Common Interest Developments
February 24, 2011
I had a question this past week regarding the use of the terms "condominium" and "PUD". These terms are often used interchangeably, but they are not synonyms for the same type of real estate developments. It may be difficult for a buyer to discern the difference just be viewing a particular property. There are actually four types of common interest developments (CIDs) in California: planned developments (PDs), condominiums, stock cooperatives, and community apartments.
A planned development (PD), sometimes referred to as a planned unit development (PUD) consists of real property which is split into lots that are individual plots of land with a dwelling on them. Most frequently the lot that an owner will own separately will be from the roof line to the ground. The PD will have a common area which is owned in common with all the other "lot" owners who are members of a homeowners' association (HOA) which elects officers and manages the PD. The homeowners association is usually Incorporated under recorded Articles of Incorporation which outline the duties of the HOA. There will be Covenants, Conditions, and Restrictions which regulate the development.
A condominium consists of an undivided interest in the common area coupled with a separate interest in the airspace defined as a specific unit. The owner receives a deed of ownership in the particular unit as well as an equal undivided ownership in the common area. The precise description of the unit will be found in a recorded document called the "Condominium Plan" or "Subdivision Map".
A stock cooperative is usually referred to as a co-op. The corporation owns the entire real property. The owner in a cooperative does not own any real property but becomes a stockholder in the corporation with the right to a specific home on the property. The owner of the stock will pay a monthly management fee and the corporation will be run by an elected Board of Directors.
Community Apartments are often referred to as "own-your-owns". The building is owned in a "common tenancy" fashion with owners being tenants-in-common".
The deed that the owner receives may not mention a specific unit, but will state that the owner owns one individual equal share in the property. The deed provided the owner with the right to occupy a specific home in the community apartment project, or the right to occupy a unit and use the common area.
There are many examples of PDs and condominiums in our market area, but not many co-ops or community apartments.
I had a question this past week regarding the use of the terms "condominium" and "PUD". These terms are often used interchangeably, but they are not synonyms for the same type of real estate developments. It may be difficult for a buyer to discern the difference just be viewing a particular property. There are actually four types of common interest developments (CIDs) in California: planned developments (PDs), condominiums, stock cooperatives, and community apartments.
A planned development (PD), sometimes referred to as a planned unit development (PUD) consists of real property which is split into lots that are individual plots of land with a dwelling on them. Most frequently the lot that an owner will own separately will be from the roof line to the ground. The PD will have a common area which is owned in common with all the other "lot" owners who are members of a homeowners' association (HOA) which elects officers and manages the PD. The homeowners association is usually Incorporated under recorded Articles of Incorporation which outline the duties of the HOA. There will be Covenants, Conditions, and Restrictions which regulate the development.
A condominium consists of an undivided interest in the common area coupled with a separate interest in the airspace defined as a specific unit. The owner receives a deed of ownership in the particular unit as well as an equal undivided ownership in the common area. The precise description of the unit will be found in a recorded document called the "Condominium Plan" or "Subdivision Map".
A stock cooperative is usually referred to as a co-op. The corporation owns the entire real property. The owner in a cooperative does not own any real property but becomes a stockholder in the corporation with the right to a specific home on the property. The owner of the stock will pay a monthly management fee and the corporation will be run by an elected Board of Directors.
Community Apartments are often referred to as "own-your-owns". The building is owned in a "common tenancy" fashion with owners being tenants-in-common".
The deed that the owner receives may not mention a specific unit, but will state that the owner owns one individual equal share in the property. The deed provided the owner with the right to occupy a specific home in the community apartment project, or the right to occupy a unit and use the common area.
There are many examples of PDs and condominiums in our market area, but not many co-ops or community apartments.
posted by shirley harry at 8:46 AM
0 Comments:
Post a Comment
<< Home