Deck 17: Condominiums and Cooperatives

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Taxes on individual condominium units are common expenses paid by the condominium association.

Question 7

Condominium owners do not have joint and several liability for damage or harm caused to persons in connection with the common areas.

Question 8

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

Question 9

Condominiums and cooperatives are the same thing.

Question 10

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

Question 11

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

Question 12

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.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

Most cooperatives are financed by a mortgage on the entire cooperative.

Question 22

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?

Question 23

Cooperatives are generally owned by a cooperative corporation, with the individual owners being shareholders in the corporation.

Question 24

Brett and Jackie went to a time share sales meeting. After the meeting they decided that it was a good idea to buy a time share and signed a contract. Three days later they reconsidered their decision. They want to terminate the contract and not buy the timeshare. Can they legally do this?

Question 25

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

Question 26

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?

Question 27

Individual unit owners own the cooperative living units.