Real Estate Fundamentals - Chapter 8: Ownership

Co-ownership refers to a situation where two or more individuals jointly own a property. This means that the ownership rights and responsibilities are shared among the co-owners. In the context of real property, such as land or buildings, co-ownership allows multiple individuals to have a legal claim and control over the property. Therefore, the statement that the second type of ownership is co-ownership is true.

A time share ownership refers to the purchase of a specific amount of time each year in a vacation resort or condominium building. This means that the consumer has the right to use the property for a certain period annually, typically for one or two weeks. Therefore, the statement "When a consumer purchases a one or two week amount of time each year in a vacation resort or condominium building it is known as a 'time share ownership'" is true.

Ownership of Severalty IS the most basic form of ownership, however, it refers to a title held by ONE PERSON or LEGAL ENTITY such as a corporation.

This occurs in a co-ownership.

The type of co-ownership that is reserved exclusively for husband and wife is called "Tenancy by the Entirety".

The explanation for the correct answer is that in a condominium, the common areas of the building are owned collectively by the individual condominium owners. These common areas include the lobby, elevators, hallways, and grounds. The owners have shared ownership of these areas as "tenants in common," meaning they each have an undivided interest in the property. Therefore, the statement is true.

In Pennsylvania, "severalty" refers to real property ownership by a corporation. This means that the property is owned solely by the corporation, without any co-owners or joint ownership. The statement is true because it accurately describes the legal concept of property ownership in Pennsylvania.

A real estate agent is not qualified to give legal advice, regardless of whether the question has been ruled on previously by the courts or not. Legal advice should be sought from a qualified attorney who is trained in the law and can provide accurate and reliable information. Therefore, the statement is false.

When ownership is held as tenancy in common, each co-owner has an undivided, fractional interest in the property. This means that each co-owner has a share of the property, but the property itself is not physically divided among them. Instead, each co-owner has the right to use and enjoy the entire property. Therefore, the statement is true.

Upon divorce, ownership in real property would convert to a "Tenancy in Common" where each person holds fractional interest in severalty. The severalty interest means that each co-owner has the basic rights of ownership to sell, mortgage, etc. his fractional ownership separately from the other co-owners.

When there is a death of an owner in a Joint Tenancy, the ownership interest passes to the other owners, which is known as the "right of survivorship".

Automatic right of survivorship also applies in a Tenancy by the Entirety - which is exclusively for husband/wife.

The originator of a trust is called a Trustor.

It is referred to as the "Declaration". A Declaration is the Master Deed of the Condominium.

In the "right of survivorship," when one of the co-owner's dies, the fractional ownership interest would not pass according to the wording of the will. Instead, it would automatically transfer to the surviving co-owner(s) without the need for probate or the involvement of the deceased co-owner's will. This is a characteristic of joint tenancy or tenancy by the entirety, where the surviving co-owner(s) inherit the deceased co-owner's share by operation of law.

A trust created during the owner's lifetime is called a living trust.