Common Interest Ownership Properties Flashcards
Common elements are…
shared commodities in common interest properties (apartments, condos, etc.)
Limited common elements are…
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.
Covenants, conditions, and restrictions (CC&Rs). Also known as deed restrictions or restrictive covenants, they are…
rules attached to the property by a developer
We’ve talked quite a bit about CC&Rs and bylaws, but what is the difference between the two?
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.
Which one is required to be recorded and not required to be recorded? bylaws, cc&r’s
bylaws - not required
cc&r’s - required
A new condominium complex is created with the use of what document
A declaration, aka master deed.
A public offering statement provides…
information about NEW condominium developments
What is a resale certificate?
Information for condo units that have already been lived in.
How long can a buyer have to cancel with a public offering statement?
a week
Do you have a right to rescission with a resale certificate?
Nope. Gotta buy it once it is signed.
A cooperative (or co-op) is a…
Building owned by a corporation where the residents are shareholders in the corporation. Each shareholder has the right to use common areas.
proprietary lease is…
Which is a long-term and exclusive lease given to the residents of a co-op
pro rata (proportionate) is a…
Share of the whole building’s expenses.
With fee simple ownership, the co-op corporation owns…
the building like a normal person owns a home
Co-op buildings can be owned either by ____or ______
fee simple or leasehold
With a leasehold interest, the co-op corporation is merely…
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.
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?
got it
The board package is a…
a packet of financial and personal information the potential buyer supplies to the board
The three parts of due diligence when purchasing a co-op:
-financial statements
-board minutes (summary of board meeting)
-board package of the potential purchaser for the board interview (if accepted to do an interview)
A planned unit development is a…
A subdivision that includes residential dwellings along with nonresidential real estate thus departing from normal zoning and subdivision regulations.
Recreational facilities may be _____ by PUD lot owners as ______.
co-owned
tenants in common
PUDs can consist of attached townhouses or unattached houses, but they are differentiated from condos by the fact that a buyer purchases…
Both the structure itself AND the land it sits on. Owners have vertical rights that include their roof and the land under the home.
As with condos, common elements are shared. in a…
PUD
Do PUDs have an HOA?
yes
Two forms of ownership when it comes to PUDs:
Fee simple interest ownership of the individual unit (including the land beneath it)
Tenancy in common ownership of all common elements
Row houses or brownstones are just another word for…
townhomes
Townhomes fit the definition of ______ under the North Carolina Planned Community Act and will be subject to the provisions of that Act.
planned community
Townhouses can come in two forms of developmental plans:
condo style or PUD style
A timeshare is
a form of co-ownership where each owner has the use of the property at a different prescribed period of time.
In North Carolina, the owner must occupy the property during…(talking about timeshare here) (rule of 55)
five or more separated time periods (usually consisting of one or two weeks) over a period of at least five years
Rant off on what you know about timeshare ownership type.
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.
Timeshare estate means…
The timeshare has been purchased and is owned by an individual. This can also be referred to as deeded ownership of a timeshare.
Timeshare use gives
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.
