Question 1

Condominium owners have joint and several liability for damage or harm caused to persons in connection with the common areas.

Accepted Answer

This is true. Condominium owners share responsibility for the common areas and any harm or damage related to them.

Question 2

An enclosed backyard in a condominium development would be a limited common area.

Accepted Answer

A limited common area is a part of the common area that is reserved for the exclusive use of one or more particular unit owners. An enclosed backyard in a condominium development can be designated as a limited common area for the exclusive use of the unit owner whose unit has direct access to the backyard.

Question 3

Taxes on individual condominium units are paid by the individual condominium unit owners.

Accepted Answer

Taxes on individual condominium units are typically the responsibility of the unit owner, not collected by the condominium association.

Question 4

Condominiums rarely contain restrictions on the use of the unit and the common areas.

Accepted Answer

Condominiums typically have restrictions on the use of both the individual units and the common areas, as outlined in the condo association's bylaws and regulations.

Question 5

Most condominium declarations require that fire insurance on the units be under a master policy and that the insurance premium be an expense of the condominium association.

Accepted Answer

It is common for condominium declarations to require a master insurance policy covering the units, with the premium being paid by the condominium association as a common expense.

Question 6

A condominium association can foreclose and sell a n owner's condominium unit if the owner fails to pay common area assessments.

Accepted Answer

This is true. Condominium associations have the legal right to foreclose and sell an owner's unit if they fail to pay common area assessments. These assessments are used to fund the maintenance and upkeep of the common areas of the condominium community.

Question 7

An enclosed backyard in a condominium development would be a common area.

Accepted Answer

An enclosed backyard in a condominium development is typically considered a limited common element or private area designated for the exclusive use of a specific unit owner, rather than a common area which is accessible to all residents.

Question 8

Condominium declarations usually contain comprehensive restrictions on the use of the condominium unit and common areas.

Accepted Answer

Condominium declarations typically include detailed and comprehensive provisions concerning the acceptable uses of individual units and common areas. These restrictions can cover a wide range of issues, including pets, noise levels, parking, alterations, and more. By setting out clear rules and limits for unit owners and tenants, condominium declarations help to ensure that everyone in the community can enjoy a safe, harmonious, and well-maintained living environment.

Question 9

Condominiums and cooperatives are the same thing.

Accepted Answer

Condominiums are individually owned units in a multi-unit building, while cooperatives are owned by a corporation or a co-op, and residents own shares in the corporation or co-op rather than owning their individual units.

Question 10

Condominium owners do not have joint and several liability for damage or harm caused to persons in connection with the common areas.

Accepted Answer

Condominium owners typically share joint and several liability for damages or harm caused to persons in connection with the common areas, as these areas are collectively owned and maintained by all owners through their association.

Question 11

Most condominium declarations require that fire insurance be obtained by each condominium unit owner.

Accepted Answer

Condominium declarations typically require the condominium association to obtain fire insurance for the entire building, while individual unit owners may be responsible for insuring their personal property and any improvements within their units.

Question 12

A cooperative owner generally does not have any restrictions on the owner's right to resell the cooperative unit.

Accepted Answer

A cooperative owner may have restrictions on the owner's right to resell the cooperative unit as outlined in the cooperative's bylaws or proprietary lease agreement. These restrictions may include a right of first refusal or limitations on the sale price.

Question 13

The governing body of most condominiums is a nonprofit corporation in which each owner is entitled to one vote.

Accepted Answer

The bylaws of a condominium typically provide for a board of directors, which is responsible for managing the affairs of the condominium. The board is elected by the owners, with each owner entitled to one vote. The board may also appoint officers and delegate responsibilities to committees or individual members. The board typically has the authority to make decisions on behalf of the condominium, subject to the bylaws and any applicable laws or regulations.

Question 14

A condominium owner buys stock in a corporation, which owns the condominium; this stock gives the condominium owner a right to live in a condominium unit.

Accepted Answer

This describes a cooperative (co-op) ownership, not a condominium. In a co-op, residents own shares in a corporation that owns the building, granting them the right to occupy a unit. In a condominium, individuals own their specific units outright.

Question 15

Taxes on individual condominium units are common expenses paid by the condominium association.

Accepted Answer

Taxes on individual condominium units are typically the responsibility of the individual unit owner, not the condominium association. The association usually handles expenses related to common areas and shared structures.

Question 16

A condominium declaration and plat must be in existence before a project can be considered a condominium and before individual units can be sold.

Accepted Answer

According to common condominium laws and regulations, a condominium project must have both a recorded condominium declaration and a recorded plat before individual units can be sold. These documents establish the legal status of the development and identify the private and common areas of the project.

Question 17

A swimming pool in a condominium development would be a common area.

Accepted Answer

A swimming pool in a condominium development is typically considered a common area that is shared by all the residents and maintained by the homeowner's association.

Question 18

A condominium form of ownership, once created, can never be terminated.

Accepted Answer

While a condominium form of ownership is generally intended to be permanent, there are some situations in which it can be terminated. For example, all unit owners may agree to dissolve the condominium and convert it to another form of ownership, or a court may order the termination in certain circumstances. However, these situations are uncommon and most condominiums are intended to be permanent.

Question 19

A condominium owner's obligation to pay common area assessments is conditioned upon the condominium association providing services.

Accepted Answer

The obligation to pay common area assessments is not conditioned upon the condominium association providing services. It is a mandatory obligation that comes with owning a condominium unit.

Question 20

A swimming pool in a condominium development would be a limited common area.

Accepted Answer

A swimming pool in a condominium development is typically considered a common area, not a limited common area, because it is accessible and shared by all residents, not reserved for the use of a specific unit or units.

Quiz 16: Real Estate Closing Forms and Examples