Chapter 7: Ownership Of Real Estate Key Terms Part 2

Question 1

Board of directors

Answer 1

The group elected to manage a corporation.

Question 2

Common elements

Answer 2

Stairwells, groups, etc., Owned by all

Question 3

Condominium

Answer 3

Fee simple ownership of a living unit

Question 4

Conversion

Answer 4

Apartment house changed to condos. The landlord must obtain an approval of the planned conversion by the state of New Jersey at least three years and two months before the conversion may start. Tenant Protection; they must have occupied the premise for at least two years before the conversion and have incomes no higher than $50,000, if they meet these qualifications they are allowed to continue as tenants for up to 40 years.

Question 5

Cooperative

Answer 5

An apartment who’s buyer receives stock in a corporation.

Question 6

Homeowners association

Answer 6

All owners in one condominium complex.

Question 7

Horizontal Properties Act

Answer 7

Regulates the creation of condominiums. Also known as the condominium act.

Question 8

Proprietary lease

Answer 8

Ownership of a cooperative gives shares in the corporation as well as a proprietary lease. The proprietary lease gives the purchaser the right to occupy his or her apartment.

Question 9

Reserves

Answer 9

Money set-aside for future repairs.

Question 10

Time-sharing

Answer 10

Ownership for part of the year. Also known as a fraction of the year ownership this is a true fee simple interest in the real estate.

Question 11

Town house

Answer 11

An architectural term to define A dwelling in which buildings share a party wall.