Unit 7 Key Terms

Flashcards covering real estate ownership structures, legal entities, and NJ-specific property defaults as discussed in the lecture.

Corporation

A legal entity considered to be an artificial person.

Devisee

A person named in a will to inherit real estate.

General partnership

A group where each partner is completely liable.

Joint tenancy

Ownership by nonmarried persons with the right of survivorship; interest cannot be devised.

Limited partnership

A group where only the general partner is fully liable while others contribute without daily involvement.

Partition

A court-ordered sale and division of property, often used as a remedy for nonoccupant owners.

Partnership

Co-owners joined together to carry on a business.

Right of survivorship

The process by which a co-owner automatically receives the share of a co-owner who dies.

Sole proprietorship

A business owned by only one person or entity.

Tenancy by the entirety

Special ownership by a married couple; created by default in New Jersey for married couples and terminated by divorce.

Tenancy in common

The default form of ownership for unmarried persons not in a civil union; upon death, shares pass to heirs or designated parties.

Tenancy in severalty

Real estate ownership by only one person.

Title

Ownership.

Board of directors

A group elected to manage a cooperative, with the power to approve or disapprove potential buyers.

Common elements

Areas such as stairwells and roofs that are owned by all owners within a condominium.

Condominium

Fee simple ownership of a living unit plus a percentage of common elements, governed by the Horizontal Properties Act.

Conversion

The process of changing an apartment house into condominiums.

Cooperative

An apartment building where the buyer receives stock in a corporation and a proprietary lease rather than a deed.

Homeowners' association

The collective of all owners in one condominium complex that enforces CC&Rs.

Horizontal Properties Act

The law that regulates the creation of condominiums.

Proprietary lease

A co-op owner's right to a specific apartment.

Reserves (co-ownership)

Money set aside for future major repairs.

Time-sharing

Ownership of a property for a specific part of a year.

Town house

An architectural term rather than a specific legal form of ownership.

Cooperative Stock

Considered personal property belonging to the owner of a cooperative apartment.

Time-share Cancellation Period

Allows a buyer to cancel a contract up to $7$ days prior to closing.