Condominiums And The Differences With Timeshares And Coops

By Arthur Richards


Ownership of units within a large building come in many different shapes and sizes. You can own or rent but making the decision is sometimes not the easiest thing to do. Understanding the different types of ownership is crucial in making the right decision for you. Let's look at some of the most common types of ownership.

A Condominium is a form of ownership where you are actually purchasing the unit and have title to the specific unit and real estate that you are purchasing. This unit, however, resides within a condominium association and therefore is bound by the Declaration of Condominium and the bylaws and rules that restrict it. These bylaws and rules are decided at the formation of the condominium.

This means that the access and use of common facilities in the property such as exterior areas, hallways, elevators, heating systems, courtyards and recreation rooms is granted to the individual owners of the condominium, but the board of directors makes sure that all common areas are used with careful discretion and that no damage occurs as a result of regular or improper usage. These rules are outlined in the condo documents. An onsite supervisor may have the duty to keep everything in order, and a maintenance crew is kept ready to attend to emergencies.

Timeshares are primarily vacation properties usually owned by a multiple owners. Unlike a traditional form of ownership where a single family owns a property, a timeshare property is owned by several owners who do not know each other or are not related to each other in any way. Timeshare properties are usually built in places of interest that sees a large annual footfall by tourists. Popular choices for timeshare property areas include beach resorts, hill resorts, and places hosting festivals or other major events. By paying a one-time fee, a person may own a timeshare property, which makes him and his family entitled to spend a definite time period, say a week, in that property.

Most often timeshares are sold in week long periods and are located in vacation destinations. Families looking to vacation in resorts or ski or beach areas often find a timeshare as a nice option. They don't have the nuisance of maintaining the property and upkeep but have the benefits of using the property during their time of the year. Additionally timeshare properties often have more amenities than regular condominiums like pools and spas and parks and other amenities.

Lastly we will look at cooperatives. Cooperatives are often referred to as co-ops. Coops are essentially corporations that own a larger building. The covenants and requirements to purchase within a coop are often far more stringent as you are purchasing into a company and joining other people in a company. Owners of the current co-op have more stay and often ask for detailed information about your personal finances and information.

By purchasing a co-op, a person is actually buying into an LLC or a limited liability corporation that holds the ownership of the building. It imposes certain restrictions on the people living in it. For example, one cannot illegally rent the apartment out or invite too many occupants. The apartments within a co-op are bounded by the laws established by the board of the corporation, who has the final say in all ownership matters pertaining they follow the state law appropriately.




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