Lesson 16: Common Interest Developments Flashcards
standard subdivisions
Most older subdivisions in California are standard subdivisions: groups of houses built at or around the same time, usually by the same developer, and usually of a similar size and style.
The homeowners may be governed by a set of restrictions or rules, but they don’t share ownership of any of the subdivision property.
common interest development
In a common interest development, however, the owners share title to some of the property within the subdivision. These co-owned parts of the property are known as common elements.
In a condominium, common elements might include the lobby, parking lot, and swimming pool. In a large subdivision, the common elements might include roads, a park, or even a golf course.
planned development
A planned development (also known as a planned unit development or PUD), is similar to a standard subdivision development, in that the owners hold title to their individual homes and lots.
However, the owners in a planned development also have a shared interest in the subdivision’s common elements.
condominium
A condominium development usually involves a number of units within one large building.
While owners in planned developments own the land their house is on, condominium owners only own the airspace their units occupy.
Ownership of corridors, roof, and land is shared by all of the unit owners in the condominium complex.
townhouses
Many new developments in California are townhouses: multi-story homes that share common walls with other units (as with a condominium) but have private yard areas (as with a planned development).
Townhouses may be set up either as condominiums or as planned developments.
limited common area
if townhouses are set up as a planned development, the owners own the land underneath their units.
If townhouses are set up as a condominium, the owners don’t own the land underneath them. However, each private yard area is considered a limited common area, meaning that the other owners have no possessory right to it.
Community apartments
Community apartments are a much less common form of common interest development.
Here, each owner receives a deed for an undivided partial interest in the entire development.
Owners receive individual leases to their units or lots, and share ownership in the development as tenants in common.
cooperative property
In a cooperative property (or co-op), owners don’t receive deeds at all.
Instead, they receive shares in the corporation that holds title to the entire development.
The owners also receive a long-term lease to their particular units.
As with a community apartment, the entire subdivision may be thought of as a single common element.
Subdivision Map Act
The Subdivision Map Act, originally passed in 1907, was created to standardize the process of subdividing property, and to keep track of the titles to subdivision lots.
This law requires a detailed plat map to be recorded for every subdivision. The map must show the lot lines, roads, utility easements, and other important elements of the subdivision.
The Subdivision Map Act has been amended in response to the problems caused by rapid growth in many parts of the state.
The law now requires subdivision developers to comply with city or county land use planning goals, pay fees for the use of public services, and prepare environmental impact reports.
