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

Question 1

A condominium unit cannot be mortgaged.

Answer 1

False

Question 2

A co-op interest cannot be mortgaged or pledged.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Transfer restrictions on co-op interests are invalid.

Question 5

Time-sharing interests can be fee simple interests.

Question 6

The Uniform Condominium Act has been adopted in a majority of the states.

Question 7

A Declaration of Horizontal Property Regime is a Declaration of Condominium.

Question 8

Common areas are specified in the Declaration of Condominium.

Question 9

Condominium owners have no ownership rights in the common areas.

Question 10

Bylaws specify meeting requirements.

Question 11

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

Question 12

A co-op need not be incorporated.

Question 13

A time-sharing interest can only be a lease.

Question 14

Developers are responsible for pre-conversion expenses.

Question 15

Unit owners are responsible for torts committed in their condominium units.

Question 16

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

Question 17

Condominium associations can file liens for non-payment of monthly association fees.

Question 18

Condominium ownership is not fee simple ownership.

Question 19

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

Question 20

Co-ops, townhomes and condominiums are all incorporated non-profit associations.

Question 21

A patio home is a form of condominium.

Question 22

Turn-offs of services must be authorized in the bylaws to be a means of enforcement of assessments.

Question 23

There are no warranties of habitability for condominium purchasers.

Question 24

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

Question 25

A developer has the authority to change the declaration as needed to make accommodations to buyers.

Question 26

A vacation lease is a form of condominium ownership.

Question 27

Landlord tenant laws apply to cooperatives.

Question 28

Any proposed or modification use of common areas must be approved by the condominium association.

Question 29

A co-op interest cannot be transferred.

Question 30

A co-op need not be incorporated.

Question 31

Time-sharing interests cannot be transferred.

Question 32

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

Question 33

Hybrids still require associations and CC&Rs.

Question 34

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

Question 35

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

Question 36

Cooperative boards can review and reject applicants who wish to purchase a unit in the co-op.

Question 37

To collect fees and assessments, homeowners' associations need only a rule change.

Question 38

Architectural Control Committees cannot enforce rules on aesthetics only.

Question 39

A homeowner must obtain permission from the Architectural Control Committee before making external modifications to his/her home.

Question 40

State laws governing homeowner associations have increased in the past few years.

Question 41

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

Question 42

Most states place limitations on association foreclosures for nonpayment of monthly fees by owners.

Question 43

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

Question 44

HOAs must take reasonable precautions for security purposes, but they are not insurers against criminal conduct.

Question 45

Condo and co-op boards are subject to the standards of the business judgment rule.

Question 46

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

Question 47

A co-op owner cannot be removed from his or her unit through eviction processes.

Question 48

Multi-unit housing associations do not have a right of foreclosure for unpaid fees.

Question 49

Associations can recover from developers for defects in construction in the common areas.

Question 50

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

Question 51

A vacation license is the same as a time-share interest.

Question 52

A vacation license is a fee simple interest.

Question 53

A time-share interest is a fee simple interest.

Question 54

HOA rules are not valid unless they existed originally in the formation documents for the association.

Question 55

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

Question 56

HOA age restrictions such as no one under the age of 55 are unconstitutional.

Question 57

HOAs can prohibit short-term rentals.

Question 58

Which of the following forms of multi?unit housing requires a corporation?

A) Condominium
B) Co-op
C) Time-sharing
D) Townhomes

Question 59

Which of the following is not included in the Declaration of Condominium?

A) Legal description of the property
B) Limitations on use of common areas
C) Legal agent or representative
D) Rules and regulations for use of common areas

Question 60

In which of the following forms of multi-unit housing does the owner not own real property?

A) Condominium
B) Co-op
C) Townhouse
D) Hybrids

Question 61

What remedies exist for nonpayment of association fees?

A) Lien and judgment
B) Revocation of title
C) Restriction on transfer
D) Eviction

Question 62

Who is responsible for pre-conversion/pre-association expenses and improvements in a condo conversion?

A) Unit owners
B) Developers
C) Contractors who built the units
D) Landlords

Question 63

Who is responsible for torts occurring within an individual condominium unit?

A) Association
B) Unit owner
C) There is no liability
D) The developer

Question 64

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

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

Question 65

Parking spaces in a condominium development:

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 66

A proprietary lease:

A) Is for perpetuity or a long period.
B) Includes a provision for rent.
C) Governs time-share ownership.
D) Governs condominium ownership.

Question 67

Transfer restrictions on co-op interests:

A) Are invalid per se.
B) Are generally invalid.
C) Are void restraints on alienation.
D) Are enforceable.

Question 68

A vacation lease:

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

Question 69

The air space above a condominium:

A) Is owned by the individual condominium owner.
B) Is a common area.
C) Is not a real property interest.
D) Does not include transfer rights.

Question 70

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

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 71

Which of the following is not a hybrid?

A) A form of ownership that combines features of various forms of multi-unit housing
B) Patio homes
C) Garden homes
D) Timeshare interests

Question 72

An architectural control committee:

A)Is created by the bylaws for a condominium project.
B)Expires when the developer completes the condominium project.
C)Has authority only over the common areas.
D)Has no authority until owners approve its decisions.

Question 73

Who has liability for injuries to visitors that occur in condominium common areas?

A) No one is liable
B) The maintenance firm only
C) The condominium association
D) Developers

Question 74

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

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 75

Which of the following powers do homeowners' associations not have?

A) Control of common areas
B) Right to enforce CC&Rs
C) Power to assess fees
D) Revocation of title

Question 76

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?

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

Question 77

"No pets" rules in associations are:

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 78

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

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

Question 79

Which of the following best describes the judicial decisions on no-pet policies adopted by homeowner' associations?

A)These no-pet policies have been declared unconstitutional.
B)These no-pet policies cannot be enforced against owners who have indoor pets only.
C)These no-pet policies are valid as long as they are adopted properly.
D)These no-pet policies are unenforceable in California.

Question 80

Which of the following is not a remedy available to homeowners' associations for violations of CCRs and rules?

A) Fines
B) Liens
C) Foreclosures
D) Revocation of ownership rights