Exam 16: Real Estate Closing Forms and Examples

An enclosed backyard in a condominium development would be a limited common area.

Condominiums rarely contain restrictions on the use of the unit and the common areas.

A swimming pool in a condominium development would be a common area.

A cooperative owner generally does not have any restrictions on the owner's right to resell the cooperative unit.

A condominium owner's obligation to pay common area assessments is conditioned upon the condominium association providing services.

A swimming pool in a condominium development would be a limited common area.

A condominium owner buys stock in a corporation, which owns the condominium; this stock gives the condominium owner a right to live in a condominium unit.

A condominium form of ownership, once created, can never be terminated.

A condominium association can foreclose and sell a n owner's condominium unit if the owner fails to pay common area assessments.

Most condominium declarations require that fire insurance on the units be under a master policy and that the insurance premium be an expense of the condominium association.

The governing body of most condominiums is a nonprofit corporation in which each owner is entitled to one vote.

Most cooperatives are financed by individual mortgages on the individual cooperative owners' units.

A condominium declaration and plat must be in existence before a project can be considered a condominium and before individual units can be sold.

Most condominium declarations require that fire insurance be obtained by each condominium unit owner.

Condominium owners have joint and several liability for damage or harm caused to persons in connection with the common areas.

Stefanie owns a condominium unit. Each month she is assessed a condominium assessment fee. For several months the health club at the condominium has not been open except on weekends and the landscaping has not been cared for regularly. Stefanie has complained a number of times to the association board but has not received any positive response. Stefanie decides that she will not pay the monthly assessment. Is this a good idea? Can Stefanie defend against any attempts to collect the fee?

Condominium declarations usually contain comprehensive restrictions on the use of the condominium unit and common areas.

Craig owns shares in a cooperative and leases an apartment from the cooperative. Craig wants to sell his shares and assign his lease to the new owner. The cooperative's board of directors tells Craig that he cannot do this unless they approve the new owner. Can the board legally do this?

Taxes on individual condominium units are paid by the individual condominium unit owners.

In most states, a time-share purchaser is given a period of time after signing a purchase contract to cancel the contract.