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Flashcards in chapter 3 Deck (10)
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1
Q

Most homeowners policies cover:

A

The dwelling, personal property in the dwelling, and other structures on the property

2
Q

Many homeowners insurance policies can also cover:

A

Personal liability, loss of use, and medical payments

3
Q

The information contained in the Comprehensive Loss Underwriting Exchange is reported by:

A

Insurance companies

4
Q

If the property is in a flood zone, flood insurance will be required by the:

A

Lender

5
Q

Can mortgage interest be deducted on an owners federal tax return

A

Yes, mortgage interest as well as property taxes may be deducted on the federal tax return

6
Q

How.long does an owner have to stay in a property to take the capital gains exclusion?

A

Two years- you must have lived in the home 2 out of the past 5 years to obtain the exclusion

7
Q

The amount of capital gains exclusion on a residence for a single person is?

A

$250,000. Its is 500,000 for a married couple

8
Q

What is a CLUE report?

A

It is a report of all insurance claims made on a property- CLUE stands for the Comprehensive Loss Underwriting Exchange. Report includes the name of the insurance company, type of policy and date of claim as well as the amount paid and cause of loss.

9
Q

Who usumanages a condo and is responsible for making sure the property is well

A

A home owners association or HOA.

10
Q

Easements, right of way, and condominium parking stalls are examples of:

A

Appurtenances- a right of way or privilege attached to the land and passes with the land when the land is conveyed.