SECTION 3 CHAPTER 4: The Uniform Common Interest Ownership Act

To remove asbestos from a property you must:

Hire a licensed asbestos contractor

A ______ is an organization that consists of all the owners of a condominium, and manages the common areas through a board of directors elected by the members.

Homeowners association

Who elects the condominium homeowners association board of directors?

The owners

For condos, what areas are considered to be owned as tenants in common?

The parking area

what are limited equity co-ops?

These are often used by affordable housing developers. Limited equity co-ops allow members to own some equity in their home, but limit the sale price of their membership share to the amount which they bought in for. Provisions are often made for inflation, or improvements made on the building. The purpose of this arrangement is to prevent co-op members from using their share in the co-op to speculate on rising real estate prices. It also helps to keep the price of a membership share affordable to future members.

what is the Uniform Common Interest Ownership Act of June 1, 1994?

created to provide a model set of laws that govern condominium, cooperative, and planned unit development (PUD) communities in the United States.

The document that establishes the rules for condominium government or management is called the ______.

declaration of condominium

If you know the native language of your sellers who can't speak English, and they ask you to interpret the property disclosure form and fill it out for them as they talk, what should you do?

You should decline

What prescribes a type of building, location of utility lines, restrictions on accessory buildings or structures, and preservation of historical areas and buildings?

Zoning regulations

A legal mechanism for ownership where residents either own shares reflecting their equity in the cooperative's real estate, or have membership and occupancy rights in a not-for-profit organization, is called a

housing cooperative

A(n) ______ is a form of ownership in a multi-unit structure that conveys a fee simple estate as well as undivided interest in the common elements.

condominium

What is a homeowners association? HOA?

consisting of all the owners, manages the common areas. The homeowners usually work through a board of directors elected by the members.

A Common-Interest Development association's ______ (CC&Rs) are found in the condo docs.

covenants, conditions and restrictions

A condo is a common ______ property.

interest

what is a declaration of condominium?

rules for condominium government, or management. could also be called covenants, conditions, and restrictions (CC&Rs). rules for a condo are in the DOC

what are party walls?

or shared walls are key words for a town home.

When purchasing a condo, a buyer has ____ days to review the condo docs.

10

After apartment buildings convert to condos, tenants have ____ days to decide if they want to buy the unit they are living in.

60

Remember This

A condo owner can have a fee simple absolute freehold estate. A condo owner can grant a warranty deed. A condo is generally less expensive than a detached house.

What is a condominium?

A condominium provides individual ownership of separate units in a multi-unit structure, combined with joint ownership of the commonly used property (sidewalks, hallways, stairs, etc.) within the complex. It is a form of real estate ownership in which individual residents hold a deed and title to their houses or apartments. Condominium owners pay maintenance fees to a management company for the upkeep of their common property such as the grounds, lobbies, elevators, etc.

what are the types of manufactured homes?

A manufactured home is one type of factory-built prefab housing. Other types of factory-built housing include modular homes, panelized homes, mobile homes, and pre-cut homes. Factory-built houses usually cost much less than homes that are site-built.

As the listing agent, you notice a painted-over stain on the ceiling. The seller tells you that the roof was fixed and no longer leaks. The seller says you should not mention this to prospective buyers. What specifically is your obligation?

Advise the seller to include that information in the disclosure statement

Which is NOT a potential disclosure that Minnesota sellers are required to file?

Airport Corridor Disclosure Statement

You find a commercial property was the site of a gas station. Your buyer is interested in buying it, and converting the property into a restaurant. What kind of inspection should you advise the buyer to make the transaction contingent upon?

An environmental site assessment

When does the seller sign a property disclosure statement?

At the time of listing

When must the seller sign the Seller's Property Disclosure Statement?

Before signing the purchase agreement

What is a form of ownership in a multi-unit structure that conveys a fee simple estate as well as undivided interest in the common elements?

Condominium

what are the types or property within the Uniform Common Interest Ownership Act?

Condominiums Cooperatives Townhouses PUD's Manufactured Homes Timeshares

how can you finance condominiums, townhouses and PUD properties?

Condominiums, townhouses, and PUD properties can be financed with the same types of financing programs (i.e., FHA, VA, conventional, and insured conventional) that are used for single-family detached homes. Manufactured homes cannot.

True or False: The homeowners association is limited to all the members of the board of directors.

False (the homeowners association is all the owners in a condominium, they elect a board of directors)

Where are a Common-Interest Development (CID) association's covenants, conditions, and restrictions (CC&Rs) found?

In the condo docs

what are the three basic equity structures that housing cooperations come in?

Market-rate housing co-ops Limited equity co-ops Zero-equity or "Group Equity" co-ops.

what are market-rate housing co-ops?

Members can sell their shares in the co-op whenever they like for whatever price the market will bear, much like any other residential property. Market-rate co-ops are very common in New York City.

A condominium is a system of individual ownership of separate units in what kind of structure?

Multi-unit

Do residents of a co-op own real estate?

No, they own shares in an entity such as a corporation that owns the real estate. That is the key difference between a co-op and a condo. Co-op owners own shares, and condo owners own real estate.

What do the lead-based paint rules do?

Require disclosure

An action against a seller who did not disclose production of methamphetamine can be taken within what time frame?

Six years from the date of closing

When an apartment building converts to condos, how long do the tenants have to decide if they want to buy the unit they are living in?

Sixty days

True or False: CERCLA imposes strict joint and several liability, meaning that the government can go after any one of the parties involved in contaminating the land for the entire cost of cleanup.

TRUE

True or False: Condominium owners pay real estate taxes on their units.

TRUE

what are Zero-equity or "Group Equity" co-ops?

This form of housing co-op is advocated by the North American Students of Cooperation (NASCO). With this form of organization, individual members do not build up equity in the co-op, and the co-op is not owned by its members.

True or False: Only the seller should fill out the property disclosure form.

True

The ______ federal act created a model set of laws that govern condominium, cooperative, and planned unit development (PUD) communities in the United States.

Uniform Common Interest Ownership Act

An administrative exception to land use regulations which would prevent the property from complying with the zoning regulation is a(n):

Variance

Lien for assessments

When a condominium unit has an assessment levied against it, the association places a lien on that unit at the time the assessment becomes payable. The association's lien may be foreclosed on if allowed by state law.

what is a housing cooperative?

is also known simply as a cooperative or co-op. It is a legal mechanism for ownership where residents either own shares reflecting their equity in the cooperative's real estate, or have membership and occupancy rights in a not-for-profit cooperative. Members of a housing cooperative underwrite their property through paying subscriptions or rent.

what is a timeshare property?

is jointly owned or leased by multiple people who are allowed to use it only during specified periods each year. This arrangement is most commonly used for vacation property ownership.

what is a manufactured home?

is one that is constructed almost entirely in a factory. The house is placed on a steel chassis and transported to the building site. The wheels can be removed but the chassis stays in place. Manufactured homes can come in many different sizes and shapes. It may be a simple one-story "mobile home," or it can be so large and complex that you might not guess that it was constructed off- site.

A building with separate units, such as a condominium, is a(n) ______ structure.

multi-unit

what is a planned urban development?

or PUD, is a zoning class that allows for residential and commercial buildings. The PUD classification allows builders to develop residential, retail, and professional buildings into one community, so that residents can live, work, and play locally.

what is a town home?

or townhouse) is a dwelling unit with a private entrance, generally having two or more floors, and is attached to other similar units by common party walls. Town houses are often used in planned unit developments and condominium developments, which provide for clustered or attached housing and common open space. Town homes can be condominiums, co-ops, or rental properties.

A real estate investor who owns several apartment buildings will be likely to hire a(n) ______ skilled at maximizing cash flow versus spending money to maintain the property.

property manager

Minnesota-specific facts.

ten-day right of rescission period in order to close, the buyer may modify the right of rescission to no less than 3 days after receipt of all required documentation.

For condominiums, the parking area would be considered to be owned as ______.

tenants in common

Unlike with a condo, a(n) ______ includes the ownership of the ground beneath it.

townhome

True or False: A condo owner can have a fee simple absolute freehold estate.

true