Chp. 27 Quiz - Condominiums & Cooperatives

Question 1

Condominium common elements can include which of the following?

Answer 1

Elevator

Question 2

To market test a condo, the sponsor must file an application to test the market with the

Answer 2

NYS Attorney General’s Office.

Question 3

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.

Answer 3

share loan

Question 4

What have some property developers required to prevent too many investors/flippers?

Answer 4

A maximum percentage that can be sold to non-residents and a one year occupancy requirement before reselling.

Question 5

What is a black book?

Answer 5

Offering plan

Question 6

What tax incentive convinces some co-ops to covert to condops?

Answer 6

The 80/20 rule

Question 7

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

Answer 7

an alteration agreement.

Question 8

Which of the following is acceptable income to a lender?

Answer 8

Social Security

Question 9

The document that describes the rights of the unit owners is called the

Answer 9

Articles of Incorporation.

Question 10

What is the process by which an existing residential property becomes a cooperative or a condominium?

Answer 10

Conversion

Question 11

What is the agreement that outlines the responsibilities between the cooperative corporation and the lender?

Answer 11

Recognition agreement

Question 12

A condominium can be

Answer 12

residential.
commercial.
industrial.
[all of the above]

Question 13

Which of the following is not a possible condo closing cost for a buyer?

Answer 13

Fee for preparing a stock certificate

Question 14

The Attorney General does NOT have the right to

Answer 14

Regulate the prices of condos.

Question 15

What important condominium documents are included in the deed?

Answer 15

Covenants, conditions, and restrictions

Question 16

What are the basic rules that a condominium works under and operates?

Answer 16

Bylaws

Question 17

The Statement of Financial position contains everything except

Answer 17

cash flow.

Question 18

What can happen if a buyer’s temporary certificate of occupancy expires?

Answer 18

Inability to extend homeowner’s insurance, or to sell or refinance home

Question 19

What typically happens once the cooperative’s board package has been accepted?

Answer 19

A face-to-face meeting of the purchaser with the board.

Question 20

Along with the amount of income, what else do banks want to see in a borrower’s income?

Answer 20

Stability and permanence of the income

Question 21

A party who is not required to submit prospective purchasers to the board for its approval is referred to as a/n

Answer 21

A holder of unsold shares