Practice Test Geeks(CCS) Certified Condominium Specialist Practice Test
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Real Estate Law & Regulations Flashcards

7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Real Estate Law & Regulations flashcards as text

  1. A condominium association files a lawsuit against a unit owner for unpaid assessments. The association wins and records a lien. What type of lien is this?

    Answer: Assessment lien

    Unpaid condominium assessments result in an assessment lien (also called a common expense lien) against the unit.

  2. Which provision in a condominium declaration specifies how the common expenses and ownership percentages are allocated among unit owners?

    Answer: The percentage of interest or allocated interest clause

    The allocated interest or percentage of interest clause in the declaration defines each unit's proportional share of expenses and ownership in common elements.

  3. Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited in a residential condominium purchase transaction?

    Answer: Paying kickbacks or referral fees between settlement service providers

    RESPA Section 8 prohibits kickbacks and unearned referral fees between settlement service providers in federally related mortgage transactions.

  4. A condo buyer discovers undisclosed material defects after closing. The seller knowingly concealed them. The buyer's strongest legal claim would be:

    Answer: Fraudulent misrepresentation or fraudulent concealment

    Knowingly concealing material defects constitutes fraudulent misrepresentation, which allows the buyer to rescind the contract or seek damages.

  5. In which situation would a condominium association most likely be required to obtain lender approval before taking action?

    Answer: Taking out a loan secured by the common elements

    Encumbering common elements with a loan typically requires approval from unit owners' mortgage lenders because it affects collateral security.

  6. What is 'laches' as a defense in condominium law disputes?

    Answer: A defense based on unreasonable delay in asserting a right that prejudices the other party

    Laches is an equitable defense arguing that an unreasonable delay in bringing a claim has prejudiced the opposing party.

  7. The FHA (Federal Housing Administration) has specific approval requirements for condominium projects. Which ratio must typically be met for owner-occupancy to qualify a project for FHA financing?

    Answer: At least 50% owner-occupied

    FHA generally requires that at least 50% of units in a condo project be owner-occupied for the project to be FHA-approved.