PREP: Ch 4 Ownership

When a single individual or entity owns a fee or life estate in a real property, the type of ownership is A. legal fee simple B. tenancy in severalty C. absolute fee simple D. tenancy by the entireties

B. tenancy in severalty

Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is A. tenancy in common B. estate in severalty C. equal ownership D. joint tenancy

A. tenancy in common

Which of the following is true of a cooperative? A. A cooperative may hold an owner liable for the unpaid operating expenses of other owners. B. The owners have a fee simple interest in the airspace of their respective apartments. C. The proprietary lease is guaranteed to have a fixed rate of rent over the life of the lease term. D. Owners may retain their apartments even if they sell their stock in the cooperative.

A. A cooperative may hold an owner liable for the unpaid operating expenses of other owners.

The distinguishing features of a condominium estate are A. fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas B. fee simple ownership of a pro rata share of the entire property C. ownership of a share in an association that owns one's apartment D. tenancy in common interest in airspace and common areas of the property

A. fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas

In a community property state, a basic distinction is made between A. property acquired during a marriage and property already owned by each party at the time of marriage B. property acquired together and property acquired separately over the duration of the marriage C. property acquired during the marriage and property acquired after the marriage D. property owned privately versus property owned by the state

A. property acquired during a marriage and property already owned by each party at the time of marriage

Who are the essential parties involved in an estate in trust? A. Owner, trustor and lawyer B. Trustor, trustee and beneficiary C. Trustee, title company and beneficiary D. Owner, trustor and trustee

B. Trustor, trustee and beneficiary

Unlike tenants in common, joint tenants A. own distinct portions of the physical property. B. cannot will their interest to a party outside the tenancy. C. cannot sell their interest to outside parties. D. may own unequal shares of the property.

B. cannot will their interest to a party outside the tenancy.

Who owns the property in a time-share estate? A. a general partner holds a fee simple interest and interval estates are owned by limited partners B. the property is owned by tenants in common or by a freehold owner who leases on a time-share basis C. a real estate investment trust holds a fee simple estate D. ownership is share by the developer and the broker

B. the property is owned by tenants in common or by a freehold owner who leases on a time-share basis

One difference between a cooperative estate and a condominium estate is that A. the condominium owner owns the common elements and the airspace whereas the coop owner only owns the apartment. B. the coop owner owns stock and a freehold real estate interest whereas the condominium owner simply owns real estate. C. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium. D. the condominium owner must pay expenses as well as rent.

C. a default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.

A unique feature of a land trust is that A. the properties in the trust are probated in the states where the properties are located B. the trustee controls both the trustor and the beneficiary C. the identity of the beneficiary may not be identified D. the trustee takes ownership of both land and improvements

C. the identity of the beneficiary may not be identified

The "four unities" required to create a joint tenancy include which of the following conditions? A. Parties must have joint financial resources B. Parties must be family members C. Parties must be legally married at the time of acquiring interest D. Parties must acquire respective interests at the same time

D. Parties must acquire respective interests at the same time