Condos vs Planned Unit Developments (PUD) - differences in ownership, operations, tax implications, etc?
Would anyone be able to provide some insight on the differences between these two residential developments? Specifically, I am trying to understand all of the hidden nuances between these classifications as it relates to ownership structures, operations, and taxes. Why would a developer opt to classify condos over PUD, or vice versa?
From my high-level understanding of Condos, the resident has fee simple ownership of his/her unit, and has undivided interest in the common areas. Whereas in a PUD, the difference is that the resident has a defined percentage interest in the common areas (does this mean an owner cashes out on the % of common area when selling his/her unit?).
I've also read that financing is more favorable to buyers of PUDs, why is this the case?
Any help would be appreciated.
Condo ownership the HOA is responsible for the structure from the drywall out to the stucco. Plumbing, electrical, roof, etc. I see lots of PUD's as detached communities...much more Townhome style HOA. Property owner is responsible for the structure. HOA is more for common area maintenance.
All the Condo's and PUD's I've seen are fee simple here in CA.
Financing is the same here in CA.
In most states condos are not warrantable by Freddie/Fannie until 50% of the units have been sold. I am curious if this is the case for PUDs, or if they are treated like townhomes.
I'm not an expert, but for horizontal development, you'd be hard pressed to find someone in 2016 who would prefer Condos to PUD. PUD HOA's are far more manageable and/or controllable.
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