Chapter 25

Question 1

Common interest

Answer 1

The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.

Question 2

Common element

Answer 2

Under condominium ownership, the land and all parts of the building normally used by all of the owners for their mutual convenience of safety.

Question 3

Declaration

Answer 3

To make known openly and in definite terms; that which, along with by-laws, defines the rules by which a condominium will exist.

Question 4

Proprietary Lease

Answer 4

A lease in a cooperative apartment between the owner-corporation and the tenant-stockholder.

Question 5

Condominium

Answer 5

-exclusive ownership
-comply with requirements of declaration, bylaws, and house rules
-individual deed or lease
-separately assessed for taxes
-home exemption
-title insurance

Question 6

Public Report

Answer 6

Document prepared by developer used to give full disclosure to a prospective purchaser of all material facts.

Question 7

Purchaser of condo right of rescission:

Answer 7

Midnight of thirtieth day.

Question 8

Condominium conversion

Answer 8

Process of transforming an income producing property, such as a rental apartment building, into a condominium.

Question 9

Co-op

Answer 9

Form of ownership whereby title to the property is taken in the name of a corporation that is generally created expressly for this purpose.
-fee simple or leased land

Question 10

Timeshare

Answer 10

A purchaser buys the use or ownership of a resort accommodation for a certain period each year for a specified number of years.

Question 11

Ownership Interest (timeshares)

Answer 11

A buyer owns a fractional interest in the development and has equity.
-title through deed
-title insurance
-can deduct from income taxes a pro-rata share of property taxes and mortgage interest.

1. Tenancy in common
   -deed
   -specific period of time which is established by way of a special agreement
2. Interval ownership
   -“estate for years”
   -owns and has title

Question 12

Right to Use (timeshares)

Answer 12

Lease agreement in which buyer has the right to occupy the unit for a specified number of weeks for a certain term (typically 20-40 years).
At the end ownership reverts back to the developer.

1. Vacation License
   -non-ownership time sharing usually involving an operating hotel. Right to sell but not rent or loan.
2. Vacation Lease
   -non-ownership where purchaser buys lease. Right to sub-lease or transfer interest.
   3 Club Membership
   -

Question 13

Planned Development Housing

Answer 13

Specific type of housing and zoning being used as a means of utilizing the states small amount of land as efficiently as possible.
Ownership is different than condos.
-Unit is the lot, therefore owners own the land beneath their houses
-No direct interest in common areas
-community association is In corporate form
-PD-H is created by covenants in the deed or master lease