STUVIA
Chapter 2 Continued
testamentary trust - These often contain terms by which assets are left to children at a
set time or life event, such as graduation, marriage, or 30th birthday. - ✔✔A trust
established by will or after the death of the trustor is a
living trust (or revocable trust) - ✔✔When a trust is established in the trustor's lifetime,
it is known as a
True - ✔✔True or false: In a land trust, the only asset is real estate. The beneficiary
directs control over the property and has the right to possess it and earn income from it
or proceeds from its sale.
False - ✔✔Colin is setting up a trust for his grandchildren. He is the trustor and his
grandchildren are trustees.
Harold - truster Jan - Trustee Mike - beneficiary - ✔✔Harold wants to help his
%
grandson, Mike, go to college. Harold transfers ownership of some rental property to
the boy's mother, Jan, with instructions to use the income from the property to pay for
Mike's tuition, room, and board. Select the matching pairs.
Jan, as trustee, holds the title to the property, although her power is limited by the
terms outlined in the trust. - ✔✔Trustor Harold makes daughter Jan the trustee of
some rental property for the benefit of grandson Mike. Who holds title to the property?
The land and improvements in a condominium or cooperative that all residents use and
own as tenants in common, such as the parking lot, hallways, and recreational
facilities. - ✔✔Common Areas
The document that must be filed in the public record when the property is developed
as, or converted to, a condominium. - ✔✔Condominium Declaration
,STUVIA
A type of property ownership under which residents have the right to occupy a unit by
purchasing stock shares in the corporation that owns the property. - ✔✔Cooperative
A unique deed held by a unit owner of a condominium that documents the ownership of
that specific unit. - ✔✔Unit Deed
also known as the developer, is the person, corporation, or other entity that is part of
the sale and development of condo property. Sponsors establish a condominium by
filing a condominium declaration. They also file bylaws and establish the CC&Rs for
the unit owners association. - ✔✔Sponsor
True - ✔✔True or false: A trustor may be an individual or a company. In a land trust,
the only asset is real estate.
False - Each condo co-owner has a separate interest in an individual unit and owns
common areas with other residents as tenants in common. - ✔✔True or false:
%
Common areas in a condominium are owned by all owner-residents as joint tenants.
the co-op board decides not to approve her application. A cooperative board can reject
an applicant for any reason unless the rejection is related to the applicant's
membership in a protected class. - ✔✔Julie is applying to live in Hoity Toity Tower.
Assuming no illegal discrimination, she could be rejected if
Cooperative - A cooperative sells shares in the co-op, which are personal property.
Oscar would have a proprietary lease, but he would not own real property. - ✔✔Oscar
is looking to buy a low maintenance residence. Which option will NOT give Oscar
ownership of real property?
People deeding property to someone cannot take a life estate for themselves. -
Grantors can become life tenants of the property they are deeding to someone else.
When this happens, the new owner will not have rights of possession until the grantor
dies. - ✔✔Which statement about a life estate is FALSE?
, STUVIA
joint tenancy - ✔✔Which type of co-ownership requires ONLY the unities of
possession, interest, time, and title?
fee simple defeasible - ✔✔Maria gives a four-acre parcel of land to her church with
the caveat that if the church ever puts a parking lot on it, Maria's heirs will regain title.
What kind of estate does the church have for this property?
A person transferring a fee simple interest can put no limitations on new owners. Even
when the current owner holds the property as fee simple absolute, he or she can put
limitations on the property that the new owner must follow. - ✔✔Which statement
about a fee simple absolute estate is FALSE?
Townhome. The common areas in a townhome in North Carolina are owned by the
HOA, compared to a condo development where the common area is owned by all of
the unit owners as tenants in common. - ✔✔Ann purchases a home in North Carolina
in which the homeowner's association owns the common area. Such an ownership is
%
best described as a
the surviving co-owners. - ✔✔Siblings Rita, Al, and Paul co-own a family restaurant as
joint tenants. If Paul dies without a will, his interest will pass to
joint tenancy. The right of survivorship is one of the distinguishing characteristics of
joint tenancy. As each successive joint tenant dies, the surviving joint tenants acquire
the interest of the deceased joint tenant. - ✔✔The term "right of survivorship" is
associated with a
Ned's heirs - A life estate pur autre vie is inheritable. Therefore, if life tenant Ned dies
before the measuring life, Olive, dies, the life estate goes to Ned's heirs. - ✔✔Mike
conveys a life estate to his youngest son Ned for as long as Mike's wife Olive shall live,
and then to his son Paul. Ned dies before Olive dies. Now who has the present interest
in the estate?
Chapter 2 Continued
testamentary trust - These often contain terms by which assets are left to children at a
set time or life event, such as graduation, marriage, or 30th birthday. - ✔✔A trust
established by will or after the death of the trustor is a
living trust (or revocable trust) - ✔✔When a trust is established in the trustor's lifetime,
it is known as a
True - ✔✔True or false: In a land trust, the only asset is real estate. The beneficiary
directs control over the property and has the right to possess it and earn income from it
or proceeds from its sale.
False - ✔✔Colin is setting up a trust for his grandchildren. He is the trustor and his
grandchildren are trustees.
Harold - truster Jan - Trustee Mike - beneficiary - ✔✔Harold wants to help his
%
grandson, Mike, go to college. Harold transfers ownership of some rental property to
the boy's mother, Jan, with instructions to use the income from the property to pay for
Mike's tuition, room, and board. Select the matching pairs.
Jan, as trustee, holds the title to the property, although her power is limited by the
terms outlined in the trust. - ✔✔Trustor Harold makes daughter Jan the trustee of
some rental property for the benefit of grandson Mike. Who holds title to the property?
The land and improvements in a condominium or cooperative that all residents use and
own as tenants in common, such as the parking lot, hallways, and recreational
facilities. - ✔✔Common Areas
The document that must be filed in the public record when the property is developed
as, or converted to, a condominium. - ✔✔Condominium Declaration
,STUVIA
A type of property ownership under which residents have the right to occupy a unit by
purchasing stock shares in the corporation that owns the property. - ✔✔Cooperative
A unique deed held by a unit owner of a condominium that documents the ownership of
that specific unit. - ✔✔Unit Deed
also known as the developer, is the person, corporation, or other entity that is part of
the sale and development of condo property. Sponsors establish a condominium by
filing a condominium declaration. They also file bylaws and establish the CC&Rs for
the unit owners association. - ✔✔Sponsor
True - ✔✔True or false: A trustor may be an individual or a company. In a land trust,
the only asset is real estate.
False - Each condo co-owner has a separate interest in an individual unit and owns
common areas with other residents as tenants in common. - ✔✔True or false:
%
Common areas in a condominium are owned by all owner-residents as joint tenants.
the co-op board decides not to approve her application. A cooperative board can reject
an applicant for any reason unless the rejection is related to the applicant's
membership in a protected class. - ✔✔Julie is applying to live in Hoity Toity Tower.
Assuming no illegal discrimination, she could be rejected if
Cooperative - A cooperative sells shares in the co-op, which are personal property.
Oscar would have a proprietary lease, but he would not own real property. - ✔✔Oscar
is looking to buy a low maintenance residence. Which option will NOT give Oscar
ownership of real property?
People deeding property to someone cannot take a life estate for themselves. -
Grantors can become life tenants of the property they are deeding to someone else.
When this happens, the new owner will not have rights of possession until the grantor
dies. - ✔✔Which statement about a life estate is FALSE?
, STUVIA
joint tenancy - ✔✔Which type of co-ownership requires ONLY the unities of
possession, interest, time, and title?
fee simple defeasible - ✔✔Maria gives a four-acre parcel of land to her church with
the caveat that if the church ever puts a parking lot on it, Maria's heirs will regain title.
What kind of estate does the church have for this property?
A person transferring a fee simple interest can put no limitations on new owners. Even
when the current owner holds the property as fee simple absolute, he or she can put
limitations on the property that the new owner must follow. - ✔✔Which statement
about a fee simple absolute estate is FALSE?
Townhome. The common areas in a townhome in North Carolina are owned by the
HOA, compared to a condo development where the common area is owned by all of
the unit owners as tenants in common. - ✔✔Ann purchases a home in North Carolina
in which the homeowner's association owns the common area. Such an ownership is
%
best described as a
the surviving co-owners. - ✔✔Siblings Rita, Al, and Paul co-own a family restaurant as
joint tenants. If Paul dies without a will, his interest will pass to
joint tenancy. The right of survivorship is one of the distinguishing characteristics of
joint tenancy. As each successive joint tenant dies, the surviving joint tenants acquire
the interest of the deceased joint tenant. - ✔✔The term "right of survivorship" is
associated with a
Ned's heirs - A life estate pur autre vie is inheritable. Therefore, if life tenant Ned dies
before the measuring life, Olive, dies, the life estate goes to Ned's heirs. - ✔✔Mike
conveys a life estate to his youngest son Ned for as long as Mike's wife Olive shall live,
and then to his son Paul. Ned dies before Olive dies. Now who has the present interest
in the estate?
