Condominiums and planned developments are both popular residential real estate investment opportunities. They share some common characteristics, but are also quite different. If you aren’t sure how to differentiate between the two different types of properties, consider their similarities and differences.
Similarities between Condominiums and Planned Developments:
- Both refer to similar housing units.
- Housing units in both types of property are typically individually owned with some form of shared real estate amongst owners throughout the community. Although condominiums can generally be identified by their vertical high-rise design and planned developments by more horizontal planning).
Differences Between Condominiums and Planned Developments:
- Individually owned portions of a condominium are referred to as a unit (which consists of interior space and possibly deck, patio and/or parking areas).
- Condominiums generally include common areas that are shared amongst various owners within the combined property/building.
- Property owned by each resident within a planned development is referred to as a lot. Common areas in planned developments will often include: parks, storefronts, clubhouses, community centers, parking areas, etc.
- Common area rules and regulations also differ. These rules and regulations define the individual owners’ rights to property within the community, but outside of their own and other residents’ own individual units or lots. Condominium owners are often entitled to an approximate percentage of the common area. Owners within a planned development, on the other hand, usually utilize a homeowner’s association to regulate rules regarding common areas.
For assistance with questions regarding land development projects and the difference between condominiums and planned developments, contact the southern California land development and real estate attorneys at The Law Office of Retz & Aldover LLP.