Condos, Coops, PUDs - PowerPoint PPT Presentation

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Condos, Coops, PUDs

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Combine condos with retail & office space. Separate & common elements ... Timeshared: Hotels, motels, condos, townhouses, lodges, villas, RV parks, ... – PowerPoint PPT presentation

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Title: 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)
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