Deck 4: Forms of Real Estate Ownership

Question 1

If you die without a legal will and you have heirs, those heirs receive your property through title by descent.

Answer 1

True

Question 2

A person may execute a deed that conveys title to a child that he or she hopes to have sometime in the future.

Answer 2

False

Question 3

Which of the following are considered legal entities?

A) Corporations
B) Partnerships
C) Individuals
D) All of the above

Answer 3

All of the above

Question 4

In a real estate transaction, the grantor is:

A) the lender.
B) the person receiving title.
C) the person conveying title.
D) the escrow agent.

Question 5

Involuntary conveyances may occur through:

A) divorce.
B) adverse possession.
C) condemnation.
D) all of above.

Question 6

A deed is a document that serves which purpose?

A) It is the title itself to a piece of property.
B) It is evidence that someone owns real property and is used to transfer title.
C) It is required for every involuntary conveyance.
D) It is not necessary in a voluntary conveyance.

Question 7

In which type of deed does the grantor warrant that he or she has unencumbered, valid title and that he or she will pay to defend the grantee's title if it is challenged?

A) Quitclaim deed
B) Special warranty deed
C) Bargain and sale deed
D) General warranty deed

Question 8

A buyer takes his deed to the county courthouse and has it recorded. Later, the original deed is lost in a house fire. The buyer:

A) is in deep trouble since his title was destroyed.
B) is in deep trouble because only the original document is valid.
C) is fine, since the deed was just evidence of title and he can get a copy at the courthouse.
D) is fine if he can find the seller and get him to execute another deed.

Question 9

More than half the people in America die without a will or with a defective will. When you die without a valid will, you are said to have died:

A) intestate.
B) testate.
C) inter vivos.
D) in trust.

Question 10

Ownership that is held by one person only is called:

A) joint tenancy.
B) tenancy in common.
C) tenancy by the entireties.
D) ownership in severalty.

Question 11

In joint tenancies, the unity of title means:

A) all owners must get their title from the same grantor.
B) all owners must take title at the same time.
C) all owners must have an equal interest.
D) all owners have an equal right to the entire property.

Question 12

One of the main differences between joint tenancy and tenancy in common is:

A) tenancy in common has a right of survivorship.
B) joint tenancy has a right of survivorship.
C) owners in a tenancy in common must own equal shares.
D) there is no real difference between joint tenancy and tenancy in common.

Question 13

In a trust, the person who creates the trust and transfers title is called:

A) the trustor.
B) the trustee.
C) the grantee.
D) the beneficiary.

Question 14

In a real estate investment trust (REIT), the investors:

A) own the real estate in the trust.
B) own shares in the REIT, which is the entity that actually owns the real estate.
C) may sell their interest in a particular piece of property.
D) may mortgage the property held by the REIT.

Question 15

In non-recourse financing, the lender will look to which of the following for repayment of the debt?

A) Each of the investors
B) Limited partners only
C) General partners
D) Only to the collateral pledged against the debt

Question 16

Name four of the six essential elements of a valid deed.

Question 17

If you live in a state that does not require deeds to be filed, should you file your deed anyway? Why or why not?

Question 18

Name the main way that general partnerships and limited partnerships are different.

Question 19

What is a sub-chapter S corporation?

Question 20

Why is a limited liability company (LLC) a cross between a corporation and a partnership?

Question 21

If you are purchasing a piece of property, which type of deed would you want? Discuss why you would want this deed by comparing it to the other types of deeds.

Question 22

Discuss the differences between condominiums, cooperatives, and timeshares.