unit 4 section 3: common interest ownership properties

Clint was looking for alternatives to the traditional vacation condo rental for his family. He purchased the right to use a given set of facilities at any point throughout the year. What did Clint purchase? a. campground membership b. condo estate c. timeshare estate d. timeshare use

a. campground membership A campground membership gives the purchaser the right to use all of the campground facilities, such as water or electric hookups, restrooms, and recreational facilities, like pools or playgrounds. Members may use the facilities at any time during the year.

Residents own a share in the cooperative's corporation. a. characteristic b. not a characteristic

a. characteristic

Financing is similar to other real property. a. condo b. co op

a. condo

Mortgage recording tax applies to purchases. a. condo b. co op

a. condo

Often permits subletting (with some restrictions) a. condo b. co op

a. condo

Own airspace within unit and an undivided share of common areas a. condo b. co op

a. condo

Real property ownership a. condo b. co op

a. condo

You have a client who travels a lot and wants to feel extra safe and secure at home. Maintaining a house and yard isn't her idea of fun, and neither is fending off door-to-door solicitation. What type of homeownership would most likely fit her lifestyle? a. condo b. duplex c. single-family dwelling d. townhome

a. condo

Ownership is very easy—you pay, you're in. a. condo b. co op

a. condo With co-ops, the review board has to approve whether the applicant is a good "fit" for the property.

Tom finally owns his slice of the American Dream. Technically, he owns the airspace in the unit and shares the common areas with other owners, but he owns it just like any other piece of real property. Sure, he paid a little more than other properties on the market, but the monthly maintenance fees are reasonable and worth every penny if it means never shoveling a sidewalk. Plus, his best friend is already asking to sublet it if Tom is able to realize another one of his dreams: spending a year in Europe. a. condominium b. cooperative

a. condominium

The assessed value of a condominium is usually higher than a similar ______ because of outright ownership. a. cooperative b. single-family home c. townhome d. vacation property

a. cooperative Because cooperatives are not owned outright, the assessed value of a cooperative typically is lower than that of a condominium.

Compared with condominiums, the monthly fees for a cooperative owner are typically ______. a. higher b. much less c. slightly less d. the same

a. higher

Fee simple ownership for a vacation timeshare works in the same way as other types of real estate: Ownership can be enjoyed, sold, or passed down to heirs. a. true b. false

a. true

Resale timeshares often don't recoup the buyers' initial investment. a. true b. false

a. true

Buyers agree to a one-time purchase price and an annual maintenance fee. a. vacation ownership b. campground membership c. timeshare estate d. timeshare use

a. vacation ownership

Sheila owns a timeshare that gives her ownership in the property for a certain number of weeks per year in perpetuity. What type of timeshare is this? a. eternal timeshare b. timeshare estate c. Timeshare in perpetuity d. timeshare use interest

b. timeshare estate

What is the buyer of a condominium required to pay that a co-op buyer isn't? a. monthly fees b. mortgage interest c. Mortgage recording tax d. property taxes

c. Mortgage recording tax

In what way is a townhome similar to a single-family detached home? a. It often has a detached garage. b. It's also detached. c. Ownership includes both the structure and the land. d. They're always multi-story.

c. Ownership includes both the structure and the land.

Lance purchased a home, but he won't own any real estate—just shares in a corporation. This is because his new home is ______. a. condo b. condominium c. cooperative d. triplex

c. cooperative

When Emma turned 70 she sold her ranch home and moved to a senior living community. Her one-bedroom apartment is on the third floor of a building that houses a fitness center, convenience shop, music room, and café on the first floor. What type of facility is this? a. cooperative b. gated community c. planned unit development d. timeshare estate

c. planned unit development A senior living community with retail, recreation, and residential spaces in the same building or group of buildings is a planned unit development.

Condominiums involve what type of ownership? a. borrowed property b. personal property c. real property d. temporary property

c. real property

Sheldon and Jean retired and bought a townhome in a community about 30 minutes from their children and grandchildren. They're excited about their new living situation because Sheldon's arthritis is getting worse and he'll no longer have to handle ________. a. Cleaning the townhouse b. parking their cars c. shoveling snow d. washing windows

c. shoveling snow

Pieces of real estate owned by multiple unrelated individuals who occupy the dwelling unit in one- to two-week intervals during the year. a. vacation ownership b. campground membership c. timeshare estate d. timeshare use

c. timeshare estate

Evan bought into a housing cooperative that's focused on cultural exchange. Each month the co-op residents have dinner meetings and share food and culture from their respective regions. When Evan made his purchase, he received a proprietary lease for his unit. What else did he receive? a. contract of mortgage b. deed c. plat maps d. Shares in the cooperative corporation

d. Shares in the cooperative corporation

Kendrick bought into a cooperative housing project. When Kendrick purchased his unit, he received a proprietary lease. What else did he receive? a. a deed to the property b. a fixed term lease c. a plat map of the property d. Shares in the cooperative corporation

d. Shares in the cooperative corporation

Which of the following statements is true regarding the financing of a cooperative purchase? a. All lenders offer loans for cooperative purchases. b. Loan rates are significantly lower for cooperative purchases than single-family home purchases. c. No lenders offer loans for cooperative purchases. d. Some lenders refuse to offer loans for cooperative purchases.

d. Some lenders refuse to offer loans for cooperative purchases. Because the property is owned by a company, some lenders refuse to provide mortgages for cooperatives.

Leo would like to sell his membership share in a cooperative to Mariah. Which of the following statements is true? a. At Leo's request, the cooperative is obligated to approve Mariah's application. b. Leo can sell his membership share to whomever he wants, regardless of what the cooperative board says. c. Mariah need not submit an application to the cooperative board. d. The cooperative board must approve Mariah's application before Leo can sell his membership share to her.

d. The cooperative board must approve Mariah's application before Leo can sell his membership share to her.

In what way is a townhome similar to a condominium? a. they are both detached structures b. they are both multi-family dwellings c. They both typically have detached garages. d. They both typically have HOA dues.

d. They both typically have HOA dues.

Leon and Beth own 1/13 of a timeshare estate. How many weeks each year do they get to use the timeshare unit? a. 10 b. 13 c. 16 d. four

d. four

Which of the following is an advantage of condominium ownership? a. No HOA dues b. no neighbors c. no shared walls d. no yard work

d. no yard work

Janson Industries worked with architects and engineers to draw up plans for a planned community that will include residential, shopping, dining, and entertainment uses within the community itself. As a property that falls under mixed-use zoning, what does the company have to provide to the planning commission? a. By-laws b. covenant c. easements d. plat maps

d. plat maps

Sima purchased a cooperative. When the sale goes through, what will she own? a. an option to purchase b. a stock portfolio c. real estate d. shares in a corporation

d. shares in a corporation

Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to stay in a beach condo for the first two weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase? a. condo estate b. cooperative unit c. timeshare estate d. timeshare use

d. timeshare use

A _______ gives the purchaser the right to possess the property at given times for a given duration but doesn't convey ownership. a. condominium ownership b. cooperative ownership c. timeshare estate d. timeshare use

d. timeshare use A timeshare use gives the purchaser the right to possess the property at given times for a given duration, but it doesn't convey ownership. This is contrasted with a timeshare estate, which does convey ownership.

Charlene shares one wall with her neighbors to the side, but her home has three levels and she has no upstairs or downstairs neighbors nor a neighbor on the other side. What type of dwelling does Charlene own? a. detached home b. mobile home c. modular home d. townhome

d. townhome

Clay is interested in purchasing a condo about a mile from the city center. He went to the city records office to review everything that was filed by the condo developer. In the condominium declaration, he sees how ownership of the common areas is shared among the ________. a. association officers b. developers c. investors d. unit owners

d. unit owners

What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual maintenance fee, and in return selecting an accommodation time and having the right to use the unit for a specified number of years? a. lifelong b. permanent c. renewable d. vacation

d. vacation Vacation ownership is basically a way to prepay for a vacation rather than renting it.

Which two of the following are distinguishing characteristics of co-op living? a. The dwelling is an attached residential building. b. The owner owns a unit within the structure, but not the land c. The dwelling is a free-standing residential building. d. The owner owns both the structure and the land. e. The owner owns no real estate, but instead owns shares. f. It's designed specifically for older adults.

a. The dwelling is an attached residential building. e. The owner owns no real estate, but instead owns shares. Co-ops are distinguishable from other types of housing by the fact that the owner owns shares instead of real estate, and the structure is an attached, residential building.

With cooperatives, the resident's share of mortgage interest and real estate taxes is ______. a. Deductible only on the board's tax returns b. Deductible on personal income tax returns c. Not deductible on personal income tax returns d. paid by the board

b. Deductible on personal income tax returns

Often prohibits subletting a. condo b. co op

b. co op

Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities? a. The businesses located in the PUD b. the condo owners c. The development investors d. The PUD developer

b. condo owners

Lance purchased a home, but he won't own any real estate—just shares in a corporation. This is because his new home is ______. a. condo b. condominium c. a cooperative d. a triplex

c. a cooperative

Why would additional documentation and disclosures be required for the purchase of a condo? a. Because of federally mandated lead paint disclosures b. Because of lender requirements c. Because of material defects that must be disclosed d. Because the unit is governed by a homeowners' association

d. Because the unit is governed by a homeowners' association Condos are subject to CC&Rs and rules established by a homeowners' association. The existence of and subjugation to an HOA must be disclosed to the buyer in addition to any other disclosures required by law.

With a cooperative, the transfer of ownership ______. a. Involves a transfer of real property b. Is regulated by the federal government c. must be made public d. Requires board approval

d. Requires board approval

What type of estate involves a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year? a. apartment b. leasehold c. lifetime d. timeshare

d. timeshare

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a _______. a. co op b. foreclosure unit c. rental property d. timeshare property

d. timeshare property

Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to stay in a beach condo for the first two weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase? a. condo estate b. cooperative unit c. timeshare estate d. timeshare unit

d. timeshare unit

Ellen and Isaac have a timeshare near the Grand Canyon. They'll be able to use it for two weeks every September for the next eight years. What type of timeshare is this? a. fee simple timeshare b. periodic estate c. timeshare estate d. timeshare use

d. timeshare use

Gives the purchaser the right to possess the property at given times for a given duration, but does not convey ownership. a. vacation ownership b. campground membership c. timeshare estate d. timeshare use

d. timeshare use

Tina has fee simple ownership of her timeshare unit. Which of these is NOT an example of the type of ownership she may have? a. interval ownership b. right-to-use c. tenancy in common d. timeshare estate

b. right-to-use

A _______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year. a. campground membership b. timeshare estate c. timeshare use d. vacation ownership

b. timeshare estate

The local planning and zoning commission is reviewing multiple applications at this week's meeting. Which of the following new developments is likely to be reviewed relative to a mixed-use zoning ordinance? a. A high rise with residential, retail, and entertainment space b. A one-story building with retail and office space c. A self-storage facility d. Four patio homes on six acres

a. A high rise with residential, retail, and entertainment space

Which of the following is true regarding the purchase of a condominium? a. If the prospective buyer has the financial means to buy the condominium, neither the association nor the residents can block the purchase. b. The condominium association can reject the prospective buyer's application for any reason. c. The condominium residents can reject the prospective buyer's application for any reason. d. The Uniform Condominium Act requires state approval of all purchases.

a. If the prospective buyer has the financial means to buy the condominium, neither the association nor the residents can block the purchase.

Which two of the following are distinguishing characteristics of townhome living? a. The dwelling is an attached residential building. b. The owner owns a unit within the structure, but not the land. c. The dwelling is a free-standing residential building. d. The owner owns both the structure and the land. e. The owner owns the structure, but not the land. f. It's designed specifically for older adults.

a. The dwelling is an attached residential building. d. the owner owns both the structure and the land Townhomes are distinguishable from other types of housing by the fact that owners own an attached residential building, and the land it sits on.

Grant and Amy live very happily in a PUD townhome. They both work and enjoy living in a community that has everything their family needs in a relatively small area. Which three of the following are included in Grant and Amy's PUD ownership? a. The home in which they live b. The property on which their home is built c. Shared common area d. Shares in one or more commercial ventures in the development

a. The home in which they live b. The property on which their home is built c. Shared common area Ownership in a PUD townhome (and detached home) consists of a lot or parcel of land, the structure built upon it, and use of the common area, as opposed to PUD condominium ownership, where all land is commonly owned and maintained.

Which one of the following is a distinguishing characteristics of condominium ownership? a. The owner owns a unit within the structure, but not the land b. The owner owns both the structure and the land. c. The owner owns the structure, but not the land.

a. The owner owns a unit within the structure, but not the land Condos are distinguishable from other types of housing by the fact that the owner owns a unit within the structure, but not the structure itself or the land, and the structure is an attached, residential building.

If a buyer purchases real property that includes the unit in a building, all of the space in the unit, and shared ownership of the common areas in the building, what type of real estate did the buyer purchase? a. a condo b. a co op c. an apartment d. a timeshare

a. a condo

Convenience and security of having neighbors, shops, medical facilities, and mass transit nearby a. advantage b. disadvantage

a. advantage

Homeowners association covers roof repair and replacement and exterior and common area maintenance a. advantage b. disadvantage

a. advantage

Less expensive than a single-family detached home a. advantage b. disadvantage

a. advantage

Residential and commercial in the same building or group of buildings a. advantage b. disadvantage

a. advantage

Smaller front and back yards to maintain a. advantage b. disadvantage

a. advantage

attached garage a. advantage b. disadvantage

a. advantage

The owner buys the right to use the developer's facilities and may use the designated area at any time during the year. a. vacation ownership b. campground membership c. timeshare estate d. timeshare use

b campground membership

Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______. a. Considered as capital gains b. Deductible on his personal income tax returns c. Fully refundable to him d. Not deductible on his personal income tax returns

b. Deductible on his personal income tax returns

Janice, who has lived in an apartment for many years, is interested in moving to a cooperative. She submits an application to the cooperative's review board, but her application is rejected. The board ______. a. Is forbidden from rejecting her if she qualifies financially b. Is not required to inform her why her application was rejected c. Must inform her why her application was rejected d. Must inform the state why the application was rejected

b. Is not required to inform her why her application was rejected

Which two of the following are distinguishing characteristics of PUD living? a. Zoned for residential only b. Mix of residential and commercial c. Ownership profile varies depending on type of housing d. Zoned for commercial only e. The owner owns no real estate but instead owns shares f. Designed specifically for older adults

b. Mix of residential and commercial c. Ownership profile varies depending on type of housing PUDs are distinguishable from other types of housing by the fact that they have a mix of residential and commercial uses

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare? a. allow his friend to use his week b. Pass the timeshare on to an heir. c. Purchase an additional week if it becomes available. d. Try to exchange weeks with another timeshare holder.

b. Pass the timeshare on to an heir. A right-to-use timeshare conveys the right of possession, but it isn't ownership and therefore can't be sold or passed on to another individual.

Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ______. a. Borrowed property b. Personal property c. real property d. temporary property

b. Personal property

Which of the following statements is true regarding timeshare estates? a. Timeshare estates are illegal. b. Timeshare estates can be sold or passed down to heirs. c. Timeshare estates cannot be passed down to heirs. d. timeshare estates cannot be sold

b. Timeshare estates can be sold or passed down to heirs.

Own shares of the corporation a. condo b. co op

b. co op

Personal property ownership a. condo b. co op

b. co op

This one may be difficult to resell because applicants need to obtain board approval. a. condo b. co op

b. co op

This one tends to have higher monthly maintenance fees because taxes, fees, and mortgage payments are included. a. condo b. co op

b. co op Condos have monthly fees but they usually include only maintenance and security.

Terri just bought her first home! She's so excited to be living the American Dream. She owns her home's interior, including the walls, but not the land on which it sits. What type of home does Terri own? a. apartment b. condominium c. cooperative d. townhouse

b. condominium

For DeeDee, finding the unit was actually the easy part. Who knew getting into this building would be such a process? Putting together a board package, going through an interview, providing documents, another interview ... DeeDee was certain the board would ask for her firstborn child, as well, but she decided it was all worth it when she received her proprietary lease and keys at closing. a. condominium b. cooperative

b. cooperative

Higher density of people, homes, shops, and traffic a. advantage b. disadvantage

b. disadvantage

Share one or more walls with neighbors a. advantage b. disadvantage

b. disadvantage

homeowners association dues a. advantage b. disadvantage

b. disadvantage

Buyers of vacation timeshares aren't allowed to rent, give, or sell their time to others. a. true b. false

b. false

Unlike other forms of owned real estate, timeshare estates cannot be sold or passed down to heirs. a. true b. false

b. false

Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this? a. estate for life b. fee simple c. Leasehold estate d. periodic estate

b. fee simple Timeshare estates are owned as fee simple estates. They convey all rights of ownership and can be sold or passed down to heirs.

People who live in a co-op own the real estate. a. characteristic b. not a characteristic

b. not a characteristic