COURSE 1 CHAPTER 24 EXAM
QUESTIONS WITH CORRECT ANSWERS
Condominium common elements can include which of the following?
Elevator
Closet
Kitchen equipment
Personal property - Answer-Elevator
The purchase of a manufactured home with land
rarely leads to equity building for the homeowner.
is not in the best interest of the home buyer.
should lead to equity building for the homeowner.
is typically a less desirable option for a mortgage lender. - Answer-should lead to equity
building for the homeowner.
In a CIC, which entity is the declarant?
Typically the shareholders
Typically the developer or builder
Typically the owners
Typically the holding company - Answer-Typically the developer or builder
Which entity governs a CIC?
MCIOA
MCCIO
Board of Directors
Standards Committee - Answer-Board of Directors
What are the three essential characteristics of a condominium?
Real property, common elements, and a board of directors
Real property, no common elements, and board of directors
Personal property, common elements, and lack of leadership
Personal property, common elements, and a board of directors - Answer-Real property,
common elements, and a board of directors
The sale of co-op shares, condo units, or interests in homeowners' associations is
subject to the Martin Act, as is the sale of other securities, such as stocks and bonds.
The law requires that a complete description of these kinds of real estate interests be
fully disclosed in
an offering plan.
a declaration.
an alteration agreement.
a letter of intent. - Answer-an offering plan.
, In a PUD development, what is the name given to local streets that connect major traffic
arterials?
Feeder Streets
Secondary Streets
Collector Streets
Fill Streets - Answer-Collector Streets
MCIOA
does not require the seller of a CIC unit to provide certain information, including
governing documents, prior to a sale.
requires the seller of a CIC unit to provide certain information, including governing
documents, prior to a sale.
requires the major lending institution of a CIC unit to provide certain information,
including governing documents, prior to a sale.
requires the title closing institution working with owners of a CIC unit to provide certain
information, including deeds of trust, prior to a sale. - Answer-requires the seller of a
CIC unit to provide certain information, including governing documents, prior to a sale.
To finance a property in a PUD, an individual will go through what type of qualification
process?
An owner finance qualification process
A PUD qualification process
The same qualification process as in residential financing mortgages.
A commercial financing qualification process - Answer-The same qualification process
as in residential financing mortgages.
The oldest forms of the Planned Unit Development in America appeared shortly after
the Korean War.
World War I.
World War II.
the Vietnam War. - Answer-World War II.
A CIC association typically allows owners
the same rights and freedoms as compared to single dwelling home owners.
greater rights and freedoms as compared to single dwelling home owners.
to purchase additional rights and freedoms based on an income index.
limited rights and freedoms as compared to single dwelling home owner. - Answer-
limited rights and freedoms as compared to single dwelling home owner.
In which type of development would you most likely find a circulation system that links
residential groupings, open space areas, schools, and local shopping areas?
PUC
PUD
COOP
CCU - Answer-PUD
QUESTIONS WITH CORRECT ANSWERS
Condominium common elements can include which of the following?
Elevator
Closet
Kitchen equipment
Personal property - Answer-Elevator
The purchase of a manufactured home with land
rarely leads to equity building for the homeowner.
is not in the best interest of the home buyer.
should lead to equity building for the homeowner.
is typically a less desirable option for a mortgage lender. - Answer-should lead to equity
building for the homeowner.
In a CIC, which entity is the declarant?
Typically the shareholders
Typically the developer or builder
Typically the owners
Typically the holding company - Answer-Typically the developer or builder
Which entity governs a CIC?
MCIOA
MCCIO
Board of Directors
Standards Committee - Answer-Board of Directors
What are the three essential characteristics of a condominium?
Real property, common elements, and a board of directors
Real property, no common elements, and board of directors
Personal property, common elements, and lack of leadership
Personal property, common elements, and a board of directors - Answer-Real property,
common elements, and a board of directors
The sale of co-op shares, condo units, or interests in homeowners' associations is
subject to the Martin Act, as is the sale of other securities, such as stocks and bonds.
The law requires that a complete description of these kinds of real estate interests be
fully disclosed in
an offering plan.
a declaration.
an alteration agreement.
a letter of intent. - Answer-an offering plan.
, In a PUD development, what is the name given to local streets that connect major traffic
arterials?
Feeder Streets
Secondary Streets
Collector Streets
Fill Streets - Answer-Collector Streets
MCIOA
does not require the seller of a CIC unit to provide certain information, including
governing documents, prior to a sale.
requires the seller of a CIC unit to provide certain information, including governing
documents, prior to a sale.
requires the major lending institution of a CIC unit to provide certain information,
including governing documents, prior to a sale.
requires the title closing institution working with owners of a CIC unit to provide certain
information, including deeds of trust, prior to a sale. - Answer-requires the seller of a
CIC unit to provide certain information, including governing documents, prior to a sale.
To finance a property in a PUD, an individual will go through what type of qualification
process?
An owner finance qualification process
A PUD qualification process
The same qualification process as in residential financing mortgages.
A commercial financing qualification process - Answer-The same qualification process
as in residential financing mortgages.
The oldest forms of the Planned Unit Development in America appeared shortly after
the Korean War.
World War I.
World War II.
the Vietnam War. - Answer-World War II.
A CIC association typically allows owners
the same rights and freedoms as compared to single dwelling home owners.
greater rights and freedoms as compared to single dwelling home owners.
to purchase additional rights and freedoms based on an income index.
limited rights and freedoms as compared to single dwelling home owner. - Answer-
limited rights and freedoms as compared to single dwelling home owner.
In which type of development would you most likely find a circulation system that links
residential groupings, open space areas, schools, and local shopping areas?
PUC
PUD
COOP
CCU - Answer-PUD
