Study Cards - Tucker School of Real Estate

Chapter 3

Capital Gain

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Profit from the sale of an asset.

Cooperative

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Multi-tenant building owned by a corporation; tenant buys shares of stock and in exchange receives a proprietary lease that allows possession.

Equity

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Difference between market value and total debt on the property.

Common Elements

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Parts of a property, where use and ownership is shared or "in common" among all the owners of individual units. (i.e. Lobby, elevator and pool in a condo complex.)

Condominium

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Development where individual units are separately owned and ownership of the common areas and the land is shared among all the individual unit owners.

Proprietary Lease (in cooperative)

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Document, used in cooperatives, that gives a shareholder the exclusive right to occupy a particular unit.

Time Share

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Ownership interest sold in annual occupancy intervals, typically by the week.