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Buying house but it's listed as a condo

929 Views | 12 Replies | Last: 2 mo ago by TexAgg10
TexAgg10
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AG
Our agent recently found a house we really liked in the Austin area (new construction), but we found out that it's listed as part of a condominium property regime (CPR). The house looks like any other normal house on a plot of land. However the land is shared as a joint interest. Apparently builders/investors do this to get around subdivision requirements? Is this something I should stay away from, or it is probably fine? It was kind of a red flag on the surface, but after some internet digging it seems normal in a lot of places like Hawai'i. Just not sure how ownership of things on your land works, like construction of pools and whatnot.
Martin Q. Blank
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read the HOA docs. what's the monthly fee?
CapeAggie89
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AG
My Dad lives in one of these in New Hampshire. It has been good for him as he hasn't had to worry about anything on the outside of the house. If the house needs painting, the association takes care of it. Lawn care, edging, etc are the same, not his issue to worry about. But he had no issues when he wanted to put in a small vegetable garden in the back yard.

Don't know about building a pool, etc. Would have to read the HOA docs.
Furlock Bones
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AG
TexAgg10 said:

Our agent recently found a house we really liked in the Austin area (new construction), but we found out that it's listed as part of a condominium property regime (CPR). The house looks like any other normal house on a plot of land. However the land is shared as a joint interest. Apparently builders/investors do this to get around subdivision requirements? Is this something I should stay away from, or it is probably fine? It was kind of a red flag on the surface, but after some internet digging it seems normal in a lot of places like Hawai'i. Just not sure how ownership of things on your land works, like construction of pools and whatnot.
yep. Austin has become notorious for this. when i was looking for our house, i was just flat amazed at some of the stupid HOA fees like $400/month. i couldn't figure out what for.
TexAgg10
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Hoa was on the cheaper side, only $75/month. I stayed up all night reading the 300+ page doc they sent over. Basically I'm still responsible for maintenance on the entire house (interior/exterior/driveways/anything attached to the house or for sole use of the house/plants/grass/fences). I just wouldn't own the land itself outright, but would own anything attached to the house or for the house. It sounds and reads exactly like a normal house, except for the land itself. It's not AS scary now that I've dug into it, just different.
scrap
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Sounds like the original house was on a ADU lot (Addition Dewilling Unit). It allowed for an additional smaller home built on the lot thus allowing two homes. Since the housing explosions in Austin a lot of these older homes on ADU lots are being torn down and rebuilding two homes on essentially 1 lot. No way to subdivide lot so they come up with the condo association strategy. Yes you are still responsible for the property but the land is owner by the Condo association which is run by the two owners.
Diggity
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I wouldn't want to mess with that if I didnt have to. Give me fee simple all day for a single family property.
TexAgg10
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This would make sense, but it's from a builder with up to 160 lots. I think it's the same concept though. Allows the builder to get around whatever state/county requirements are to split up land.
expresswrittenconsent
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Diggity
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usually you'll see that for builders looking to get around density restrictions (homes per acre of land) rather than restrictions about subdividing. Same concept though.

I just think this will effect your future appreciation since you don't control the land underneath your home. I guarantee there will be buyers that will avoid the development because of that.
oldarmy76
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Which neighborhood?
SteveBott
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how many home in the association?
TexAgg10
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Summit at Lake Travis, 160 homes
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