Chapter 2 - Estates in Real Property and Forms of Ownership Flashcards Preview

Real Estate Principles - CA > Chapter 2 - Estates in Real Property and Forms of Ownership > Flashcards

Flashcards in Chapter 2 - Estates in Real Property and Forms of Ownership Deck (20)
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1

In California, condominium projects are generally regulated as:

subdivisions

2

Ownership in severalty occurs when:

the property is owned by only one person

3

which of the following statement(s) are true regarding cooperatives? (check all that apply)

  • - if one tenant in a cooperative defaults on his/her share of the mortgage payment, the remaining tenants must cure the default.
  • - a corporation owns the whole project and the persons who occupy the individual units are shareholders with a tenancy right to a particular unit under a proprietary lease.
  • - units are individually owned and a corporation owns the common elements.

  • - if one tenant in a cooperative defaults on his/her share of the mortgage payment, the remaining tenants must cure the default.
  • - a corporation owns the whole project and the persons who occupy the individual units are shareholders with a tenancy right to a particular unit under a proprietary lease.

4

Condominium ownership means that an owner:

owns the space within his/her unit and owns the surrounding common areas as a tenant in common with the other unit owners.

5

Which of the following statements concerning a life estate is false?

  • -a life tenant may encumber the property of the life estate
  • - the duration of a life estate is always the governing lifetime of the life tenant.
  • - a life estate can be sold, gifted, or traded to another by the life tenant.
  • -all conveyances of a life estate must be in writing

- the duration of a life estate is always the governing lifetime of the life tenant

6

Reversion, as applied to life estates, means the property:

returns to the grantor

7

The highest and most complete form of ownership estate in land is called:

fee simple absolute estate

8

A leasehold estate for a fixed term is an:

estate for years

9

All of the following statements are true regarding condominiums, except:

  • - a lien can attach to a separate unit
  • - each unit owner obtains separate financing to buy his/her unit -
  • the sale of a unit does not generally require the approval of other unit owners.
  • - the seller's interest in common elements will be sold separately form the unit

- the seller's interest in common elements will be sold separately from the unit

10

a deed in which the grantor states, "to Paul Grey for his life, and then to Sean Casey" creates what type of interest for Sean Casey?

an estate in remainder

11

an ownership interest in real property that has an indefinite (indeterminable) duration is known as a:

fee simple absolute

12

An estate that can be voluntarily transferred by a will is a:

fee simple estate

13

which one of the following is not a characteristic of a fee simple estate?

  • -it can be inherited
  • -it can be transferred
  • -it is of an indefinite duration
  • -it is free of all encumbrances

- it is free of all encumbrances IS NOT A CHARACTERISTIC

14

The type of concurrent ownership that requires unity of interest, unity of title, unity of time, and unity of possession that includes the right of survivorship is known as:

joint tenancy

15

In California unless otherwise provided for, married couples will take title to real property as:

community property

16

When an apartment building is converted to a condominium, which of the following is true?

  • -each apartment tenant must be given 90 days notice that the building is to be converted.
  • -no notice is necessary as long as each teat is given the first right of refusal to purchase their unit at a discounted price
  • -each apartment tenant must be given 180 days notice of the conversion
  • -each apartment tenant must be given 120 days notice of the conversion

-each apartment tenant must be given 180 days notice of the conversion is TRUE

17

A Real Estate Investment Trust (REIT):

  • -avoids double taxation as long as at least 90% of its income is distributed to the shareholders who pay tax on the income
  • -involves one or more trustees who manage property for others, who are called beneficiaries
  • -is an unincorporated syndicate to finance large real estate projects
  • -ALL OF THE ABOVE

-ALL OF THE ABOVE"

  • -avoids double taxation as long as at least 90% of its income is distributed to the shareholders who pay tax on the income
  • -involves one or more trustees who manage property for others, who are called beneficiaries
  • -is an unincorporated syndicate to finance large real estate projects

18

the most basic form of concurrent ownership for unmarried persons recognized in California is:

tenancy in common

19

Which statement about a corporation is FALSE?

  • -shareholders in a corporation are personally liable for corporate debt
  • -the shares of stock issued to the owners of a corporation are securities that are regulated by the federal government,
  • - a corporation is an artificial person
  • -a corporation formed under the laws of California is known as a domestic corporation

-shareholders in a corporation are personally liable for corporate debt IS FALSE

20

a type of partnership created for a single transaction or series of transactions is known as a:

joint venture