Common Interest Ownership Properties

Question 1

Common elements are…

Answer 1

shared commodities in common interest properties (apartments, condos, etc.)

Question 2

Limited common elements are…

Answer 2

It is owned by “everyone” (aka the landowner), but only a few or one person is allowed to use it. Like a designated parking space, for example.

Question 3

Covenants, conditions, and restrictions (CC&Rs). Also known as deed restrictions or restrictive covenants, they are…

Answer 3

rules attached to the property by a developer

Question 4

We’ve talked quite a bit about CC&Rs and bylaws, but what is the difference between the two?

Answer 4

The CC&Rs describe the requirements and limitations of what you can do with your property.

The bylaws, on the other hand, govern how the HOA operates.

Question 5

Which one is required to be recorded and not required to be recorded? bylaws, cc&r’s

Answer 5

bylaws - not required
cc&r’s - required

Question 6

A new condominium complex is created with the use of what document

Answer 6

A declaration, aka master deed.

Question 7

A public offering statement provides…

Answer 7

information about NEW condominium developments

Question 8

What is a resale certificate?

Answer 8

Information for condo units that have already been lived in.

Question 9

How long can a buyer have to cancel with a public offering statement?

Answer 9

a week

Question 10

Do you have a right to rescission with a resale certificate?

Answer 10

Nope. Gotta buy it once it is signed.

Question 11

A cooperative (or co-op) is a…

Answer 11

Building owned by a corporation where the residents are shareholders in the corporation. Each shareholder has the right to use common areas.

Question 12

proprietary lease is…

Answer 12

Which is a long-term and exclusive lease given to the residents of a co-op

Question 13

pro rata (proportionate) is a…

Answer 13

Share of the whole building’s expenses.

Question 14

With fee simple ownership, the co-op corporation owns…

Answer 14

the building like a normal person owns a home

Question 15

Co-op buildings can be owned either by ____or ______

Answer 15

fee simple or leasehold

Question 16

With a leasehold interest, the co-op corporation is merely…

Answer 16

Leasing the building and/or land beneath, according to the lease terms agreed upon between the co-op corporation and the underlying landowner. A leasehold co-op is also known as a ground-lease or land-lease building. Leases can last a while — even 50 or 100 years — but if the lease is up and there’s no renewal, the tenants will be evicted.

Question 17

It’s the corporation that can have fee simple or leasehold ownership of the co-op building. The individual owner is always a shareholder in the corporation and not a property owner. Got it?

Answer 17

got it

Question 18

The board package is a…

Answer 18

a packet of financial and personal information the potential buyer supplies to the board

Question 19

The three parts of due diligence when purchasing a co-op:

Answer 19

-financial statements
-board minutes (summary of board meeting)
-board package of the potential purchaser for the board interview (if accepted to do an interview)

Question 20

A planned unit development is a…

Answer 20

A subdivision that includes residential dwellings along with nonresidential real estate thus departing from normal zoning and subdivision regulations.

Question 21

Recreational facilities may be _____ by PUD lot owners as ______.

Answer 21

co-owned
tenants in common

Question 22

PUDs can consist of attached townhouses or unattached houses, but they are differentiated from condos by the fact that a buyer purchases…

Answer 22

Both the structure itself AND the land it sits on. Owners have vertical rights that include their roof and the land under the home.

Question 23

As with condos, common elements are shared. in a…

Answer 23

PUD

Question 24

Do PUDs have an HOA?

Answer 24

yes

Question 25

Two forms of ownership when it comes to PUDs:

Answer 25

Fee simple interest ownership of the individual unit (including the land beneath it)

Tenancy in common ownership of all common elements

Question 26

Row houses or brownstones are just another word for…

Answer 26

townhomes

Question 27

Townhomes fit the definition of ______ under the North Carolina Planned Community Act and will be subject to the provisions of that Act.

Answer 27

planned community

Question 28

Townhouses can come in two forms of developmental plans:

Answer 28

condo style or PUD style

Question 29

A timeshare is

Answer 29

a form of co-ownership where each owner has the use of the property at a different prescribed period of time.

Question 30

In North Carolina, the owner must occupy the property during…(talking about timeshare here) (rule of 55)

Answer 30

five or more separated time periods (usually consisting of one or two weeks) over a period of at least five years

Question 31

Rant off on what you know about timeshare ownership type.

Answer 31

Timeshare deals differ, but usually, an owner gets to use a unit exclusively at the same time each year.

Each timeshare unit is like its own property piece, different from others. So, these properties can be sold or used as security for loans.

Laws at both federal and state levels influence timeshare agreements.

Timeshare owners might pay a yearly fee to cover maintenance, utilities, and management.

Question 32

Timeshare estate means…

Answer 32

The timeshare has been purchased and is owned by an individual. This can also be referred to as deeded ownership of a timeshare.

Question 33

Timeshare use gives

Answer 33

The purchaser has the right to possess the property at given times for a given duration but does not convey ownership. This can also be referred to as leasehold ownership of a timeshare.