Unit 3 - Concepts Of Homeownership Flashcards
A foremost consideration in the purchase of a home is its affordability. What is the second?
The location of the property
The real cost of owning a home includes certain costs or expenses that many people overlook. Which of these is NOT such a cost expense of home ownership?
Personal property taxes
Most homeowners insurance policies contain which of these clauses?
A coinsurance clause
The ones of a vacation home sold it for $188,000. If they made a profit of 10%, what was the original cost of their property?
$170,900
In the event that a homeowners insurance policy provides coverage for less than 80% of the full replacement cost of the dwelling, then the loss of the residence will be settled for
Either the actual cash value or the prorated repair cost
Whicb of these types of development combines office space, stores, and residential units in a single community?
Mixed use development
Under the provisions of the Federal Income Tax Code, what is the maximum allowable gain that may be claimed as tax exempt by a couple filing jointly?
$500,000
A basic homeowners insurance policy does NOT protect against
Water damage due to faulty plumbing
Federal income tax regulations allow homeowners to reduce their annual taxable income by amounts paid for
Real estate taxes
A borrower applied for a 30 year loan instead of a 25 year loan. In this situation which of the following is true?
The longer term mortgage will result in lower monthly payments
A homeowner has insurance coverage that covers fire and water damage. If he wants to increase his coverage, the policy will protect which additional risks?
Liability coverage
A married couple has been living in a condo at the shore for the past 4 years and leasing the house they they bought 25 years ago to a tenant. If they sell their house, how much of the capital gain will be taxable?
100%
The value that an owner has in the property that exceeds the amount of the mortgage debt is called
Equity
A property owner listed a property for sale at $100,000. If the owners cost was 80% of the listing price, what will be the percentage of profit when the real estate is sold doe the listing price?
25%
