Chapter 4 Home Ownership

Question 1

Multi family complexes with proprietary lease is for each unit are also called

Answer 1

cooperatives

Question 2

Combinations of buildings that allow for diverse uses are

Answer 2

Mixed use development

Question 3

A distinct living unit on an individual lot that she has a common wall with another unit is called

Answer 3

Townhome

Question 4

Often situated in a subdivision of some Milyer properties, unattached to each other

Answer 4

Single family home

Question 5

Multi family complexes container units with individual feesimple ownership of the unit an interest in common areas

Answer 5

Condominiums

Question 6

What embodies the American dream of homeownership?

Answer 6

Single family homes

Question 7

When condominiums are sold, what three interest are created?

Answer 7

Fee, simple ownership of the unit, fee, simple ownership, and undivided interest in common areas, an easement to the air space occupied by the unit

Question 8

True or false: under the Texas uniform condominium act the three interests are not severable

Answer 8

True they must be conveyed at the same time

Question 9

What is the main distinction between a townhome and a single-family home?

Answer 9

It is a detached dwelling where the units share a common wall

Question 10

What right does a timeshare give?

Answer 10

The right to occupy the property for a specific time interval, often by the week

Question 11

Why are CC&Rs and HOAs put in place

Answer 11

To keep the market value of the home up

Question 12

Under what act our timeshare sales regarded as real estate transactions

Answer 12

Texas real estate license act

Question 13

What is capital gain?

Answer 13

When an asset is so in the cell results in a gain or loss for the seller

Question 14

What are the tax exempt limits for an individual?

Answer 14

$250,000

Question 15

What are the tax exempt limits for married or individuals filing jointly?

Answer 15

$500,000

Question 16

How long must a seller have the principal residence before the sale?

Answer 16

2 to 5 years before the sale

Question 17

What is another word for appreciation?

Answer 17

Gains value

Question 18

What is a contract between the insurance company and the policyholder

Answer 18

Homeowners insurance

Question 19

What is another name for homeowners insurance?

Answer 19

Hazard insurance

Question 20

What does flood insurance cover?

Answer 20

Direct physical loss caused by flood which is defined as an excess of water on land that is normally dry

Question 21

Contents coverage is also known as

Answer 21

Personal property coverage

Question 22

If coverage is over something that is not included with the building property coverage what type of coverage is this?

Answer 22

Personal property coverage

Question 23

What is the comprehensive loss underwriting exchange (CLUE)?

Answer 23

A claims history database that enables insurance companies to access, consumer claims information when underwriting or rating and insurance policy

Question 24

Under some circumstances, the _____ Paid on a mortgage may be tax deductible

Answer 24

Interest

Question 25

Homeowners insurance can protect the policy holders from unexpected losses, including_______

Answer 25

Fire , vandalism, and personal liability

Question 26

__________ also known as homeowners insurance can cover losses related to the main structure, continents, and outbuildings of a private residence

Answer 26

Hazard