Chapter 27 - Condominiums and Cooperatives Flashcards
What are the three essential characteristics of a condominium?
The condo owner owns his individual apartment just as if it were a private home.
The condo owners own an undivided percentage of the common elements of the building along with the other unit owners.
The condo is governed by a board of directors or board of managers that maintains the common elements and enforces the regulations.
The ______ explains the nature of the development project, including the name of the condominium, the developer and the principal officers; a description of the units, the way the condominium is governed and how the dues will be assessed; an explanation of repair and maintenance responsibilities and a description of the ownership interest between the condo association and the owner.
declaration
Where would one find information about the number of members on the board and an explanation of their duties?
In the bylaws
A _____ must be reviewed by the New York State Attorney General’s office to be sure the information is accurate and complete according to NY State legal requirements.
Offering plan
The following are examples of items contained in the _________ .
Price and deposits
Completion date and closing date
Use of the unit
Non-exclusivity
letter of intent
What can happen if a temporary certificate of occupancy expires?
A new buyer may find it difficult or impossible to renew his or her homeowner’s insurance policy or to sell or refinance the home.
_____, ______ and _______ are limitations and rules placed on a group of homes by a builder, developer, neighborhood association and /or homeowner association. All condos and townhomes have ______ .
Covenants, conditions and restrictions (CCR’s)
What is the main difference between a condo and a co-op?
The form of ownership. While a condo owner actually owns the unit, which is treated as real property, a co-op member does not directly own any real estate. The corporation owns or leases all real estate.
What are four critical parts of a financial statement?
Accountant’s Opinion Letter
Statement of Financial Position
Income Statement
Notes to the Financial Statement
The contract to purchase the shares in a cooperative corporation is called a _______ .
subscription agreement
What do co-op purchasers receive instead of a deed to the property?
A long-term proprietary lease
The following items are normally included in a _____ ______ .
An application with basic information about the purchaser, including financial condition
One or two years of tax returns
Two to four personal reference letters
Two to four reference letters from work colleagues
board package.
A _____ ______ is like a mortgage. It provides the purchaser with borrowed funds to buy the shares from the seller. The purchaser then makes monthly payments to the lenders and monthly carrying charge (maintenance) payments to the co-op.
share loan
