Interest in Real Property Flashcards
The mortgagee pays the mortgage registry tax
False - The borrower/mortgagor pays the mortgage registry tax
The buyer pays the deed transfer tax.
False - the Seller pays the Deed Transfer Tax
A Planned Community PUD consisting of single-family dwellings is regulated as a common interest community.
True
A City may assess a property owner for mowing and snow removal performed to comply with local ordinances.
True
The Subdivided Lands Act requires the Commissioner complete an on-site inspection of the subdivision.
False - The Commissioner does NOT inspect the land/subdivision/property
A developer must register a qualifying subdivision development with the Department of Commerce.
True
The Subdivided Lands Act requires developers to file a Public Offering Statement with the Commissioner.
True
The Subdivided Lands Act requires a copy of the Public Offering Statement be provided to each prospective buyer.
True
A real estate license is required when selling cooperative units, time-shares, and other properties regulated under the Subdivided Lands Act.
True
A developer of subdivided lands must register the project if it involves the sale of time-shares.
True
The buyer of a condominium receives a fee simple ownership in the unit.
True
The buyer of a condominium receives a fee simple interest as a joint tenant in the common areas.
False - The buyer receives an undivided interest as a tenant in common.
A condominium apartment owner has the right to mortgage his unit
True
The association by-laws of the condominium in which a buyer is purchasing a unit prohibits the keeping of dogs or cats. This information must be disclosed to the prospective buyer
True
The owner of a townhouse unit has not paid his homeowners’ association fees for 6 months. The homeowners’ association may file a lien and use strict foreclosure
False - The homeowners’ association may file a lien and use foreclosure by advertisement.
A condominium apartment owner must pay real estate taxes on his unit.
True
Every seller of a condominium unit must provide the purchaser with the required disclosures at LEAST 10 days prior to a closing
True
A seller of a townhouse must provide the buyer with an itemized list of all utility expenses for the unit.
False - The seller must only provide the association budget and operating budget.
Condominium ownership may be applied in non-residential units.
True
A condominium purchaser has an unconditional right to rescind within 10 days after receipt of required disclosures.
True
Owners in a condominium complex share ownership of residential units.
False - They share ownership of common elements
An owner who fails to pay association dues may face judicial foreclosure
False - The owner my face foreclosure by advertisement
The owner of a condominium unit has failed to pay the real estate taxes. The local taxing authority may file a tax lien against her unit.
True
Condominium associations may assess the unit owner’s for the repair and improvement of the common elements
True
When John purchased his individual cooperative housing unit, he should have received the corporate bylaws, shares of stock, and a proprietary lease.
True
In a condominium project, swimming pools and hallways would be described in the condominium plat and declaration as limited common elements.
False - They would be described as common elements, NOT limited common elements
A distinguishing feature of condominium ownership is that it features an undivided interest as tenants in common of the common elements.
True
Individual units’ balconies and assigned, numbered parking spaces in an underground garage could be classified as limited common elements.
True
J holds stock in the corporation that owns the apartment building in which he lives. The corporation has issued a proprietary lease to J authorizing him to occupy a particular unit in the building. This type of ownership is a condominium.
False - This type of ownership is a cooperative
The contents of individual units are considered common elements.
False - They are considered personal property
According to the Common Interest Ownership Act, a condominium association meeting must be held at LEAST once each month
False - The meeting must be held at least once each year
Association members are required to attend the annual amendments to the declaration and require a 100 percent vote by the association members.
False - A 67% percent vote is required
An association is required to maintain property insurance that covers the full insurable replacement cost of the common elements.
True
Unit owners may obtain insurance for contents and interior improvements.
True
Insurance purchased by the unit owner would cover damage to the unit’s exterior.
False - The exterior is covered by association insurance
According to the Minnesota Common Interest Ownership Act, a cooperative would be created by filing a declaration.
True
If a purchaser of a unit in a common interest community wishes to rescind the agreement, notice of rescission must be given within 10 days after receipt of the signed purchase agreement.
False - Notice must be given 10 days after receipt of the Disclosure Statement.
Unit owners in a condominium own the common elements as joint tenants.
False - They own the common elements as tenants in common
Tenants of apartments being converted to condominiums have a 90-day right to purchase their unit from the property owner upon receipt of the conversion notice.
False - Tenants have a 60-day right to purchase
If the tenant of an apartment being converted to condominiums chooses NOT to purchase the unit, the tenant has an additional 120 days to vacate the unit.
False - The tenant has an additional 60 days.
If the tenant abandons leased premises, the Minnesota Landlord- Tenant Act calls for the landlord to store and care for abandoned personal property for at LEAST 30 days.
False - The landlord is required to store and care for abandoned personal property for 60 days.
Landlord-held security deposits may be withheld to cover rent or other costs which are due or to restore the premises to original condition excluding normal wear and tear.
True
If the tenant abandons a rented apartment and leaves personal property, the landlord is required to have it appraised and insured.
False - The landlord is required to store and care for at least 60 days
The Statute of Frauds would require a 1-year commercial lease to be in writing.
False - Leases of more than 12 months are required to be in writing. If the lease was 1 year and a day it would have to be in writing
A landlord must pay 5 percent interest on security deposits.
False - A landlord must pay 1 percent interest from the first month the landlord receives the deposit
There must be a written lease for each unit rented to a residential tenant in an apartment building consisting of 12 or more residential units.
True
Every landlord must return a tenant’s security deposit or furnish a written notice to the tenant within 45 days after termination of the tenancy.
False - The written notice must be furnished within 3 weeks (21 days).
To enforce an automatic renewal clause, the landlord must give a 10-day notice prior to the date of automatic renewal.
False - 15- to 30-day notice is required
A landlord suspects that a tenant is using drugs. The landlord is entitled to search the unit without notice.
False - Landlord entry notice is required except in an emergency, to determine a tenant’s safety, or to comply with law enforcement.
Tenants who are going to be permanently leaving their units between November 15 and April 15 on a day other than the day tenancy ends must tell their landlord they are vacating at LEAST 3 days before they move.
True
There must be a written lease for each unit rented to a residential tenant in an apartment building consisting of 12 or more residential units.
True
landlord who prefers to offer oral lease agreements may do so only if the total number of units in the building is a maximum of 11.
True - This is true as long as the lease is for 12 months or less
Landlord-held security deposits may NOT be retained by the landlord to pay for damage to the leased premises.
False - Security deposits may be retained only for damage beyond normal wear and tear.
If at any time a tenant abandons the leased premises and leaves personal property items, the landlord is required to pay to have the items stored by the sheriff.
False - Items do not need to be stored by the sheriff. The items do need to be stored with care for at least 60 days
Property taxes are paid May 15 and October 15 in Minnesota.
True
Work has been completed on a sewer and water extension, and the benefiting property owners have been sent a notice of assessments that have been charged. These are called levied special assessments.
True
The amount due for state deed tax is debited on the buyer’s closing statement.
False - The seller pays the state deed transfer tax
The state deed tax is shared equally by the buyer and seller.
False - The seller pays the state deed transfer tax
The deed transfer tax is 33 percent of the purchase price.
False - The deed transfer tax is 0.33 percent
The state deed tax and mortgage registry tax are paid to the county treasurer in the county where the transferring property is located.
True
Property taxes and special assessments are paid April 1 and November 1.
False - They are paid May 15 and October 15.
A transfer tax (state deed tax) would be paid when recording a certificate of sale.
It’s required to be paid prior to recording a deed
