Level 3: Common Interest Ownership Properties Flashcards
Condominiums
property in which each owner has a separate interest in their own unit and undivided interest in the common areas, do NOT own the land on which their unit stands
Condominiums: Limited Common Elements
these are owned by everyone, as with other common elements, but are only used by a few owners or even one owner ex. - Bob is assigned to parking space #9. Everyone in the condo owns parking space #9, but only Bob uses it
Elements of a Condo Visual Aid
Condominiums: Maintenance Fees
each condo owner has to pay homeowners association (HOA) or condo association dues. HOA dues are also known as assessments or maintenance fees
Co-ops
a building owned by a corporation where the residents are shareholders in the corporation, co-op owners live in the apartments they lease, but they don’t actually own them
Co-ops: Maintenance
pay a monthly maintenance fee or assessment used for maintenance
Co-ops: Renovation
If co-op owners want to do renovation on their units, they usually have to get approval from the co-op board
Co-ops: Fee Simple
the co-op corporation owns the building and its full bundle of rights in perpetuity, the same way a homeowner owns a single-family home
Co-ops: Leasehold
leasing the building and/or land beneath, according to the lease terms agreed upon between the co-op corporation and underlying landowner
Elements of a Co-op Visual Aid
Co-ops: Financial Statements
If the building’s finances aren’t up to par, the prospective buyer should think twice
Co-ops: Board Minutes
Co-ops must keep minutes of their monthly board meetings, go to the board minutes to learn the “personality” of a particular board and any issues that could affect the buyer.
Co-op vs. Condo Visual Aid
Condops
combination of condos and co-ops in the same building, typically run more like a co-op, but they typically have more relaxed rules and a more relaxed environment, much like a condominium
Condop Visual Aid
Planned Unit Developments (PUD)
a subdivision that includes residential dwellings along with nonresidential real estate, departing from normal zoning and subdivision regulations, buyer purchases both the structure itself AND the land it sits on
PUD owners have these two types of ownership
fee simple absolute and tenancy in common
PUDs: Townhouse
townhouse developments can be condos, where the owner only owns from the walls in, and the rest of the building and common elements are co-owned by all of the development’s owners
Timeshares
a form of co-ownership where each owner has use of the property at a different prescribed period of time
Timeshare Visual Aid
