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Single Family Homes Converted to Condominium.

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masmia

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Sophomore Member
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Oct 16, 2007
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Certified General Appraiser
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Florida
I'd like to get some ideas on a property I'm appraising. The property consists of 10 adjacent lots zoned Single Family Residential that have been converted to a 3-unit Condominium. Three of the lots are improved with detached single family residences. According to the condo docs each unit owns outright the land around each house with the remaining land designated as undivided common elements. So basicaly there are three detached single family homes that are typical for the area along with XX SF of land used for common elements including pool, cabana, tennis, etc. Thanks for your input.
 

AnonApprsr

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Jan 21, 2008
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Certified Residential Appraiser
State
Massachusetts
Good luck with that. I'll be checking back for the ideas on this one, very interesting.
 

Mike Boyd

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Jan 18, 2002
Professional Status
Retired Appraiser
State
California
If each home includes the land UNDER the improvements, it is not a true condominium. It would seem to me that they should be identified as single family homes with a tenants in common ownership of other property for recreational (or whatever) usage. It sounds to me like many of the gated communities in my market area that are detached SFHs with common area. Often times, developers and even planning departments mis-use the term "condominium." Not that this is an FHA property but it might help to look up the FHA definition of a condominium.
 

masmia

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Sophomore Member
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Oct 16, 2007
Professional Status
Certified General Appraiser
State
Florida
Mike,

If the property is bound by a Declaration of Condominium does that not define it as a condo?
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
I'd like to get some ideas on a property I'm appraising. The property consists of 10 adjacent lots zoned Single Family Residential that have been converted to a 3-unit Condominium. Three of the lots are improved with detached single family residences. According to the condo docs each unit owns outright the land around each house with the remaining land designated as undivided common elements. So basicaly there are three detached single family homes that are typical for the area along with XX SF of land used for common elements including pool, cabana, tennis, etc. Thanks for your input.

If they own the land around the house outright it is not a condominium. Since there is additional common area is sure sounds like a planned unit development.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Mike,

If the property is bound by a Declaration of Condominium does that not define it as a condo?

Maybe, maybe not. I would have to read that declaration and also look at the deed. It may have started out to be condos but did not end up that way for unknown reasons. Have you EVER heard of a developer that did not follow his original plan? LOL A better question might be ....did you ever hear of a developer that followed the original concept? If still in doubt, ask the title officer how each loan will be insured. As a SFR with common area or as a condominium. (not the escrow officer....a TITLE officer.)
 

Doug Wegener

Senior Member
Joined
Apr 14, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Site condo

I'd like to get some ideas on a property I'm appraising. The property consists of 10 adjacent lots zoned Single Family Residential that have been converted to a 3-unit Condominium. Three of the lots are improved with detached single family residences. According to the condo docs each unit owns outright the land around each house with the remaining land designated as undivided common elements. So basicaly there are three detached single family homes that are typical for the area along with XX SF of land used for common elements including pool, cabana, tennis, etc. Thanks for your input.

Do a search here on the forum for "site condo" or landominiums
 

AnonApprsr

Elite Member
Joined
Jan 21, 2008
Professional Status
Certified Residential Appraiser
State
Massachusetts
Hmm if it was drafted as a condominium, regardless of land division since there is a common area, i'd be leaning towards calling them condos. But check out the landominiums and site condo threads. Post the links here if you have time!
 

masmia

Thread Starter
Sophomore Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Florida
I would have to read that declaration and also look at the deed. If still in doubt, ask the title officer how each loan will be insured. As a SFR with common area or as a condominium. (not the escrow officer....a TITLE officer.)

Delcaration defines the unit as a specific portion of the land with any improvment on it along with an undivided percent of common area not defined as a unit. For clarification say that total land area is 5 acres. Unit 1 is acre 1 plus improvements, unit 2 is acre 2 plus improvements, unit 3 is acre 3 plus improvments, remaining acres undivided common elements between the three defined units.

The appraisal is not for lending pruposes so there is no title officer.

I will be visiting the city building and zoning department today as well as the subject property. I'll let you guys know what the city says.
 
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