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WorksheetsReal Estate Part 5
Total questions: 61
Worksheet time: 31mins
Should real estate licensees advise their clients what business form they should use?
Yes
No
A partnership is an agreement of
one person (severalty) conducting a business
two or more people to conduct a business
Title in real estate can be held in
the partners' names
the partnership's name
the husband's name
the CEO's name
What is the act that says the title to real estate can be held in either the partners' names or the partnership's name?
Uniform Partnership Act
Holdover Act
Joint Common Partnership Act
Homestead Act
Which partnership has a right to participate in the management of the partnership?
Limited Partnerships
Corporation
Joint ventures
General Partnerships
Which partnership has unlimited liability for all of the partnership debts?
General Partnership
Limited Partnership
S. Corporation
Syndication
In a general partnership, the creditors will take all of the assets of the partnership and can then pursue
personal assets of all partners
filing a claim to get the remaining balance
filing for bankruptcy
loss of wages
A limited partnership includes
one general partner and one or more limited partners
two general partners and 2 silent partners
a corporation with a Board of Trustees
several shareholders and an attorney
Fill in the blank: The limited partners ___ run the business and have ___ liability.
do not
limited
do
unlimited
A ___ is an artificial person created by a charter in the state where it files.
Corporation
General partnership
Partnership
Limited Partnership
The ___ is run by its board of directors and exists forever or until it is dissolved.
Corporation
Limited partnership
S Corporation
Limited Liability Company
Can a corporation be held in severalty?
Yes
No
Can a corporation hold title as a joint tenant?
Yes
No
Shareholders' liability is
unlimited to the amount of their investments
limited to the amount of their investments
Stock held by the shareholder is
personal property
property of the corporation
Continuity of Life
because a corporation is a person created by law, the death of its officers does not end the corporation
if the corporation loses money, the stockholders can lose only the amount of their investment (i.e., the amount they paid for the stock)
because title to the real estate is held by the corporation, stockholders only have to sell their shares of stock to liquidate their investment
because the corporation is a person, it must file an income tax return and pay tax on its profit
Limited liability
because a corporation is a person created by law, the death of its officers does not end the corporation
if the corporation loses money, the stockholders can lose only the amount of their investments
because title to the real estate is held by the corporation, stockholders only have to sell their shares of stock to liquidate their investment
because the corporation is a person, it msut file an income tax return and pay tax return and pay tax on its profits
Ease of transferring ownership
because a corporation is a person created by law, the death of its officers does not end the corporation
if the corporation loses money, the stockholders can lose only the amount of their investment
because title to the real estate is held by the corporation, stockholders only have to sell their shares of stock to liquidate their investment
because the corporation is a person, it must file an income tax return and pay tax on its profits
Double taxation
because the corporation is a person, it must file an income tax return and pay tax on its profits
because a corporation is a person created by law, the death of its officers does not end the corporation
if the corporation loses money, the stockholders can lose only the amount of their investment
because title to the real estate is held by the corporation, stockholders only have to sell their shares of stock to liquidate their investment
Inability to pass along losses
if a corporation suffers a loss, it may not pass the loss to the shareholders; thus the shareholders may not use the corporation's losses on their income tax returns to offset income from other sources
because the corporation is a person, it must file an income tax return and pay tax on its profits; it then distributes the remaining profits in the form of dividends to the shareholders.
An S Corporation combines the features of a
general corporation and a partnership
limited partnership and corporation
joint tenancy and corporation
general corporation and tenancy in common
Stockholders in an S corporation enjoy the __ but avoid the ___ of profits of a general corporation.
limited liability feature of limited partnerships and general corporations
double taxation
continuity of life
ease of transferring ownership
An LLC is best suited for
large corporations
a small, closely held business
a joint partnership between small companies
a new business that is small
in a syndication, who is the general managing partner?
the board
the investors
the syndicator
A joint venture is usually
intended to last a limited time, or until the project is finished
for 1 year
intended to last forever as it passes down to heirs of the corporation
dissolves after it makes a set amount of money
Investors hold shares
Corporation or S Corporation
General partnership
Limited liability Company
Syndication
Partners have unlimited liability
General Partnership
Limited Partnership
Syndication
Corporation or S Corporation
Owners are called members and have limited liability
Limited Liability Company
Syndication
Corporation
General Partnership
Most partners may not manage the business
Limited partnership
Syndication
S Corporation
General Partnership
Includes a managing partner and many investors, and usually takes the form of a limited partnership
Syndication
S Corporation
Corporation
Limited Partnership
Under the Uniform Partnership Act, title to real estate may be held by partnership.
True
False
Limited partnerships include both limited and general partners.
True
False
Corporations have limited life.
True
False
If a corporation suffers a loss, it may not pass the loss on to its shareholders.
True
False
A joint venture is usually intended for a limited time or until a project is finished.
True
False
Artificial person created by a charter
Limited partnership
Limited liability company
Corporation
Corporation
Includes partners liable only up to the amount of their investment
Limited partnership
Limited liability company
Joint venture
General partnership
Business ownership with attractive features of limited liability, reduced administrative overhead, and single taxation; owners called members
Limited liability company
Partnership
General partnership
S corporation
Form of ownership created for a single project
Joint venture
Partnership
S corporation
Corporation
Agreement by two or more people to conduct a business
Partnership
General partnership
Corporation
Limited partnership
Special form of corporation that combines the advantages of limited liability and single taxation
S corporation
Corporation
Limited liability company
General partnership
All partners can manage the business and have unlimited liability
General partnership
Partnership
Limited partnership
Limited liability company
Created by a legal instrument such as a trust agreement, will trust deed, deed in trust
Trust
Contract
Lease agreement
Party who transfers the property into the trust
Trustor
Trustee
Remainder Interest
Fiduciary
Party who hold legal title to the assets of the trust and manages the trust assets.
Trustor
Trustee
Fiduciary
Beneficiary
Party who benefits from the trust.
Trustor
Fiduciary
Trustee
Beneficiary
Which is NOT a goal of a living trust (inter vivos trust)?
Avoid the cost and delay associated with probate
provide for the automatic transfer of property when the owner dies
it allows the person to not allow creditors to take out liens on properties associated with the trust
provide for management of the property if the owner becomes mentally or physically incapacitated
Land Trust: who holds the title to the property in the trust?
Trustor
Trustee
Fiduciary
Beneficiary
Real property is transferred into the trust by a deed in trust.
True
False
How long is a trust usually for?
10 years
forever
25 years
20 years
What is used to deed out the trust
trustee's deed
trustor's deed
deed of benefits
deed of trust
What are reasons to form a land trust?
provides privacy
simplifies transferring ownership benefits
avoids transfer tax
protects from encumbrances
limits personal liability
A form of business organization created by Congress to encourage small investors to pool their money and participate in larger real estate projects.
Rest Estate Investment Trust
TTIP
Deed Trusts
Tenants formed a nonprofit corporation that purchased the building.
Cooperatives
Corporation
Tenants in Common
Joint Tenancy
A long-term lease right is a
Long-range lease right
Freehold lease
Lease agreement
Proprietary lease
The cooperative is governed by a
Shareholders
Leaseholder
Tenants
Board of Directors
For cooperatives, who holds title to the real estate
the shareholders
the board of directors
the corporation
the tenants who purchased the property
All occupants in a multi-unit building own separate property (the unite they live in) and a specified ownership share, as tenants in common, of the common elements.
Residential apartment
Cooperatives
Condominium
Corporation
What are common elements?
the street near the parking lot
areas common for children
include the roof, hallways, sidewalks, pool, yard, etc.
a specific apartment complex
Administers the property, maintains the common elements, and enforces the condominium bylaws.
TIPIC
TTIP
TIPP
HOA
Example of Covenants, conditions, and restrictions (CC&R)
restrictions to preserve the overall appearance of the building
repaving the driveway
repairing the roof
placing a lien on the property for loss of wages against the damages incurred
