Chapter 9 - Ownership of Real Property Flashcards

Chapter 9 - Ownership of Real Property Flashcards marital propertyproperty (real or personal) purchased or otherwise acquired during the marriage The Four Characteristics of Tenants in Common Tenants in common may take title at different times.Tenants in common may take title on separate deeds.Tenants in common may have unequal interests.Tenants in common have an undivided interest or equal right of possession (one unity) Non-marital property / separate property property that is not included in the marital estate and is thus not subject to division by the court in the event of a divorce. Instead, whichever party owns the non-marital asset will keep that asset after the divorce.Leasing the Entire PropertyIf the entire co-owned property is leased to a third party, then the cotenants have a right to a share of the rents in proportion to their ownership interests.This would not be true, however, if the cotenant "rents out" only that owner's "share" because the remaining cotenants would not have leased their portion of the concurrent ownership and those cotenants would not be entitled to a share of the rental payments.community property with right of survivorship combines the tax benefits of community property with the joint tenancy benefit of avoiding probate.Owning property as community property provides a stepped-up tax basis for both halves of the property upon the death of the first spouse.Owning property as joint tenants provides for the immediate and automatic transfer of title to the surviving spouse upon the death of the first spouse (no probate).This form of holding title combines the desirable tax features of community property with the right of survivorship of joint tenancy.management of the property relate to the rights of possession most rights and responsibilities of a joint tenancy are also the same as for a tenancy in common.intestate successionif there is no willprobate court distributes property according to the terms of the will Common elementsportions of a CID or condominium other than the units.AgreementA tenancy in common can be changed to another form of ownership, such as joint tenancy or tenancy by the entireties if all of the co-owners agree.Alternatively, they can decide to sell the property and distribute the proceeds according to the ownership interests.cooperativeholds title to all of the real property of the cooperative.Co-op owners do not have fee ownership in their unit and

do not receive a deed. Instead, they purchase stock in the corporation that owns the property. The shares of stock give the co-op owners the exclusive right to occupy a particular unit under a proprietary lease

Of the four types of co-ownership, which one does NOT allow the owner to will his or her interest?A joint tenancy interest can be sold but cannot be willed.Concurrent ownership, or co-ownershipa blanket term for the ownership of real property by more than one person who holds title jointly and severally.a fractional ownership interest that has several forms such as joint tenancy, tenancy in common, tenancy by the entireties, and community property What is the one unity of community property? Equal interest, with each spouse owning 50% Partnership propertywhether real or personal, is treated by the partners in a similar manner as other commonly owned property.This is because each partner has an equal right to the management and control of the business's daily affairs and each partner has an equal right of access to and use of the partnership property.Partnership property cannot be levied upon by a creditor of the individual partners for their private debts or liabilities.In a state that recognizes tenancy by the entirety, what is non-marital property?Non-marital property (sometimes called separate property) is property that is not included in the marital estate and is thus not subject to division by the court in the event of a divorce.Of the four types of co-ownership, which one allows unequal interests?Tenancy in common allows unequal interests. The others (joint tenancy, tenancy by the entireties, and community property) require equal interests.Ownershipthe basic element of real property. Owning real property is considered a basic right in our culture.What court proceeding is used to settle a dispute between co-owners (joint tenants or tenants in common) about dividing their interests in real property?Partition action Condominium owners acquire a 100% fee simple interest in the dwelling unit with a tenant in common interest in all common areas of the property. All of the following are

considered common areas, EXCEPT:

individual dwelling units.unity (equality)for tenants in common is the equal right of possession or undivided interest.Name property that is excluded from community property.Property owned by either party before marriageProperty acquired during marriage as a gift or an inheritanceIncome derived from separate property corporationa separate legal entity apart from the owners (shareholders) of the corporation. A corporation is viewed as a legal person (has rights) and not a natural person (has a body). A corporation is managed by a board of directors who can delegate management of the day-to-day affairs of the corporation to corporate officers.Corporation Rights and ObligationsThe ability to sue and be sued. An aggrieved person can use the courts to sue a corporation but rarely has the right

to sue an employee of the corporation.The right to a common treasury. The corporation can buy, sell, own, and hold assets.The right to hire agents. The corporation has the right to hire employees and others to represent the corporation.The right to a common seal. The corporation has the right to obligate the corporation through contracts.The right to make by-laws. The corporation has the right to govern itself as long as that power does not violate the law.The right to issue transferable shares. The corporation can sell ownership of the company by offering shares that can be bought and sold in the open market.The right to ensure perpetual succession. The corporation can continue with or without any of its shareholders or employees. However, if the corporation terminates its existence, the shareholders are the last to receive any benefits.The right to vote for shareholders. The shareholders have the right to vote on the corporation's operating staff. The elected corporate officers will manage the affairs of the corporation on a day-to-day basis.The right of limited liability for its shareholders. The corporation is held responsible for any liabilities of the corporation unless the ownership has committed fraud.