Deck 22: Condominiums, Cooperatives, Puds, and Timeshares

Question 1

The governing body of a cooperative is called a

A) cooperation.
B) board of directors.
C) cooperator.
D) cooperative commission.

Answer 1

B
The governing body of a cooperative is called a board of directors.

Question 2

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.

Answer 2

D
In a planned unit development, a developer would not be likely to dedicate common elements to the public.

Question 3

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.

Answer 3

C
The purchaser of a timeshare week who wants to receive a deed to that specific week would buy a fee simple timeshare.

Question 4

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.

Question 5

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.

Question 6

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.

Question 7

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

Question 8

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.

Question 9

A condominium owner can obtain all of the following EXCEPT

A) severalty ownership of his share of the common elements.
B) title insurance on his nit.
C) a separate mortgage.
D) joint tenancy ownership of his unit.

Question 10

Individual units in a condominium development are classed as

A) real property.
B) common elements.
C) cooperative elements.
D) personal property.

Question 11

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

A) evict him.
B) place a lien against his unit.
C) foreclose.
D) report him to the local authorities.

Question 12

A condominium rules declaration may be changed by

A) whatever is stated in the rules declaration.
B) at least 50% of the owner-occupied units.
C) the condominium owner's association.
D) approval of the majority of the condominium unit owners.

Question 13

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.

Question 14

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.

Question 15

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.

Question 16

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

Question 17

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.

Question 18

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.

Question 19

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

Question 20

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.

Question 21

The governing body of a cooperative is called a board of directors.

Question 22

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.

Question 23

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.

Question 24

Condominiums developments are restricted to

A) residential dwelling units.
B) multiple-unit buildings.
C) both a and b.
D) neither a nor b.

Question 25

The rules by which an owner's association operates are known as

A) bylaws.
B) covenants, conditions, and restrictions.
C) house rules.
D) ordinances.

Question 26

Of the two principal forms of timeshare formats, the largest percent of the market is comprised of the right-to-use format.

Question 27

The guest of a unit owner was injured by stepping on broken glass in the swimming pool at a condominium. Liability for this injury would probably initially fall upon the developers.

Question 28

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.

Question 29

In a planned unit development, the owner's association can dictate interior and exterior colors, exterior landscaping, and use of common areas.

Question 30

The plan for a condominium development that converts a single parcel of land into individual separate property estates and an estate composed of all common elements may be referred to as an enabling declaration or a master deed.

Question 31

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.

Question 32

The owners of a unit in a planned unit development hold title to the air above the unit and the land beneath the unit.

Question 33

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.

Question 34

The purchaser of a condominium unit surrenders some personal freedoms to community rule but exchanges freedom of choice for freedom from responsibility.

Question 35

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.

Question 36

Ownership of the interior space of your home and garage and an undivided interest in the building structures, common areas, and land area of the entire project describes a cooperative.

Question 37

In a condominium, the authority to raise homeowner fees (association dues)rests with the management company.

Question 38

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

Question 39

Traditionally, the resale of cooperative shares has been financed by means of second mortgages on the seller's unit.

Question 40

Individual units in a condominium development are classed as

A) separate property.
B) common elements.
C) cooperative elements.
D) limited common elements.

Question 41

Under the right-to-use plan of timesharing, the purchaser holds title to real property.

Question 42

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

Question 43

Those parts of a condominium that are owned by all the unit owners are known as common elements.

Question 44

Money set aside from the budget for expenses that do not occur every month is called reserves.

Question 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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.

Question 51

All states have passed condominium laws that are variously known as a state's horizontal property act, strata titles act, or condominium act.

Question 52

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

Question 53

Under the right-to-use plan of timesharing, the purchaser is a tenant in common with other users of the unit.

Question 54

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

Question 55

The sale of timeshares is regulated in about 25 states by state legislation.

Question 56

Ownership by a corporation that in turn leases space to its shareholders best describes a cooperative.

Question 57

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

Question 58

In a condominium, the legal framework for the unit owners to govern themselves is called an owner's association and each unit purchaser automatically becomes a member.

Question 59

The condominium association dues typically pay for all common expenses but do not include reserves for replacement.

Question 60

The concept of timesharing started in the U.S.and is limited to use in this country.

Question 61

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
advises the board of directors;takes care of day-to-day tasks

Question 62

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
rules for the use of the swimming pool and recreation facilities would be found here

Question 63

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
state legislation that creates the legal framework for condominium subdivisions

Question 64

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
a shareholder in a cooperative apartment

Question 65

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
rules that govern how the owner's association will be run

Question 66

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
ownership by a corporation that in turn leases spaces to its shareholders

Question 67

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
regulations by which a condominium owner must abide

Question 68

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
the exclusive use of a property for a specified numbers of days each year

Question 69

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
a governing body elected by association members

Question 70

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
individual ownership of a space of air plus undivided ownership of the common elements

Question 71

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
a contractual right to occupy a unit at a timeshare resort

Question 72

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
that portion of a condominium that is the exclusive property of an individual owner

Question 73

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
type of lease issued by a cooperative corporation to its shareholders

Question 74

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
charges levied against unit owners to cover the cost of maintaining the common areas;also called association dues

Question 75

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
money set aside from the budget for expenses that do not occur every month

Question 76

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
form of community ownership where the houses and lots are privately owned but title to common areas is held by an owner's association

Question 77

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
roofs, stairs, elevator, lobby, and so on, in a condominium

Question 78

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
a document that coverts a parcel of land into a stratified subdivision;also called a master deed

Question 79

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
an organization composed of unit owners in which membership is automatic upon purchase of a unit

Question 80

Choose the one most appropriate answer for each.
a.annual meeting
k.house rules
b.board of directors
l.maintenance fees
c.bylaws
m.management company
d.covenants, conditions, and restrictions (CC&Rs)
n.owner's association
e.common elements
o.proprietary lease
f.condominium
p.planned unit development (PUD)
g.condominium act
q.reserves
h.condominium subdivision
r.resort timeshare
i.cooperative
s.right-to-use
j.cooperator
t.separate property
a once-a-year business meeting of the entire association membership