Condominiums and Cooperatives Flashcards
air space
Ownership area within a condominium unit that goes from wall to wall and floor to ceiling.
amendments
Changes to previously approved and adopted written agreements.
In a condominium association, an original policy may allow the renting of units and later _______ the rule requiring unit owners to live in their units for at least one year before leasing.
amenities
Those areas located outside one’s owned property that enhances its value.
In condominium projects, ________ can include golf courses, clubhouses, swimming pools, tennis courts, gardens, and proximity to shopping, schools, and public transportation. In contrast, features are always located within a property.
apartment
An architectural term used to describe a residential condominium unit.
articles of incorporation
Those documents are required by state law to establish nonprofit corporations. These documents name the condominium association and identify its purpose and powers.
assessment
A monetary obligation imposed by associations against unit owners for operational costs and common area maintenance (CAM). If the monthly association dues or special assessments are unpaid, the association has the legal authority to place a lien or foreclosure on any assessed unit. In addition, a delinquent owner’s voting rights may be suspended.
association
A nonprofit corporation legally created to manage a condominium development, sometimes called the home owner’s association. The co-owner’s board of directors is responsible for its governance. Some are self-managed while others employ property management firms to handle the association’s business affairs.
board of directors
They are defined in the bylaws as elected individuals who oversee the association’s business. The bylaws often determine the board’s size, term of office, removal, compensation, and authorized actions that can be taken without a meeting.
bylaws
Recorded documents that name and state the location of the association and define used vocabulary words. They establish the organizational right to conduct association meetings and create the association’s board of directors and officers and define their duties. They create the association’s assessment authority and indemnification responsibilities and establish amendment authority.
common area maintenance (CAM)
The co-owner’s proportionate share of the association’s utility bills, insurance premiums, property taxes, general maintenance, repairs, and replacement costs.
common elements
Mutually owned and commonly used property rather than individually owned property in a condominium development. These areas may include the external structure of the unit owner’s building and association-owned buildings, such as clubhouses, interior hallways, lobbies and elevators, exterior courtyards, and association-owned streets.
condominium apartment building
This architecturally describes a building that is mutually owned by the co-owners in an association.
condominium ownership
Condominium is a legal concept created by state laws that subdivides airspaces over a parcel of land and establishes co-ownership in community property. It is an estate in real property consisting of an individual interest in an apartment or commercial unit and an undivided common interest in common areas, such as the land, parking areas, elevators, stairways, and the like. Simply stated, a condominium apartment is an owned dwelling with a common wall and/or ceilings and floors with co-owners neighbors.
conversion
The legal process required to convert an apartment building or rental housing into condominium ownership.
cooperative ownership
___________ ownership of an apartment unit means that the apartment owner has purchased shares in a corporation that holds title to the entire apartment building.
covenants, conditions, and restrictions (CC&Rs)
The operational procedures used to describe the rights and prohibitions of co-owners. The _______ begin with definitions and then describe the rights co-owners have in the common areas and illustrate their membership and voting rights. They describe too how the covenant for assessment actually works. Other topics include a description of the association’s insurance coverage and their right to levy an assessment for the insurance, easement and encroachment situations, parking rights, party walls, architectural controls, signage, use restrictions, and general provisions.
For example, some of the rules deal with outdoor grill usage, exterior decorating, holiday decorating, planting, garbage container replacement, payment of association dues, garage usage, garage sales, parking, satellite dish placement, pets, flags and flag poles, signage, structural changes, leasing, snow removal, violation notices, and even mailbox placement.
density
The number of people who live in close proximity to each other. Lower ________ relates to fewer owners, less noise, and often more enjoyment of recreational amenities.
features
Those things found within one’s property. In condominium apartments and townhouses, they include its square footage and the number of bedrooms, bathrooms, and garages. They also include walk-in closets, storage areas, wall coverings, floor coverings, cabinets, and basements.
In contrast, amenities are those things outside the property that enhance a property’s value.
fee simple title
A legal phrase that describes the ownership rights co-owners have in their units. However, by agreement, some of these rights may be abridged. The co-owners can either hold title to the common areas or the homeowner’s association can hold title.
interior surfaces
The ownership interest inside a condominium apartment unit. If included in the condominium unit’s legal definition, these surfaces need to be insured. ______ _______ include kitchen cabinets, countertops, wall coverings, floor coverings, interior doors, light fixtures, and window treatments.
limited or restricted common areas
Areas limited in use to individual unit owners or possibly a block of unit owners within the condominium development. These are areas not found within the defined boundaries of a unit or lot but are designed for their exclusive use.
Examples could be exclusive easement rights to decks, patios, and storage areas. Here, the association controls the use of them while the unit owners enjoys the privacy provided by their limited use. Laundry facilities located on certain floors of a development could be limited for the use of those co-owners living on that floor.
party wall
A dividing wall or fence that separates co-owners. The CC&Rs describe the responsibility for maintenance, impose restrictions on alterations and replacement, and establish maintenance access rights.
percentage of interest
The percentage share of common area owned by the individual co-owners.
property managment
The managing of another’s property for compensation. Condominium associations are delegated the task of governance and they often contract with property management to manage their business affairs.
proprietary lease
A written lease in a cooperative apartment building between the owner-corporation and the tenant-stockholder, in which the tenant is given the right to occupy a particular unit.
MISTAKEN IDENTITY
proprietary lease/condominium apartment deed
The seller conveys a cooperative apartment by way of a proprietary lease and a condominium apartment by way of a condominium apartment deed.
MISTAKEN IDENTITY
common interest/common element
Each condominium apartment is assigned a percentage of undivided common interest in the project’s common elements described in the declaration (e.g., elevators, roofs, land, and foundations),
