CCS Real Estate Law & Regulations 3

Question 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?

Accepted Answer

Assessment lien

Answer

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

Question 2

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

Accepted Answer

The percentage of interest or allocated interest clause

Answer

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

Question 3

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

Accepted Answer

Paying kickbacks or referral fees between settlement service providers

Answer

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

Question 4

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

Accepted Answer

Fraudulent misrepresentation or fraudulent concealment

Answer

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

Question 5

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

Accepted Answer

Taking out a loan secured by the common elements

Answer

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

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Real Estate Law & Regulations 3