Real Estate Chapter 3

A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years...?

$100,000 $250,000 $500,000 $1,000,000 500,000

If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item...?

$20 $50 $80 $100 $20

Planned Unit Development (PUD)

A form of cluster zoning providing for both residential and commercial land uses within a zoned area.

Cooperative

A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease.

Condoimonium

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.

Time-share

A license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.

Mobile Home

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems.

PITI

An acronym denoting that a mortgage payment includes, principal, interest, taxes, and insurance.

Mixed-use Property

Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.

The profit realized from the sale of real estate or other investment is known as...?

Capital Gains Debits Credits Deductibles Capital Gains

A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...?

Cooperative Condominium Townhouse PUD Cooperative

Tax benefits for homeowners are provided in part to...?

Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments Encourage homeownership

Most homeowners policies do NOT cover which of the following...?

Flood damage Smoke damage Fire damage All of the above Flood damage

What is the most common homeowners policy found in Texas...?

HOA HOB HOC HOD HOB

Who is responsible for selling newly constructed mobile homes...?

Manufactured home dealerships Real estate brokers Real estate agents Mobile home owners Manufactured Home Dealerships

Which of the following is a tax deduction a homeowner can take advantage of...?

Mortgage interest payments Real estate taxes Loan origination fees All of the above All of the Above

The replacement cost minus depreciation is referred to as...?

Net cash value Actual cash value Gross cash value Effective cash value Actual cash value

What is typically covered in a homeowners policy?

Personal property within the house The house itself Liability All of the above All of the above

A cooperative owner owns ......................... in the cooperative?

Shares of stock A deed Title All of the above Shares of stock

For Tax purposes, real estate taxes can be deducted form personal income?

T F T

Modular homes can typically be built quicker and at a lower cost as compared to homes constructed on-site...?

T F T

Capital Gain

The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.