Chapter 3

Question 1

Apartment complexes

Answer 1

1. are groups of apartment building with any number of units in each building.
2. Buildings may be lowrise or highrise
3. amenities include: parking, security, clubhouses, swimming pools, tennis courts, and even golf courses

Question 2

Condominium

Answer 2

1. owners share ownership of common facilities such as halls, elevators, swimming pools, clubhouses, tennis courts, and surrounding grounds.
2. Management and maintenance of building exteriors and common facilities are provided by the governing association or by outside contractors with expenses paid out of monthly assessments charged to owners.

Question 3

Cooperative

Answer 3

1. may offer units with shared common facilities
2. owners do not actually own the units.
3. they buy shares of stock in the corporation that holds title to the building
4. Owners receive proprietary leases that entitle them to occupy particular units.
5. owners pay their share of the building’s maintenance expenses

Question 4

Planned unit development (PUD) (Go out): (master-planned communities)

Answer 4

1. merge such diverse land uses as housing, recreation facilities, and commercial concerns in one self-contained development.
2. are planned under special zoning ordinances
3. Owners do not have direct ownership in the common areas

Question 5

Retirement communities (active adult communities)

Answer 5

1. often are structured as PUDs

Question 6

Highrise developments (mixed-use developments) (MUD) (Go UP)

Answer 6

1. combine such elements as office space, stores, theaters, and apartment units into a single vertical community.

Question 7

Converted-use properties

Answer 7

factories, warehouses, office buildings, hotels, schools, churches, and other structures that have been converted to residential use

Question 8

Manufactured housing

Answer 8

including mobile homes, was once considered useful only as temporary residences,

Question 9

Modular homes (prefabricated homes)

Answer 9

Each room in a modular home is pre-assembled at factory, driven to the building site on a truck. and then lowered onto its foundation by a crane.

Question 10

Time-shares

Answer 10

1. allow multiple purchasers to share ownership of a single property, usually a vacation home.
2. Each owner is entitled to use the property for a certain period of time each year, usually a specific week.
3. Each owner pays an annual maintenance fee.

Question 11

The decision of whether to buy or rent property

Answer 11

1. how long a person wants to live in a particular area
2. a person’s financial situation
3. housing affordability
4. current mortgage interest rates
5. tax consequences of owning versus renting property
6. what may happen to home prices and tax laws in the future

Question 12

Basic costs owning a home

Answer 12

PITI: mortgage principle, interest, taxes, and insurance

Question 13

Equity

Answer 13

the total mortgage debt is reduced through monthly payments, the owner’s actual ownership interest in the property increases The increase ownership interest is called.

Question 14

Capital gains

Answer 14

beyond 50000-25000