© 2012 Cengage Learning. Condominiums, Cooperatives, PUDs, and Timeshares Chapter 22.


Condominiums, Cooperatives, PUDs, and Timeshares

Chapter 22


In This Chapter

You will cover methods of dividing the land.


Land Use Efficiency

Of the forces responsible for creating the need for condominiums, cooperatives, and PUDs, the most important are land scarcity in desirable areas, continuing escalation in construction costs, disenchantment with the work of maintaining the grounds around a house, and the desire to own rather than rent.


Condominiums

Each dwelling unit owner owns as his/her fee estate the cubicle of air space that the unit occupies.

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

Common elements – areas owned by all.


Condominium Declaration

Master Deed - legal framework. Covenants, Conditions, and Restrictions

(CC&Rs) – filed list of restrictions by which anyone purchasing a condo unit must abide.

Bylaws – rules by which the owner’s association operates.

Unit deed – each purchase receives deed.


Maintenance Fees

The cost for maintaining the common elements and are allocated among all unit owners.

Generally collected monthly. Reserves Taxes and Insurance Condominium management


Legislation Against Abuses Uniform Condominium Act Conversions Homeowner Associations Cooperative Apartments Timesharing


Condo Living

Advantages Lower cost Low maintenance Location Amenities Ownership

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


Planned Unit Development

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


Cooperative Apartments

Organized by forming a nonprofit corporation Sell shares of stock to occupants The corporation borrows money by

mortgaging the building The cooperator Owner’s association Other forms


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.


Texas Timeshare Act

Real estate license required to market unit unless otherwise exempt.

Must register property with TREC. Grants power to investigate all aspects of the

development to TREC.


Right to Cancel

Six days Right can not be waived Statement required attached to contract


Key Terms Bylaws CC&Rs Common elements Condominium Condominium

declaration

Cooperative Limited common

elements PUD Proprietary lease Timesharing

© 2012 Cengage Learning. Condominiums, Cooperatives, PUDs, and Timeshares Chapter 22.

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Transcript of © 2012 Cengage Learning. Condominiums, Cooperatives, PUDs, and Timeshares Chapter 22.