In California, a corporation purchases an office building. When deciding the form of ownership, which statement is MOST accurate about how a corporation holds real property?
Correct Answer
A) The corporation holds property in severalty — as a single legal entity separate from its shareholders
A corporation in California is a separate legal entity that can hold property in severalty (sole ownership). The corporation itself is the owner, separate and distinct from its shareholders, officers, and directors. The shareholders own shares in the corporation, not direct interests in the corporation's real property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A nonconforming use is a property use that was legally established before a zoning change but no longer complies with the current zoning ordinance. It is commonly called a "grandfathered" use.
A planned unit development (PUD) is a zoning classification that allows mixed land uses (residential, commercial, recreational) within a single development with flexible zoning standards. Homeowners typically own their lot and share common areas.
Police power is the government's authority to enact laws and regulations to protect the public health, safety, morals, and general welfare. It is the broadest power government has over private property.
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