Condo, PUD, Co-op: What's the Difference?

Real Estate

Condo, PUD, Co-op: What's the Difference?  

I get asked this question all the time.  What IS the difference?

In a condo, the walls, floors, and ceilings are owned by all residents; There are HOA dues; covenants, conditions, and restrictions.  The value depends on the desirability of entire development.

A Planned Unit Development (PUD) is similar, but Individuals own the structure and the land directly under the home.  It can be easier to get financing on a PUD.

 A Co-op is a corporation made up of all tenants; larger units have more power in how building is run; fees for taxes, mortgage, repair, improvement; heavy scrutiny of financial, personal history.

A townhome is not a form of ownership, but a term for an attached row house.

The advantage of owning one of this is that the prices are often lower than for single-family home; maintenance is minimal or nonexistent, and there is safety in “cluster” environment.

The disadvantages are that there are HOA dues and the CCRs may be complex.