Condominiums are units that are similar to nice apartments, and may be in large or small, high or low rise buildings.
The owner keeps the title to the interior of the unit and shares the title to any common areas in the building, such as a health club.
These common areas are governed by a board of directors who are elected by the residents.
Owners must abide by bylaws, covenants, conditions and restrictions.
Before purchasing a condominium, you and your lawyer will want to do some research about the master deed, bylaws, operating rules for the association, house rules, covenants, restrictions, and conditions.
Townhouses
Townhouses are multi-floor units that share common walls with adjacent townhouses.
Owners keep the title to the unit and the land under the unit and a shared title to any common areas.
These are normally governed by a homeowner’s association elected by residents.
Townhouse legal documents are similar to condo documents.
Cooperatives
Cooperatives are single apartment units owned as shares in a corporation or trust that retains the title to the entire building.
Owner holds a lease to live in the unit and a proportionate number of shares in the corporation that owns the building.
These usually are governed by a board of directors that is elected by residents.
Before buying a co-op, review all rules, membership regulations, and house codes.
Have your lawyer check the legal documentation such as the incorporation, bylaws, and proprietary lease.
Check the co-op’s budget and financial statements as well.
4 signs you shouldn’t buy into attached housing
Most of the building is rented. Many lenders will not provide loans on a unit in this type of complex, making resale nearly impossible.
The association has an unhealthy reserve fund. Members will pay heavily for any repairs.
If the board of directors can’t agree, you can be sure they will make bad decisions.
If the project is in heavy litigation, property values will be negatively affected, and funds will be quickly drained.
