Condominium Individually Owned Within a Common Facility
A real estate defining of condominium:
CONDOMINIUM — An estate in real property wherein there is an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map or condominium plan. The areas within the boundaries may be filled with air, earth, or water or any combination and need not be attached to land except by easements for access and support.
Things to know about buying a Condo
Some of the pros of buying a condominium are affordability. Condos are often priced lower than single-family homes. Condos can be a great first investment property or first home.
Another big benefit of owning a condo is condominium association takes care of the maintenance. They cut the grass and maintain the grounds; they fix the roof and many more upkeep issues.
Another compelling reason to own a condo is its amenities. Many condo communities offer residents facilities that are out of reach for the average homeowner. A pool that the association maintains is a great benefit. Some condos have a fitness center and clubhouses.
Some condos offer security which could be another benefit of condo ownership. Many condos have gated or locked entries, doormen, or even security professionals patrolling the property.
A condominium is both individual owned and common interest owned. There are parts of the property owned individually, many times called units. There are parts of the property owned in common with all the other owners.
Use of the common areas should be for all residents. Common areas may include recreation facilities, outdoor space, parking, landscaping, fences, laundry rooms and all other jointly used space. The homeowners' association, cooperative board or condo association collects assessments (money) from the owners and pays for upkeep, insurance, maintenance and reserves for replacement of improvements in the common area.
Due diligence is a process that serves to confirm all material facts in regards to a sale. When considering a condominium, the common area uses is a very important thing to understand. Do not assume. Check out the details in each condo that is under consideration.
Research the condo’s finances. Also, the rules the condo organization has for investment property buyers. Many associations do not allow rentals or severely limit the number of units that may be rented.
The reasons why there is a limit on units the condo can rent is if too great a percentage of the total units are rentals, the condo can lose FHA and conforming eligibility, which makes financing very difficult.
Owning a condo property costs money. Understand the cost of HOA dues and any other payments or fees the condominium expects. Know what the money pays for and does not pay. These can save many headaches in the future.
Having a Coffee professional real estate agent when considering buying or selling a condo can make a very big difference. Condos are not like single family homes. They have many more rules and finical issues to understand. There are also condo fees to understand when get a property loan. These can sometime push a qualified buyer out of qualifying for a condo loan.
Coffee Real Estate agents can help you navigate the condo process. Knowledge is power. Have the power on your side with Coffee Real Estate professional agents.