real estate attorney – Condominium and Fee Simple Ownership of Real Estate – free article courtesy of ArticleCity.com
General November 21st, 2009
Condominium and Fee Simple Ownership of Real Estate
by: Roselind Hejl
Real Estate Ownership
Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.
Condominium Regime
The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.
A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units.
Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.
Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.
If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.
The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.
Fee Simple Ownership
In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land.
In fee simple, there are several different possibilities with regard to your obligations of ownership:
(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.
(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.
(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.
Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties.
Understand your ownership rights and obligations
Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.
If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.
If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.
About The Author
Roselind Hejl, CRS, is a Realtor with Coldwell Banker United in Austin, Texas. Her web site: Austin Real Estate Guide – http://www.weloveaustin.com – offers a wealth of knowledge about the city of Austin, homes for sale, market trends and the real estate buying and selling process. Top 25 Residential Agents – Austin Business Journal
Dodgers owner Frank McCourt accuses wife of affair – Yahoo! News
LOS ANGELES – Los Angeles Dodgers owner Frank McCourt on Wednesday filed papers opposing his wife’s demand to be reinstated as the team’s chief executive, citing insubordination and an affair she allegedly had with her bodyguard.
The documents were submitted one day after Jamie McCourt filed divorce papers seeking to regain her $2 million-a-year job.
In a filing submitted by the Dodgers that opposes her return to the team, Dodgers attorneys allege that Jamie McCourt took a trip with her bodyguard, Jeff Fuller, in early July to Israel on team business, but then headed to France for 2 1/2 weeks and billed the Dodgers for the trip. Jamie McCourt is also accused of not giving her husband any information about her assignments as chief executive and not providing the team with her schedule of public appearances.
In a declaration filed by Frank McCourt, he references Fuller as well, saying before his wife went on the trip she asked him for three things — one of which was to have Fuller be her driver.
He added in a separate filing that the “personal and intimate relationship” with Fuller was confirmed by one of her representatives. Fuller and Jamie McCourt were fired earlier this month.
Jamie McCourt’s attorney, Dennis Wasser, declined to comment.
Superior Court Commissioner Scott Gordon postponed the divorce hearing until Nov. 5, saying he needed to review all the documents. Neither Jamie nor Frank McCourt were in court on Wednesday.
In a declaration filed Tuesday, Jamie McCourt claims her husband plotted to boot her from the team’s front office as a way to “humiliate and ostracize” her. She said she was excluded from management decisions and had lodged a workplace harassment complaint with team attorneys.
“Frank has no right to purport to terminate me. We are co-owners of the Dodgers,” she said. “Not only has Frank publicly held us out as co-owners of the franchise, he has also admitted this fact in front of our estate planning counsel.”
Frank McCourt fired his wife last week after the Dodgers were eliminated from the playoffs by the Philadelphia Phillies.
He said the couple entered into a marital agreement in March 2004 that gave him ownership of the Dodgers. That decision was made by Jamie McCourt to insulate herself from any debts or creditor’s claims that might result from purchasing the Dodgers, documents filed by Frank McCourt’s attorneys state.
The team was losing more than $75 million a year when Frank McCourt purchased the team, and Jamie McCourt, who is an attorney, wanted to protect her real estate and other investments, the filing states.
Frank McCourt wrote that he allowed his wife to identify herself as “co-owner” for the “interests of family harmony” but her claim has damaged the Dodgers organization.
“Reports of these statements have been detrimental to the Dodgers, my other business ventures, and me personally,” Frank McCourt wrote. Her claim has “thrown an unjustified cloud over the ownership of the Dodgers.”
Jamie McCourt’s filing states she is seeking reinstatement as well as access to perks including travel by private jet, stays at five-star resorts and use of the Dodgers owners’ suite. She wants $321,000 a month in spousal support if reinstated to her former position. If not, she believes she should be paid nearly $488,000 per month.
The dispute comes as the Dodgers enter a busy offseason and could be a distraction when spring training arrives in February.
The team has the most potential players eligible for free agency with 16, including Manny Ramirez, who must decide if he will exercise his $20 million option for next season and return. Manager Joe Torre is headed into the final season of his three-year contract and Ned Colletti was recently given a long-term contract extension as general manager.
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