Question 1

Explain how the business judgment rule applies to the boards of homeowners' associations.

Accepted Answer

?The courts have begun deferring to the

Question 2

An amendment to the bylaws is invalid if it is adopted after the developer has turned over control of the association.

Accepted Answer

A) True 
 B)False

Question 3

HOAs have been referred to as a substitute for zoning because they regulate appearance and use of property.

Accepted Answer

A) True 
 B)False

Question 4

In a co-op, the unit occupants do not own a real estate interest.

Accepted Answer

A) True 
 B)False

Question 5

What is not a penalty for the failure to obtain ACC approval for modifications?

Accepted Answer

A)  Removal of the modifications 
B)  A fine 
C)  Attorneys' fees 
D)  Eviction 
A)  Removal of the modifications 
B)  A fine 
C)  Attorneys' fees 
D)  Eviction

Question 6

A time-share interest is a fee simple interest.

Accepted Answer

A) True 
 B)False

Question 7

"No pets" rules in associations are:

Accepted Answer

A)  Constitutionally invalid. 
B)  Valid if exemptions are made for smaller pets. 
C)  Valid and enforceable. 
D)  Not valid unless part of the original formation documents. 
A)  Constitutionally invalid. 
B)  Valid if exemptions are made for smaller pets. 
C)  Valid and enforceable. 
D)  Not valid unless part of the original formation documents.

Question 8

Parking spaces in a condominium development:

Accepted Answer

A)  Are common areas. 
B)  Are individually owned. 
C)  Need not be covered in the bylaws. 
D)  Are part of ownership rights for each owner. 
A)  Are common areas. 
B)  Are individually owned. 
C)  Need not be covered in the bylaws. 
D)  Are part of ownership rights for each owner.

Question 9

A proprietary lease:

Accepted Answer

A) Is the same as a regular lease, but longer in length. 
B) Is the same as a regular lease, and includes the right of eviction for nonpayment. 
C) Is a form of ownership that carries greater rights than a leasehold interest. 
D) Is required for all forms of multi-unit ownership. 
A) Is the same as a regular lease, but longer in length. 
B) Is the same as a regular lease, and includes the right of eviction for nonpayment. 
C) Is a form of ownership that carries greater rights than a leasehold interest. 
D) Is required for all forms of multi-unit ownership.

Question 10

Which of the following is NOT a test courts use in determining whether action taken by an homeowners' association is valid?

Accepted Answer

A) The reasonableness test 
B) The business judgment test 
C) The contracts test 
D) The timing test 
A) The reasonableness test 
B) The business judgment test 
C) The contracts test 
D) The timing test

Question 11

A vacation license is a fee simple interest.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a valid restriction in a cooperative interest?

Accepted Answer

A)  A requirement to offer the interest first to the corporation. 
B)  A requirement on transfer at death. 
C)  A requirement for approval prior to leasing. 
D)  A requirement that the interest be offered to all other owners in the cooperative. 
A)  A requirement to offer the interest first to the corporation. 
B)  A requirement on transfer at death. 
C)  A requirement for approval prior to leasing. 
D)  A requirement that the interest be offered to all other owners in the cooperative.

Question 13

A patio home is a form of condominium.

Accepted Answer

A) True 
 B)False

Question 14

Homeowners' associations are restricted on foreclosure options for nonpayment of association fees.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following parties could not recover for injuries resulting from a condition in the common area of a condominium development?

Accepted Answer

A)  Unit owners 
B)  Delivery person 
C)  Postal employee 
D)  A person who had just robbed residents 
A)  Unit owners 
B)  Delivery person 
C)  Postal employee 
D)  A person who had just robbed residents

Question 16

Bylaws are the deed restrictions for a community that run with the land.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the liability of unit owners and their association for the following incidents:
a. A postal employee slipping and falling over a sprinkler
b. A unit owner slipping and falling over a sprinkler
c. A unit owner's guest slipping and falling over a sprinkler

Accepted Answer

?In all three cases,

Question 18

Stacy Harris owned a condominium in the 4215 Harding Road Condominiums. Her fellow condo owners complained about grossly unsanitary conditions in Harris's unit and resulting extremely offensive odors that emanated from her unit into common areas. Despite warnings and fines, Ms. Harris did not clean up her apartment. The association brought suit to have the condo unit sold and asked for $116,037.77 in fees and attorney's fees. Which of the following is correct?

Accepted Answer

A) A condo cannot be sold to satisfy fines assessed for rules violations. 
B) An association cannot take back title to a unit without the consent of the owner. 
C) The association can bring a foreclosure action for noncompliance and to collect unpaid fees. 
D) The action by the association violates the due process clause. 
A) A condo cannot be sold to satisfy fines assessed for rules violations. 
B) An association cannot take back title to a unit without the consent of the owner. 
C) The association can bring a foreclosure action for noncompliance and to collect unpaid fees. 
D) The action by the association violates the due process clause.

Question 19

A co-op need not be incorporated.

Accepted Answer

A) True 
 B)False

Question 20

If there is criminal activity in the common areas of a condominium or co-op, who would not be liable for any injuries that result?

Accepted Answer

A)  The criminals only 
B)  The association if security was inadequate 
C)  The association if it was aware of criminal conduct 
D)  Individual unit owners 
A)  The criminals only 
B)  The association if security was inadequate 
C)  The association if it was aware of criminal conduct 
D)  Individual unit owners

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

Explain how the business judgment rule applies to the boards of homeowners' associations.

An amendment to the bylaws is invalid if it is adopted after the developer has turned over control of the association.

HOAs have been referred to as a substitute for zoning because they regulate appearance and use of property.

In a co-op, the unit occupants do not own a real estate interest.

What is not a penalty for the failure to obtain ACC approval for modifications?

A time-share interest is a fee simple interest.

"No pets" rules in associations are:

Parking spaces in a condominium development:

A proprietary lease:

Which of the following is NOT a test courts use in determining whether action taken by an homeowners' association is valid?

A vacation license is a fee simple interest.

Which of the following is not a valid restriction in a cooperative interest?

A patio home is a form of condominium.

Homeowners' associations are restricted on foreclosure options for nonpayment of association fees.

Which of the following parties could not recover for injuries resulting from a condition in the common area of a condominium development?

Bylaws are the deed restrictions for a community that run with the land.

Discuss the liability of unit owners and their association for the following incidents: a. A postal employee slipping and falling over a sprinkler b. A unit owner slipping and falling over a sprinkler c. A unit owner's guest slipping and falling over a sprinkler

A co-op need not be incorporated.

If there is criminal activity in the common areas of a condominium or co-op, who would not be liable for any injuries that result?

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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