Question 1

Condominium owners can be restricted on construction and alteration of their units.

Accepted Answer

A) True 
 B)False  True

Question 2

Homeowners' associations cannot promulgate rules that are not part of the CC&Rs.

Accepted Answer

A) True 
 B)False  False

Question 3

Time-sharing interest owners have transfer restrictions on their interests.

Accepted Answer

A) True 
 B)False  False

Question 4

A vacation lease is a form of condominium ownership.

Accepted Answer

A) True 
 B)False

Question 5

Ralph Regier, a homeowner in the Shady Rest subdivision, has not paid his association fees in six months. The board of directors has revoked his power to vote for the board members at the upcoming annual election. Discuss this enforcement tool and any others the association might have.

Accepted Answer

?The association can revoke the power to

Question 6

There are no warranties of habitability for condominium purchasers.

Accepted Answer

A) True 
 B)False

Question 7

A co-op interest cannot be transferred.

Accepted Answer

A) True 
 B)False

Question 8

The penalty for the failure to obtain ACC approval for modifications is removal of the modifications.

Accepted Answer

A) True 
 B)False

Question 9

A vacation lease:

Accepted Answer

A)  Is a time sharing interest. 
B)  Is an actual lease. 
C)  Is a condominium interest. 
D)  Is a proprietary lease. 
A)  Is a time sharing interest. 
B)  Is an actual lease. 
C)  Is a condominium interest. 
D)  Is a proprietary lease.

Question 10

A proprietary lease is used in a co-op development.

Accepted Answer

A) True 
 B)False

Question 11

The laws on multi-unit housing are uniform among the states.

Accepted Answer

A) True 
 B)False

Question 12

Conversion restrictions:

Accepted Answer

A)  Impose minimum notice periods for conversion. 
B)  Prohibit conversion of apartments to condominiums. 
C)  Do not require that existing lease terms be honored. 
D)  Have been declared unconstitutional. 
A)  Impose minimum notice periods for conversion. 
B)  Prohibit conversion of apartments to condominiums. 
C)  Do not require that existing lease terms be honored. 
D)  Have been declared unconstitutional.

Question 13

A co-op need not be incorporated.

Accepted Answer

A) True 
 B)False

Question 14

How does the business judgment rule apply to HOA boards?

Accepted Answer

A) It provides liability protection if the board follows its processes 
B) The board members are exempt from liability 
C) The board must always have external advisers to protect itself from liability 
D) The business judgment rule does not apply to HOA board 
A) It provides liability protection if the board follows its processes 
B) The board members are exempt from liability 
C) The board must always have external advisers to protect itself from liability 
D) The business judgment rule does not apply to HOA board

Question 15

Common areas are specified in the Declaration of Condominium.

Accepted Answer

A) True 
 B)False

Question 16

The Uniform Common Interest Ownership Act:

Accepted Answer

A)  Makes all common ownership interest condominium ownerships. 
B)  Groups all forms of common interest ownerships as any common interest in real property in which owners pay for common maintenance. 
C)  Has been widely adopted among the states. 
D)  Converts all forms of common ownership to cooperative interests. 
A)  Makes all common ownership interest condominium ownerships. 
B)  Groups all forms of common interest ownerships as any common interest in real property in which owners pay for common maintenance. 
C)  Has been widely adopted among the states. 
D)  Converts all forms of common ownership to cooperative interests.

Question 17

Alteration of a property located in an area with a homeowners' association:

Accepted Answer

A)  Can be done so long as the homeowner's fees are current. 
B)  Can be done with approval by the Architectural Control Committee. 
C)  Cannot be done except by the homeowners' association. 
D)  Can be done by vote of all owners. 
A)  Can be done so long as the homeowner's fees are current. 
B)  Can be done with approval by the Architectural Control Committee. 
C)  Cannot be done except by the homeowners' association. 
D)  Can be done by vote of all owners.

Question 18

A co-op interest cannot be mortgaged or pledged.

Accepted Answer

A) True 
 B)False

Question 19

Condo and co-op board members have immunity from personal liability.

Accepted Answer

A) True 
 B)False

Question 20

Torts in common areas permit the injured party to sue the association of homeowners.

Accepted Answer

A) True 
 B)False

Exam 11: Real Estate Communities: Multiunit Interests and Owners Associations

Condominium owners can be restricted on construction and alteration of their units.

Homeowners' associations cannot promulgate rules that are not part of the CC&Rs.

Time-sharing interest owners have transfer restrictions on their interests.

A vacation lease is a form of condominium ownership.

Ralph Regier, a homeowner in the Shady Rest subdivision, has not paid his association fees in six months. The board of directors has revoked his power to vote for the board members at the upcoming annual election. Discuss this enforcement tool and any others the association might have.

There are no warranties of habitability for condominium purchasers.

A co-op interest cannot be transferred.

The penalty for the failure to obtain ACC approval for modifications is removal of the modifications.

A vacation lease:

A proprietary lease is used in a co-op development.

The laws on multi-unit housing are uniform among the states.

Conversion restrictions:

A co-op need not be incorporated.

How does the business judgment rule apply to HOA boards?

Common areas are specified in the Declaration of Condominium.

The Uniform Common Interest Ownership Act:

Alteration of a property located in an area with a homeowners' association:

A co-op interest cannot be mortgaged or pledged.

Condo and co-op board members have immunity from personal liability.

Torts in common areas permit the injured party to sue the association of homeowners.

Sources of Real Estate Law

Land Interests: Present and Future

Extent of Real Estate Interests

Nonpossessory Interests in Real Estate

Fixtures

Liens

Describing Land Interests

Co-Ownership of Real Estate

The Landlord-Tenant Relationship

Commercial Leases

The Brokers Role in the Transfer of Real Estate

The Purchase Contract

Methods of Transfer and Conveyance in Real Estate

Financing in the Transfer of Real Estate

Closing the Deal

Transferring Real Estate After Death: Wills, Estates, and Probate

Zoning

Constitutional Issues in Real Estate

Environmental Regulation and Sustainability

Legal Issues in Land and Economic Development

Tax Aspects of Real Estate Ownership and Transfer

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