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© 2008 by South-Western, Cengage Learning
Chapter 22Chapter 22
Charles J.Jacobus
Thomas E.Gillett
© 2008 by South-Western, Cengage Learning
Georgia Real EstateGeorgia Real Estate An Introduction to the ProfessionAn Introduction to the Profession
Seventh EditionSeventh Edition
Chapter 22Chapter 22
Condominiums, Cooperatives, PUDs, and Timeshares
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Section 234 National Housing Act
Legal model for FHA
State Condominium laws
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Desire for Land-Use Efficiency
Amenities of
Multi-Family Living
Dividing the Land of an Estate
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Condominium Act
Separate ElementsExclusively owned & used by the individual
Common ElementsOwned by all
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Owners’ Association
BylawsRules governing the owners’ association
CC&RsRegulations governing the owners
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Deed
Voting Rules
Board of DirectorsElected
Conduct the business of the association
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Annual Meetings
Management
Maintenance Fees
Reserves
Taxes & Insurance
© 2008 by South-Western, Cengage Learning
Condominium FinancingCondominium Financing
Loan Terms 50% owner occupied
Deposit PracticesDeposit Practices
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Conversions
Potential problems
Tenants conversion
© 2008 by South-Western, Cengage Learning
CondominiumsCondominiums
Disadvantages Close proximity
of neighbors
Extra Government
Board decisions
Advantages Cost
“Carefree Living”
Security
Recreation & social
© 2008 by South-Western, Cengage Learning
Cooperative ApartmentCooperative Apartment
Not for profit corporation
Corporation owns the building
CooperatorsShareholders own corporationProprietary lease
© 2008 by South-Western, Cengage Learning
Cooperative ApartmentCooperative Apartment
FinancingOne mortgage
Default
ResaleAll cash
Installment plan
© 2008 by South-Western, Cengage Learning
Cooperative ApartmentCooperative Apartment
GovernmentBoard of Directors
DifferencesUnits financed separatelyUnpaid property taxes
Similarity
© 2008 by South-Western, Cengage Learning
Planned Unit DevelopmentPlanned Unit Development
Ownership of house & lot as separate property
Ownership of Common Area
CC&Rs
© 2008 by South-Western, Cengage Learning
ResortResort TimeshareTimeshare
Right-to-useRight to occupy one week a year for a specific term
Fee SimpleOwnership in a unit in perpetuity
© 2008 by South-Western, Cengage Learning
ResortResort TimeshareTimeshare
Costs Quality, location, time of yearAnnual maintenance fee
BenefitsPrepaid vacation
Commitment
© 2008 by South-Western, Cengage Learning
ResortResort TimeshareTimeshare
State Regulation
Georgia – mandatory 7 day “cooling off period”
© 2008 by South-Western, Cengage Learning
Key TermsKey Terms
Bylaws
CC&Rs
Common elements
Condominium
Cooperative
Limited common elements
PUD
Proprietary lease
Reserves
Resort timesharing