 |
|
|
What is a condo?
con·do·min·i·um  |
- 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.
- A unit in such a complex.
A condominium is similar to an apartment that you own. Essentially you own the space from the paint on the walls in, depending on how your bylaws are written. This is considered your exclusive real estate. There are also common elements such as the land the building is built on, the hallways, amenities, etc. You own an undivided interest in these areas, but not one particular physical part. There are also limited common elements, such as balconies, parking spaces in an underground garage, etc., which are exclusively for your use, but are still considered common property.
What is a townhouse?
town·house or town house  |
- A residence in a city.
- A row house, especially a fashionable one.
The term townhouse is relevant in two ways. First, many associate this term with a style of property; normally with a separate entrance and more so resembling a single-family home. In a true legal townhouse, you not only own the space inside your unit, but the land underneath as well. This is defined in your governing documents and is very important to know, as it may be a factor with your financing.
What is a loft?
loft  |
- A large, usually unpartitioned floor over a factory, warehouse, or other commercial or industrial space.
- Such a floor converted into an apartment or artist's studio.
Everyone's definition of a loft seems to vary. Here is some information to consider:
- Lofts used to be considered multi-function residences with both living and work spaces within them. They've now evolved to become simply fashionable residences.
- Not everyone agrees on what exactly a loft is. Purists argue that that lofts only refer to factories or plants that have been converted into residences. Required accents in these homes include huge windows, beams or columns supporting 16-foot ceilings and a maple or concrete floor.
- Newer developers believe that lofts refer to any apartments that fit the principles of loft design: open layouts, large windows and unique finishes in an urban location.
- These discrepancies have led to new terminology, such as new loft, fake loft, soft loft, loft-inspired, mezzanine suites, "true" lofts and loft-influenced.
- Lofts are generally decorated in a minimalist style with high ceilings and soaring views of the city skyline.
The History of Loft Residences
- Lofts originated in Paris in the mid 19th century as artists' ateliers. The oversized paintings of the time required expansive high-ceilinged studios-the first lofts.
- Loft space originally came to the United States in the early 20th century as storage warehouses near shipping ports in New York and Boston.
- As early as the 1940s, some of New York's abandoned loft spaces in SoHo (South of Houston Street) were being populated by starving artists.
- By the 1970s, SoHo had full-floor loft spaces that were being renovated and transformed from commercial to residential properties. Since this was technically a commercial zone, 92 percent of these residences were illegal. However, the sheer number of new residents forced the city to rezone the area and allow the buildings to be converted to apartments.
- This trend spread from New York's SoHo to other urban areas around the country over the next 20 years.
- In 1980, environmental psychologist Susan Seagart queried over 2,500 workers in 53 companies and institutions in Denver. Her results revealed that there was a strong market for downtown housing among single women and men, single mothers and unmarried couples living together.
- Most major cities across the U.S. began undergoing urban revitalization in the early 1980s, with new housing being built in downtown areas and classically charming buildings being renovated. This has been aided by favorable tax treatments, zoning amendments and public investment in large-scale projects for downtown areas.
- Loft residences have popped up around the country in converted office buildings (Philadelphia, New York, Boston), warehouses, factories and stores (Atlanta, Minneapolis, Cincinnati, and Cleveland), reclaimed waterfronts (New York, Milwaukee, Cincinnati), historic areas (Charlotte, Lexington, and Chattanooga), "found" land (Des Moines, New York) and new mixed-use construction (Chicago).
- The cities with the biggest percentage of downtown growth in the 1990s were Miami, Boston, Atlanta, Chattanooga, San Francisco, Chicago, and Seattle.
- Shows like Seinfeld, Friends, and Sex and the City have glorified urban living for 20- to 30-year-olds.
What is the difference between a condo and a co-op?
A co-op is a corporation that owns real estate. If you belong to a co-op, you own stock in the corporation and the exclusive right to a given unit, called a proprietary lease. There is usually an underlying mortgage on the property and your co-op fee includes some or all mortgage payments as well as other costs. Co-op association fees usually are much higher than a condo, but it is a much more exclusive, inclusive way of living and often includes "extras" that you just won't find in a condo building. While cooperatives are very popular on the east coast, there are some here in the Twin Cities as well. One big difference with cooperatives is that any potential buyer must be interviewed by the Board and they can be rejected for any reason. It is even rumored that Madonna was turned down by a co-op board in New York!
With a condo, you own real estate and you have access to certain common facilities. The condo is typically responsible for exterior maintenance and you pay a monthly condo fee. You have your own title and mortgage, so mortgage costs are not part of the condo fee.
What are association dues and what are they for?
Association or Homeowner's dues are fees you pay on a monthly or yearly basis to fund the ongoing expenses and maintenance of the complex in which you live. The amounts of association dues vary greatly and include different things in each complex; you should check and verify what items are covered. For example, most complexes cover snow removal and lawn care. In addition, many cover water, sewer, garbage removal, hazard insurance, and some even include heat or electricity. A portion of these dues also goes toward a reserve account for routine and emergency maintenance to the property, such as exterior maintenance, the roof, etc. One of the most crucial parts of buying a condo, loft or townhouse is to research the financial stability of the Homeowner's Association, which you are considering as your new home. Your Realtor can help point out the things to look for.
If you don't pay your association dues, the Homeowner's Association can take legal action and ultimately foreclose on your home, just as a mortgage company would if you didn't make your mortgage payments.
What are special assessments?
When there is a shortage in the reserve fund for specific projects, or the complex needs to rebuild their reserves, the Homeowner's Association may levy a special assessment. These assessments can be charged in a lump sum, or can be payable over time. You are responsible for payment of these charges just as you would be regular association dues.
What maintenance am I responsible for?
Normally you are responsible for all items inside your unit including, but not limited to: appliances, light fixtures, plumbing within the unit, electrical within the unit, and always your own personal items. Responsibility for items such as windows, balconies, etc. may vary from complex to complex. You should investigate and determine prior to purchase exactly who is responsible for each item.
What changes can I make to my unit?
This also varies and is set forth in the governing documents of the Association. Normally you can make any changes that do not affect the structure of the building, but you may need Board approval to do so. This may include flooring, kitchen cabinets, installing laundry facilities within your unit, combining rooms, etc. Rarely do you need approval to paint or re-carpet your unit.
What is the rescission period?
Pursuant to MN State law, Buyers of most common interest properties are entitled to a 5-day period to review the governing documents and financial information of the Association. If this statute applies to your purchase, the Seller is required to provide certain documents to you including the Declaration, Articles of Incorporation, Bylaws, Rules and Regulations, and a Resale Disclosure Certificate completed within 90 days prior to or subsequent to the purchase agreement. Check with your attorney or Realtor to determine if this rescission period applies to your situation prior to making an offer.
Why do I need a Realtor to buy a home?
The Seller most likely has an agent working for them and serving their best interests, and so should you. If you are working with a For Sale By Owner, the risk increases even more of something going wrong or that you could be taken advantage of. Normally, Buyer's agents do not charge their clients; they are paid a portion of the commission from the Seller or Listing Agent. Therefore, their services are essentially free of charge to you. All we ask for is your honesty and loyalty in return for our services. Wouldn't you rather have a professional helping you? For more information, click here.
|
|
|
|
|
|
|
|
|
