August 13, 2008
Image Source: www.pmi.org
Condominiums: Owner has a deed for unit, has a separate mortgage, pays property tax on the unit plus a percentage of the common areas and pays a monthly maintenance fee. A board of directors governs the complex with the owner having one vote. The condominium owner has a fee simple absolute unrestricted ownership and is individually responsible for property taxes and maintenance fees. Use the sales price of condominiums with similar size, appeal, age, neighborhood, incurring similar maintenance fees, etc. to determine market value.
Cooperatives: Most co-ops are incorporated and a board of directors governs the complex with the owner of each individual unit having one vote. The owner has no deed, only stock and a proprietary lease which has a term from 10-50 years renewable automatically or at the discretion of the shareholders. He/she cannot refinance his unit as a condo owner can. Mortgage, property tax and maintenance fees are paid pro rata by the owner according to the percentage of the overall size of the unit. Property tax appeals involve the corporation and the stockholders.
Posted in Condo Living, Designing tips, Health Tip, Information, Tips by Rene • Comments Off
August 11, 2008
Condominum buildings are usually managed by associations. Each unit owner is also a member of the association, and the members regularly elect board membres. The association lives to enforce the bylaws of the building organization, and handles maintenance, repair and other such homeowner isssues. The organization also deals with disputes among owners, and with developers.
This can be a great idea–to band together for a more organized living. After all, condo unit owners live on the same space and structure.
However, because condo associations are not usually made up of property-management professionals, the organization has the tendency to be weak and inefficient when it comes to management matters. And in many cases, condo unit owners have to seek approval of the condominum’s association before doing any renovations on one’s own unit. Or if, in case, you want to lease out or rent out your unit, you might have to seek the approval of the association or board, too.
So unlike owning a house and lot of your own, you would have to please the neighbors, too!
Posted in Condo Living by Rene • Comments Off
