Chapter 3
Flood insurance is part of your comprehensive homeowner's policy. A. True B. False
B
How long does an owner have to stay in a property to take the capital gain exclusion? A. One year B. Two years C. Five years D. Ten years
B
If someone has lived in a home for 10 of the last 15 years, they do not have to pay tax on $50,000 of profit. A. True B. False
B
The fixed rate mortgage has a typical term of 18 years. A. True B. False
B
The highest possible type of ownership is a life estate. A. True B. False
B
What is NOT a benefit of a homeowner's association? A. Maintaining overall look of community B. Determining interior design C. Supports stability of property values D. Outside services like landscaping
B
Easements, rights-of-way, and condominium parking stalls are examples of: A. Emblements B. Trade fixtures C. Riparian rights D. Appurtenances
D
Many homeowners' insurance policies can also cover: A. Personal liability B. Loss of Use C. Medical payments D. All of the above
D
Most homeowner's policies cover: A. The dwelling B. Personal property in the dwelling C. Other structures on the property D. All of the above
D
What is NOT a benefit of home ownership? A. Equity buildup B. Tax benefits C. Homestead exemption D. Maintenance
D
What is NOT covered with comprehensive homeowner's insurance? A. Dwelling B. Personal property C. Structures D. Floods
D
What are 3 advantages of home ownership?
Homestead, Tax Benefits, Equity Buildup
A CLUE® report is a history of all insurance claims made on a property. A. True B. False
A
Can mortgage interest be deducted on an owner's federal tax return? A. Yes B. No
A
Equity buildup is one of the advantages of home ownership. A. True B. False
A
Generally, repairs and improvements cannot be deducted. A. True B. False
A
If the property is in a flood zone, flood insurance will be required by the: A. Lender B. State C. Seller D. City
A
Most homeowner insurance policies are comprehensive policies that cover the dwelling, personal property, and detached structures on the property. A. True B. False
A
The largest tax benefit of home ownership is the interest deduction on the mortgage. A. True B. False
A
The lender is going to require insurance on the property if there is a loan on the property. A. True B. False
A
The mortgage note sets out the term of the transaction, the amount of the debt, the rate of interest, and the mortgage due date. A. True B. False
A
What is the amount of the capital gains exclusion if couple has lived in home for 2 of past 5 years and is filing jointly? A. $750,000 B. $600,000 C. $500,000 D. $250,000
B
The information contained in the Comprehensive Loss Underwriting Exchange is reported by: A. Homeowners B. Real estate agents C. Insurance companies D. Buyers
C
What does the acronym CLUE stand for? A. Complete Loss Underwriting Exchange B. Complete Law Updates to Environment C. Comprehensive Loss Underwriting Exchange D. Center for Land Use Education
C
Which one of the following is not a homeowner's responsibility? A. General upkeep B. Periodic maintenance C. Water meter D. Replacing filters
C
Who usually manages a condo and is responsible for making sure the property is well maintained? A. The condo owner B. The city C. A homeowners association (HOA) D. The building manager
C
What is the amount of capital gains exclusion for a single person? A. $100,000 B. $150,000 C. $200,000 D. $250,000
D
Which one of the following can you NOT claim an interest deduction on? A. Building a home B. Purchasing a home C. Home improvements D. Sales tax
D
What is a CLUE report?
The history of all the insurance claims made on a property