Unit 3 Unit 3 – Home Ownership

Question Answer
Each room of a house was preassembled at a factory, driven to the building site on a truck, and then lowered onto its foundation by a crane. The structure was then completed when workers connected the plumbing and wiring. This is: Modular
Theft, smoke damage, and damage from fire are covered under which type of homeowner’s insurance policy? Basic
In determining whether a prospective buyer can afford a certain home purchase, lenders will consider monthly incomedebtcredit score
An unmarried homeowner has $60,000 in equity in his primary residence of three years. The owner sells the residence for $125,000 The broker’s commission was 6%, and other selling expenses amounted to $1,000 What is the owner’s taxable gain on this transa $0. Taxpayers who file singly are entitled to a $250,000 exclusion
Which clause is found in MOST homeowners insurance policies? Coinsurance clause
What is a Coinsurance clause? This provision usually requires that the owner maintain insurance equal to a specified percentage (usually 80 percent) of the replacement cost of the dwelling (not including the price of the land).
The portion of an owner’s property value that exceeds the amount of their mortgage debt is called Equity
A community that merges housing, recreation, and commercial units into one self-contained development is called a Planned Unit Development – PUD
Which of these is not covered in either a basic form or broad from homeowners insurance policy? Fire and lightningExplosionWindstorm and hailFlood
A single woman bought a home 18 months ago and is now selling because she found a new job in another city. Independently, a married couple filing joint taxes has owned a nine-bedroom home for three years. Now, the couple wants to move to a small condomi The married couple
What is Comprehensive Loss Underwriting Exchange (CLUE)? a database of consumer claim history that enables insurance companies to access prior claim information in the underwriting and rating process.
Which of these are not considered applicable Tax deductions. 1. Real estate taxes2. Loan prepayment penalties3. Loan discount points in the year of purchase (whether paid by the buyer or the seller)4. Interest on overdue taxes.
Owner buys shares of stock, it's a: Cooperatvie
Groups of units usually rented by tenants: Apartment
Retirement communities are usually structures as these PUD
Each room is preassembled and driven to the property site. Modular
Homeowners own a particular unit and a portion of common area. Condo
High-rise developments combining different elements into a community MUD
Falling objects is covered under basic or broad type of insurane Broad
Windstorm or hail is covered under basic or broad type of insurance Basic
Vandalism is covered under basic or broad type of insuarance Basic
Fire and Lightning is covered under basic or broad type of insuarance Basic
Freezing of Plumbing is covered under basic or broad type of insurance Broad

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