Chapter 2 Quiz

In WA, notice of termination of a month to month lease is...

20 days

A freehold estate that lasts only as long as a specified person lives...

A life estate

This type of business entity must have at least one principle with unlimited liability, although all of the others can have limited liability.

A limited Partnership

T or F: An estate in land does not include a possessory right; instead it is merely a use right that is limited to the use for which the estate was intended.

False

T or F: In comparison to the owner of a fee simple absolute, the owner of a qualified fee estate does not have full ownership rights to the property.

False

T or F: When title to real estate is transferred, if the grantor intends to deliver a fee simple absolute interest to the grantee, that intention must be stated in the deed.

False

T or F: A leasehold interest falls short of an estate in land

False, it is an estate in land.

T or F: Unlike a cooperative, a condo owner's failure to pay her mortgage payment has a direct effect on all other tenants in the project.

False, it is the cooperative owner's who are affected by someone not paying their rent.

T or F: The owner of a cooperative apartment receives a deed, a separate property tax statement and an individual mortgage which liens only her interest in the property.

False, the owner of a cooperative apartment has purchased stock in a corporation, which holds title to the entire apartment building. In return he receives a long proprietary lease entitling him to occupancy of a specific unit in the building.

A business entity created when two or more persons agree to carry on a business as co-owners, without additional formalities

General Partnership

The key distinguishing feature of this form of ownership is survivorship

Joint Ownership

This form of ownership requires unity of time, title, interest, and possession

Joint Tenancy

Cities and States usually take title to property this way

Severalty

The Co-owners under this method have undivided interests, but their interests don't have to be equal.

Tenancy in Common

T or F: A fee simple determinable ends automatically if the condition is violated. The property reverts to the grantor without the necessity of legal action.

True

T or F: A fee simple estate is transferrable, inheritable, and perpetual.

True

T or F: A handyman who gets free rent in return for services has an estate at will.

True

T or F: Any feature that is designed to serve a single unit, but is outside that unit's boundaries such as a deck, balcony, or assigned parking space is called a limited common element.

True

T or F: The common elements (common areas) in a condo are are owned by all of the resident as Tenants in Common.

True

T or F: The fee simple estate is of potentially infinite duration, and the holder of the estate has the entire bundle of rights.

True

T or F: Title to a cooperative is held by a corporation, not the individual residents.

True

T or F: L & H rented a beach house for 3 months. Their interest in the land is referred to as an estate for years.

True! Don't let the word years trip you up, its just a "fixed term"

T or F: A condominium declaration is a document recorded to establish a condominium that contains detailed information about the project.

True, the declaration contains a legal description, a description of the land and buildings, restrictions on the use and occupancy of the property, ownership and use of common areas.

A single person purchasing property herself takes title this way

Severalty

In connection with a life estate, a future interest held by the grantor or her heirs...

Reversion

A type of ownership that is based on a distinction between separate property and property owned jointly.

Community Property

A business entity that has a perpetual existence and is subject to double taxation.

Corporation

In connection with a life estate, a future interest held by someone other than the grantor...

Remainder

In this type of business entity, all of the members have limited liability.

LLC

The person entitled to possession of the property during the measuring life...

Life Tenant

The lifetime that determines the duration of the life estate...

Measuring Life

A Tenancy in Common may be terminated by this method

Partition

A business entity that must have at least 100 investors.

Real Estate Investment Trust