©OnCourse Learning. All Rights Reserved.

Condominiums, Cooperatives, PUDs, and Timeshares ©OnCourse Learning. All Rights Reserved. Chapter 6

©OnCourse Learning. All Rights Reserved. In This Chapter You will cover methods of dividing the land.

Land Use Efficiency Of the forces responsible for creating the need for condominiums, cooperatives, and PUDs, the most important are land scarcity in desirable areas, continuing escalation in construction costs, disenchantment with the work of maintaining the grounds around a house, and the desire to own rather than rent. ©OnCourse Learning. All Rights Reserved.

Condominiums Each dwelling unit owner owns as his/her fee estate the cubicle of air space that the unit occupies. Separate elements – exclusively owned and used by the individual owners. Common elements – areas owned by all. ©OnCourse Learning. All Rights Reserved.

Condominium Declaration Master Deed - legal framework. Covenants, Conditions, and Restrictions (CC&Rs) – filed list of restrictions by which anyone purchasing a condo unit must abide. Bylaws – rules by which the owner’s association operates. Unit deed – each purchase receives deed. Condominium Management ©OnCourse Learning. All Rights Reserved.

Maintenance Fees The cost for maintaining the common elements and are allocated among all unit owners. Generally collected monthly. Reserves Taxes and Insurance Condominium management ©OnCourse Learning. All Rights Reserved.

Legislation Against Abuses Uniform Condominium Act Conversions Homeowner Associations Cooperative Apartments Timesharing ©OnCourse Learning. All Rights Reserved.

Condo Living Advantages  Lower cost  Low maintenance  Location  Amenities  Ownership Disadvantages  Close proximity to all  Loss of control  Fees  Board of Directors  Bylaws ©OnCourse Learning. All Rights Reserved.

Planned Unit Development Ownership in a community association that owns common areas along with your individual ownership of your lot and home. ©OnCourse Learning. All Rights Reserved.

Cooperative Apartments Organized by forming a nonprofit corporation Sell shares of stock to occupants The corporation borrows money by mortgaging the building The cooperator Owner’s association Other forms ©OnCourse Learning. All Rights Reserved.

Timeshare A method of dividing up and selling a living unit at a vacation facility for specified lengths of time each year. Right-to-Use – contractual right to occupy a living unit for one week a year for a term of between 20 to 40 years. Fee Simple – right to fee ownership of one week each year in perpetuity. ©OnCourse Learning. All Rights Reserved.

Texas Timeshare Act Real estate license required to market unit unless otherwise exempt. Must register property with TREC. Grants power to investigate all aspects of the development to TREC. Contract to Purchase terms ©OnCourse Learning. All Rights Reserved.

Right to Cancel Six days Right can not be waived Statement required attached to contract ©OnCourse Learning. All Rights Reserved.

Key Terms Bylaws CC&Rs Common elements Condominium Condominium declaration Cooperative Limited common elements PUD Proprietary lease Timesharing ©OnCourse Learning. All Rights Reserved.