condos & coops Flashcards
are condos & coops co-tenacys?
NO, but will look like it
Sole interest in unit + ten in comm int in common elements=
condo
invented in legislature
share of stock + a proprietary lease=
co-op
can create w/out legis. auth
hold real estate?
condo owner
holds intangible property?
co-op
a time share?
a condo or a co-op
Reasons Why Condominiums Are
More Common Than Cooperatives
The board of directors of a cooperative has
immense power:
-A co-op board controls who can buy each unit- A co-op board controls all modifications to the
building, including those within a unit
‘The board of directors of a condominium has
more limited powers:
-Typically, a condo board can only control purchasers
by exercising a right of first refusal
-A condo board controls modifications
Financing diff
co-ops not real estate,cant mortg
condo board doesnt own real estate so cant mort itself.
weakness of condo
The Condo board holds no major assets
‘ If multiple unit owners fail to pay the common
charges, the condo will be unable to obtain
financing to carry the necessary expenses
What constitutes a “common element”?
defined in the declaration of condominium or
master deed
who controls the common elements on behalf of
the unit owners?
condo board
what constitutes a “ unit”?
also found in the declaration of condominium
or master deed
Aquarian Foundation, Inc.
v. Sholom House, Inc.
Absolute restraints on alienation are void
-Reasonable restraints on alienation are
enforced
would The condition in the deed “To John and his heirs provided the estate is never sold, mortgaged, or otherwise transferred, but if it is, the grantor will
retake it” be enforceable?
no…restraints are absolute & therfore void
what are reasonable restraints on alienation?
Limited period of time
& Justified by a legitimate reason
