Home Buying in Carmel Valley>Question Details

T. H., Home Buyer in San Diego, CA

question about single family home with Condominium ownership? the property I am interested in is in a gated

Asked by T. H., San Diego, CA Tue Apr 29, 2008

community with HOA. among all the listings in this community, some home were listed as fee simple, some were condominium. We do check its title report and was clear the owner of this property will not own the land the property sits on. my question is if it is legal to list as fee simple as it is condominium? whether owner owns the land the property sits on or not makes a sizable difference on the desirability and purchase price of a house in san diego? compare SFH and property mentioned above in same conditions and this property is in top school district, how much should be different on purchase price? thanks

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5
T.H.
I am with Chicago Title. If you can call me 619.507.5688 or e-mail me with the particular property, I can check the legal description for you for free.
1 vote Thank Flag Link Tue Apr 29, 2008
Fee simple or leashold are two types of ownership rights, the difference is one is for eternity and one for a specific period after which it reverts to another party. A condominium can be of either type of ownership. It sounds like from your post that the complex has both single family residences and condos as part of the HOA. In the case of the condo in fee simple your legal description would define 1/320 ownership of the property with rights to a specifc unit. That still gives you an ownership interest in the land. Your realtor or the title company should be able to give you further clarification.
Web Reference: http://www.gr8homes.com
1 vote Thank Flag Link Tue Apr 29, 2008
Purchase price should be based on recent sales within the same gated, complex regardless of how the property is listed. Agents make mistakes and don't usually research every item before they list...

My guess is that the property you are discussing is in a planned unit development which is quite different from condo ownership. You do own the land but are merely subject to the CC & R's of the gated community.
0 votes Thank Flag Link Mon Jun 4, 2012
TH,

From a lending standpoint there can be disadvantages to purchasing a condominium vs. a single family home. There is additional documentation required to finance a condominium. Since the Homeowners Association controls and manages the condominium project, lenders will need to review and approve the HOA's financials, the CC&R's. We will also consider the percentage of owner occupied units vs. rentals, and the number of units that are delinquent on thier HOA dues. Finally, depending on the Loan to Value of the loan, the interest rate on a loan to purchase a condominium may be higher than a single family home.

I hope this information will be of use to you.

Best Regards,


Brian Monjazeb
Regional Vice President
All Western Mortgage, Inc.
0 votes Thank Flag Link Mon Jun 4, 2012
T.H.,
It is true that whether an owner owns the land the property sits on or not makes a sizable difference on the desirability and purchase price of a house in San Diego. However, some condominiums are more valuable than detached homes in a specific area (and vice versa). I hate to answer a question with a question, but what is the source of the listing information that lists some homes as condominims and others as fee simple in the same community? Are you working with a local agent? If not, a buyer's agent is highly recommended. They can readily answer questions about specific properiteis that you are interested in. Generally, a buyer's agent does not cost you since commissions are usually paid by the sellers. You should find an agent that you can trust to assist you in the home buying process.
0 votes Thank Flag Link Tue Apr 29, 2008
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