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WorksheetsFIN 340 Practice 4 #35 - 65
Total questions: 59
Worksheet time: 2hrs 58mins
Name
Class
Date
1.
#35 In what year was the Pennsylvania Uniform Condominium Act put in place?
a)
1997
b)
1987
c)
1997
d)
2007
2.
#36 Why was the Pennsylvania Uniform Condominium Act created? Select the one that does not apply.
a)
To establish the process for condominium creation
b)
To ensure all condominiums have the same uniform look and feel
c)
To provide certain disclosure for purchasers of condominiums
3.
#37 Owners of existing buildings or developers of new, unimproved land who want to create a condominium project are required by the Pennsylvania Uniform Condominium Act to adhere to certain regulations. Review each statement below and determine the one not a requirement of the act.
a)
Create and record a declaration of condominium.
b)
Provide a survey of the property.
c)
Provide a legal description of the units and the common elements, including any elements that serve a single unit.
d)
None of the above
4.
#38 The Pennsylvania Uniform Condominium Act also includes specific requirements for building owners who are converting a building from apartments to condominiums. Which of the following is not a requirement?
a)
Building owners must provide eviction notices to the current tenants 60 days prior to the conversion date
b)
Building owners must inform the current tenants about the conversion
c)
Building owners must give current tenants the option to buy their units or to continue as tenants for a specified period of time
5.
#39 1) Prospective purchasers must be given a copy of the public offering statement that includes, but is not limited to, the bylaws, rules and regulations, projected operating budgets for the building, liens and encumbrances on the property.
a)
T
b)
F
6.
#39 2) Prospective purchasers must be given at least 30 days to review the condo information before signing the sales contract.
a)
T
b)
F
7.
#39 3) Buyers who entered into a contract without having first received a copy of the offering statement may cancel the contract without penalty within 15 days after receiving the statement.
a)
T
b)
F
8.
#39 4) Buyers who didn't receive an offering statement prior to entering into a contract and who have voluntarily elected to cancel their contract are not eligible to receive compensation for damages.
a)
T
b)
F
9.
#40 As part of House Bill 1122, the Pennsylvania Uniform Condominium Act was amended. Which group obtained additional protections and rights as a result of the amendment?
a)
Potential buyers
b)
Developers
c)
Unit owners’ association
d)
Owners of existing buildings
10.
#41 Determine which of the following is FALSE for cooperatives.
a)
They are not-for-profit corporations
b)
Shareholders pay a monthly maintenance fee
c)
Ownership is similar to other real property ownership
d)
Co-op buyers own shares of the corporation
11.
#42 What's a condop?
a)
Building with both commercial and residential units
b)
Building with condo and co-op property ownership
c)
Cooperative property that only houses commercial activities
d)
Both A and B
12.
#43 The 80/20 rule factors in heavily for condops. Which of the following is not related to the 80/20 rule?
a)
At least 80% gross income derived from tenant-shareholders
b)
At least 80% of gross income derived from passive income
c)
At least 80% total square footage is for residential facilities and use
d)
At least 90% of expenses are for the benefit of tenant-shareholders
13.
#44 1) Is at least 80% of gross income derived from tenant/shareholders?
a)
Yes
b)
No
14.
#44 2)Is at least 80% of the total square footage used for residential facilities and use?
a)
Yes
b)
No
15.
#44 3)Are at least 90% of expenses are for the benefit of tenant/shareholders?
a)
Yes
b)
No
16.
#44 4)Does the condop follow the 80/20 rule?
a)
Yes
b)
No
17.
#45 What of these are actions a co-op may take toward subletting? Select one that does not apply.
a)
Prohibit subletting
b)
Limit length of subletting agreements
c)
Evict shareholders who ask to sublet
d)
Limit subletting to % of units
18.
#46 On Note page 19, Mitch lists the reasons Greener Grass prohibits or otherwise limits subletting of their units. Which of the following is not a reason?
a)
Maintain stability
b)
Maintain power over residents
c)
Owners take better care of property
d)
Fannie Mae, Freddie Max, and FHA requirements
19.
#47 Which of these is the general process toward getting approved for cooperative ownership?
a)
Contract of sale accepted – cooperative application & board package submitted – Interview conducted
b)
Cooperative application & board package submitted – contract of sale accepted – Interview conducted
c)
Contract of sale accepted – interview conducted – cooperative application & board package submitted
20.
#48 There are many reasons a board may approve or deny an application. Determine whether the board would deny the applicant.
a)
Had equivalent to three years of mortgage and maintenance payments saved
b)
Mortgage and maintenance payments would account for 33% of income
c)
Has worked for the same employer for 12 years
d)
Buyer has an information technology job and works from home
21.
#49 Which of the following is not a cooperative share?
a)
Sponsor
b)
Unsold
c)
Sold
d)
Holder
22.
#50 Which of the following is false?
a)
Sponsors may be able to sublet even if shareholders are not.
b)
The board of directors needs to approve the sale of any sponsor shares
c)
Unsold shares can be held by the sponsor or any person the sponsor designates
d)
When sold shares change hands, board approval is required.
23.
#51 A cooperative transaction is a real estate transaction. What earns you a commission on a cooperative transaction?
a)
The purchase of shares
b)
The proprietary lease
24.
#52 Which of the following is not a characteristic of Co-op?
a)
Own airspace within unit and an undivided share of common areas
b)
Often prohibits subletting
c)
Own shares of the corporation
d)
Personal property ownership
25.
#53 What is a timeshare?
a)
A group of housing units in which each homeowner owns their individual unit space and common area ownership is shared.
b)
Multiple shared ownership or multiple shared use of a piece of real estate
c)
A joint venture by a group pf shareholders, formed for their benefit, and governed by them
d)
A number of attached dwellings, each with its own roof, and the owners of which own both the structure and the land.
26.
#54 1) Pieces of real estate owned by multiple unrelated individuals who occupy the dwelling unit in one- to two-week intervals during the year.
a)
Timeshare use
b)
Campground membership
c)
Vacation ownership
d)
Timeshare estate
27.
#54 2) Gives the purchaser the right to possess the property at given times for a given duration, but does not convey ownership.
a)
Timeshare use
b)
Campground membership
c)
Vacation ownership
d)
Timeshare estate
28.
#54 3)Buyers agree to a one-time purchase price and an annual maintenance fee.
a)
Timeshare use
b)
Campground membership
c)
Vacation ownership
d)
Timeshare estate
29.
#54 4)The owner buys the right to use the developer’s facilities and may use the designated area at any time during the year.
a)
Timeshare use
b)
Campground membership
c)
Vacation ownership
d)
Timeshare estate
30.
#55 There are two formats for timeshares. Which format is most widely used?
a)
Right-to-use
b)
Right-to-borrow
c)
Fee simple
d)
Fee complex
31.
#56 1)With a right-to-use timeshare, the week or weeks to be used are specified in advance, with buyers of high-season dates paying more than low-season purchasers
a)
T
b)
F
32.
#56 2)Buyers of vacation timeshares aren't allowed to rent, give, or sell their time to others.
a)
T
b)
F
33.
#56 3)Some vacation ownership timeshare plans operate on a “points” system, where the buyers can book vacations in different locations based on the number of points purchased.
a)
T
b)
F
34.
#56 4)Fee simple ownership for a vacation timeshare works in the same way as other types of real estate: Ownership can be enjoyed, sold, or passed down to heirs.
a)
True
b)
False
35.
#56 5)Unlike other forms of owned real estate, timeshare estates cannot be sold or passed down to heirs.
a)
True
b)
False
36.
#56 6)Resale timeshares often don’t recoup the buyers’ initial investment.
a)
True
b)
False
37.
#57 1)The state’s attorney general oversees the enforcement of timeshare laws.
a)
True
b)
False
38.
#57 2)Many of Pennsylvania’s timeshare regulations mirror the Model Timeshare Act.
a)
T
b)
F
39.
#57 3)Timeshare regulations in Pennsylvania require disclosures to consumers, the ability for the buyer to rescind the contract, and taxing of timeshares.
a)
True
b)
False
40.
#57 4)Timeshare and campground membership purchasers may cancel their purchase within 10 days of contract execution.
a)
True
b)
False
41.
#57 5)If you have clients who are considering purchasing a timeshare, advise them to seek legal counsel to review all documents before signing.
a)
True
b)
False
42.
#57 6)After a contract is cancelled, the seller has 10 days to refund any deposits and provide the buyer with written acknowledgment of the cancellation.
a)
True
b)
False
43.
#58 Where can you find Pennsylvania’s timeshare regulation?
a)
Model timeshare act
b)
Pennsylvania department of labor & industry
c)
Pennsylvania real estate licensing and registration act, chapter 35
d)
Pennsylvania department of community and economic development
44.
#59 Which of the following is not a general lien type?
a)
Estate and inheritance tax lien
b)
Income tax lien
c)
Judgment lien
d)
Real property tax lien
45.
#60 Peter Chang is the owner of Adventure Cinemas. He owes his ex-wife 10 years of child support payments and, as a result, the courts have placed a lien against all of Peter's assets. What type of general lien is this?
a)
Estate & Inheritance Tax
b)
Deceased Person’s Debt
c)
Judgment
46.
#61 What's a lis pendens?
a)
A Latin phrase that translates as “lease is pending”
b)
A legal term that means “depending upon the reading of”
c)
A public notice of foreclosure
d)
A legal notice that a lawsuit is pending that affects the title of a property
47.
#62 1) A mortgage lien is a specific, involuntary lien.
a)
T
b)
F
48.
#62 2)If the borrower doesn’t repay their mortgage loan, the lender can foreclose by having the property sold at public auction.
a)
T
b)
F
49.
#62 3)The proceeds from a foreclosure sale are sent to the borrower to help pay off the loan.
a)
T
b)
F
50.
#63 1) A real property tax lien is specific and involuntary.
a)
T
b)
F
51.
#63 2)If a property owner doesn’t pay their assessed real estate property taxes, the local tax collector can bring legal action to collect them.
a)
T
b)
F
52.
#63 3)The legal proceeding to collect unpaid property taxes is called an in lien legal proceeding.
a)
T
b)
F
53.
#63 4)The collection of the monies for unpaid property taxes is by a foreclosure sale of the property.
a)
T
b)
F
54.
#64 1)In Pennsylvania, mechanic’s liens for new construction have priority over all other liens on the property, except for acquisition and construction loans.
a)
T
b)
F
55.
#64 2)Lien rights do not survive foreclosure or sale of the property
a)
T
b)
F
56.
#64 3)The right to lien extends to general contractors, subcontractors, and sub-subcontractors.
a)
T
b)
F
57.
#64 4)The right to lien does not extend to “materialmen.”
a)
True
b)
False
58.
#64 5)Lien rights do not survive foreclosure on acquisition construction loans.
a)
T
b)
F
59.
#64 6)In Pennsylvania, even if the owner has paid the general contractor in full, if the subcontractor was not paid in full, the subcontractor can establish a lien and eventually foreclose on the property.
a)
T
b)
F
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