Condos, Coops, PUDs

1
Condos, Coops, PUDs Timeshares

• Chapter
• 23

2
Desire of Land-Use Efficiency

• Land Scarcity
• Incentive for Multi-unit configurations
• Houses 4 to 5 per acre
• Cities Little space w/in reasonable distance
• Benefits
• Carefree living few chores
• Security
• Pools, tennis, etc. not affordable individually
• Americans want to own not rent

3
Condominiums

• Must be legal framework for condo ownership
• Address the subdividing of airspace
• Can take any number of configurations
• 50 stories, two story garden apt, row houses,
  etc
  
• Combine condos with retail office space
• Separate common elements
• Master deed for development w/ deeds for each
  unit
  
• Self Govt (all are members) w/ Board of
  Directors
  
• Owners Association Can be trust or unincorpd
• Controls, regulate, maintain the common elements
• Rules for OA are bylaws recorded w/ master
  deed
  
• Covenants, conditions restrictions i.e. house
  rules
  
• Many were rental apartments Often w/ deferred
  maintenance

4
Condo Management Finance

• OA employs a management company
• Care day-day duties set by OA
• OA assesses maintenance fees
• Each unit pays property tax insurance
• Generally no assessment for common area
• Each units value reflects common area ownership
• Each unit financed separately
• Terms are separate Foreclosure separate
• Advantage More units, more homeowners
• Disadvantage
• Close proximity Collective decisions Problem to
  building is everybodys problem Often have to
  serve on BOD, etc.

5
Cooperative Apartments

• Formed where condo laws were unavailable
• Formed a not-for-profit corporation
• Shares sold to tenants (cooperators)
• down pmt mortgage loan established
• Often the cost and debt is very large
  difficult
  
• Some states have tried to make this easier
• This and cost of maintenance insurance is very
  high
  
• Title in the name of the corporation
• Owners get lease to apartment
• Govt of buildingBoard of Dirs of corporation
• Articles of incorporation by laws covenants,
  etc.
  
• No sale of unit, just sale of shares
• Few are being formed now that condo laws are in
  place

6
Planned Unit Development (PUD)

• Owners in PUD get
• Land
• House on land
• Ownership in community assoc. that owns common
  areas
  
• Covenants restrictions are in place for each
  unit
  
• Association can dictate many aspects of your
  house and lot
  
• CCRs are meant to maintain value of all
  properties
  
• Density restrictions (e.g., 8-10 uynits per acre
• PUDs are detached houses, common wall houses
  row houses townhouses
  

7
Resort Timesharing

• Dividing and selling living units at vacation
  facilities for specified lengths of time ea year
  
• Marketed by resort developers
• Timeshared Hotels, motels, condos, townhouses,
  lodges, villas, RV parks, campgrounds, houseboats
  and cruise ships
  
• Right to use format
• Set fee for set time all rights cease for
  buyer
  
• Fee simple
• Buyer obtains a fee ownership in unit owns unit
  for set time into perpetuity sale is like any
  RE sale
  
• Problems Same place year after year Costs
  Fraud (e.g., projects not completed, deeds not
  sent, multi-sales of same unit time)