National Real Estate Exam: Tenancies Flashcards

National Real Estate Exam: Tenancies Flashcards

limited partnership,There is at least one general partner who manages the partnership and has personal liability for all partnership debts. Limited partners have liability for partnership debts limited to no more than the amount they have agreed to contribute to the partnership.In the event of the death or withdrawal of a general partner, the limited partnership may be dissolved or continued, based on the terms of the limited partnership agreement. Death of a limited partner has no effect on the limited partnership.tenancy in commontwo or more natural or legal persons hold an undivided interest in an estate that is passable to their heirs or devisees. This tenancy has no right of survivorship. Is free to sell, transfer, convey or encumber his interest without the consent of any other co-owners.trusteemay be a natural person or business firm. If there is one, he would hold title in severalty. If there is more than one, they could hold title as joint tenants. They manage the trust assets as authorized and limited by the terms of the trust document, as a fiduciary on behalf of a beneficiary.partnershipan association of two or more persons to operate as co-owners of a business for profit. It may be a general partnership or a limited partnership.unity of possessioneach co-owner has an equal right to occupy all or any part of the property.Partnership disadvantages- partnership interests are not easy to sell- a general partner has full and unlimited liability for partnership debts (whether the partnership is general or limited).- limited partners have no control over the management of the partnership.living trustIf created during the trustor's lifetime through a trust agreement

• unities of a Joint Tenancy1. Possession - have an equal right of possession2.

Interest - have an equal interest3. Time - acquire title at same time4. Title - acquire title in same deed or will Corporation Advantages- The corporation exists in perpetuity, forever. Death of officers, directors, and stockholders does not affect the corporation's ownership of the property.- The corporation has ways of raising money not available to individuals. In addition to obtaining loans from a lender, it can issue promissory notes and bonds, and issue and sell stock.- The stockholders have limited liability. They can only lose what

they have invested, no more.- Stockholders' shares of stock are usually more liquid than interests in other types of business organizations.Uniform Probate Codea surviving spouse is entitled to a certain share of the deceased spouse's estate, and that share is not merely a life estate interest.Advantages of a land trust- Nonresidents can avoid ancillary probate of their estates.- Partitioning may be prevented.- There is confidentiality of ownership (the true identity of the owners on public records

is avoided)- The owner of a beneficial interest may divide the property into smaller units and dispose of them over time.tenancy in severaltySeveralty ownership of real estate means sole ownership by one person. When someone owns property to the

exclusion of all other persons in severality.