Condominiums and planned developments share common characteristics, but there are differences that distinguish them as two different types of property.
How Condominiums and Planned Developments are Similar
Condominiums and planned developments are similar since they both refer to similar housing units. Condominiums refers to a form of ownership in individual owners own an individual unit, and share real estate assets with the other unit owners that form the community. Condominiums are usually identified by a vertical high-rise design. Planned developments tend to be single family home within a subdivision or “planned community. Planned development homes tend to be attached horizontally to adjacent homes and buildings.
How Condominiums and Planned Developments are Different
The decisive or most significant factor in determining the difference between condominiums and planned developments concerns the ownership of the property. Individually owned portions of a condominium are referred to as a unit. A unit typically consists of an interior space that is defined by a set of walls, floors and ceilings. It may also include decks, patios, and parking areas.
Condominiums also include common areas that are shared with the other condo owners in the building(s). The individually owned portion of a planned development, on the other hand, is identified as a lot. Planned development communities may also include parks, storefronts, community centers, clubhouses, and parking areas.
Rules and regulations concerning the common areas are one of the essential differences between condominiums and planned developments. Common areas concern the rights and privileges of owners in addition to their own individual units. Condominiums owners usually are entitled to a fraction or percentage to the common area of the Condominium project. Planned development owners, on the other hand, are usually entitled to rights and privileges through a homeowner’s association. The association owns and controls the common areas of the planned development. It is typically the homeowner’s association that regulates the rules pertaining to the common areas.
If you have questions about condominiums and planned developments, our real estate and land law attorneys in Coachella Valley help you with real estate and development issues. Contact one of our Coachella Valley real estate attorneys for a free consultation.