Real Estate Chapter 15 Flashcards

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Questions and Answers

What is a cooperative?

A type of rental apartment

A vacation property

A dwelling unit owned by a corporation (correct)

A single-family home

What is a Share Loan?

A loan in which shares of stock are used as collateral.

Define Proprietary Lease.

A lease given by a corporation to a shareholder, often in a co-op context.

What does Maintenance refer to in a cooperative?

Monthly payments by a shareholder to a cooperative corporation. Signup and view all the answers

Who is a Sponsor in the context of real estate?

The developer or owner organizing and offering for sale a condominium or cooperative development. Signup and view all the answers

What is included in a Board Package?

A series of documents submitted for review by a cooperative board. Signup and view all the answers

What is an Alteration Agreement?

Describes the terms under which the cooperative permits changes to a unit. Signup and view all the answers

What is a Condominium?

A form of fee simple ownership of part of a structure having multiple units. Signup and view all the answers

What is a Condop?

A residential establishment that includes both condominium and cooperative ownership. Signup and view all the answers

Define By-laws in a condominium context.

The owner's rights and obligations for a condominium. Signup and view all the answers

What are Common Elements?

Spaces shared by all residents of a building. Signup and view all the answers

What are Covenants, Conditions and Restrictions (CCRs)?

Limitations and rules imposed on a group of homes. Signup and view all the answers

What is a Declaration?

A document that establishes and governs the use of a condominium property. Signup and view all the answers

What are House Rules in a cooperative?

Rules covering common issues in a cooperative. Signup and view all the answers

What is a Letter of Intent (LOI)?

An agreement to agree outlining terms between parties. Signup and view all the answers

What is an Offering Statement?

A document prepared by attorneys about a new condominium building. Signup and view all the answers

Define Recognition Agreement.

The agreement between the shareholder, cooperative, and bank for purchasing shares. Signup and view all the answers

What is a Flip Tax?

A fee paid during a housing co-op transaction. Signup and view all the answers

What does flipping refer to in real estate?

Buying a home and reselling it for a profit. Signup and view all the answers

What collateral is used when financing a cooperative apartment?

The stock interest allocated to the apartment. Signup and view all the answers

What type of property is a cooperative apartment considered?

Personal property. Signup and view all the answers

When is a UCC-1 filed on public record?

A loan given on a cooperative apartment. Signup and view all the answers

Study Notes

Cooperative

Dwelling unit owned by a corporation, where ownership is represented by shares of stock.
Each stockholder has a proprietary lease for their apartment.

Loan type using shares of stock as collateral.
Commonly associated with cooperative purchases.

Proprietary Lease

Lease issued by a corporation to allow shareholders occupancy rights.
Tie between ownership shares and residence.

Maintenance

Monthly fees paid by shareholders to the cooperative corporation.

Developer or owner who organizes and sells a condominium or cooperative development.

Board Package

Collection of documents submitted for evaluation by the cooperative board.

Alteration Agreement

Terms outlined for shareholder changes to their occupied unit, requiring prior approval from the cooperative.

Condominium

Form of fee simple ownership allowing individual titles to units and shared ownership of common elements.

Condop

Residential establishment combining both condominium and cooperative ownership structures.
Typically involves cooperative ownership treated as a single condominium unit.

By-laws

Documents establishing the rights and obligations of condominium owners.

Common Elements

Areas within a building shared by all residents, including lobbies, corridors, and elevators.

Covenants, Conditions and Restrictions (CCRs)

Rules imposed by builders, developers, or homeowner associations that restrict certain freedoms in a shared living environment.

Declaration

Also known as a Master Deed; a key document defining the existence and governance of a condominium property.

House Rules

Guidelines within a cooperative addressing common issues such as maintenance, noise, and conflict resolution.

Letter of Intent (LOI)

Non-binding agreement outlining terms between parties before a formal contract is established.

Offering Statement

Prepared by builders’ attorneys; includes details on units, owners' rights, and any liens affecting title prior to condo purchase.

Recognition Agreement

Document defining the relationship and agreements between shareholders, the cooperative building, and lending banks.

Flip Tax

Fee applied during cooperative apartment transactions, particularly in New York City; not a tax but a transfer fee based on sales.

Flipping

Process of buying a property and selling it quickly for a profit.

The Stock Interest Allocated to the Apartment

Refers to collateral used by banks when lending for the purchase of a cooperative apartment.

Personal Property

Classification of a cooperative apartment indicating it is not real property.

UCC-1 Filing

Action taken when a loan is issued on a cooperative apartment, ensuring it becomes part of the public record.

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Description

Test your knowledge on Chapter 15, which covers important concepts related to condominiums and cooperatives. This set of flashcards includes key terms like 'Cooperative' and 'Share Loan', along with their definitions. Perfect for real estate students or professionals looking to refresh their understanding.