Pud Vs. Condo

[Brad Potts]

My subject is a detached home on a 2600 sq. ft. lot. The plat map doesn't look like your normal condo plat map. Instead you have little lots designated out with lot dimensions for each home. The HOA fee is only 80 a month. City zoning says its a condo, the HOA says its a condo. But I'm not sure if I believe them due to the plat map and the low HOA fee. Also it was ordered as an SFR by the lender. Please help. This is in Corona, CA.
Thanks

 

[TC]

Go to the courthouse, knock on some doors, read the deed.


TC

 

[Restrain]

Just because there's a PUD, that doesn't make it a condo. A PUD simply means that there is a mandatory homeowners association that pays for certain items. It may only be the flowers around the entry sign to the subdivision and a busy-body to tell you your grass is too high. The flip side is the condo PUD wherein the HOA dues pays for almost everything, except for paint and carpet.

Check with who runs the HOA and find out what the PUD declarations say it is. They will know.

Roger

 

[jason rhoades]

Brad

If you really want to be sure ask for a copy of the prelim. Whenever I have trouble distinguishing between the two, the legal description within the prelim is usually what I follow.

You can also check within the legal description from one of your normal data sources if it is available. Look for key words. Example a PUD might say "lot 1 tr 2345" whereas a condo may say "Unit 1 tr 2345"

If you choose to chase a prelim I can't say that your client will be jumping for joy to get it for you. But you never know.

Hope this helps

Jason

 

[Ken Martin]

If the city calls it a condo, and the docs call it a condo then it's a condo. We have several SF Det Condo complexes around here. The builders found out that they can build more homes by calling them condos. The fee normal covers the grounds maintenance (including the front yard). Try telling an underwriter from out of state that the SF Det is a condo. There preception is a hi rise only. I finally had to tell her that a condo could be a tract of land, an office complex, a storage facility, or just about anything.

 

[Mike Garrett RAA]

Same in my county....lot (townhouse) unit (condo) Just remember if there is a mandatory HOA it is considered PUD.

 

[Brad Potts]

It does say "Unit 61 int in com lot 9&10 tr 27795"

 

[Jo Ann Meyer Stratton]

Find out the legal differences between PUD and condo are in your state. Read the subdivision CC&Rs. Do the restrictions in the CC&RS match the legal definition of PUD in your state? Do they match the legal definition of Condo in your state? In Arizona the subdivision restrictions need to have a horizontal regime clause in the subdivision restrictions to be a condo.

Zoning by the city does not establish whether the property is in a PUD or a condo. See Fannie Mae's Section 301--Units in Condominium Projects and Section 302--Units in PUD Projects. Fannie Mae's guidelines are in the FAQs of the Fannie Mae forum

Classification by the assessor or the assessor's maps does not establish whether the property is in a PUD or a condo. It might be a good indication but is not the final word--the final word is in the subdivision CC&Rs.

 

[Tom McDowell]

Ask for the condominium declerations

 

[Jerry Bone Jr]

A condo owner will not exculsively own the land under the condo, but instead own a percentace of the whole. Check out "The Appraisal of Real Estate" Ninth Edition, page 121.
Also, the county assessor will have a $0 site value on a condo.