Townhomes with Lot/Blk vs. Townhomes with condo legal.

[Eric C]

Hello everybody

Whats the best way to explain the differences between a townhome with Lot and block and a similar Townhome under a condo legal description?.

I've had MB call me to ask me why I did not include the cost approach on a townhome (done in the 1073 form) If I had done it on another one I had done prior (done in the 1004) form.

Assuming that I agreed to do the cost approach even though its not required or it might not be reliable.

 

[Mike Garrett RAA]

If it has a condo legal description...it is a condo, not a townhome. Now it might resemble a townhouse, have the function of a townhouse, and even be called a townhouse but it's STILL A CONDO!

 

[ttaM kooC]

Must be a geographical thing. Here in CA I think most of us see "townhouse" as a building style not a description of property rights.

I don't care what shape it is, if it's a condo it's a condo.

 

[Rudy Canoza]

Must be a gerographical thing. Here in CA I think most of us see "townhouse" as a building style not a description of property rights.

I don't care what shape it is, if it's a condo it's a condo.

Exactly...

It's ownership rights versus style.

A semi-detached SFR in a PUD sometimes resembles a townhouse...

A semi-detached condo in a condo complex sometimes resembles a townhouse...

The difference between the two is ownership rights...

 

[Couch Potato]

Erick, I think it is as simple as "what is owned." Typically with two identical townhouses the one with land ownership (lot/blk) owns the entire structure plus an interest in everything else in the development, but the one with unit ownership only owns the airspace in the structure plus an interest in everything else in the development. There is no difference in livability, but there are differences in how taxes and insurance are handled as well as which laws govern the HOA.

 

[Eric C]

Erick, I think it is as simple as "what is owned." Typically with two identical townhouses the one with land ownership (lot/blk) owns the entire structure plus an interest in everything else in the development, but the one with unit ownership only owns the airspace in the structure plus an interest in everything else in the development. There is no difference in livability, but there are differences in how taxes and insurance are handled as well as which laws govern the HOA.

Yeah, thats what I try to explain to them. It boils down to the land, the one under condo legal description does not really own the land.

But I could still do a replacement cost for the one under condo-legal if they ask for it right? I just wouldnt have a site value for them, how much would you guys charge for a replacement cost for the condo-legal townhome? Or should I just not do it?

 

[Smokey Bear]

But I could still do a replacement cost for the one under condo-legal if they ask for it right?

Easy. RCN is $0. A condo is the right to airspace. You don't own the walls or floor.

 

[Couch Potato]

Tough to do.

But I could still do a replacement cost for the one under condo-legal if they ask for it right? I just wouldnt have a site value for them, how much would you guys charge for a replacement cost for the condo-legal townhome? Or should I just not do it?

Generally it is not only the land that is not owned, they don't own the exterior walls either; they own the paint but not the drywall.

 

[Mike Garrett RAA]

Whoa...big fellas!

Depending on how it was set up, they could very well own the under lying land and a portion of the common elements. I owned a condo and also 1/118th of the common elements which included the land beneath.

 

[Hank Henry]

Townhouse is a style of home.

Condominium is a form of ownerwhip.