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Real Estate Ownership Condominium Or Fee Simple
. Introduction
legal description of the airspace
the unit actually occupies, plus
There is a common an undivided interest in the
perception that condos are ownership of the common elements,
apartment-style buildings, that which are owned jointly with the
townhouses are two-story row other condominium unit owners. In
houses with adjoining walls, and other words, each owner of a
that garden homes are condo unit has individual title
free-standing houses on small to the space inside of his unit.
lots. Unfortunately, this Sometimes the space is described
perception may create confusion as beginning with "the paint on
about real estate ownership. the walls." Each unit owner also
has an undivided interest in the
The term "apartment," physical components of the condo
"townhouse," or "garden home" building and land.
describes the layout and design
of certain homes. By contrast, Condo projects that are built as
the word "condominium" does not multi-story apartments are
refer to a type of building or usually recognizable as condos
construction design. Condominium because they don't have land
refers to a form of ownership of under each unit. In these
real estate. Condos cannot be developments, the condominium
recognized by observing the association typically maintains
building style. the exterior of the building and
common grounds, but not the
II. Condominiums interiors of the units. An
insurance policy is usually held
The legal definition of by the association to cover the
condominium is: The absolute jointly-owned parts of the
ownership of a unit based on a property, while the individual
owners carry insurance for the duplex as two condos, the owner
interior components of their is able to sell them separately
units. The owners pay a fee to to two different owners.
support the maintenance of the
common areas. A condominium If you are considering purchasing
association makes decisions about a condo, it is very important to
expenditures for repairs, and read the condo documents
handles administrative work carefully. The rules of each
related to the common areas of condominium are specific to the
the project. development, so no assumptions
should be made about their
While some condo projects look requirements. The condo documents
like lofts or apartments, others specify what maintenance is
may look like duplexes, covered by the common budget. In
townhomes, garden homes, or one case, the association may
residences on regular lots. handle all exterior components,
Generally, creating a condo decks, pools, sidewalks,
regime allows the developer to driveways, etc. In another, the
get more density approved than he documents may require that the
would if he had done individual owners be responsible
single-ownership lots. This is for complete maintenance of their
usually the reason why the condo units, including foundations,
regime is chosen over the single roofs, and exterior walls.
ownership of lots. It is possible
that a condominium may just be After reading your condo
two units of a duplex. In this documents, you may have questions
case the two owners may jointly about the division of work
make decisions concerning between the individual owners and
maintenance of any common areas. the common budget administered by
By setting up the units of a the condo association. Your can
present your question to the
condo board itself. The board can III. Fee Simple
clarify how the issue has been
handled in the past, or give you In contrast to the condominium
its interpretation of the rules. regime, you may own real estate
Another course of action is to by fee simple. "Fee" (from the
ask a real estate attorney to old word, "fiefdom") refers to
review the documents for you. legal rights in land, and
Other homeowners, Realtors, or "simple" means unconstrained. Fee
maintenance workers are not simple ownership is the absolute
reliable or appropriate sources and unqualified legal title to
for the interpretation of condo real property, including both
documents. buildings and land. This is the
most common type of ownership.
The Texas Purchase Contract for
Condominiums has a provision that In a fee simple type of
the buyer be given a copy of the ownership, there are several
condo documents with a certain possibilities with respect to the
period of time to review them. obligations of ownership:
The buyer may decline the
contract with no penalty during (1) The property may not be in a
the document-review period. A subdivision at all. In this case,
resale certificate is also there will be no subdivision
required to be signed by the restrictions attached to your
association president or manager. deed that affect your use of the
This form answers questions about property. Keep in mind, however,
current budgets, special that you may be governed by city
assessments, insurance, lawsuits or county ordinances or zoning
and other matters that affect the laws, and there may be previous
association. deed restrictions limiting your
use of the property. developments are governed, or how
maintenance is handled. For
(2) You may be a part of a example, a townhome project, with
subdivision that has very minimal fee simple ownership, may require
restrictions, no common areas, no the owners to fully maintain
architectural control committee, their units. Or, the townhome
and no mandatory dues. Usually association may handle exterior
these are older subdivisions. maintenance and yard work for the
owners. In subdivisions with
(3) You may be in a townhome single family homes on larger
project, a garden home community, lots, it is more common for the
or a subdivision of homes on homeowners association to manage
larger lots in which there is a only entrances, common grounds,
legally-created homeowners parks and pools, while the
association. If so, each individual owners maintain their
homeowner is required to be a own properties.
member of the association. Many
associations charge mandatory IV. Conclusion
dues. The association may require
a certain level of maintenance by Whether you are buying into a
each property owner, and may condominium regime or purchasing
enforce subdivision rules. For a fee simple property, you should
example, you may need the have a clear understanding of the
association's approval of paint type of ownership you will have
colors, fences, or home in your property. If you are
remodeling. buying a condominium, you should
read the condo documents
As in the condominium form of carefully to understand how
ownership, fee simple ownership maintenance is divided between
does not prescribe how individual owners and the common
budget.
If you are not clear about your
If you are buying a fee simple ownership of a property, or have
property, with individual a question about your obligations
ownership of the land, you should as a homeowner, it would be wise
read the deed restrictions (if to review the title documents
any) to understand the rules that with a real estate attorney
apply to your property. In fee before proceeding with your
simple ownership, there may be purchase. Don't hesitate to ask
mandatory dues to pay for common questions! A clear understanding
area maintenance, or, in some of your ownership, rights, and
cases, the dues may pay for obligations leads to a more
partial maintenance of the satisfying home purchase.
individual properties.
About the Author:
Roselind Hejl's Austin Real Estate Guide - http://www.weloveaustin.com -offers a wealth of knowledge about the city of Austin, homes for sale, market trends and the real estate buying and selling process. Top 25 Residential Agents - Austin Business Journal
Source: www.isnare.com
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