PUDs and Co-ops
Two other property types similar in structure to the condominium are the planned unit development (PUD) and the cooperative ("co-op") project.
Planned Unit Development (PUD)
A PUD is a hybrid mixture of fee simple and condominium ownership. The PUD unit can be a condominium, townhouse or a standard single-family home. Each unit is an independently owned property, that is taxed and financed separately.
As with condominium projects, the PUD project will have a homeowners association to care for mutual needs, such as snow removal and garbage collection. However, everything else such as utility and hazard insurance is separate, with joint ownership of shared space kept to a minimum.
Townhouses are similar to condominiums in most respect. They are also processed in a similar fashion.
The primary difference is that many townhouse owners also own the land on which the townhouse is built. They also own the walls, although they must share the party walls adjacent to the neighboring townhouse.
PUDs are looser associations normally consisting of houses and residences that are part of a development or neighborhood. These neighbors are legally part of this PUD, which pools funds to maintain common areas and responsibilities, such as mowing greenways and snow-plowing roads.
There are few additional requirements for PUDs. The key tasks involve verification of PUD assessments and restrictions.
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