David Reecher: The Truth About Condos

1. Condominiums – The Truth About Condos Most People Do Not know.By David Reecher, The Rapid Results Team at eXp Realty Many people think a condominium is a small residence like an apartment or flat, however, the shape, size, design, and construction have absolutely nothing to do with whether the property is a condominium or not. Condominium is a type of ownership, not a type of structure or building. Condos cannot be recognized by observing the building style. Condo’s come in all shapes and sizes – they can look like an apartment, a flat, a townhouse, a detached house, even a mansion. For example: there are million dollar plus detached houses along the South River in Edgewater that are condominium ownership. So, what is condominium ownership? In a condominium, the owner has individual title (sole ownership) to the inside space of the unit – that is from the inside walls inward. Plus, an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. In simpler terms, if you own a condo, you own 100% of the inside of your unit, but not the exterior or the ground it sits on. In addition, You jointly own, along with all unit owners, a piece of the entire condominium complex, including the exteriors, community buildings, land, parking lots, etc. Sort of like a shareholder – if there are 200 individual units, then you would solely own the inside of your unit and you would also own 1/200th of the entire complex and condo association. The cost of condo ownership. In addition to whatever you pay for your individual unit, you would also pay a monthly condominium fee, which in most cases, covers the exterior maintenance of the buildings and common grounds. Prior to buying a condo, It is critical that you review the condo association documents in detail. Not all condos are the same – please read and understand them. In Maryland, you have 7 days from the time the seller provides these documents to you, to exit the purchase contract for any reason, or no reason at all. IMPORTANT – not all condominium associations are approved for FHA and VA loans –I’ve even seen a few condos not be approved for a conventional loan. If you decide to buy a condo, make sure your agent is experienced with condo ownership, it’s much different than FEE simple or ground rent properties.

2. I’m David Reecher with the Rapid Results Team at eXp Realty and what I explained in this short video is just the tip of the iceberg when it comes to condo ownership. If you have any questions or would like to understand condos better, please reach out to me any time, I’d be happy explain more. David Reecher and the Rapid Results Team at eXp Realty can be reached at 443-623-2565, david.reecher@exprealty.com