CPCU 551, Chapter 5 Study Questions with Answers

Condominium A real estate development consisting of a group of units in which the air space within the boundaries of each unit is owned by the unit owner and all remaining real and personal property is owned jointly by all unit owners Condominium unit The portion of a condominium owned solely by a unit owner Condominium association An entity composed of the unit owners in a condominium to manage the condominium and to own the common elements Common elements Areas of a condominium that are jointly owned by all unit owners, including the land on which the buildings are located Condominium association agreement A document that describes what each condominium unit owner has purchased and clarifies the rights and responsibilities of the unit owners and the association Bare walls concept A concept of condominium ownership in which the association has no ownership interest within the bare walls of each unit Single entity concept (original specification coverage) A concept of condominium ownership in which the association is considered to be the owner of all property contained in the unit as sold to the original purchaser or replacements of such property if the replacements are of like kind and quality All in concept (additional installation coverage) A concept of condominium ownership that is similar to the single entity concept except that the all in concept includes improvements made by the unit owner, not just the original installations or replacement of like kind and quality Comparative cooperation A form of real estate ownership in which the real property is owned by a corporation whose shareholders are the tenants of the property Planned unit development (homeowners association) A real estate development in which each occupant has exclusive ownership of its own unit and the land that the structure occupies and a homeowner's association composed of all the unit owners jointly that owns the surrounding land and structures