California Real Estate Practice Exam

A real estate syndicate ownership may take the form of:

1. Corporation

2. Limited partnership

3. Real estate investment trust

4. All of the above

The correct answer is: Corporation

A real estate syndicate is an arrangement where multiple investors pool their resources to purchase and manage property, often enabling them to invest in larger assets than they could individually. The ownership structure of a real estate syndicate can take various forms, and each option mentioned represents a legitimate way to structure such an investment. A corporation is one of the potential structures for a syndicate. In this arrangement, the syndicate can operate as its own legal entity, which can limit the liability of its shareholders while allowing for easier transfer of ownership interests. A limited partnership is another common structure specifically designed for pooling resources. In a limited partnership, there are general partners who manage the investment and limited partners who contribute capital but do not partake in day-to-day management, thus limiting their liability. A real estate investment trust (REIT) is yet another viable structure, allowing the syndicate to operate under specific regulations that enable it to function like a corporation, while focusing primarily on real estate investments. This structure provides tax advantages as well. Given that a real estate syndicate can be organized as a corporation, a limited partnership, or a real estate investment trust, the most comprehensive answer includes all of these forms of ownership. Therefore, the response indicating only the corporation fails to