Concepts of Home Ownership

Question 1

Timeshare

Answer 1

a shared ownership of vacation property whereby multiple owners have exclusive use of a property for a period of time

Question 2

Mobile Home

Answer 2

a housing unit, similar to a trailer, which is attached to the land

Question 3

Cooperative

Answer 3

a corporation owned building in which the units are sold as shares and the owners receive leases for their purchased units

Question 4

Condominium

Answer 4

a building or complex of buildings containing a number of individually owned apartments or houses

Question 5

Modular Home

Answer 5

“prefabricated housing”

Question 6

PUD

Answer 6

Planned Unit Development

Question 7

Planned Unit Development

Answer 7

designed to produce a high density of dwellings with maximum use of open spaces, typically parks and recreation areas

Question 8

Converted-Use Property

Answer 8

factories, schools, churches, garages, and hotels that have been renovated for other uses

Question 9

High-Rise Development

Answer 9

Buildings taller than six floors that often combine shopping, entertainment, and offices in the same building

Question 10

Equity

Answer 10

The paid-off share in the property that the owner actually owns

Question 11

Capital Gain

Answer 11

The amount by which an asset’s selling price exceeds its initial purchase price

Question 12

Realized Capital Gain

Answer 12

An investment sold at a profit

Question 13

Unrealized Capital Gain

Answer 13

An investment that hasn’t sold yet but would result in a profit if it were sold (house to sell)

Question 14

Short-Term Capital Gains

Answer 14

Profits received from the sale of capital assets that were held for less than a year and are taxed normally

Question 15

Long-Term Capital Gains

Answer 15

Profits on capital assets held for longer than a year and generally taxed at a lower rate

Question 16

Define ‘amount realized’ in regards to a home sale:

Answer 16

The sale price minus the cost of the sale

Question 17

What is ‘Basis’ in regards to property value:

Answer 17

The cost of capital improvements the owner made to the property

Question 18

Define ‘Beginning Basis’ in terms of buying property:

Answer 18

The cost of acquiring a property

Question 19

CLUE

Answer 19

A database of insurance claims against a property from the past 5-7 years

Question 20

Condominium unit

Answer 20

One airspace unit together with the associated interest in the common elements

Question 20

What are ‘Assessments’ in terms of condos?

Answer 20

Fees condominium owners pay to the condo association for maintenance of common elements (HOA fees)

Question 21

Co-op Transfers

Answer 21

When Co-op interest is transferred by assigning both the stock certificates and the lease to the buyer.

Question 22

(True or False) Capital losses can never be claimed on a personal residence.

Answer 22

True

Question 23

What type of home insurance offered by private companies is subsidized by the federal government?

Answer 23

Flood Insurance

Question 24

What does an endorsement do to a policy?

Answer 24

It modifies the policy in some way that is favorable to the insurance company.

Question 25

What entity provides wind and hail damage coverage in select coastal areas?

Answer 25

Texas Windstorm Insurance Association

Question 26

How would you transfer your ownership of a co-op interest?

Answer 26

by assigning both the stock certificates and the lease to the buyer