After gathering all the needed documentation and evidence together, it was easy to see why there had been confusion. It took the following documents in order to straighten this problem out:
Good evening Gene,
Excellent, excellent post! Jason is right..this info does make your head spin but you have to get it down to represent your buyers effectively!!
Gene...it always amazes me (although it shouldn't anymore) when both an owner & listing agent aren't aware of the legal details of a property.
Good Job in searching and battling to get the property properly described. And also and explanation on the difference between a condominium and PUD
thanks.. this is a very informative post. I have run into this type of situation a couple of times and I always recommend that the buyers seek legal counsel.
Great information on a subject that confuses even those that are in the condo/townhome selling business! I have bookmarked your post to share with buyers because of your great explanation. Thanks!
Gene- Great explanation of the Condos and Townhomes. I had the same thing happen to me about five years ago where an agent contracted for the wrong property type. Condos can be a little changing when we truly discover what's on the condo questionnaire. My client was approved but the condo was not. I was able to fight to get the earnest money back because of the listing agent listing it was FHA approved and truly at the time it was not. The seller was an attorney so you know I had to put some good solid facts out there.
Wow Gene, once again you proved your incredible expertise in all lending matters when you untangled this mystery! I was unfamiliar with PUDs but now will remember what they are, as a result of your post.
This happens occasionally down here as well Gene. I wonder what you'd think of my P.U.D. association which is officially registered under a certificate of condominium. (All single family homes(
Great information Gene. I learn something everyday. We have townhouses (mostly built in the 19th century) and condos primarily built post-world war II but I never heard of a PUD.
There are some new condo developments here that have townhouses as part of the complex. If I ever sell one, now I know I should find out if it's a "townhouse condo uniit" or a PUD.
The most savvy of the Real Estate rock and rollers could never answer this question with confidence and many still cannot...When I was put on the spot, I got through it but I wouldn't teach a class on it...good post
They were just selling the duck and forgot to include the land underneath. .
you are a true pro!
Harry: Some of the similarities are what make the situation so confusing to so many. Hope the post proves helpful in those instances ...
Dorie: I'm hoping that this post does just that. At minimum ... proceed with caution ...
Christine: It's about being thorough. And as you know, some will be ... others won't. Thanks for the comment!
Ed: Thanks! Glad that you found my explanations beneficial ...
Joan: A good place to start, should the situation and classification of type of property need to be changed, as it was in this case. Taking action pro-actively is so important ...
Joy: I LOVE hearing that! Hope it proves very benefical to all those you pass it on to ...
Exactly Stephanie! Sometimes the attorneys are the hardest to convince and sway!
Maureen: Wow! I taught YOU something. Typically you are the teacher and I am the student. Glad you found the info helpful.
Gabe: Sounds interesting and intriguing! Would be interested to know how transactions are handled in your area ...
Toni: This is a topic that can be very confusing, so if I helped to clarify it even a little ... I'm glad I wrote the post ...
Mitchell: It never hurts to do a little extra when it comes to homework and preparation. That way you're educated and more capable of facing and tackling issues, should they arise. Know that you can always shout out to me, should you need a bit more info ...
Steve: Depending on your housing market, it may be something you never face. But if you do, you can now handle the issue a bit better hopefully.
Richie: Definitely something that needs to be approached methodically. The situation doesn't arise that often, but should it ... hopefully now you know a bit more from my post. Always feel free to shout out to me, as well ... I'll help where I can!
Fernando: Thank you so much! Your compliment is truly appreciated ...
Gene
Very insightful! Fortunately you got it "right"! Litigation is no fun! Definitely similarities based on your blog and your research was phenemenol! Kinda curiosu, what was the "condo" fee on this? Normally this is a "tell tale" sign of condo or townhouse ownership. Thanks again for sharing!!!
Rick: Funny you mention that ... the amount was such that is appeared as a Condo also. Imagine that! All relative to coverages for insurance, common areas, and maintenance too. That was part of what contributed to the confusion. Very astute reading ...
Hope you found the post beneficial ...
Gene
Gene -- thank you, once again, for sharing your expertise with the rest of us in the Rain! Something a lot of people haven't realized, but was mentioned by Debbie (#19) - is that a great number of Condos which used to be FHA approved, have let their approval lapse. It is a great deal easier to renew than to start over, like her lender is having to do.
Definitely, Steven! And I find that we have much the same situation here. Lots of lapses. Good to work with professionals that know how to restore that approval ... and then get the loan closed.
Gene
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