Property Ownership

In New York, a 'condominium unit' owner's common charges are used to pay for:

AThe individual unit's mortgage and property taxes

BThe maintenance, operation, and repair of the common elements of the condominium✓ Correct

CThe unit owner's homeowner's insurance

DThe unit owner's personal utility bills

Explanation

Common charges in a New York condominium are assessed against each unit owner to fund the maintenance, repair, and operation of common elements (lobbies, hallways, elevators, pools, landscaping, etc.) and the building's master insurance policy.

People Also Study

Key Terms to Know

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.