Condo, PUD, Co-op Town House: What's the Difference?
Condos: A piece of real estate located inside a complex where the owner owns only the inner surfaces of their walls, ceiling and floors. In other words when you own a condo “you own the space inside your unit”. The building structure is part of a common area owned by the HOA. Therefore when you buy a condo the foundation, roof, plumbing, parking area, elevator and anything that is common area it is owned by the HOA. By the way all condo’s owners are automatically members of the HOA so it will be a good idea to get involved with your HOA and see how HOA fees are distributed.
(PUD) Planned Unit Development: A piece of real estate located inside a complex where the owner “owns the structure and the land beneath it” (you don’t own land in a condo). Like condo units; PUD common areas is owned by the HOA, but usually the fees are lower than in condos because in most cases there are less amenities and less maintenance to do. PUDs look more like a town homes or detached homes.
Co-op: A piece of real estate where you buy shares in a corporation that owns the real estate. In other words you buy shares no the real estate and the bigger the real estate the more shares you own. The board of the co-op controls almost everything. It operated on democratic basis and the governing body is its board of director, which consists of elected members from the co-op community. When you buy a co-op you will need to first be approved by the co-op board. Each equity share enables member to occupy one home and receive one vote when electing the board. Again it is the board that oversees and directs the policies, expenditures and operations of the co-op.
Townhome: it is a piece of real estate that is not a house and it is not a condo but something in between. A town house will have in some cases common walls and a HOA fee. It will have a front yard and back entrance, a garage below or behind the unit. it will have multiple levels and a whole block of row houses. In most cases a town home will provide a feeling of a house more than a condo due to some private areas such as back yard attached garage and even no common walls.
Now that you know a little more about the types of properties it will be easier to identify the one that better fits your needs. Remember HOA comes not only with a monthly fee, but also with covenants, conditions and restrictions. These are limits and rules placed on what you can and can’t do in your property.
If you would like more information on this or any other Real Estate topic please feel free to contact me. I would like to be your source of information. Throughout my real estate career I have found out that the more I help others the more I learn about my business. I also know that by helping you without expecting any commitment from you it is easier for me to provide you with more information so you can make better decisions. Please do not hesitate to call me with any questions. I probably know most of the answers; however if I don’t it will be a win for me because I will learn something along the way.
Carmenza Adams DRE#01411203
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