Test Bank Answer Key
Chapter 2 Concurrent Ownership
TRUE/FALSE
1. A joint tenancy with the right of survivorship can be created by a deed or a will.
2. Joint tenancy with right of survivorship can be created only by a deed.
3. Each owner under a joint tenancy with right of survivorship owns an equal undivided interest in
the property.
4. The right of survivorship in a joint tenancy with right of survivorship provides that one owner’s
interest in the joint property can be willed or passed to his or her heirs at death.
5. The survivorship feature of a joint tenancy with right of survivorship can never be terminated
by the parties.
6. The survivorship feature of a joint tenancy with right of survivorship can be terminated
by the parties.
7. Tenancy in common can be created by deed or will.
8. Tenancy in common can be created by will only.
9. Tenancy in common does not have a right of survivorship.
10. It is mandatory that tenants in common have equal shares.
11. It is possible, in a tenancy in common, that the owners may hold unequal shares in the property.
12. An owner of a tenancy in common has a nonexclusive right to possess the common property.
13. A common owner is entitled to his or her fractional share of any rent or income produced from
the real property.
14. The obligation of a common owner to pay his or her share of the common expenses is known as
the right of contribution.
15. An owner of a tenancy in common cannot sell his interest in the property without the other
common owners’ consent.
16. An owner of a tenancy in common can sell or mortgage his interest in the common property
without the other common owners’ consent.
17. The debts of a single common owner will bind his or her interest in the property but will not
affect the common property.
18. The debts of a single common owner are unenforceable against the owner’s interest in the
common property.
19. The division of common property into separate ownerships is called contribution.
20. The division of common property into separate ownerships is called partition.
21. Partition must always be done by court action.
22. Partition may be by voluntary agreement or by court action.
23. A common owner can waive his or her right to partition.
24. A common owner cannot waive his or her right to partition.
25. Tenants by the entirety must always be married to each other.
26. It is not required that tenants by the entirety be married to each other.
27. When property is owned as tenants by the entirety, the death of one spouse will result in the
surviving spouse owning the property as a whole.
28. A spouse’s interest in a tenancy by the entirety property can be willed by the spouse.
29. A spouse’s interest in a tenancy by the entirety cannot be willed, but it can be inherited.
30. A majority of the states recognize community property.
31. Community property is found in only a few states.
32. All property owned by a husband and wife in a community property state is community
property.
33. Property owned by a spouse before marriage in a community property state is separate property.
34. Property owned by a spouse before marriage in a community property state becomes
community property at the time of marriage.
35. Property acquired by a spouse by gift in a community property state is community property.
36. All partners in a limited partnership have full liability for the debts and obligations of the
limited partnership.
37. A limited partner in a limited partnership, unlike a shareholder in a corporation, has full liability
for the debts and obligations of the limited partnership.
38. A limited partner in a limited partnership has limited liability for the debts and obligations of
the limited partnership similar to that of a shareholder in a corporation.
39. A general partnership must always have a formal written partnership agreement.
40. It is possible for persons to be general partners in a general partnership without a formal
partnership agreement.
41. At least one member of a limited liability company must have full liability for the debts and
obligations of the limited liability company.
42. Each member of a limited liability company is an agent of the company for purposes of its
business affairs.
43. Members of a limited liability company are not personally responsible for the debts or
obligations of the limited liability company.
44. A limited liability company can be formed without any type of formal agreement.
MULTIPLE CHOICE
1. Which of the following is not one of the unities required for a joint tenancy with right of
survivorship?
A. Contribution
B. Possession
C. Interest
D. Time
2. Aaron, Bob, and Carl, as joint tenants with right of survivorship, own 15 acres of land.
A purchaser wishes to purchase 5 acres of land. The purchaser will need a deed from
A. Aaron.
B. Bob and Carl.
C. Aaron and Bob.
D. Aaron, Bob, and Carl.
3. Aaron, Bob, and Carl own property as joint tenants with right of survivorship. During the
lifetime of all of them, Aaron sells his interest in the property to Donna. Bob then dies and
wills all of his property to Frank. Who are the owners of the property after Bob’s death?
A. Donna, Frank, and Carl
B. Aaron, Frank, and Carl
C. Donna and Carl
D. Carl
E. None of the above
4. A tenancy in common may be created by
A. grant.
B. devise.
C. descent.
D. lease.
E. all of the above.
5. The right of a common owner to be reimbursed from the other common owners for their share
of common expenses is called the right of
A. partition.
B. contribution.
C. survivorship.
D. dower.
6. The voluntary division of common property by the owners into separate ownerships is called
A. contribution.
B. survivorship.
C. partition.
D. common division.
7. Which of the following concurrent forms of ownership contains a right of survivorship?
A. Community property
B. Tenancy by the entirety
C. Dower
D. Tenancy in common
E. None of the above
8. Harry and Wilma own property as tenants by the entirety. Without Wilma’s consent, Harry
deeds his interest in the property to Frank. The owners of the property are
A. Frank and Wilma.
B. Harry and Wilma.
C. Wilma.
D. none of the above.
9. Which of the following would not be community property?
A. Property acquired by husband and wife during marriage
B. Property acquired by husband during marriage
C. Property received by wife through inheritance
D. None of the above
10. Which of the following are requirements for the creation of dower?
A. Valid marriage
B. Husband owns real property during marriage
C. Husband dies before the wife
D. All of the above
E. None of the above
11. Which of the following entities can be formed without a formal agreement?
A. Corporation
B. Limited partnership
C. General partnership
D. Limited liability company
12. Which of the following have full liability for the debts and obligations of the entity?
A. General partners of a limited partnership
B. Members of a limited liability company
C. Shareholders of a corporation
D. Limited partners of a limited partnership
SHORT ANSWER
1. Chris, Aaron, and Kyle own 20 acres of farmland as tenants in common. They would like to
have the property divided into separate ownerships. They have agreed upon how the property
should be divided. Can they do this? What is the process called, and what is the easiest way to
accomplish the division?
2. Mitzie and her sister Carol inherited their mother’s home as tenants in common. Mitzie has
been paying the full tax bills and insurance premiums on the home for several years. Mitzie
would like for Carol to reimburse her for Carol’s share of the bills. What is this right of
reimbursement? Briefly explain how it works.
3. Donna and David are considering marriage. It is the second marriage for both and each has
children and substantial property from the previous marriage. They would like to enter into an
agreement that would control the ownership and division of their property in the event of
divorce. What is this agreement called, and what would normally be covered in the agreement?