© 2008 by South-Western, Cengage Learning Chapter 22 Charles J. Jacobus Thomas E. Gillett

© 2008 by South-Western, Cengage Learning Georgia Real Estate An Introduction to the Profession Seventh Edition Chapter 22 Condominiums, Cooperatives, PUDs, and Timeshares

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Section 234 National Housing Act Legal model for FHA State Condominium laws

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Desire for Land-Use Efficiency Amenities of Multi-Family Living Dividing the Land of an Estate

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Condominium Act Separate Elements Exclusively owned & used by the individual Common Elements Owned by all

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Owners’ Association Bylaws Rules governing the owners’ association CC&Rs Regulations governing the owners

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Deed Voting Rules Board of Directors Elected Conduct the business of the association

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Annual Meetings Management Maintenance Fees Reserves Taxes & Insurance

© 2008 by South-Western, Cengage Learning Condominium Financing Loan Terms 50% owner occupied Deposit Practices

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Conversions Potential problems Tenants conversion

© 2008 by South-Western, Cengage Learning Condominiums Condominiums Disadvantages Close proximity of neighbors Extra Government Board decisions Advantages Cost “Carefree Living” Security Recreation & social

© 2008 by South-Western, Cengage Learning Cooperative Apartment Cooperative Apartment Not for profit corporation Corporation owns the building Cooperators Shareholders own corporation Proprietary lease

© 2008 by South-Western, Cengage Learning Cooperative Apartment Cooperative Apartment Financing One mortgage Default Resale All cash Installment plan

© 2008 by South-Western, Cengage Learning Cooperative Apartment Cooperative Apartment Government Board of Directors Differences Units financed separately Unpaid property taxes Similarity

© 2008 by South-Western, Cengage Learning Planned Unit Development Planned Unit Development Ownership of house & lot as separate property Ownership of Common Area CC&Rs

© 2008 by South-Western, Cengage Learning Resort Timeshare Resort Timeshare Right-to-use Right to occupy one week a year for a specific term Fee Simple Ownership in a unit in perpetuity

© 2008 by South-Western, Cengage Learning Resort Timeshare Resort Timeshare Costs Quality, location, time of year Annual maintenance fee Benefits Prepaid vacation Commitment

© 2008 by South-Western, Cengage Learning Resort Timeshare Resort Timeshare State Regulation Georgia – mandatory 7 day “cooling off period”

© 2008 by South-Western, Cengage Learning Key Terms Key Terms Bylaws CC&Rs Common elements Condominium Cooperative Limited common elements PUD Proprietary lease Reserves Resort timesharing