Many people are deciding give up single
family ownership to
move closer to work, theatre and restaurants without the responsibility
of
exterior home maintenance. Others may be
tired of hotels and want to invest in a condominium in Atlanta. In addition to being closer to the city,
some communities include other amenities, such as a pool and club house
or
community room.
As with any home purchase, the
most
important document to
review is the Declaration of Covenants and Restrictions.
This document, along with a copy of the
current Association Budget, will help you to decide what type of
ownership is
for you, and also will help to compare one community with another.
CONDOMINIUM
OWNERSHIP
“Condominium” describes a type of ownership,
and it may
include the typical condo flat in a high rise building, a two- or
three-story
town home, or a patio/garden home. The
building or buildings may have been built as a condominium, or may have
been
converted from an apartment complex.
With condominium ownership, the
homeowner
owns a unit
defined by vertical boundaries (walls) and horizontal boundaries (floor
and
ceiling), and shares ownership of common areas with other owners. The actual boundaries may vary from one
condominium development to another. For
instance, in one complex, the owner may own the patio or balcony, and
in
another it may be common property.
Other property may be considered common
property, but the
owner has limited use of the property. This
may include an assigned parking space, storage unit,
patio or
garden space. No other owner may use this property, but it belongs to
the
Association.
A few things to consider before deciding on
a Condominium:
- What
does the Association own and maintain?
(In most
condominiums, parking lot and even street maintenance is privately
owned and
maintained by the Association).
- Are
all existing units included in the
Association?
- What
are the restrictions?
- What
is the Association budget? Are there any
past, current or pending
assessments or law suits?
- What
are the monthly fees, and how much can
they increase
each year?
- What
is the availability of parking for the
owner and for
guests? Is it assigned?
- What
percentage of the Condominium is owner
occupied? What
are the restrictions for rental property? (It may be difficult to get a
loan on
a condo with a high ratio of renters)
- What will the condominium insurance policy
cover?
- What will your
individual policy cover, and
how much will it
cost in annual premiums?
- What kind of soundproof barrier exists
between units? What
type of firewall?
“FEE
SIMPLE” TOWNHOMES
You may hear the term “Fee Simple Townhome”. Although the term is slightly
misleading, Typically it is used to
describe an attached two- or three-story building where the owner owns
and is
responsible for maintaining the exterior of the building Also,
in this use of the term Fee Simple
Townhome, the owner owns the land on which the building stands. In most cases, the owner is responsible for
maintaining the lawn, but in some cases, the Homeowner’s Association is
responsible for maintenance.
The benefit of this type of ownership is
affordability and
less maintenance than you would have with a single family home.
Important issues to consider with this type
of ownership:
- What
will you own?
- What
will you be responsible for
maintaining, and what will
the Association be responsible for maintaining?
- What
will you be responsible for insuring?
- What
are the restrictions?
- Is
there an active Association to enforce
the
restrictions? For instance, if each
owner is responsible for exterior maintenance, how will it be resolved
if you
have neighbors who are not willing or able to maintain their home?
- What type of
firewall separates one home
from another? Is there a firewall that
extends through the
attic and roof?
SINGLE FAMILY PATIO HOMES
If you decide to remain in the suburbs but
want to downsize
in square footage and maintenance responsibilities, there are many new
communities offering single family detached homes with lawn maintenance
included in the Association fee.
