Chapter 3 "Concepts and Responsibilities of Home Ownership" Flashcards Preview

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Flashcards in Chapter 3 "Concepts and Responsibilities of Home Ownership" Deck (18)
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1

Condominium

Shares party walls with other units - involves individual ownership of the airspace within the unit itself, plus shared ownership of common facilities such as walls, elevators, and the land as undivided interest.

2

Cooperative

Similar to a condominium in that it involves units within a larger building with common walls and facilities. However, an owner of a cooperative unit owns not the unit itself but shares of stock in the cooperative that holds the title to the building.

3

Town Houses

Similar to single-family houses but instead of being on each separate land they are joined together by a common wall.

4

Planned Unit Development (PUD)

Is a project or subdivision that consist of common property and improvements that are owned and maintained by an owner association for the benefit and use of the individual housing units within the project.

5

Converted-use Properties

Existing structures such as factories, office buildings, hotels, schools, and churches, that have been converted to residential use as either rental or condominium units.

6

Mixed-use Developments

Combine condominium or apartment living with shopping and recreation facilities either in one building or in a group of buildings.

7

Manufactured Homes

Mobile homes that are built in manufactured plants and transported on permanent chassis to manufactured home dealerships and then to purchasers' homesites, where they are connected to gas, water, and electricity.

8

Five major factors that influence the choice of property location for a buyer are..

1. Employment opportunities
2. Cultural advantages - Schools, colleges, places of worship, libraries, theaters, museums, zoos, sports attractions, and parks all constitute a powerful sociological attraction to a given community.
3. Governmental structure - Police and fire protecttion
4. Social services
5. Transportation

9

Capital Gains

Profits realized from a sale or exchange of an asset, including real property.

10

Texas Mortgage Credit Certificate (MCC) Program

Moderate- or low-income first time homebuyers in Texas may be eligible to claim a federal tax credit of up to 40% of annual mortgage interest paid, not to exceed $2,000 per year.

11

Types of Homeowners Insurance Policies

HO-A, HO-B and HO-C

12

HO-A "Policies" Homeowners Insurance

Provide limited actual cash value coverage of the home and its contents. Only the types of damage specifically listed in the policy are covered.

13

HO-A "Amended Policies" Homeowners Insurance

Provide more extensive coverage the the base HO-A policy but less coverage then the HO-B. HO-A amended policies are not standardized; coverage provided varies from one company to another.

14

HO-B "Policies" Homeowners Insurance

Is the most common homeowners policies. HO-B policies provide replacement cost coverage for most types of damage tot he real property, except claims specifically excluded in the policy. They provide actual cash value coverage for personal property unless endorsed to provide replacement cost coverage.

15

HO-C "Policies' Homeowners Insurance

Provide the most extensive coverage but are the more expensive that other types of policies.

16

Approved Alternative Policies Homeowners Insurance

Offer varying levels of coverage and are different from one company to another, and are sold only with the approval of the Commissioner of Insurance.

17

Under Homeowners Insurance, most policies cover losses caused by...

Fire and lighting
Aircraft and vehicles
Vandalism and malicious mischief
Theft
Explosion
Riot and cicil commotion
Smoke
Windstorm, hurricane, and hail (except property on the Gulf Coast)
Sudden and accidental water damage

18

Under Homeowners Insurance, most policies "do not" cover losses caused by...

Flooding
Earthquakes
Termites
Insects, rats or mice
Freezing pipes while the house is unoccupied (unless the water was turned off or the building was heated)
Wind or hail damage to tress or shrubs
Losses if the house is vacant for 60 days or more
Wear and tear or maintenance