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Chapter 22Chapter 22

Charles J.Jacobus

Thomas E.Gillett

© 2008 by South-Western, Cengage Learning

Georgia Real EstateGeorgia Real Estate An Introduction to the ProfessionAn Introduction to the Profession

Seventh EditionSeventh Edition

Chapter 22Chapter 22

Condominiums, Cooperatives, PUDs, and Timeshares

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CondominiumsCondominiums

Section 234 National Housing Act

Legal model for FHA

State Condominium laws

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CondominiumsCondominiums

Desire for Land-Use Efficiency

Amenities of

Multi-Family Living

Dividing the Land of an Estate

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CondominiumsCondominiums

Condominium Act

Separate ElementsExclusively owned & used by the individual

Common ElementsOwned by all

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CondominiumsCondominiums

Owners’ Association

BylawsRules governing the owners’ association

CC&RsRegulations governing the owners

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CondominiumsCondominiums

Deed

Voting Rules

Board of DirectorsElected

Conduct the business of the association

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CondominiumsCondominiums

Annual Meetings

Management

Maintenance Fees

Reserves

Taxes & Insurance

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Condominium FinancingCondominium Financing

Loan Terms 50% owner occupied

Deposit PracticesDeposit Practices

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CondominiumsCondominiums

Conversions

Potential problems

Tenants conversion

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CondominiumsCondominiums

Disadvantages Close proximity

of neighbors

Extra Government

Board decisions

Advantages Cost

“Carefree Living”

Security

Recreation & social

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Cooperative ApartmentCooperative Apartment

Not for profit corporation

Corporation owns the building

CooperatorsShareholders own corporationProprietary lease

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Cooperative ApartmentCooperative Apartment

FinancingOne mortgage

Default

ResaleAll cash

Installment plan

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Cooperative ApartmentCooperative Apartment

GovernmentBoard of Directors

DifferencesUnits financed separatelyUnpaid property taxes

Similarity

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Planned Unit DevelopmentPlanned Unit Development

Ownership of house & lot as separate property

Ownership of Common Area

CC&Rs

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ResortResort TimeshareTimeshare

Right-to-useRight to occupy one week a year for a specific term

Fee SimpleOwnership in a unit in perpetuity

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ResortResort TimeshareTimeshare

Costs Quality, location, time of yearAnnual maintenance fee

BenefitsPrepaid vacation

Commitment

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ResortResort TimeshareTimeshare

State Regulation

Georgia – mandatory 7 day “cooling off period”

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Key TermsKey Terms

Bylaws

CC&Rs

Common elements

Condominium

Cooperative

Limited common elements

PUD

Proprietary lease

Reserves

Resort timesharing