Concepts of Home Ownership Flashcards
Timeshare
a shared ownership of vacation property whereby multiple owners have exclusive use of a property for a period of time
Mobile Home
a housing unit, similar to a trailer, which is attached to the land
Cooperative
a corporation owned building in which the units are sold as shares and the owners receive leases for their purchased units
Condominium
a building or complex of buildings containing a number of individually owned apartments or houses
Modular Home
“prefabricated housing”
PUD
Planned Unit Development
Planned Unit Development
designed to produce a high density of dwellings with maximum use of open spaces, typically parks and recreation areas
Converted-Use Property
factories, schools, churches, garages, and hotels that have been renovated for other uses
High-Rise Development
Buildings taller than six floors that often combine shopping, entertainment, and offices in the same building
Equity
The paid-off share in the property that the owner actually owns
Capital Gain
The amount by which an asset’s selling price exceeds its initial purchase price
Realized Capital Gain
An investment sold at a profit
Unrealized Capital Gain
An investment that hasn’t sold yet but would result in a profit if it were sold (house to sell)
Short-Term Capital Gains
Profits received from the sale of capital assets that were held for less than a year and are taxed normally
Long-Term Capital Gains
Profits on capital assets held for longer than a year and generally taxed at a lower rate
Define ‘amount realized’ in regards to a home sale:
The sale price minus the cost of the sale
What is ‘Basis’ in regards to property value:
The cost of capital improvements the owner made to the property
Define ‘Beginning Basis’ in terms of buying property:
The cost of acquiring a property
CLUE
A database of insurance claims against a property from the past 5-7 years
Condominium unit
One airspace unit together with the associated interest in the common elements
What are ‘Assessments’ in terms of condos?
Fees condominium owners pay to the condo association for maintenance of common elements (HOA fees)
Co-op Transfers
When Co-op interest is transferred by assigning both the stock certificates and the lease to the buyer.
(True or False) Capital losses can never be claimed on a personal residence.
True
What type of home insurance offered by private companies is subsidized by the federal government?
Flood Insurance
What does an endorsement do to a policy?
It modifies the policy in some way that is favorable to the insurance company.
What entity provides wind and hail damage coverage in select coastal areas?
Texas Windstorm Insurance Association
How would you transfer your ownership of a co-op interest?
by assigning both the stock certificates and the lease to the buyer
