Chapter 7: Ownership of Real Estate

Dorothy bough an apartment and received shares in a corporate and a proprietary lease to her unit. Her building is organized as a

*a *a. cooperative* b. condominium c. joint venture d. syndicate

Long-term stability of residences is most characteristic of

*a cooperative* b. time sharing c. a condominium d. an apartment

A board of directors commonly reserves the right of approve or disapprove of potential buyers in which form of joint ownership?

*a. Cooperative* b. condominium c. joint venture d. tenancy in common

John and Mary buy a home together right after tiger wedding. If the deed states nothing to the contrary, they are

*a. Tenants by the entirety* b. joint tenants c. tenants in common d. tenants in severaly

Jerry owner a fee simple interest in his apartment, together with a specified undivided percentage of common elements. His building is organized as a

*a. condominium* b. real estate investment trust c. cooperative d. syndicated venture

Ownership in real property by one person is called

*a. in severalty* b. in common c. by the entirety d. jointly

Title

-ownership - can be held by one or 2 or more 'co-owners'

Homeowners' Association

All owners in one condominium complex

P I T T

Possession Interst Time Title

X, Y, and Z each in vest $1000 in a new business. X and Y do not participate in the operation of the new venture but agree to let Z make all the decisions regarding its day-to day management. If the business experiences a $6000 loss, how is liability shared under these facts?

a. As partners, X, Y and Z are equally liable for the loss: $2000 each b. This is a limited partnership, in which the partners cannot be held liable for more than the $3000 original total investment c. as general partner, Z is liable for any loss; X and Y have no liability *d. As limited partners, X and Y are liable only to the extent of their investment.*

Peter and Joe own an apartment building as joint tenants. If Peter sells disinters to Clem,

a. Clem becomes a joint tenant w Joe b. Clem becomes a joint tenant with Peter *c. Clem and Joe become tenants in common.* d. the sale is invalid, and Joe becomes sole owner

A cooperative is characterized by

a. Identical units for all owners b. individual ownership of the land c. individual freehold estates *d ownership of personal property*

X, Y, and Z are joint-tenant owners of a hunting lodge. Z dies, leaving everything to his wife, Which statement is TRUE

a. X and Y are now joint Tenants with Mrs. Z b. X and Y are joint tenants, with Mrs. Z as tenant in common *c. X and Y are now the only owners of the property* d. X, Y, and Mrs. Z are now tenants in common

Tenancy in common is characterized by

a. all parties having the same interest b. survivorship c. marriage *d. no requirement of owners to have the same interest

Condominium conversions can be done

a. at any time b. once every 10 years c. by majority vote of the tenants affected *d. Three years and two months after approval by the state of New Jersey*

The term CC&R refers to

a. clubhouse, courts and reception *b. covenants, conditions and restrictions* c. condominiums, cooperatives and resort time shares d. contracts, citations and releases

The owner of a cooperative apartment receives

a. deed b. a property tax bil c. life estate *d. shares in a corporation*

Della and her cousin, Zeke, inherited their grandfathers firm. Zeke lives there, refuses to pay the taxes and gives Della no rent. Della can

a. establish a joint tenancy *b. sue for partition* d. inherit automatically when Zeke dies d. exercise her right of reverter.

A limited liability corporation:

a. is not legal in New Jersey b. is limited in the number of partners it can have c. provides that tax adjustments of a partnership only *d. Provides the tac advantages of a partnership and the limited liability of a corporation*

Which of the following about condominium ownership would be FALSE

a. it applies both residential and commercial properties *b. Financing nor readily available* c. one owns their individual unit exclusively d. owners share ownership of common areas

In New Jersey , a deed conveying property to a married couple, such as to "Frank Peters and Marci Peters, husband and wife,"creates a

a. joint tenancy *b. tenancy by entirety* c. tenancy in common d. periodic tenancy

A parcel of real estate was purchased by Howard Evers and Tina Chance. Evers paid one-third of the cost and Chance paid the balance. The sellers deed received at the closing conveyed the property "to Howard Evers and Tina Chance," without further explanation. Thus Evers and Chance are

a. joint tenants *b. tenants in common, each owning one have undivided interest* c. tenants in common, with Evers owning an undivided one third interest d. general partners in a joint venture

Sandy and Neva bought a store together as joint tenants. Neva dies, leaving everything she owns to her daughter. Sandy now owns the store

a. jointly with Nevas daughter b. as a tenant in common c. as a life tenant *d. in severalty*

Time shares provide fractional ownership on the basis of

a. lot size b. square footage c. number of shares *d. periods of time*

Characteristics of tenancy by the entirety include:

a. ownership by any two persons b. Absence of survivorship *c. ownership by husband and wife* d. right of inheritance

Stock in a cooperative apartment is usually considered

a. real property *b. personal property* c. proprietary property d. a common element

IF property is held by two or more owners as tenants in common, upon the death of one owner the ownership of his or her share passes to the

a. remaining owner or owners *b. heirs or whoever is designated under the deceased owners will* c. surviving owner and /or his or her heirs d. deceased owners surviving spouse.

Common Elements include

a. stairwells b. the swimming pool c. foyers *d. all of the above*

Rita and her friend Larry want to buy a house together and ensure that if one dies the other inherits automatically. The should take title as

a. tenants by entirety *b. joint tenants* c. tenants in common d. life tenants

Jim and Joe buy a small shopping plaza together. If the deed states nothing to the contrary , they are

a. tenants by the entirety b. joint tenants *c. tenants in common* d. cooperative owners

The term reserves refers to

a. tenants willing to invest in a conversion b. weeks of the year owned by a time share purchaser c. percentage of ownership for each condominium deed. *d. funds set aside for major repairs in the future.*

Which of the following statements applies equally to joint tenants and tenants by the entirety

a. there is no right to file a partition suit *b. the survivor becomes complete owner* c. Sale of one share creates a tenancy in common d. a deed must state the type of tenancy desired

The Four unities required to create a joint tenancy in New Jersey include all of the following EXCEPT P I T T o n i i s t m t s e e l e r e s e s s it o n

a. time b. title *c. partnership* d. interest

The right to reject prospective new owners is held by the board of directors of a

a. town house b. time share *c. cooperative* d. condominium

Possession of a unit by proprietary lease would be characteristic of

a. townhouse ownership b. a life estate c. fee simple determinable *d. ownership in a cooperative*

An artificial person created by legal means is know as a

a. trust *b. cooperation* c. limited partnership d. joint tenancy

A key feature of join tenancy is

a. unequal ownership of shares b. limitation on the number of partners c. right of inheritance *d. right of Survivorship*

Conversion

apartment house changed to condos

Cooperative

apartment whose buyer receives stock in corporation

town house

architectural term

Sole Proprietorship

business owned by one person or entity

Proprietary Lease

co-op owners rights to apartment

Partnership

co-owners joined together to carry on a business -share in profits and losses general- equal partners, may be held personally liable, even beyond amount of initial investment limited- do not participate, only liable for initial investment

Partition

court orders sale and division

Condominium

fee simple ownership of living unit

Board of directors

group elected to manage a cooperative

General Partnership

group which each partner completely liable

Limited Partnership

group with only general partner fully liable

Syndicate

joining 2 or more people for particular business project, not lead entities

Corporation

legal entity considered to be an artificial person -managed by board of directors

Reserves

money set aside for future repairs

Joint Tenancy

non married persons with right of survivorship -2 or more owners, upon death remaining owners acquire interest of deceased joint tenant -CANNOT BE WILLED - only the last survivor may dispose of the property by will, as they are not tenancy in severalty

joint venture

organization to carry out single project

Tenancy in common

owners fee to devise property to any heir -2 or more owners, undivided interest. Each owner can sell, convey, mortgage without the consent of the others. Passes on to heirs upon death -CAN BE WILLED -Partition- if not able to divede into separate parcels, it must be sold -NJ Rule- conveyance of property to unmarried parties creates a tenancy in common

Time-sharing

ownership for part of a year

Devisee

person named in a will to inherit real estate

Right of survivorship

process by which co-owner automatically receives share of co-owner who dies

Tenancy in severalty

real estate ownership by only one -sole ownership, title passed onto heirs/devisees

Horizontal Properties Act

regulates the creation of condominiums

Tenancy by the entirety

special ownership by married couple

Common elements

stairwells, roofs, etc., owned by all