FNMA has removed the requirement for a limited condo review for a detached condo project. Detached condos must meet general property/appraisal standards, insurance and priority lien requirements BUT the limited review requirement has been removed.
A condominium is a method of ownership, typically the concept is one in which you own the interior, but not the structure, roof, land and so on – each one is a little different and the actual details are spelled out in the condo “docs”.
These documents are on file with the state and are available usually from the Realtor who has the listing as well as the county registry of deeds.
First Time Home Buyers are often attracted to Condos, because in our State most of them are located in Urban downtown areas. In some parts of the State, like Carolina Beach, Detached Condos are the norm.
Detached Condo means that the building that is being offered is not attached to any other. So it may look like a single family home and appear to be on it’s own lot.
Again, read the “docs” and you will see what is actually being offered for sale. Probably you will actually own the interior (from the studs in…) including all the windows and doors.
You will have some percentage of ownership in the so-called common land, probably an undifferentiated share. You may have control of a small footprint around the unit for gardens.
Probably you will have a monthly condo fee that will cover some services, insurance, taxes and future replacement of roof or siding, but again, that is a question worth asking and reading about in the docs. Your Homeowner’s Insurance Policy will be slightly different based upon this arrangement as well.
This fee would not be charged if you were buying a single family house rather than a detached condo, so it is worth deciding if you want to pay a fee or actually mow lawns, shovel snow, etc.
Sometimes owner’s age or health, requirements of a job or lack of free time make a condo well worth the monthly fee.
Again, a detached condo just means the structure is not connected to another unit and it normally looks like a single family home. It’s not a reference to land ownership and (by the way) it’s even possible to own a single family home and not own the land but lease the land.
This is why reading all condominium documents prior to signing a contract is important. We know of a condominium property in Raleigh that requires the owner on the top floor to be liable for any leaks from the roof! (??)
Sometimes regular condos are built on leased land and your condo fee pays for the leased land. Often detached condos can have shared septic systems with other units.
They could have a common well or water company.
Of course we have even seen single family homes that share wells and septic systems too.
Have more questions about a Detached Condo? Call Steve and Eleanor Thorne at 919 649 5058. Connect with us on Facebookwe’d love to help you make your dreams of buying a home in NC come true!
Originally posted at NCFHAExpert