Chapter 3 "Concepts and Responsibilities of Home Ownership" Flashcards
Condominium
Shares party walls with other units - involves individual ownership of the airspace within the unit itself, plus shared ownership of common facilities such as walls, elevators, and the land as undivided interest.
Cooperative
Similar to a condominium in that it involves units within a larger building with common walls and facilities. However, an owner of a cooperative unit owns not the unit itself but shares of stock in the cooperative that holds the title to the building.
Town Houses
Similar to single-family houses but instead of being on each separate land they are joined together by a common wall.
Planned Unit Development (PUD)
Is a project or subdivision that consist of common property and improvements that are owned and maintained by an owner association for the benefit and use of the individual housing units within the project.
Converted-use Properties
Existing structures such as factories, office buildings, hotels, schools, and churches, that have been converted to residential use as either rental or condominium units.
Mixed-use Developments
Combine condominium or apartment living with shopping and recreation facilities either in one building or in a group of buildings.
Manufactured Homes
Mobile homes that are built in manufactured plants and transported on permanent chassis to manufactured home dealerships and then to purchasers’ homesites, where they are connected to gas, water, and electricity.
Five major factors that influence the choice of property location for a buyer are..
- Employment opportunities
- Cultural advantages - Schools, colleges, places of worship, libraries, theaters, museums, zoos, sports attractions, and parks all constitute a powerful sociological attraction to a given community.
- Governmental structure - Police and fire protecttion
- Social services
- Transportation
Capital Gains
Profits realized from a sale or exchange of an asset, including real property.
Texas Mortgage Credit Certificate (MCC) Program
Moderate- or low-income first time homebuyers in Texas may be eligible to claim a federal tax credit of up to 40% of annual mortgage interest paid, not to exceed $2,000 per year.
Types of Homeowners Insurance Policies
HO-A, HO-B and HO-C
HO-A “Policies” Homeowners Insurance
Provide limited actual cash value coverage of the home and its contents. Only the types of damage specifically listed in the policy are covered.
HO-A “Amended Policies” Homeowners Insurance
Provide more extensive coverage the the base HO-A policy but less coverage then the HO-B. HO-A amended policies are not standardized; coverage provided varies from one company to another.
HO-B “Policies” Homeowners Insurance
Is the most common homeowners policies. HO-B policies provide replacement cost coverage for most types of damage tot he real property, except claims specifically excluded in the policy. They provide actual cash value coverage for personal property unless endorsed to provide replacement cost coverage.
HO-C “Policies’ Homeowners Insurance
Provide the most extensive coverage but are the more expensive that other types of policies.
