Real estate chapter 23

The owners' association of a condominium meets yearly and makes such changes in the operation of the common elements as is deemed best for all owners. It can change or amend all of the following EXCEPT a. deeds to owners' units. b. fire insurance carrier. c. bylaws. d. restriction against rental of units.

- fire insurance carrier. - bylaws. - restriction against rental of units.

A condominium owner can obtain all of the following

-title insurance on his nit. - a separate mortgage. - joint tenancy ownership of his unit.

In a condominium, which of the following would be limited common elements? a. Assigned parking spaces b. Landscaped areas c. Unit of the caretaker d. Airspace in each unit

A

Individual ownerships of separate portions of a building plus joint ownership of the common elements is characteristic of a a. condominium. b. cooperative. c. co-op. d. PUD.

A

Regarding ownership of condominiums, a. owners hold fee simple title to airspace within their units. b. owners register with the Federal Securities and Exchange Commission. c. purchasers own the airspace above their units. d. there is the right of survivorship.

A

The rules by which an owner's association operates are known as a. bylaws. b. covenants, conditions, and restrictions. c. house rules. d. ordinances.

A

A corporation that owns or leases the land and building and, in turn, leases space to its shareholders is characteristic of a a. condominium. b. cooperative. c. joint venture. d. time share.

B

A timeshare offering typically includes a. no guarantee that the resort rental will be available for a long period such as 20 to 40 years. b. a long-term lease allowing use for one week each year with the rent paid in advance. c. a cooperative corporation selling shares of stock and proprietary leaseholds. d. a qualified fee estate for one or more weeks per year conveyed by deed.

B

If you are an owner of a unit in a co-op apartment, your interest would be a. a tenancy at will. b. a proprietary lease. c. fee simple. d. a stock-option.

B

Ownership of the common elements by an owners' association is typical of which kind of development? a. Condominium b. Planned unit development c. Cooperatives d. REIT's

B

Restrictions on the type and color of drapes, that are visible to the outside, which a condominium owner can use in his unit, would be found in the a. master deed. b. CC&Rs. c. bylaws. d. house rules.

B

State laws that provide the legal framework for condominium ownership may be identified by any of the following terms EXCEPT a. strata titles act. b. cooperative housing act. c. condominium act. d. horizontal property act.

B

The governing body of a cooperative is called a a. cooperation. b. board of directors. c. cooperator. d. cooperative commission.

B

The sale of a timeshare is regulated in a growing number of states. These regulations typically include requiring that a. a timeshare developer and his staff must have a broker's license. b. there is a "cooling off" period before sales are final. c. timeshares to be conveyed by deed. d. developers purchase a bond to insure against a loss in exchange privileges.

B

Within a condominium development, common elements are owned by a. the owner's association. b. all unit owners, who hold undivided interests in the elements. c. the condominium developer. d. individual unit owners as community property.

B

If a condominium unit owner defaults on his mortgage, what effect will this default have on the other unit owners in the same condominium project? a. It will create a lien on the other units as well. b. They must make his payments to protect themselves. c. It will create a lien on his condominium unit. d. They will be foreclosed.

C

In order to create a condominium development, a developer may a. construct a new building. b. convert an existing building. c. both a and b. d. neither a nor b.

C

Individual units in a condominium development are classed as a. separate property. b. common elements. c. cooperative elements. d. limited common elements.

C

Rules governing how a condominium owners' association will be run would be found in the a. master deed. b. CC&Rs. c. bylaws. d. house rules.

C

The purchaser of a condominium unit is obligated to abide by the development's a. covenants, conditions, and restrictions. b. house rules. c. both a and b. d. neither a nor b.

C

The purchaser of a timeshare week who wants to receive a deed to that specific week would buy a a. leasehold timeshare. b. right-to-use timeshare. c. fee simple timeshare. d. model timeshare.

C

Which of the following would be classified as limited common elements in a condominium development? a. Elevators b. Hallways c. Assigned parking spaces d. The manager's apartment

C

The regulations by which anyone purchasing a unit in the condominium must abide are known as ____________________, conditions, and Restrictions.

Covenants

Condominiums developments are restricted to a. residential dwelling units. b. multiple-unit buildings. c. both a and b. d. neither a nor b.

D

Each of the following ownerships combines common ownership and exclusive possession of a dwelling unit. All require dues to support the common elements. Which one allows separate, individual ownership of a dwelling and a lot? a. Timeshare unit b. Condominium c. Cooperative apartment d. Planned unit development

D

In a planned unit development, a developer would be likely to dedicate to the public all of the following EXCEPT a. streets. b. roads. c. parks. d. common elements.

D

One of the advantages of condominium ownership versus cooperative ownership is that a. condominium ownership has no common ownership. b. cooperative ownership is free from periodic dues from members. c. cooperative ownership is usually corporate owned and sells stock through the secondary money market. d. condominium units can be individually mortgaged.

D

The term CC&Rs stands for a. covenants, condominiums and restrictions. b. conditions, chattels and regulations. c. commission, conditions and regulations. d. covenants, conditions and restrictions.

D

____________________ timesharing is a method of dividing up and selling a living unit at a vacation facility for specified lengths of time each year.

Resort

right-to-use

a contractual right to occupy a unit at a timeshare resort

condominium subdivision

a document that coverts a parcel of land into a stratified subdivision; also called a master deed

board of directors

a governing body elected by association members

annual meeting

a once-a-year business meeting of the entire association membership

cooperator

a shareholder in a cooperative apartment

management company

advises the board of directors; takes care of day-to-day tasks

Owners association

an organization composed of unit owners in which membership is automatic upon purchase of a unit

The maintenance fees for a condominium project are also called ____________________ dues.

association

The rules that govern how an owner's association will be run are called ____________________.

bylaws

maintenance fees

charges levied against unit owners to cover the cost of maintaining the common areas; also called association dues

Those parts of a condominium that are owned by all the unit owners are called ____________________ elements.

common

Compared to new construction, a condominium ____________________ is often simpler, faster, and more profitable to the developer.

conversion

Planned Unit Development (PUD)

form of community ownership where the houses and lots are privately owned but title to common areas is held by an owner's association

The market value of each unit in a condominium reflects not only the value of the unit itself, but also the value of the ____________________ ownership in the common elements that accompany the unit.

fractional

condominium

individual ownership of a space of air plus undivided ownership of the common elements

A common element where the use is restricted to a specific unit owner is called a ____________________ common element.

limited

reserves

money set aside from the budget for expenses that do not occur every month

cooperative

ownership by a corporation that in turn leases spaces to its shareholders

An example of a limited common element could be an assigned ____________________ stall.

parking

If a condominium owner fails to pay his portion of maintenance fees, the response of the owners' association will be to

place a lien against his unit.

A lease issued by a cooperative corporation to its shareholders is called a ____________________ lease.

proprietary

Individual units in a condominium development are classed as

real property.

covenants, conditions, and restrictions (CC&Rs)

regulations by which a condominium owner must abide

common elements

roofs, stairs, elevator, lobby, and so on, in a condominium

house rules

rules for the use of the swimming pool and recreation facilities would be found here

bylaws

rules that govern how the owner's association will be run

condominium act

state legislation that creates the legal framework for condominium subdivisions

separate property

that portion of a condominium that is the exclusive property of an individual owner

resort timeshare

the exclusive use of a property for a specified numbers of days each year

Proprietary Lease

type of lease issued by a cooperative corporation to its shareholders

A condominium rules declaration may be changed by

whatever is stated in the rules declaration.