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2. Condominiums, Cooperatives, PUDs, and Timeshares Chapter 22

3. © 2012 Cengage Learning In This Chapter You will cover methods of dividing the land.

4. © 2012 Cengage Learning Land Use Efficiency Of the forces responsible for creating the need for condominiums, cooperatives, and PUDs, the most important are land scarcity in desirable areas, continuing escalation in construction costs, disenchantment with the work of maintaining the grounds around a house, and the desire to own rather than rent.

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6. Condominiums Each dwelling unit owner owns as his/her fee estate the cubicle of air space that the unit occupies. Separate elements – exclusively owned and used by the individual owners. Common elements – areas owned by all.

7. © 2012 Cengage Learning Condominium Declaration Master Deed - legal framework. Covenants, Conditions, and Restrictions (CC&Rs) – filed list of restrictions by which anyone purchasing a condo unit must abide. Bylaws – rules by which the owner’s association operates. Unit deed – each purchase receives deed.

8. © 2012 Cengage Learning Maintenance Fees The cost for maintaining the common elements and are allocated among all unit owners. Generally collected monthly. Reserves Taxes and Insurance Condominium management

9. © 2012 Cengage Learning Legislation Against Abuses Uniform Condominium Act Conversions Homeowner Associations Cooperative Apartments Timesharing

10. © 2012 Cengage Learning Condo Living Advantages  Lower cost  Low maintenance  Location  Amenities  Ownership Disadvantages  Close proximity to all  Loss of control  Fees  Board of Directors  Bylaws

11. © 2012 Cengage Learning Planned Unit Development Ownership in a community association that owns common areas along with your individual ownership of your lot and home.

12. © 2012 Cengage Learning Cooperative Apartments Organized by forming a nonprofit corporation Sell shares of stock to occupants The corporation borrows money by mortgaging the building The cooperator Owner’s association Other forms

13. © 2012 Cengage Learning Timeshare A method of dividing up and selling a living unit at a vacation facility for specified lengths of time each year. Right-to-Use – contractual right to occupy a living unit for one week a year for a term of between 20 to 40 years. Fee Simple – right to fee ownership of one week each year in perpetuity.

14. © 2012 Cengage Learning Texas Timeshare Act Real estate license required to market unit unless otherwise exempt. Must register property with TREC. Grants power to investigate all aspects of the development to TREC.

15. © 2012 Cengage Learning Right to Cancel Six days Right can not be waived Statement required attached to contract

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17. Key Terms Bylaws CC&Rs Common elements Condominium Condominium declaration Cooperative Limited common elements PUD Proprietary lease Timesharing