Module 4 Flashcards
A home that is not attached to another dwelling
Single-Family Home
A distinct living unit on an individual lot; they share a wall (party wall) with an adjacent townhome
Townhome
Income earned from the sale of an asset (formerly a Tax-Favored Sale)
Capital Gain
Insurance underwritten in Texas by the Texas Windstorm Insurance Association (TWIA) to cover wind and hail damage on properties along the gulf coast
Windstorm Insurance
Multifamily complexes with individually owned units
Condominium
Building types or combinations of buildings that allow for a “mix” of different uses (residential, office, retail, and entertainment spaces)
Mixed-Use Development
The financial interest or value minus the sum of all mortgage debt that an owner has in his/her property
Equity
Insurance through the National Flood Insurance Program (NFIP) that covers direct physical loss caused by flood (excess of water on land that normally is dry)
Flood Insurance
Land and buildings owned by a corporation that are occupied by shareholders who own stock in the corporation
Cooperative
A form of ownership where permission is given to use certain property for certain intervals of time (often a week); variations can create an additional interest in title
Timeshare
A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability and other common risks
Homeowners Insurance
Also known as Contents Coverage or Renter’s Insurance; insurance for personal property within a building (not included with building property coverage)
Personal Property Coverage
Often situated in a subdivision of similar properties unattached to each other
Single-family home
Multifamily complexes containing units with individual fee simple ownership of the unit and interest in common areas
Condominiums
Multifamily complexes with proprietary leases for each unit
Cooperatives
Combinations of buildings that allow for diverse uses
Mixed-use Development
Distinct living unit on an individual lot that shares a common wall with another unit
Townhome
A house that is not attached to any other dwelling is called a:
single-family home
The _____________ provides services and affordable housing opportunities in Texas through the use of federal funds.
The Texas Department of Housing and Community Affairs or TDHCA
Townhouses are separated by a shared wall known as a ____________________.
party wall
Areas that include residential space, retail and office space, and entertainment are typically called:
mixed-use developments
In a _________________ the residents do not own their unit but a share of the corporation that owns the building. The resident has a proprietary lease on the unit.
cooperative
Owners of ___________________ own their unit and have an undivided ownership interest in the common areas. Owners have an easement to the airspace occupied by their unit. Owners
condominium
Trendy loft apartments in revitalized downtown areas are often ________________.
retro-commissioned structure
The capital gain on the sale of the home may be exempt from capital gains taxes if the home was the primary residence of the Chandlers for:
2 of the last 5 years
If the Chandlers ask Reba for advice about what specific costs they can count as sales expenses when determining the capital gains on their income tax, it would be best for Reba to:
Refer the Chandlers to reputable CPAs so they can get good advice.
Provide limited, actual cash value coverage of a home and its contents.
HO-A Policies
provide more extensive coverage than the base HO-A policy but less coverage than an HO-B.
HO-A Amended Policies
provide replacement cost coverage for most types of damage, except those expressly excluded in the policy.
HO-B Policies
offer varying levels of coverage
Approved Alternative Policies
covers belongings, provides liability protection, and pays additional living expenses if a fire or other event stated in the policy forces the policyholder to move temporarily.
Renters insurance
covers belongings, provides liability protection, and pays additional living expenses
Condominium insurance
may be insured by either an individual homeowners policy or an association master policy
Townhouse insurance
is an auto policy that covers mobile homes used as residences.
Mobilowners insurance
insure homes outside city limits on land used for farming and raising livestock. Certain farm equipment and outbuildings can be covered for an extra fee.
Farm and ranch insurance
Also known as homeowners insurance covers a private residence and can cover losses related to the main structure, outbuildings, contents, and personal liability.
Hazard Insurance
A single peril insurance for properties located in certain counties in Texas.
Windstorm Insurance
Limits the liability of the insurance company when the policy holder has less than sufficient coverage on their property.
Coinsurance
A standardized Texas insurance policy that provides limited, actual cash value coverage of a home and its contents.
HO-A Policy
Also known as Renter’s Insurance, is contents coverage. This policy does not cover the structure.
Personal Property Insurance
A single peril insurance that is offered only through the NFIP.
Flood insurance
A claim history that shows a consumer’s claim history, and claims on a property so the insurance company can make an underwriting decision.
Flood insurance
Under some circumstances, the ____________ paid on mortgage may be tax-deductible
Interest
_________, also known as homeowners’ insurance, can cover losses related t the main structure, contents, and outbuildings of a private residence.
Hazard
By failing to maintain sufficient ________, the reduction of the payout of a claim may be reduced due to the coinsurance clause
Insurance coverage
