Source
r/RealEstate•
dkrizzy

Single Site Condos vs Single Family Home

Ran into a weird issue that i have never heard of, maybe its more common now, but my wife and I looked at building in a new neighborhood that opened up near us.

Everything in the listings, website, and documents says its a Single Family Residence and does not mention anything about Condo in any documentation.

We meet for a consultation yesterday and we put a refundable deposit down to reserve our plot and she gave us a flash drive with all the legal documents to go over before we sign a purchase agreement in 2 weeks.

I start going over it and everything says its a Condo, there is a master deed letter as well as other condo related documents. I didn't finish reading though all of them yet because it was 20 pages on the by laws.

I did some research last night and it seems these may be Single Site Condos but couldn't find anything to support that

My Questions:

Is this common for newer neighborhood developments to do this? If so why? Is it for more control or is it cheaper?

What are the negatives to having a single site condo vs single family home.

What should I look for in the legal documents that would be a red flag, couldn't find anything mentioning land ownership?

Any other advise?

We are already on the fence if we want to build vs buy based on the market now and this is the only development we like and can afford, so this will be a deciding factor.

Thanks!

Note: I am in Michigan

Posted Mar 4, 2020, 2:17 PM UTC · edited

06
AlwaysAtheist•

It is common in Florida for you to have a deeded lot in a community that has condominium status. I have one. edit: i have a deeded lot plus an undivided interest in the common area of the community. Better said i guess

1
PurrMichiganderMortgage Broker/Realtor in MI•

In Michigan, there are a lot of site condos. You obviously can't tell from looking at the property physically. The requirements for site condos are not as demanding as opposed to traditional subdivisions.

There's not much difference between site condo and SFR practically. One thing is that you definitely will need to pay Homeowner's Association fee. For SFR's, you may or may not.

1
dkrizzyOP•

In your opinion is $550 a year a lot for only taking care of the frontage, one retention pond, and snow removal. 90 homes in subdivision.

0
Vosslen•

No it is not a lot at all. Sounds good to me honestly

1
PurrMichiganderMortgage Broker/Realtor in MI•

Yeah, it's not bad at all. Price is reasonable.

1
wyecoyote2appraiser •

Here we typically call them airspace condo. You own the building and undivided interest in the land. You may have a yard area deeded to you.

Some things to consider you're in charge of your building and have to maintain it. Also some require to be painted to a certain color for the exterior with certain types of windows and siding.

1