Real Estate

Question 1

Ownership provides single ownership of the unit itself & joint ownership of the land & shared space

Answer 1

Condos

Question 2

Hallways, elevators, stairwells, pools, recreational facilities, laundry rooms, parking lots

Answer 2

Common Elements

Question 3

Every resident buys stock in _______ & receives a proprietary lease for one of the units

Answer 3

the cooperative

Question 4

Made of the owners who approve sales, handle the finances, enforce rules, & ensure maintenance is done

Answer 4

Co-op Board of Directors

Question 5

Picky about who they’ll approve as an owner as owners’ default affects all of the owners

Answer 5

Co-op Board of Directors

Question 6

The Co-op Board of Directors’ interview includes financial disclosure because…

Answer 6

owners’ default affects all of the owners

Question 7

What is the major difference between a condo & a townhome?

Answer 7

Townhouse owners generally own the land below their unit.

Question 8

Usually include the unit & the land

Answer 8

Townhouses

Question 9

Usually include the unit only

Answer 9

Condos

Question 10

How can a RE agent verify the difference between a condo & a townhome?

Answer 10

By reviewing the legal description in the deed

Question 11

What is a 2nd method of determining if a residence is a townhome?

Answer 11

By reviewing the lot lines on the survey

Question 12

Lot lines are clearly drawn on the survey for this

Answer 12

Townhouse

Question 13

Survey will have a space enclosed showing the 4 corners of the unit on the floor & the 4 corners for the ceiling

Answer 13

Condo

Question 14

A subdivision or development that includes single-family dwellings along w/some common elements

Answer 14

Planned Unit Development (PUD)

Question 15

Common elements are either owned by HOA or collectively by all homeowners

Answer 15

PUD

Question 16

All residents are required to be members of the association & pay a fee for the amenities

Answer 16

PUD

Question 17

Dwellings that are built in a factory & then delivered to the site once complete

Answer 17

Manufactured homes

Question 18

A dwelling with more than 4 units

Answer 18

Commercial Real Estate

Question 19

Benefit to owning multi-family homes

Answer 19

An economy of sale

Question 20

Why are the sales of multi-family homes referred to as an economy of sale?

Answer 20

Because of the reduced cost of maintaining 1 location that serves more than 1 family

Question 21

The profit received from selling a capital asset

Answer 21

Capital Gains

Question 22

What is a benefit enjoyed by homeowners who sell their primary residence?

Answer 22

Tax exemptions on capital gains

Question 23

What is the loss incurred from selling a capital asset?

Answer 23

Capital Loss

Question 24

The IRS imposes taxes on all forms of __________.

Answer 24

Capital gains

Question 25

How do you calculate capital gain in real estate?

Answer 25

Sales Price - (purchase price + cost of improvements) + Total Depreciation - Expenses = Gain

Question 26

Why is depreciation omitted when calculating capital gains on the sale of a primary residence?

Answer 26

B/c homeowners get a tax break on the sale of a primary residence.

Question 27

What are the current tax %s for Long Term Gains?

Answer 27

0%, 10%, 20%

Question 28

What determines the tax bracket at which the long-term gains will be taxed?

Answer 28

the income level of the individual taxpayer

Question 29

Created certain exclusions from capital gains taxes for homeowners

Answer 29

The Taxpayer Relief Act of 1997

Question 30

An agreement between 2 or more parties to either do something or not to do something called?

Answer 30

Contract

Question 31

What is the part of a contract stating one or more of the contracting parties must refrain from actions that would usually be legal called?

Answer 31

Forbearance Agreement

Question 32

If a lender were to waive their legal right to pursue a debt, they have most likely entered into a ________ ________

Answer 32

Forbearance Agreement

Question 33

In Texas, all real estate contracts must be in _______ & ______ by the party to be charged if they are to be enforceable in favor of a license holder.

Answer 33

writing and signed by the party to be charged if they are to be enforceable in favor of a license holder