Difference between a Condo and a PUD

It looks like a condo, and sometimes get listed as a condominium. However, after looking at the assessors parcel number I new instantly it was actually a planned-unit development.

What is the difference?  The difference lies in the type of interest or ownership of the land, not in the architectural style of the construction. For example, a townhouse (usually 2 or 3 stories side by side with one or more common walls) might legally be a condo or a unit in a PUD.

The PUD owner receives title to the land recorded on the parcel map as well as the structure and any improvements. Unlike a condo owner, they own the lot it sits on as well as the structure. Generally the owner receives rights and easements to use the common areas, which are usually owned by the homeowners association.

Owners of a condominium unit usually receive title to a specifically defined “air space” in a building and a percentage of ownership in all common areas. The HOA reserves often will cover roofs and plumbing.

To help clarify what you own in a condo, think of it like this.  There’s 100 units in a condo complex.  100 buyers get together and buy the complex as a single investor.  When the transaction is complete, each buyer gets to pick which unit they live in but they don’t actually own that one unit.  They’ve purchased the right to occupy that space.  Strange right?  Well, it’s very common.

Over time these buyers will sell their interest to new buyers who now own the right to occupy that space and on and on it goes.

Ownership rights will be spelled out in the declaration of covenants, conditions, and restrictions, known as CC&Rs. Be sure that you understand your rights and responsibilities regarding the use of your unit and common area prior to purchase.

As the “R” in CC&Rs indicates (restrictions) they may be written to restrict owners’ lifestyles as well as property use.  For example, you may be restricted to the size or type of dog you can own.  Times for noise restrictions, parking restrictions and so on. Owners and their subsequent buyers will be bound to the rules and regulations of the community. Failure to comply can be considered a breach of contract and legal action may be taken against those homeowners.

In my experience and perhaps the geographic areas I frequent, PUD’s aren’t that common but I do come across them from time to time.  In any case it’s good to know the difference.

Here’s a really easy way to tell if a property that looks like a condo is actually a PUD.  Look at the assessors parcel number.  That is easily obtained from the county or if it’s in the MLS, it will usually be part of the listing.  All condominiums in Orange County have a parcel number that start with a 9.

All other properties that are attached to a lot will start with any other number.  If it’s anything other than a 9 and it looks like a condo it’s probably a PUD.

If you want to know more about the difference, contact the County of Orange Assessors office because this is NOT Legal definitions.  Only my understanding of the difference.

If you’re thinking of selling a home that is a PUD or Condo, feel free to ask us about our super secret trick we use to get people to beg you to sell to them a the highest possible price.