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In high-priced markets where space is at a premium, the most affordable solutions for buyers on a budget may be condominiums, townhouses or cooperative apartments which are often referred to as attached housing.   Here are some of the things you should know if you are considering purchasing that type of housing.

Condominiums, townhouses or cooperative apartments are three forms of attached housing, or homes that share common walls and common areas with neighbors.   This type of housing is popular and essential in expensive real estate markets where only a small percentage of households can afford to purchase a house.   Condominiums are beginning to proliferate in less-populated areas, too, as alternative retirement housing for active adults.   Here's a quick comparison of the three:

Condominium Townhouse Cooperative
What it is Single unit that usually resembles a finely finished apartment. Found in large and small, high-rise or low-rise complexes Two-floor unit that shares a common wall with at least one other townhouse, found in clusters (also known as rowhouses) Single apartment unit owned as shares in a corporation, partnership or trust that holds title to building
Ownership status Owner has title to interior space of unit and shares title to common areas in complex Owner has title to unit and land under unit and shares title to common areas (if any) Some ownership arrangements more closely resemble those of condominiums Owner has proprietary lease to live in unit and corresponding number of shares in cooperative corporation that owns building
Governed by Condominium board of directors (elected by residents) in accordance with bylaws and covenants, conditions and restrictions Homeowners' association, in most cases (elected by residents) Board of directors (elected by residents)


Know Your Condominium

Before you buy a condominium, research the project by yourself or with a real estate attorney. There are several documents you'll want to review carefully before you sign any kind of purchase contract.   These papers should be available from the condominium board of directors or its representative:

Master deed

This key document establishes the project as a condominium project.   It gives residents the authority to form an operating association and includes the legal descriptions of all individual units and common areas.

Bylaws

Bylaws are the operating rules for the condo association.   Among other things, they authorize the board of directors to create a budget, assess fees, hire professional management staff and perform other operating duties.

House rules

House rules govern what owners can do in common areas.

Covenants, conditions and restrictions

Private restrictions on the use of project property; usually created by the developer.

Purchase agreement

This is similar to a standard purchase.   It should include a cooling-off period during which you can back out, and financing and inspection contingencies.

Other papers

You may also ask to see current operating budget, current and proposed assessments, financial statement of the homeowners' association and any leases, contracts, blueprints or other design plans.

Know Your Co-op

Some cooperatives are run like families, but most have budgets and rules that you must follow to the letter.   Some cooperatives prohibit renting; others do not allow pets.   Make sure that you can live with the restrictions before you buy.

Co-op rules

Review all of the co-op rules, including membership regulations and house codes.

Legal documents

Check the legal documents including incorporation, bylaws and proprietary lease.

Budget

Examine the financial statements and the operating budget of the cooperative.

Legal issues

If you are confused by the legal jargon, ask a lawyer who specializes in cooperatives.



Michael & Cindy Morris
Keller Williams Realty, Gulf Coast
Michael (727) 251-7447
Cindy (727) 480-8427
FAX (727) 397-5978

Contact Us
ocean@tampabay.rr.com

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Keller Williams Realty, Gulf Coast
13800 Park Blvd.
Seminole, FL 33776