KEY CONCEPTS CH. 3

What type of housing is built on individual lots but has homes connected by common walls or siding?

Townhomes — Similar to single-family homes but connected to other units by shared walls or exterior siding.

What is a cooperative housing arrangement?

A corporation owns the building and sells shares to individuals, who get leases for specific units and share expenses.

What is a PUD (Planned Unit Development)?

A high-density housing model with shared open spaces (e.g., parks), low home prices, and minimal maintenance.

What is equity in real estate?

The paid-off share of the property the owner actually owns.

Who qualifies as a first-time homebuyer under tax law?

Someone who did not own a principal residence at any time in the 2 years before buying a new home.

How do insurers evaluate insurability today?

They use scoring instruments to assess the risk of both the property and the owner.

Who offers flood insurance, and what does it cover?

Private companies subsidized by the federal government; covers flood or rising water damage.

What does the Texas Windstorm Insurance Association (TWIA) do?

Provides windstorm coverage in 14 coastal counties and parts of Harris County when not covered by regular homeowner insurance.

What is a CLUE Report?

A database used by insurers that contains 5–7 years of prior property insurance claims.

Why might a CLUE Report affect insurance coverage?

It’s only available after closing, so insurers may cancel coverage later if the report reveals negative claim history.

What is included in a condominium declaration?

Common area easements, property descriptions, surveys, plat maps, ownership percentages, association bylaws, voting rights, and usage rules.

What do you own in a cooperative housing model?

Shares in a non-profit that owns the building, along with a proprietary lease to occupy a specific unit.

How is co-op ownership transferred?

By assigning both the stock certificates and the proprietary lease to the new buyer.