Chapter 3 - Property Ownership / Real Estate School

12. Carlos would like to liquidate his one-third interest in a business property. His cousin, who has a two-thirds interest, does not agree to selling. Can Carlos file a partition suit? A. Yes, but only if his cousin consents. B. Yes, because any concurrent owners, except for a tenant by the entireties, can file. C. No, because a tenant in common cannot file for a partition. D. No, because he has less than a majority interest.

B. Yes, because any concurrent owners, except for a tenant by the entireties, can file.

24. A form of ownership that involves one party holding title for the benefit of another who retains full control over the property is a: A. real estate investment trust. B. land trust. C. syndicate. D. limited partnership.

B. land trust.

1. The right of survivorship is associated with: A. tenancy in common and condominium ownership. B. tenancy by the entireties and joint tenancy. C. tenancy in common and joint tenancy. D. tenancy by the entireties and community property

B. tenancy by the entireties and joint tenancy.

10. A deed in favor of James and Rosen with stated proportionate interests of one-third and two-thirds respectively, without the right of survivorship, creates: A. a joint tenancy B. tenancy in common C. severalty ownership of the property D. a general partnership

B. tenancy in common

9. The land on which a high-rise condominium stands is owned by: A. a nonprofit corporation B. the individual unit owners as tenants in common C. a syndicate D. a limited partnership

B. the individual unit owners as tenants in common

15. Which of the following types of ownership cannot be created by operation of law, but must be created by the parties expressed intent? A. Community property B. Tenants in Common C. Joint Tenancy D. Condominium ownership

C. Joint Tenancy

7. Smith, Jones, and Black are joint tenants. Smith sells his interest to White. With regard to this conveyance: A. Jones, Black, and White are now joint tenants B. Jones, Black, and White are now tenants in common C. White owns a one-third interest as a tenant in common with Jones and Black who stll own one-third each as joint tenants D. Smith cannot legally convey an interest without a partition suit terminating the co-ownership obligations

C. White owns a one-third interest as a tenant in common with Jones and Black who stll own one-third each as joint tenants

14. The owners of a limited liability company are called: A. partners. B. stockholders. C. members. D. managers.

C. members.

2. A joint tenancy would be changed to a tenancy in common by: A. one joint tenant giving his/her interest to the other. B. the death of one of three joint tenants. C. one of two joint tenants selling his/her interest to a third person D. the death of one of two joint tenants.

C. one of two joint tenants selling his/her interest to a third person

8. Harper, Murphy, and Jackson own an investment property as tenants in common. Because of a recent business disagreement, Jacksorn wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Jackson may seek an equitable distribution of the property by filing a: A. lis pendens B. partnership agreement. C. partition suit. D. declaration of severalty

C. partition suit.

13. Al, Bill, and Rob own property as joint tenants. Upon Rob's death his interest passes to: A. his surviving heirs or those designated in his will. B. his surviving wife, or Al and Bill if she predeceased him. C. his surviving wife. D. Al and Bill.

D. Al and Bill.

10. An undivided interest of the whole is owned by a: A. tenant in common. B. joint tenant. C. tenant by the entireties. D. All of the answers are correct.

D. All of the answers are correct.

20. Both husband and wife must sign in order to sell or mortgage land held: A. as community property. B. as tenants by the entireties. C. in states with dower. D. All of the answers are correct.

D. All of the answers are correct.

3. A condominium may be used for which of the following? A. Parking garage. B. Shopping center. C. Office building. D. All of the answers are correct.

D. All of the answers are correct.

11. In the event of death, which form of ownership permits the deceased to name an heir? A. Tenancy by the Entirety. B. Joint Tenancy. C. Ordinary Life Estate. D. Tenants in Common.

D. Tenants in Common.

18. The Georgia Condominium Act requires: A. no right-of-recission for any condominium purchase. B. a 7-day right-of-recission for the purchase of all condominium units. C. a 7-day right-of-recission for the purchase of previously owned condominium units. D. a 7-day right-of-recission for the purchase of new condominium units only.

D. a 7-day right-of-recission for the purchase of new condominium units only.

5. A tenancy in common form ownership entitles each co-tenant to: A. A right of survivorship. B. an equal interest in the property. C. take title free and clear. D. an undivided interest in the property.

D. an undivided interest in the property.

19. Joint tenancy will most likely be chosen as a form of ownership by husband and wife to: * A. defeat dower and curtesy rights. B. avoid personal liability to creditors. C. assure each an undivided one-half interest. D. assure the surviving spouse of sole ownership without probate.

D. assure the surviving spouse of sole ownership without probate.

4. Husband and wife who own property as tenants by the entirety: A. must both consent to sell. B. may individually file a partition suit. C. must both sign for any debt secured by the property. D. must both consent to sell AND must both sign for any debt secured by the property.

D. must both consent to sell AND must both sign for any debt secured by the property.

2. Ownership of real estate for such things as schools, roads, parks, and military installations is: A. prescriptive ownership. B. private ownership. C. possessive ownership. D. public ownership.

D. public ownership.

7. In order to obtain a proprietary lease on a co-op unit, an individual must buy a: A. license. B. condominium. C. mortgage. D. share of stock.

D. share of stock.

5. The ownership unities of time, title, interest, and possession are required in order to create: A. an undivided interest in the property as a whole. B. separate ownership. C. concurrent ownership. D. the right of survivorship.

D. the right of survivorship.

15. Which of the following tenancies refers to ownership? A. In common B. At will C. At sufferance D. For years

A. In common

4. Title held by a husband and wife may include all of the following forms of ownership EXCEPT: A. severalty. B. tenancy by the entireties. C. joint tenancy D. tenancy in common.

A. severalty

1. If there is no indication in the deed as to how co-owners are taking title, the law presumes the parties intended to own the property as: A. tenants in common. B. joint tenants. C. general partners. D. severalty partners.

A. tenants in common.

6. Al and Sue own property as joint tenants. Under which of the following circumstances will severalty ownership NOT result? A. Sue files a partition suit that divides the property between Al and Sue. B. Al sells his interest to Barry. C. Sue sells her interest to Al. D. Al dies.

B. Al sells his interest to Barry.

3. Which of the following may own property in severalty? A. Husband and wife together B. Corporation C. A partnership D. A father and son together

B. Corporation

17. Prior to John's marriage to Mary he owned forty acres of land. While they were married, John paid $85,000 for a new home and Mary inherited an apartment building valued at $220,000. If they live in a state that recognizes community property ownership, which of the following represents their community property? A. Forty acres of land B. Home C. Apartment building D. None of the above

B. Home

19. Phil, Tom, and Bill form a partnership to buy investment property. Their first purchase is a duplex. Phil and Tom invest $15,000 each. Bill agrees to accept all management responsibilities and liability for the partnership. What kind of partnership did they form? A. General B. Limited C. Special D. Trust

B. Limited

8. Which of the following characteristics does NOT apply to tenants in common? A. Hold separate title to an undivided interest. B. Must own equal share of interest. C. May sell, will, or mortgage their interest. D. Are not subject to right of survivorship.

B. Must own equal share of interest.

16. What is the one unity in a tenancy in common ownership? A. Interest B. Possession C. Time D. Title

B. Possession

22. Kristin has purchased a condominium apartment in Happy Garden Which of the following statements about Kristin's ownership rights is true? A. She is entitled to the exclusive use of the lawn in front of her unit. B. She has no liability if another owner in her building is foreclosed. C. Her monthly mortgage payment includes principal, interest, taxes and hazard insurance. D. She can deduct the cost of swimming pool upkeep from her monthly maintenance fee if she does not swim.

B. She has no liability if another owner in her building is foreclosed.

25. The Directors of a condominium owners' association are elected by: A. the officers. B. the owners. C. the occupants. D. the management company.

B. the owners.

23. A cooperative owner is assured of the exclusive use of an individual unit for the life of the corporation through the use of a: A. trust agreement. B. cooperative declaration C. proprietary lease. D. partnership agreement.

C. proprietary lease.

9. Corporation are not allowed to own real estate in joint tenancy because of the: A. right to file a partition suit. B. equal right of possession requirement for this type of ownership. C. right of survivorship. D. limited liabiltiy of the stockholders.

C. right of survivorship.

18. A married woman and an unmarried man may not own real estate as: A. tenants in common B. joint tenants. C. tenants by the entireties. D. general partners.

C. tenants by the entireties.

14. A form of condominium ownership especially desirable for properties in resort areas where each unit is sold to multiple buyers is called: A. proprietary leasing. B. condominium cooperatives C. time sharing. D. condominium syndicates

C. time sharing

17. Kenneth and Randall buy a property as an investment. The deed names both as the new owners, but the instrument is silent as to their respective interests and says nothing about the form of ownership. Under these circumstances which of the following is INCORRECT? A. Each owns an undivided one-half interest. B. A Tenants-in-Common ownership exists. C. Their interests are subject to probate. D. They own the property with the Right of Survivorship.

D. They own the property with the Right of Survivorship.

16. The Georgia Timeshare Act requires all of the following EXCEPT: A. all advertising must comply with the Fair Business Practices Act. B. trust funds must be held in an escrow account. C unless exempt by law, sales agents must be licensed. D. a 10 day right-of-recission from receipt of the Public Offering Statement.

D. a 10 day right-of-recission from receipt of the Public Offering Statement.

11. Laura occupies an apartment in a multiple unit building. Each month she pays the association an assessment for her share of the mortgage payment, property taxes, and a fee for building maintenance. The form of ownership that Laura shares with the other individual unit owners is called: A. a condominium. B. time sharing. C. limited partnership. D. a cooperative.

D. a cooperative.

12. Which of the following is not compatible with joint tenancy? A. Probate B. Survivorship C. Equality of rights D. Rights of possession

A. Probate

21. A creditor may seek satisfaction of a debt from the personal assets of each co-owner of: A. a general partnership B. a limited partnership. C. a cooperative. D. all of the above.

A. a general partnership

20. The owner of a cooperative apartment unit: A. owns stock in a nonprofit corporation B. holds fee simple title that may be sold, mortgaged, or leased. C. owns the unit in fee simple with an undivided interest in the common elements. D. holds title in partnership with the other unit owners.

A. owns stock in a nonprofit corporation

13. Certain unities are necessary for the creation of a joint tenancy. They are: A. possession and interest. B. place and time. C. time and survivorship. D. survivorship and possession.

A. possession and interest.

6. A broker is asked by a husband and wife how they should should take take tit title to the home they are buying. The broker should: A. recommend they consult an attorney B. recommend they ask the lender C. explain the difference between joint tenancy and tenancy in common so they can decide for themselves D. ask them what they want in terms of liability and survivorship a nd hen suggest the best method according to the laws of their particular state

A. recommend they consult an attorney