Chp. 27 Quiz - Condominiums & Cooperatives Flashcards
Condominium common elements can include which of the following?
Elevator
To market test a condo, the sponsor must file an application to test the market with the
NYS Attorney General’s Office.
A/n ___________ provides the purchaser with borrowed funds to buy the shares from the seller. The purchaser then makes monthly payments on the ___________ to the lenders and monthly carrying charge (maintenance) payments to the co-op.
share loan
What have some property developers required to prevent too many investors/flippers?
A maximum percentage that can be sold to non-residents and a one year occupancy requirement before reselling.
What is a black book?
Offering plan
What tax incentive convinces some co-ops to covert to condops?
The 80/20 rule
The consent of the cooperative corporation is required for a shareholder to make any changes to his or her unit. This is done in the form of
an alteration agreement.
Which of the following is acceptable income to a lender?
Social Security
The document that describes the rights of the unit owners is called the
Articles of Incorporation.
What is the process by which an existing residential property becomes a cooperative or a condominium?
Conversion
What is the agreement that outlines the responsibilities between the cooperative corporation and the lender?
Recognition agreement
A condominium can be
residential.
commercial.
industrial.
[all of the above]
Which of the following is not a possible condo closing cost for a buyer?
Fee for preparing a stock certificate
The Attorney General does NOT have the right to
Regulate the prices of condos.
What important condominium documents are included in the deed?
Covenants, conditions, and restrictions
What are the basic rules that a condominium works under and operates?
Bylaws
The Statement of Financial position contains everything except
cash flow.
What can happen if a buyer’s temporary certificate of occupancy expires?
Inability to extend homeowner’s insurance, or to sell or refinance home
What typically happens once the cooperative’s board package has been accepted?
A face-to-face meeting of the purchaser with the board.
Along with the amount of income, what else do banks want to see in a borrower’s income?
Stability and permanence of the income
A party who is not required to submit prospective purchasers to the board for its approval is referred to as a/n
A holder of unsold shares
