Explaining the difference between a TIC, a condo and a Co-op for San Francisco Real Estate - Part 2
A reader previously asked:In San Francisco, I hear a lot of people throw around the terms, tenancy in common, condominium and co-op and often use them to describe the same property in the same sentence. What is the difference between them?
Our answer:
Hopefully part 1 of this atricle answered the question for you about Tenancy In Common. Now we'll discuss condominiums. Dictionary.com describes a condo as, "A building or complex in which units of property, such as apartments, are owned by individuals and common parts of the property, such as the grounds and building structure, are owned jointly by the unit owners."
With condominiums you own the "airspace" that the condominium occupies. Each unit has its own lot number and map just like a plot of land. The owner owns that "lot" which is the interior space from the exterior walls and a percentage of the common areas which can include the land on which the condos are built, outdoor space, roof, exterior walls, and any common areas defined within the CC&R's or title report. Sometimes this also included a deeded parking space.
The CC&R's are the Covenants, Conditions and Restrictions of the condominium. These documents define the ownership rights and responsibilies of the condominium project. They are specific to each association and are recorded with the deed and are a matter of public record. Every association has its own CC&R's, and it is important that when you are going to buy a condo, you read and review these documents so you make sure can live with the rules since they can be legally enforced. (For example some associations do not allow pets or restrict the type or size of the animal.) There may be also be other rules in addition to the CC&R's.
Condominiums can be financed just like a single family home. However, there are some lenders who will only do loans in condominium buildings with more than 10 units. Others will not loan if too many of the units are rented. And you might have problems getting a good loan is if there is pending litigation in the complex. So check with your lender to be sure.
- Janis Stone
posted by SFResidence.com @ 8:25 AM
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