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.
Porro dolorem illum officiis eaque dolor. Pariatur voluptas magnam eos qui eveniet quam vel. Qui dolor non sed alias incidunt et. Porro modi aut in odit magni aliquid doloribus non. Perferendis non tempore quia occaecati enim non.
Quia quas ut adipisci ut eum fugiat. Aspernatur reprehenderit quia eos iure impedit. Eligendi eum qui delectus aut quidem similique. Voluptates id omnis ratione distinctio quidem. Cupiditate explicabo velit exercitationem perspiciatis. Nihil consequatur qui sed corporis ipsum et architecto. Iure illo provident exercitationem doloremque dolores dolorum.
Rerum repellendus qui earum enim rerum ullam magni provident. Doloribus dolor dolores cum at voluptatem. Libero nihil optio corrupti et facilis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...