a violation of the Securities Act. B) of its perpetual existence. C) it is difficult to list all stockholders in the deed. D) a corporation cannot convey title to real property.

A) creates a tenancy in common.

A deed in favor of Norman and Rosalie with the stated proportionate interests of 2/3 and 1/3 respectively: A) creates a tenancy in common. B) creates a valid joint tenancy. C) creates a severalty interest for each. D) is void.

D) sell the property.

A join tenant may NOT: A) sell his interest. B) give away his interest. C) encumber his interest. D) sell the property.

D) devise his interest.

A joint tenant may NOT: A) sell his interest. B) give away his interest. C) encumber his interest. D) devise his interest.

A) automatically when names of husband and wife appear on the deed.

A tenancy by the entirety exists: A) automatically when names of husband and wife appear on the deed. B) whenever there is right of survivorship among concurrent owners. C) when two or more people own the entire property. D) after the owners have been divorced.

D) possession.

A tenancy in common must have unity of: A) time. B) title. C) interest. D) possession.

B) the joint tenancy is broken.

A woman and her brother hold property in joint tenancy. The woman deeded her part to herself and her husband. Therefore: A) the deed to the husband is invalid. B) the joint tenancy is broken. C) all three now hold title in joint tenancy. D) joint tenancy remains the same.

C) A and D as tenants in common, each with a 1/2 interest.

A,B and C own property as joint tenants. C dies and B sells his interest in the property to D. The property is now owned: A) as joint tenants by A, D and C's widow, E,his sole heir. B) A and D as joint tenants. C) A and D as tenants in common, each with a 1/2 interest. D) A and D and B's wife.

C) The shareholders in a corporation generally have direct control of the corporation's affairs.

All of the following statements are true EXCEPT: A) A Subchapter S corporation is taxed as a partnership. B) A Subchapter S corporation does not have to pay corporate income tax. C) The shareholders in a corporation generally have direct control of the corporation's affairs. D) A corporation that is not Subchapter S is classified as a C Corporation.

D) tenancy in severalty.

Co-ownership of property by a husband and wife can take any of the following forms EXCEPT a: A) tenancy in common. B) tenancy by the entirely. C) joint tenancy. D) tenancy in severalty.

D) tenancy in common.

Hanna Marsh and Max Haver buy a house together. They are a young, unmarried couple and want to know how they should take title so that if one of them dies, that person's heirs will inherit the property interest. Their attorney will most likely recommend: A) joint tenancy. B) tenancy at will. C) tenancy by the entirety. D) tenancy in common.

A) a valid contract of sale on the farm must be signed by both of the spouses that are selling.

If the title to a farm is held as tenants by the entirety, which of the following is true? A) a valid contract of sale on the farm must be signed by both of the spouses that are selling. B) A creditor of one spouse can assert a valid lien on the farm. C) The husband can devise his interest. D) Spouses have no survivorship rights.

D) the Horizontal Property Act.

In New Jersey, condominiums are regulated by: A) the NJ Real Estate Commission. B) the NJ Condominium Bureau. C) the NJ Department of Community Affairs. D) the Horizontal Property Act.

C) it avoids delays and expenses of probate.

One of the advantages of join tenancy is: A) it cannot be terminated without the consent of each tenant. B) tenants may own different fractional shares. C) it avoids delays and expenses of probate. D) it can only exist between husband and wife.

C) each co-owner may acquire interest at different times

One of the features of owning real property as tenants in common is: A) each co-owner must have equal interest B) each owner may not will his interest C) each co-owner may acquire interest at different times D) the last survivor owns property in severalty

B) to his estate.

Property owned by a tenant in common passes at death: A) to his co-tenant or tenants. B) to his estate. C) by right of survivorship. D) by escheat.

B) joint tenancy.

Property purchased by a brother and sister with full survivorship would be: A) tenancy in common. B) join tenancy. C) tenancy by entirety. D) severalty.

C) have the right of survivorship.

Tenants by the entirety: A) each own a portion of the property. B) may seek an action for partition. C) have the right of survivorship. D) may share unequal interests.

D) beneficiary.

The person for whom a trust is created is called the: A) fiduciary. B) trustee. C) trustor. D) beneficiary.

D) Upon Rose's death, her share passes to her heirs or devisees

Two sisters, Mary and Rose, inherit real estate from their mother with no stipulation except that 1/3 is to go to Mary and 2/3 to Rose. Which of the following is true? A) Mary and Rose are joint tenants of the property B) Rose may not mortgage her interest in the property without Mary's consent C) Upon Mary's death her part of the property reverts to Rose D) Upon Rose's death, her share passes to her heirs or devisees

C) severalty.

When a person owns property to the exclusion of all other persons, he said is said to hold the property in: A) personatly. B) common. C) severalty. D) secret.

B) is probated and distributed according to the will.

When a person who owns real estate in severalty dies testate, his property: A) goes entirely to the surviving joint tenant. B) is probated and distributed according to the will. C) would be solely vested in the remaining tenant in common. D) reverts to the county be escheat.

B) the buyer and his attorney.

When purchasing real estate, the form or method of ownership (severalty, tenants in common or joint tenants) should be determined by: A) the broker. B) the buyer and his attorney. C) the seller. D) the law of the state in which the real estate is located.

B) court action by which owners of property seek to sever their common ownership.

When used in connection with ownership interests, the term "partition" means: A) a formal written request signed by a group of petitioners. B) court action by which owners of property seek to sever their common ownership. C) a bearing wall in a building. D) a non-bearing wall in building.

C) tenancy in common.

Where two brothers hold title to property, one with a 1/3 interest and the other a 2/3 interest, title would most likely be held as: A) joint tenancy B) tenancy by entirety. C) tenancy in common. D) tenancy in severalty.

B) The survivor becomes owner.

Which of the following statements apply equally to joint tenants and tenants by the entirety? A) There is no right to file a partition suit. B) The survivor becomes owner. C) A deed signed by one will convey a fractional interest. D) A deed will not convey any interest unless signed by both spouses.

D) All of the above statements are true.

Which of the following statements is (are) true regarding timeshare estates? A) Individuals who sell timeshare estates must be licensed by the New Jersey Real Estate Commission. B) The purchaser of a timeshare estate will receive a deed. C) Developers who sell timeshare estates in New Jersey must comply with provisions of the New Jersey Real Estate Timeshare Act if they market the units in New Jersey. D) All of the above statements are true.

A) an inter vivos trust is created by a beneficiary.

Which of the following statements is NOT true? A) an inter vivos trust is created by a beneficiary. B) A testamentary trust is created by a will. C) A trust transfers property of a truster to a trustee. D) A testamentary trust becomes effective when the trustor dies.