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PUD or Condo

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Laughing Heir

Thread Starter
Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
I've seen various threads lately on the distinct difference between these types of ownership. We don't really have many developments with condo form of ownership in my region.

We are working on one right now that the client asked for on 1075 Condo Ext. Form. Throughout the entire SOW it is described as a condo. The subject is a semi-detached townhouse style dwelling; I know that visually you cannot determine the form of ownership. I have pulled the deed along with the covenants for the development from the courthouse.

My question is:
Where in the deed or declaration of the development does it describe the form of ownership. I cannot find it explicitly stated anywhere on either instrument.

Does anyone have any guidance? Thanks in advance!
 

Mike Boyd

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Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Look at the legal description in the deed. If it is a PUD (attached single family home) they will own the lot the house sits on, plus a percentage of any common areas. For example, the legal might read: lot 76 of block 10 of unit 3, Black Hawk subdivision PLUS a 1/120th (spelled out) interest in lots 40, 41 and 39 of block 30 unit 7 , Black Hawk Subdivision. It might also show easements and so forth.

If it is a condominium, the legal for the above property might read: a 1/120th interest in lot__ etc.

Many city planners and sometimes the engineers that draw the maps are idiots and consider any development with common interests to be a condominium.
 

Laughing Heir

Thread Starter
Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
Thanks Mike.

This one doesn't describe the interest in those terms. However, it does read in the declaration instrument (not the subject's deed) that the easements are granted for all common areas including the roads, community water, community sewer, and misc. common areas.

This one is frustrating because of it's reference to the units as 'Townhouse Units'. Every other time I've encountered a condo or PUD it's directly invoked the proper terminology.

As for the deed?? It's a one pager from 2004 that lists the unit number, tax map number and ...all that certain lot, parcel, and piece of land situate in the Township of... ONE PARAGRAPH!

Very frustrating.
 

Mike Boyd

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Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
ALL of that certain lot...................it is not a condo. If ever in doubt, call the title company that is handling the escrow and ask if they are insuring it as a condominium or as a SFR.
 

Laughing Heir

Thread Starter
Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
I wish I was that lucky. It's a refi.

Thanks again for your help Mike. As a side note, to further my real world experience. Can a condo form of ownership be in fee simple interest?
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Talk with the management company?

I am sure each state is different. In Maryland, the legal will always state Condominiums at the end of the subdivision name. Also in our area, condos usually have unit #'s and PUD's have lot #'s. Is there a lot size on the tax record? Sometimes the zoning or land use on tax records will also state condo. What about your comps on the MLS, do they state condo ownership (agents can be wrong, if a couple state condo they probably are).
 

Laughing Heir

Thread Starter
Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
TJ - the assessor's office describes the 'ownership class' as condo. The assessor also labels the style as condo.

Is it possible that the abstract company had an off day with their boiler-plated deed program??
 

Laughing Heir

Thread Starter
Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
There are only 40 units and no management company. I have a call into the president of HOA and will let you know what he says.

We've informed the client that the subject may not actually be a condo... They informed us that they don't really care, it must go on a 1075 Form. Boy oh Boy, something stinks...
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Pud? Condo? ?

^^^^
If it's NOT a condo you'd have a USPAP violation - misleading report, the 2055 covers PUDs (if it IS a PUD)

Around here, there are Homeowner Associations for every little SFD development (including Detached Homes)
- The fees are usually under $100/yr - used for street snow removal, and maybe an annual party. <grin>
We sure don't consider them PUDs
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I've seen plenty of small condos (as little as two units) with no management company, those are usually self managed. Your best bet is probably the president or board of the HOA. Also, you can have condo's inside a larger HOA, just in case you need more confusion :) Seeing how the assessors office has it as a Condo, if the president tells you different, you might want that in writing for your file.
 
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