Level 3: Common Interest Ownership Properties

Question 1

Condominiums

Answer 1

property in which each owner has a separate interest in their own unit and undivided interest in the common areas, do NOT own the land on which their unit stands

Question 2

Condominiums: Limited Common Elements

Answer 2

these are owned by everyone, as with other common elements, but are only used by a few owners or even one owner ex. - Bob is assigned to parking space #9. Everyone in the condo owns parking space #9, but only Bob uses it

Question 3

Elements of a Condo Visual Aid

Question 4

Condominiums: Maintenance Fees

Answer 4

each condo owner has to pay homeowners association (HOA) or condo association dues. HOA dues are also known as assessments or maintenance fees

Question 5

Co-ops

Answer 5

a building owned by a corporation where the residents are shareholders in the corporation, co-op owners live in the apartments they lease, but they don’t actually own them

Question 6

Co-ops: Maintenance

Answer 6

pay a monthly maintenance fee or assessment used for maintenance

Question 7

Co-ops: Renovation

Answer 7

If co-op owners want to do renovation on their units, they usually have to get approval from the co-op board

Question 8

Co-ops: Fee Simple

Answer 8

the co-op corporation owns the building and its full bundle of rights in perpetuity, the same way a homeowner owns a single-family home

Question 9

Co-ops: Leasehold

Answer 9

leasing the building and/or land beneath, according to the lease terms agreed upon between the co-op corporation and underlying landowner

Question 10

Elements of a Co-op Visual Aid

Question 11

Co-ops: Financial Statements

Answer 11

If the building’s finances aren’t up to par, the prospective buyer should think twice

Question 12

Co-ops: Board Minutes

Answer 12

Co-ops must keep minutes of their monthly board meetings, go to the board minutes to learn the “personality” of a particular board and any issues that could affect the buyer.

Question 13

Co-op vs. Condo Visual Aid

Question 14

Condops

Answer 14

combination of condos and co-ops in the same building, typically run more like a co-op, but they typically have more relaxed rules and a more relaxed environment, much like a condominium

Question 15

Condop Visual Aid

Question 16

Planned Unit Developments (PUD)

Answer 16

a subdivision that includes residential dwellings along with nonresidential real estate, departing from normal zoning and subdivision regulations, buyer purchases both the structure itself AND the land it sits on

Question 17

PUD owners have these two types of ownership

Answer 17

fee simple absolute and tenancy in common

Question 18

PUDs: Townhouse

Answer 18

townhouse developments can be condos, where the owner only owns from the walls in, and the rest of the building and common elements are co-owned by all of the development’s owners

Question 19

Timeshares

Answer 19

a form of co-ownership where each owner has use of the property at a different prescribed period of time

Question 20

Timeshare Visual Aid