Real Estate Chapter 8

tenancy by the entirety can be terminated by

-court ordered sale of the property (property can be sold off to pay off judgment), the death of either spouse (the surviving spouse becomes sole owner in severalty), agreement between both parties through the execution of a new deed, or a divorce (which leaves the parties as tenants in common)

fee simple estate may be held in 3 ways

1. in severalty, where the title is held by one individual 2. in co-ownership, where the title is held by 2 or more individuals 3. in trust, where a third individual holds title for the benefit of another

4 unities are required to create a joint tenancy

1. unity of possession 2. unity of interest 3.unity of time 4. unity of title

syndicate

2 or more people or firms joined together to make and operate a real estate investment. in itself is not a legal entity but may be organized into a number of ownership forms, including co-ownership, partnership, trust, or corporation

Conveyance is the act of transferring an ownership interest in property from one party to another.

Conveyance also refers to the written instrument, such as a deed or lease, that transfers legal title of a property from the seller to the buyer.

tenancy in common- each tenant holds an undivided fractional interest

Each tenant can convey or device his or her interest, but not entire interest

A and B held title to an apartment building in Illinois as joint tenants with rights of survivorship. A and B had an argument, and A didn't like the possibility that B would acquire total ownership of the building if A died. Therefore, A executed a deed to himself as a tenant in common and later willed his interest to C. Which of these statements accurately describes A's action?

The answer is A's action legally severs the joint tenancy. Co-owners who wish to terminate their co-ownership may file an action in court (called a partition suit or a suit to partition) to partition the property. Partition is a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination.

A married couple owns a mansion with a right of survivorship. Theirs is MOST likely

The answer is an estate by the entirety. Some states, including Illinois, allow husbands and wives to use a special form of co-ownership called tenancy by the entirety for their personal residence. The term entirety refers to the fact that the owners are considered one indivisible unit. A husband and a wife who are tenants by the entirety have rights of survivorship.

The names of the beneficiaries of a land trust must be revealed by the trustee to

The answer is any Illinois agency when applying for a license or permit affecting the entrusted real estate. Illinois law requires that the trustee disclose the beneficiary's name to certain parties under specific circumstances. The beneficiary's name must be revealed when applying to any state of Illinois agency for a license or permit affecting the entrusted real estate.

Title to land in Illinois may be held and conveyed in which of these ways?

The answer is in the name of a partnership. Illinois has adopted the federal Uniform Partnership Act (UPA), which permits real estate to be held in the partnership name.

A legal arrangement under which the title to real property is held to protect the interests of a beneficiary is a

The answer is trust. A trust is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

joint venture

a form of partnership in which 2 or more people or firms carry out a single business project. characterized by time limitation resulting from the fact that the joint ventures do not intend to establish a permanent relationship

terminating joint tenancies

a joint tenancy is destroyed when any one of the four unities of joint tenancy is terminated.

unity of title

all joint tenants acquire their interest by the same deed

unity of time

all joint tenants acquire their interests at the same time

unity of possession

all joint tenants hold an undivided right to possession of the property

condominiums

can be mortgaged like any other parcel of real estate. the owner of each unit holds a fee simple title to the unit.

limited liability companies (LLC)

combines the most attractive features of limited partnerships and corporations

community property

consists of all other property, both real and personal, acquired by either spouse during the marriage.

joint tenancy- unity of ownership, created by intentional act; unities of possession, interest, time and title

conveyed by: right of survivorship, cannot be conveyed to heirs

martial property

husband and wife acquire joint rights in all property acquired after the date of the marriage for the duration of the marriage.

ownership in severalty

occurs when property is owned by one individual or corporation. has sole rights to the ownership and sole discretion to sell, will, lease, or otherwise transfer part or all of the ownership rights to another person or entity.

unity of possession

owners are entitled to possession of the whole property, it is the ownership interest not the property that is divided.

termination of co ownership by partition suit

partition is a legal way to dissolve the relationship when the parties do not voluntarily agree to its termination.

time share ownership

permits multiple purchasers to buy interests in the same piece of real estate, usually a resort property. each owner reserves the right to stay at a certain time of the year or for a certain amount of time. it is fee simple interest

beneficiary

person who benefits from the trust

tenancy by the entirety

some states, including IL, allow husbands and wives to use a special form of coownership for their personal residence. a married couple is viewed as one legal person.

real estate investment trust (REIT)

take advantage of the same tax benefits as do mutual fund investors.

land trust public records usually do not name

the beneficiary.

in land trusts the beneficiary's name must be revealed to:

the concerned housing authority within 10 days after receiving a complaint of a violation of a building ordinance or law, when applying to any state of IL agency for a license or permit affecting the entrusted real estate, if selling the entrusted property by land contact, if the trustee is named as a defendant in a private lawsuit regarding the subject real estate, if a fire inspector or another officer is investigating arson

as a legal entity a corporation continues to exist until it is formally dissolved

the death of one of the officers or directors does not affect title to property owned by the corporation.

a main disadvantage of corporate ownership of income property is that

the profits are subject to double taxation. as a legal entity a corporation must file an income tax return and pay tax on its profits

common elements

typically include items as land, courtyards, lobbies, the exterior structure, swimming pools, tennis courts, stairways, and golf courses.

co-owners or concurrent owners

when title to one parcel of real estate is held by two or more individuals, may co-own property as tenants in common, joint tenants, or tenants by the entirety, may co-own community property in states recognizing community property

Every co-owner of real estate in Illinois has the right to file a suit for partition when the property is held in which of these ways?

The answer is joint tenancy or tenancy in common. Co-owners who wish to terminate their co-ownership may file an action in court (called a partition suit or a suit to partition) to partition the property.

Two people are co-owners of a small office building with the right of survivorship. One of the co-owners dies intestate and leaves nothing to be distributed to his heirs. Which of these would explain why the second co-owner acquired the deceased's interest?

The answer is joint tenancy. Joint tenancy includes the right of survivorship: Upon the death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenant(s). Essentially, there is one less owner. The joint tenancy continues until only one owner remains.

The four unities of possession, interest, time, and title are associated with

The answer is joint tenancy. The four unities necessary to create a joint tenancy may be remembered by the acronym PITT: Possession, Interest, Time, and Title.

Which of these is a form of co-ownership?

The answer is joint tenancy. When title to one parcel of real estate is held by two or more individuals, those parties are called co-owners or concurrent owners. Most states commonly recognize various forms of co-ownership. Individuals may co-own property as tenants in common, joint tenants, or tenants by the entirety.

Because a corporation is a legal entity, real estate owned by it is owned in

The answer is severalty. Because the corporation is a legal entity, it can own real estate in severalty or as a tenant in common.

Which of these BEST proves one's right to live in a cooperative?

The answer is shareholder's stock certificate. In a cooperative, a corporation holds title to the land and building and then offers shares of stock to prospective purchasers. The purchaser becomes a shareholder in the corporation by virtue of this stock ownership and receives a proprietary lease to a designated apartment for the life of the corporation

If property is held by two or more owners as tenants with survivorship rights, the interest of a deceased cotenant will be passed to the

The answer is surviving owner(s). Joint tenancy includes the right of survivorship: Upon the death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenant(s).

What is the difference between tenancy in common and joint tenancy?

The answer is tenancy in common is an inheritable estate; joint tenancy is characterized by the right of survivorship. The feature that distinguishes a joint tenancy from a tenancy in common is unity of ownership. Title is held as though all the owners, collectively, constitute one unit. Joint tenancy includes the right of survivorship.

Three women were concurrent owners of a parcel of real estate. When one woman died, her interest, according to her will, became part of her estate. The deceased was a

The answer is tenant in common. In a tenancy in common, when one co-owner dies, the tenant's undivided interest passes according to the co-owner's will or living trust.

If the deed of conveyance to Illinois land transfers title to two or more co-owners without defining the character of the co-ownership, which of these statements is TRUE?

The answer is the co-owners are tenants in common. In Illinois, a single deed may show the proportional interests of each tenant in common, or a separate deed issued to each tenant may show her individual proportional interest. When a single deed is used, lack of a description of each tenant's share means all tenants hold equal, undivided shares.

Which of these is necessary to convert an apartment building to condominium ownership in Illinois?

The answer is the owner records a condominium declaration with a three-dimensional plat. In Illinois, creation of condominiums is governed by the Condominium Property Act (765 ILCS 605). Under this law, an owner/developer may elect to submit a parcel of real estate as a condominium project by recording a declaration to which is attached a three-dimensional plat of survey of the parcel showing the location and size of all units in the building.

Which of these statements is TRUE according to Illinois' Real Estate Timeshare Act?

The answer is the statute guarantees purchasers a five-day right to rescind a time-share purchase contract. Any purchase contract entered into by a purchaser of a time-share interest is voidable by the purchaser, without penalty, within five calendar days after the receipt of the public offering statement or the execution of the purchase contract, whichever is later.

Which of these statements applies to both joint tenancy and tenancy by the entirety?

The answer is the survivor becomes a severalty owner. Joint tenancy includes the right of survivorship. A tenancy by the entirety may be terminated by the death of either spouse, and the surviving spouse then becomes sole owner in severalty.

cooperative ownership

a corporation holds title to the land and building and then offers shares of stock to prospective purchasers. then they become a shareholder

trust

a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party

tenancy in common

a parcel of real estate may be owned by 2 or more people as tenants in common, each tenant holds an undivided fractional interest in the property.

unity of interest

all joint tenants hold equal ownership interests in the property

general partnership

all the partners participate in the operation and management of the business and share full liability for business losses and obligations.

partnership

an association of two or more persons who carry on a business for profit as co-owners

limited partnership

consists of one or more general partners as well as limited partners, business is run by general partners. limited partners are not legally permitted to participate

community property- husband and wife are equal partners in marriage. real or personal property acquired during marriage is community property

conveyance requires signature of both spouses. no right of survivorship; when spouse dies, survivor owns one-half of community property. other one-half is distributed according to will or if not will according to state law

tenancy by the entirety- husband and wife have equal undivided interest in their personal residence

conveyed by: right of survivorship; convey by deed signed by both parties. one party can't convey one-heir interest

Which statement is TRUE regarding a cooperative?

is maintaining and operating a cooperative is paid for by the corporation from charges assessed to unit owners, generally in the form of monthly fees. In a cooperative, a corporation holds title to the land and building and then offers shares of stock to prospective purchasers. The purchaser becomes a shareholder in the corporation by virtue of this stock ownership and receives a proprietary lease to a designated apartment for the life of the corporation.

separate property

is real or personal property that was owned solely by either spouse before the marriage, also includes property acquired by gift or inheritance

Illinois is not a community property state.

it is a marital property state.

community property

laws are based on the idea that a husband and wife are equal partners in the marriage and therefore any property acquired during a marriage is considered to be obtained by a mutual effort.

corporations

legal entity created under the authority of the laws of the state from which it receives its charter. it is managed and operated by its board of directors

trustor

person who creates the trust

trustee

person who hold the legal title to the property and is entrusted with carrying out the trustor's instructions regarding the purpose of the trust

nonmarital property

property acquired before the marriage or by gift or inheritance at any time, even during the time of marriage.

joint tenancy

property owned by 2 or more people, the feature that distinguishes a joint tenancy from a tenancy in common is unity of ownership. title is held as though all the owners, collectively, constitute one unit.

land trusts

real estate is the only asset. land trusts are typically created for the conservation of farmland, forests, coastal land, and scenic vistas.

charter

sets forth the powers of the corporation, including its right to buy and sell real estate. because a corporation is a legal entity it can own real estate in severalty or as a tenant in common.

A man purchases an interest in a house. He is entitled to the right of possession only between July 10 and August 4 of each year. Which of these is MOST likely the type of ownership the man purchased?

time-share estate. Time-share ownership permits multiple purchasers to buy interests in the same piece of real estate, usually a resort property. Each purchaser receives the right to use the facilities for a certain period.

right of survivorship

upon the death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenants, essentially there is one less owner-the joint tenancy continues until there is only one owner

a proprietary lease

what a shareholder receives to a designated apartment for the life of the corporation