Tennessee National Portion REAL ESTATE EXAM QUESTIONS AND ANSWERS

A corporation is a legal entity that can buy and sell real estate as set out in its charter. Ownership in severalty is property owned by one individual or corporation. A house is owned by three joint tenants, and one of the owners, as permitted by state law, sells that interest to a new owner. The result is a tenancy in common between the new owner and the remaining joint tenants The owner of a condominium unit learns that a neighbor has failed to pay real estate taxes. If this neighbor does not pay the taxes, a lien can be filed against the neighbor's unit and percentage of the common elements. Real properties owned by public entities, such as cities, counties, states, and public agencies are generally owned in severalty The partition of property that is owned concurrently can be accomplished by court action A fee simple estate may be held in three basic ways Eight heirs are now the owners of a farm as tenants in common. This means that use of the property can be determined by agreement of all the owners. When parties own property as tenants in common, each owner has equal rights of possession with the other owners. A person who owns one unit in a multiunit structure together with a specified undivided interest in the common elements owns a condominium A trust is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party. Joint tenancy is a form of concurrent ownership of property that is available to two or more people, whether married or unmarried. Property owned by a married person can belong to the spouses together or be the separate property of one spouse. An ownership interest that is based on annual occupancy intervals is a time share. Depending on the type of trust and its purpose, the trustor, trustee, and beneficiary can all be either people or legal entities. A deed conveying land on a one-third and two-thirds share basis establishes a tenancy in common An advantage of cooperative ownership of a dwelling is that there are income tax advantages. The term severalty comes from the fact that a sole owner is severed or cut off from other owners. Which of the following is NOT a form of co-ownership? Ownership in severalty If a shareholder in a cooperative defaults in maintenance payments, the burden of the default falls on the remaining shareholders. Once a property is established as a condominium, each unit becomes a separate parcel of real estate that is owned in fee simple and may be held by one or more persons in any type of ownership or tenancy recognized by state law. Three people are joint tenants with rights of survivorship in a tract of land. One owner conveys his interest to a friend. Which statement is TRUE? The other two owners remain joint tenants. The forms of property ownership are controlled by the state An ownership interest that can be an estate interest or a right of use is a time share. One of the distinguishing characteristics of a land trust is that public records usually do not name the beneficiary The real property interest that takes the form of personal property is the cooperative unit ownership. Three women were concurrent owners of a parcel of real estate. When one of the women died, her interest, according to her will, became part of the estate. The deceased was a tenant in common