Texas Law of Contracts - Chp. 2 Basics of Real Estate Law

Limited Liability Company (LLC)

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Cooperative

A form of ownership in which stock holders in a corporation occupy property owned by the corporation under a lease.

Condominium

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.

What is the primary distinction between a tenancy in common and a joint tenancy...? A joint tenancy includes the right of survivorship A tenancy in common includes the right of survivorship Freehold estates can be owned as a tenancy in common Leasehold estate can be owned as a joint tenancy

A joint tenancy includes the right of survivorship

Trusts

A legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

Time-Share

A license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.

Mobile Home

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

Deed

A written document by which ownership of land is transferred from one party to another.

Bill of Sale

A written instrument given to pass title of personal property from vendor to vendee.

The rights in real property to the reasonable use of the air space above the surface of the land are known as...? Sub-surface rights Surface rights Air rights Mineral rights

Air rights

Personal Property

All property that is not considered to be real property. That which is movable (not attached to land).

Partnership

An association of two or more people who operate a business as co-owners and share in the business profits and losses.

Corporation

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.

Tenancy in Common

An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.

A trust involves a trustor, trustee, and a...? ABeneficiary BAttorney CBroker DGrantor

Beneficiary

A written instrument given to pass title of personal property from a vendor to a vendee is referred to as a...? Deed Title Contract of sale Bill of sale

Bill of sale

Personal property is also known as...? AChattels BReal estate CFixtures DEmblements

Chattels

A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Condominium Time-share Cooperative Townhouse

Cooperative

An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is known as a...? Limited Liability Company Corporation Sole Proprietorship Limited Liability Partnership

Corporation

Which of the following business entities can own real property...? Corporations Limited Liability Companies Partnerships All of the above

Corporations Limited Liability Companies Partnerships All of the above

A written document by which ownership of land is transferred from one party to another is known as a...? Deed Title Chattel Instrument

Deed

The crops and other annual plantings considered to be personal property of the cultivator are known as...? Fixtures Emblements Trade fixtures All of the above

Emblements

Personal property that has become real property by having been permanently attached or adapted to real property is known as a...? AFixture BTrade fixture CChattel DEmblement

Fixture

Chattels

Goods or every species of property movable or immovable which are not real property.

Real Estate

Land and everything permanently attached to land.

The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...? Easements Surface rights Air rights Mineral rights

Mineral rights

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system is referred to as a...? Freight Chattel Mobile home Ranch-style home

Mobile home

Beneficiary

One entitled to the benefit of a trust.

Trustor

One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.

Trustee

One who holds property in trust for another to secure the performance of an obligation. Third party under a deed of trust.

Severalty Ownership

Owned by one person only. Sole ownership.

Tenancy by the Entirety

Ownership by married persons where each owns the entire estate with the survivor taking the whole estate upon the death of the other.

If the wheels remain on the mobile home then it becomes... Real Property Real Estate Personal Property

Personal Property (easily moved)

All property that is not considered to be real property is known as...? Real estate Personal property Land All of the above

Personal property

Fixtures

Personal property that has become real property by having been permanently attached or adapted to real property.

Community Property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse had equal rights of management, alienation, and testamentary disposition of community property.

Ownership in a cooperative consists of which of the following...? AProprietary lease BTitle CDeed DReal property

Proprietary lease

If the wheels are off the mobile home then it becomes... Real Property Real Estate Personal Property

Real Property (not easily moved)

Land and everything permanently attached to land is known as...? Real estate Real property Bundle of rights Chattels

Real estate

Real Property

Real estate plus the bundle of rights.

Real estate plus the bundle of rights is known as...? AReal property BChattels CLand DReal estate

Real property

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is referred to as the...? Right of possession Right of disposition Right of ownership Right of survivorship

Right of survivorship

Real property that is owned by only one person is referred to as...? Severalty ownership Tenancy in common Joint tenancy Community property

Severalty ownership

A condominium is considered real property...? T (True) F (False)

T (True)

An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners is considered...? Joint tenancy Severalty ownership Tenancy in common Tenancy by the entirety

Tenancy in common

Emblements

The crops and other annual plantings considered to be personal property of the cultivator.

Title

The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights.

Mineral Rights

The landowner's ability to take minerals from the earth or to sell or lease this right to others.

Land

The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

Right of Survivorship

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.

Air Rights

The rights in real property to the reasonable use of the air space above the surface of the land.

Bundle of Rights

The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.

The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights is known as...? Deed Chattels Title Bundle of rights

Title

Joint Tenancy

Two or more natural persons own that comes with a special benefit called the right of survivorship. Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

Characteristics of real property

economic and physical

Physical characteristics of real property

immobile, indestructible, unique

Trade Fixtures

items that are installed by a commercial tenant and are removable upon termination of the tenancy.

Economic characteristics of real property

safer, valuable, improvable, permanent investment, area of preference