Practice Chapter 5 - Home Ownership Flashcards
Condominium
An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan.
Cooperative
An apartment building, owned by a corporation and in which tenancy in an apartment unit is obtained by purchase of shares of stock of the corporation and where the owner of such shares is entitled to occupy a specific apartment in the building.
Mobile Home
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.
Modular
A system for the construction of dwellings and other improvements to real property through the on-site assembly of component parts (modules) that have been mass-produced away from the building site.
Time-Share
A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, on an annual or some other periodic basis, for a specified period of time.
Appreciation
Monetary gain resulting from the increase in the market value of an investment, excluding additions of capital. For example, a house which is sold five years after it was purchased for 50% more than the purchase price.
Capital Gains
At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Used for income tax computations. Gains are called short or long based upon the length of the holding period after acquisition. Usually taxed at lower rates than ordinary income.
Straight Line Depreciation
A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement.
Tax-Deferred Exchange
The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade.
Property Insurance
Provides protection against most risks to property, such as fire, theft and some weather damage.
Assessed Value
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
Assessing Unit
A city, county, town or village with the authority to value real property for purposes of taxation.
Assessments
A charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer.
Tax Assessor
An elected or appointed official of a county, city, town or village whose function is to value real property for the purposes of taxation.
Special Assessment
An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.
