Which of the Following Is False with Regard to Condominiums

question 74

Multiple Choice

Which of the following is false with regard to condominiums and cooperatives?

• A) The owner of a condominium has a fee simple interest in his unit within the condominium structure.
• B) The owner of a condominium owns a share in the common areas.
• C) The owner of a condominium can be forced to pay a fee levied by the condominium association governing the condominium.
• D) The owner of a condominium can mortgage his interest.
• E) An owner of a cooperative, like the owner of a condominium, has a real property interest in the suite.

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Definitions:

Current Liability

This refers to debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle.

Discounted Note

A type of debt instrument that is sold or redeemed for less than its face value but whose actual value matures to the full face amount at a later date.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or stock certificate.