Chapter 23

Condominiums, Cooperatives, PUDs, and Timeshares

Comparing Estates held when owning a:
	1.  House: 		Owner A owns:	
	2.  Condominium: 	Owner H owns:	
				All owners own:	
	3. Town house:	Owner N owns:	
	4. Cooperative:	Owner X owns:	

Condominiums

S                              elements – exclusively owned and used by the individual owners.

C                              elements – areas owned by all.

Condominium Ownership
Condominium R                            or S                                
Master Deed: d                          property and sets forth taxation formula usually include 
Covenants, Conditions, and Restrictions (CC&Rs) – filed list of restrictions by which anyone purchasing a condo unit must abide.
Articles of Incorporation: document creating non-profit corporation for governing the association.

Government an A                                           governs the affairs of the regime

Association: The g                                body established to maintain the common elements and to ensure owners are complying with CC&Rs
Bylaws:  r                       by which the owner’s association operates

Maintenance Fees
The cost for m                                             the common elements and are allocated among all unit owners.

Generally collected m                          .

R                         should be collected for ongoing care of large items like the roof, exterior walls, parking lot.
Taxes and I                         the condo regime will want to be covered for certain liability and may have to pay taxes depending on the jurisdiction.
Condo Living
Advantages
	Lower cost
	Low maintenance
	Location
	Amenities
	Ownership

Disadvantages
	Close proximity to all
	Loss of control
	Fees
	Board of Directors
	Bylaws

Before Buying a Condo
Prior to making an offer and when you make offer make it c                       on your approval of the condominium regime’s 
	Monthly fees
	Governing documents, the association minutes and resolutions
	Maintenance schedules and costs
	R                    and B                     
	Law suits, pending claims and liens

Cooperative Ownership
Non-profit c                              owns the actual building which is managed by a board of directors. 
“Owners” of the apartments own s                    of stock of the corporation and then hold a p                              l                          which gives them authority to occupy the property.

Planned Unit Development

Ownership in a community association that owns common areas along with your individual ownership of your lot and home.

Timeshare
A method of dividing up and selling a living unit at a vacation facility for specified lengths of time each year.

Right-to-Use – contractual right to occupy a living unit for one week a year for a term of between 20 to 40 years.

Fee Simple – right to fee ownership of one week each year in perpetuity.

Key Terms

Bylaws

CC&Rs

Common elements
Condominium
Cooperative
Horizontal land ownership
Limited common elements

PUD

Proprietary lease
Reserves
Resort timeshare