Condominium and PUD Ownership

Builders are increasingly turning to common interest developments (CIDs) like Condominiums and Planned Unit Developments (PUDs) to maximize land use and offer affordable housing. These developments offer shared ownership of private residential property, mandatory membership in an association controlling common property use, and governing documents establishing rules and procedures.

However, it's essential to understand the differences between Condominiums and PUDs:

Condominium Ownership:

• Owners own 100% of their unit and a percentage interest in all common areas.
• Common areas are owned jointly with other owners in the project.

PUD Ownership:

• Owners own their lot, structure, and improvements.
• Rights to use common areas are typically granted through membership in a homeowner's association.

Homeowners' assessments finance various services, including maintenance, management, and reserves for replacements. Delinquency in payments can lead to fees and liens on the property.

CC&Rs (Covenants, Conditions, and Restrictions) and Bylaws govern community rules and regulations. Buyers should review these documents before purchase to understand their rights and obligations. Any objections to these documents must be addressed before taking ownership.

Prospective buyers should request and review governing documents, financial statements, and notice of dues delinquency early in the transaction. Consultation with a real property attorney is advisable for better understanding and addressing any concerns.