Question about Condo-ownership Twinhome

[Joyce Potts]

We have hundreds of them in my market. Each unit owner owns the improvements and the land in their 50% of the entire condo. We also have 3 unit condos, as well as many 4 unit condos that use to be duplex, triplex and 4 plex properties. Remember:

A Condo is a form of ownership. not an archetectural style.

Another excellent post by ObeeDonCanNoBee.

 

[Eric C]

Eric,

Just because there is no 'formal' condo association as what you're used to dealing with, doesn't negate the fact that the land underneath isn't still owned by the 'condo association'. The 'condo association' comprises two owners. I think in think in this instance each homeowner owns a 1/50th of the land. It can be an ambiguous concept. That said, my suggestion is to simplify it.

Again, describe the scenario and hopefully you have similar comps. That said, look to the functional utility in choosing comps, not just the 'condo' ownership. In other words, I wouldn't restrict my comp selection of what may physically appear to be nearly identical properties, but is not owned as a 'condo', but as a SFR that owns the land underneath.

Make sense?

I have comps in the area, twin homes are typical around here and i've done plenty in the past. Thanks god that I always have available comps of similar ownership. I just never had anybody that I could ask this question to for me to clearly understand the concept.

I just find it hard to explain to the homeowner that they "don't" on the land underneath but at the same time they "do" own 50% of the whole thing.

 

[Joyce Potts]

I have comps in the area, twin homes are typical around here and i've done plenty in the past. Thanks god that I always have available comps of similar ownership. I just never had anybody that I could ask this question to for me to clearly understand the concept.

I just find it hard to explain to the homeowner that they "don't" on the land underneath but at the same time they "do" own 50% of the whole thing.

They do own the land underneath, just not fee simple ownership. Leave it to lawyers to come up with that concept to begin with.

Have ObeeDonCanKnowBee Clark explain it. He's far better at it than I am.

 

[Eric C]

We have hundreds of them in my market. Each unit owner owns the improvements and the land in their 50% of the entire condo. We also have 3 unit condos, as well as many 4 unit condos that use to be duplex, triplex and 4 plex properties. Remember:

A Condo is a form of ownership. not an archetectural style.

I know that Condo is a form of ownership. That statement in itself is not completely clear to the average person if you ask me. They can easily ask "what the hell does form of ownership means?". "do I own the land or do I not?".

So you're telling me that in your market when the twinhome is under condo-ownership you say that they own the land underneath? Can you give value to that 50% of land? Do you use twinhomes that have Lot & Block as comparables for twinhomes under-condo ownership?

 

[Mike Boyd]

In this case, CONDO seems to be a mis-nomer. It is an attached SFR with each owner having a 50% TIC ownership (tenants in common).

 

[Don Clark]

Wrong Mike

In this case, CONDO seems to be a mis-nomer. It is an attached SFR with each owner having a 50% TIC ownership (tenants in common).

Mike,

Here is an example of our 2 units condos. The other is 216A.

 

[DJBanas]

Mike:

In NJ we also have plenty of 2-3 unit condos along the shore. Just did an appraisal on one in Ocean City on Sunday, used the 1073 form. Each owner has a 50% undivided interest in the land. There is no formal HOA but the Sales agreement stipulates that any changes to the exterior of the dwelling will require approval of both owners.

BTW: Interesting question that I have seen appraisers miss on these: "Does any party own more than 10%?" I typically see "NO" checked when the answer should be "YES" with an explanation of the arrangement.