Humber Real Estate - Course 1, Module
3 Exam Questions and Answers
Define 'Estate' - answer-An interest in land that contains various rights associated
with ownership or tenancy.
What are the 2 most common types of estates? - answer-Fee simple & leasehold.
What type of rights would be required to build a bridge, railroad or skyscraper? -
answer-Air rights
What type of rights would be required to build on a parcel of land? - answer-Surface
(or ground level) rights
What type of rights manage the property owner's access to and use water, and are
often encountered in the listing and selling of recreational properties? - answer-
Riparian rights
What type of rights would be required before removing gas, gold, oil, silver or
precious metals from the ground? - answer-Mineral rights
What are the 2 types of concurrent ownership? - answer-- Joint tenancy
- Tenancy in common
What is the primary difference between joint tenancy and tenants in common? -
answer-Survivorship
A man buys a home with his new spouse, but upon his death he wants the estate to
be passed down to his adult daughter from a previous marriage, not his new spouse.
What type of concurrent ownership should the couple choose? - answer-Tenants In
Common
Two women invest in a two-storey house to use as an investment property before
they are in a car accident together. One woman dies and the house is passed
directly to the surviving woman. What type of concurrent ownership did the partners
have? - answer-Joint Tenancy
What are the 4 required unities for joint tenancy? - answer-Title, Time, Possession,
Interest
What is the definition of a standard condominium? - answer-A fee simple ownership
of the unit and a tenant in common ownership of the portion used jointly with others
known as the common elements (hallways, elevators, playgrounds, lobby, etc.)
What is the definition of a common elements condominium? - answer-An ownership
where there are no units, rather owners enjoy the common elements and pay a
maintenance fee for the repair, maintenance and replacement of any common
, element. Each owner has an ownership interest in their own property and an
undivided interest in the common elements. The owner's property is known as a
"Parcel of Tied Land."
What is a co-operative? - answer-A join ownership alternative in which a property is
owned by a corporation, and members have an agreement to occupy a specific unit.
What types of co-operatives exist? - answer-- Equity co-operative
- Non-profit co-operative
What is the definition of an 'Equity Co-Operative?' - answer-A corporation that owns
the land and buildings with members as shareholders in the corporation. Ownership
is by way of a share certificate in combination with an occupancy agreement relating
to a specific unit, usually accompanied by parking and locker.
What is the primary way a co-operative is different than a condominium? - answer-
Owners hold shares in a corporation which owns the building vs. owning a title for a
specific unit in the building only.
What is the primary purpose for a non-profit co-operative? - answer-To provide
housing for its members, who no ownership interest and simply pay rent to the
corporation owner.
What is the definition of 'Fractional Ownership?' - answer-Shared ownership by
multiple individuals to partially own a valuable asset as tenants in common with
usage rights allocated depending on the size of the fraction purchased.
What is 'Co-Ownership?' - answer-Any situation in which 2 or more people own a
property jointly (tenant in common ownership). The deed outlines the proportionate
interest held by each owner and it doesn't have to be equally divided.
What is a 'Land Lease?' - answer-The exclusive right to use the land for a specified
amount of time, and can be granted by private sources and by the Crown (i.e.
Toronto Island)
What is a 'Life Lease?' - answer-Not ownership of a property but an "interest" in that
property in exchange for a lump sum payment up-front. Also required are monthly
maintenance fees (snow removal, landscaping, etc.) Included is the right to live in a
unit rather than own it. This type of lease typically lasts until the end of the lease
holder's life, or until they move.
What is the definition of a 'Timeshare?' - answer-The division of property rights into
fractional interests based on time.
What categories do timeshares generally fall under? - answer-- Fee Ownership
Interest
- Right to Use Interest
How does fee ownership interest work in a timeshare? - answer-A buyer purchases
an actual deed interest in the property for a specific period of time each year.
3 Exam Questions and Answers
Define 'Estate' - answer-An interest in land that contains various rights associated
with ownership or tenancy.
What are the 2 most common types of estates? - answer-Fee simple & leasehold.
What type of rights would be required to build a bridge, railroad or skyscraper? -
answer-Air rights
What type of rights would be required to build on a parcel of land? - answer-Surface
(or ground level) rights
What type of rights manage the property owner's access to and use water, and are
often encountered in the listing and selling of recreational properties? - answer-
Riparian rights
What type of rights would be required before removing gas, gold, oil, silver or
precious metals from the ground? - answer-Mineral rights
What are the 2 types of concurrent ownership? - answer-- Joint tenancy
- Tenancy in common
What is the primary difference between joint tenancy and tenants in common? -
answer-Survivorship
A man buys a home with his new spouse, but upon his death he wants the estate to
be passed down to his adult daughter from a previous marriage, not his new spouse.
What type of concurrent ownership should the couple choose? - answer-Tenants In
Common
Two women invest in a two-storey house to use as an investment property before
they are in a car accident together. One woman dies and the house is passed
directly to the surviving woman. What type of concurrent ownership did the partners
have? - answer-Joint Tenancy
What are the 4 required unities for joint tenancy? - answer-Title, Time, Possession,
Interest
What is the definition of a standard condominium? - answer-A fee simple ownership
of the unit and a tenant in common ownership of the portion used jointly with others
known as the common elements (hallways, elevators, playgrounds, lobby, etc.)
What is the definition of a common elements condominium? - answer-An ownership
where there are no units, rather owners enjoy the common elements and pay a
maintenance fee for the repair, maintenance and replacement of any common
, element. Each owner has an ownership interest in their own property and an
undivided interest in the common elements. The owner's property is known as a
"Parcel of Tied Land."
What is a co-operative? - answer-A join ownership alternative in which a property is
owned by a corporation, and members have an agreement to occupy a specific unit.
What types of co-operatives exist? - answer-- Equity co-operative
- Non-profit co-operative
What is the definition of an 'Equity Co-Operative?' - answer-A corporation that owns
the land and buildings with members as shareholders in the corporation. Ownership
is by way of a share certificate in combination with an occupancy agreement relating
to a specific unit, usually accompanied by parking and locker.
What is the primary way a co-operative is different than a condominium? - answer-
Owners hold shares in a corporation which owns the building vs. owning a title for a
specific unit in the building only.
What is the primary purpose for a non-profit co-operative? - answer-To provide
housing for its members, who no ownership interest and simply pay rent to the
corporation owner.
What is the definition of 'Fractional Ownership?' - answer-Shared ownership by
multiple individuals to partially own a valuable asset as tenants in common with
usage rights allocated depending on the size of the fraction purchased.
What is 'Co-Ownership?' - answer-Any situation in which 2 or more people own a
property jointly (tenant in common ownership). The deed outlines the proportionate
interest held by each owner and it doesn't have to be equally divided.
What is a 'Land Lease?' - answer-The exclusive right to use the land for a specified
amount of time, and can be granted by private sources and by the Crown (i.e.
Toronto Island)
What is a 'Life Lease?' - answer-Not ownership of a property but an "interest" in that
property in exchange for a lump sum payment up-front. Also required are monthly
maintenance fees (snow removal, landscaping, etc.) Included is the right to live in a
unit rather than own it. This type of lease typically lasts until the end of the lease
holder's life, or until they move.
What is the definition of a 'Timeshare?' - answer-The division of property rights into
fractional interests based on time.
What categories do timeshares generally fall under? - answer-- Fee Ownership
Interest
- Right to Use Interest
How does fee ownership interest work in a timeshare? - answer-A buyer purchases
an actual deed interest in the property for a specific period of time each year.
