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16 Cards in this Set
- Front
- Back
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list the types of housing
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apartment complexes
condominium cooperative planned unit developments retirement communities highrise developments converted-use properties manufactured housing modular homes time-shares |
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group of apartment buildings with any number of units in each building
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apartment complex
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owners own their units individually & share ownership or common facilities (common elements)
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condominium
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*units share common walls & facilities within a larger building
*owners do not own the units *a corporation holds title to the real estate *unit owners purchase shares of stock in corporation *owners receive proprietary leases, not conventional deeds |
cooperative
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*master planned-communities
*merge diverse land uses as housing recreation & commercial units into one self-contained development *owners do not have direct ownership interest in the common areas *community association is formed to maintain common areas with fees collected from owners |
planned unit developments (PUD)
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who sponsors programs that provide low down-payment mortgage loans
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Federal Housing Administration (FHA)
Department of Veterans Affairs (VA) |
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what are the basic costs of owning a home
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principal, interest, taxes and insurance
(PITI) |
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the interest or value that an owner has in property over and above any indebtedness
(current market value - property debt = __________ ) |
equity
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what can homeowners deduct from their gross income
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*mortgage interest payments on 1st and 2nd homes (for balances below $1 million or $500,000 if filing separately)
*real estate taxes *certain loan origination fees *loan discount points (whether paid by the buyer or seller) *loan prepayment penalties |
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what is the most common homeowner's insurance policy
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basic form
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what kind of insurance coverage does basic form provide
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fire & lightning
glass breakage windstorm & hail explosion riot and civil commotion damage by aircraft damage from vehicles damage from smoke vandalism and malicious mischief theft loss of property removed from the premises when it is endangered by fire or other perils |
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what kind of insurance coverage does broad form provide
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falling objects
damage due to weight of ice, snow, or sleet collapse of all or part of the building bursting, cracking, burning, or bulging of a steam or hot water heating sstem or of appliances used to heat water accidental discharge, leakage or overflow of water or steam from within a plumbing, a heating, or an air-conditioning system freezing of plumbing, heating, and air-conditioning systems and domestic appliances injury to electrical appliances, devices, fixtures, and wiring from short circuits or other accidentally generated currents |
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*provision in an insurance policy that requires the owner maintain insurance equal to at least 80% of the replacement cost of the dwelling (not including the price of the land)
*owner who has this type of policy may make a claim for the full cost of the repair or replacement of the damaged property without deductions for depreciation or annual wear and tear |
coinsurance clause
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construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original
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replacement cost
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replacement cost less depreciation
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actual cash value
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what process uses dividing the percentage of replacement cost actually covered by the policy by the minimum coverage requirement (usually 90%)
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prorate
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