Daily Real Estate Exam Prep Question #8 - Forms of Real Estate Ownership

Daily Real Estate Exam Questions Here!!! Today our question has to do with forms of real estate ownership, more specifically condominiums. A condominium often shortened to condo. Is a type of living space which is similar to an apartment but which is independently sellable and therefore regarded as real estate. Unlike apartments, which are leased by their tenants, condominium units are owned outright. The difference between an "apartment" complex and condominium is purely legal. There is no way to differentiate a condominium from an apartment simply by looking at or visiting the building. What defines a condominium is the form of ownership. Many people confuse condominiums with cooperatives. The two may look similar; however, from a legal and financial point of view, they are different. A co-op is essentially a nonprofit corporation, complete with a board of directors, and each resident is a shareholder. Perhaps the largest distinction between a condominium and a co-op is that most co-op associations require that a prospective purchaser be approved by a committee composed of current co-op owners. Sometimes the process can be long and extra thorough. The big thing to remember is a co-op owner has a contract or lease that allows the owner to occupy a unit. While a condo owner owns the unit, a co-op owner does not own the unit. -=-=-=-=- Don’t forget to like and subscribe for more! Want to learn more about the smart way to get your real estate license and start a successful real estate career? Then make sure to visit the Real Estate License Wizard, getting started is easy. Just click the page below: https://realestatelicensewizard.com -=-=-=-=-