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FREQUENTLY ASKED QUESTIONS
What
is a "Condominium" and how is a condominium created?
In Texas, Condominiums are created by establishing a "Condominium
Regime." This means portions of real property (the land and buildings)
are subject to separate individual ownership (the unit) and the
remainder (the land and buildings) is owned in common in undivided
interests by the unit owners (unit owners co-own the common elements).
To create a condominium, the owner of the property (the declarant)
executes a condominium declaration, which includes certain provisions
required by statute (a description of the property and each unit, how
the condominium will be governed, how dues are assessed, allocation of
repair and maintenance responsibility, allocation of ownership
interest, and the like). The declaration becomes effective when it is
recorded in the condominium records of the county where the property is
located (in this case, Harris County).
Establishing a condominium regime is wholly separate from the building
permitting process required prior to construction of the building.
What is a Condominium Information
Statement?
By law, all potential purchasers must be provided with a Condominium
Information Statement, which must include a statement about the
following or copies of the following:
1. The name and principal address of the declarant and of the
condominium;
2. A general description of the condominium that includes the types of
units and the maximum number of units;
3. The minimum and maximum number of additional units, if any, that may
be included in the condominium;
4. A brief narrative description of any development rights reserved by
a declarant and of any conditions relating to or limitations upon the
exercise of development rights;
5. Copies of the declaration, articles of incorporation of the
association, the bylaws, and any rules of the association;
6. A projected or pro forma operating budget for the association and a
statement of the budget's assumptions concerning occupancy and
inflation factors.
7. A general description of each lien, lease, or encumbrance on or
affecting the title to the condominium after conveyance by the
declarant;
8. A copy of each written warranty provided by the declarant;
9. A description of any unsatisfied judgments against the association
and any pending suits to which the association is a party or which are
material to the land title and construction of the condominium of which
a declarant has actual knowledge;
10. A general description of the insurance coverage provided for the
benefit of unit owners; and
11. Current or expected fees or charges to be paid by unit owners for
the use of the common elements and other facilities related to the
condominium.
What is a Property Report?
In some developments, a "property report" is required by the U.S.
Department of Housing and Urban Development (HUD) and must be provided
to each prospective buyer. The Property Report contains certain
disclosures required by HUD and includes a disclosure and summary of
the various features, the estimated costs of construction of the
proposed condominium, a description of the public services in the
surrounding community, and other matters.
What is a Condominium Association?
Because ownership of a unit will include co-ownership of common
elements (i.e., the land and the buildings) an association is essential
for maintaining, administrating and regulating the common elements. The
Association is typically a non-profit corporation and membership is
limited to unit owners.
What is a Certificate of Occupancy?
Upon completion of construction of the condominium, the building and
each unit will undergo a thorough inspection by a City inspector. A
Certificate of Occupancy will be issued for each unit that meets all
applicable building codes and ordinances.
What is a "Walk-through" inspection?
A "walk-through" inspection is an inspection of your home with a sales
representative. Before Closing, the sales representative and purchaser
will walk through the property to discuss any items that may still need
work and from that create a punch list (a "to do" list). At this time,
the sales representative will also demonstrate functions of your home's
features as well as the features of the building itself.
When Do I Get My Keys?
Keys are given to you on the date that you take possession of your new
home, and are part of your closing package which you sign for upon
receipt from your sales representative. Also included in your closing
package are any keys/access cards required for common areas, two sets
of keys to your home and two mailbox keys, Home Care Handbook -
includes reference to all the finishes/appliances in your home, as well
as a reference of the suppliers and their telephone numbers.
When is Closing?
The Closing date will depend upon the construction schedule in effect
at the time you sign your purchase agreement. Depending upon the time
frame for completion of the Condominium, the sales representative and
the purchaser will set an outside date for closing, which will be shown
in the purchase agreement.
What Happens at Closing?
At closing, a deed transferring the property is signed. Each party will
also sign a HUD-1 statement which reflects fees paid by both, including
the purchase price of the condominium, any applicable deposits and
prorations. The sale is "closed" whenever the transfer documents,
typically referred to as a deed (in the event of a cash sale) or deed,
note and deed of trust or Mortgage (in the event your purchase is
financed), whichever is applicable, are signed. The deed and/or deed of
trust will be recorded in the real property records of Harris County.
How is My Moving Day Established?
The moving process is scheduled in an orderly fashion. Generally, it
starts with lower floors and finishes with the upper floors. During the
move-in process, corridors and lobby areas may remain unfinished, as
the final touches are postponed until the majority of the units are
occupied to avoid damage to the final finishes.
Do I Need to Buy Insurance?
Yes, as the homeowner, it is your responsibility to obtain a
condominium homeowner's insurance package that covers contents plus
improvements that you may make to the unit. These are not covered by
the condominium Association's insurance. The Condominium Declaration
will include details of the insurance that is maintained by the
Association, which at least must cover the building and common areas
plus general liability.
Am I Allowed to Have Pets?
Generally, domesticated pets will be allowed. Specific rules and
regulations regarding pets will be stated in the Condominium
Declaration and with the Rules and Regulations of the Association.
GLOSSARY
Condominium Unit
The portion of the building defined by vertical and horizontal
dimensions (air space) which is subject to individual ownership. The
remainder if the property (land, buildings) is owned in undivided
ownership percentages in common with the other unit owners.
Condominium Declaration
The instrument by which the building and real property is made subject
to the Texas Uniform Condominium Act. It defines the boundaries for
each unit and the common elements. It allocates the responsibility for
the repair and maintenance of the unit and common elements, outlines
the condominium's provisions regarding occupancy and use, specifies
common expenses and each owner's proportionate interest in the common
elements, and details each unit owner's percentage share of the overall
common expenses.
Declarant
The original developer who executes the condominium declaration
subjecting the building and real property to a condominium regime.
Recordation
The time at which the condominium regime is established and becomes
effective against third parties by recording the condominium
declaration in the real property or condominium records of the county
in which the real property is located.
Condominium Ownership
The ownership of a condominium includes two inseparable
rights/interests:
1. Individual ownership of a Unit.
2. Co-ownership and shared responsibility for the costs of maintaining
and repairing common elements.
Condominium Information Statement
A disclosure and summary of the significant features of the proposed
condominium and of the relevant condominium documents governing same
required by the Texas Uniform Condominium Act to be given to each
prospective buyer.
Property Report
A disclosure and summary of all features of the proposed condominium,
the estimated costs to construct same, and description of the public
services in the community in which the condominium is located, which
disclosure is required to be given to a prospective purchaser by the
U.S. Department of Housing and Urban Development.
Unit Designation
The number, letter or combination thereof of any other official
designation identifying a particular unit in the condominium
declaration.
Unit Owner's Property
A unit, together with the undivided percentage interest in the common
elements which is an inseparable component part of the unit.
By-laws
The document governing administration and operation of the condominium
association.
Common Elements (Common Areas)
The portion of the Condominium Property not a part of the individual
units and owned in undivided ownership percentage in common with all
the Unit Owners, for example, the land, buildings, parking garage,
recreational areas and amenities, hallways, etc.
General Common Elements
Those common elements designated in the condominium declaration for the
use of all unit owners. Essentially, all common elements except those
reserved as limited common elements in the declaration (swimming pool,
lobby, unreserved parking spaces, etc.).
Limited Common Elements
Those common elements reserved in the condominium declaration for the
exclusive use of a certain unit or certain units (i.e. less than all
unit owners), which may include balconies, patios, lockers, assigned or
reserved parking spaces, etc.
Condominium Association
A corporation (usually non-profit) owned by or composed of the unit
owners and through which the unit owners manage and regulate the
condominium.
Board of Directors
An elected group of homeowners who are responsible for administration
of the affairs of the Association and the operation, care, upkeep and
maintenance of all the property and services of the Condominium.
Closing
The date upon which the seller and purchaser execute a deed
transferring the condominium unit from the declarant to the purchaser.
Common Expenses
a. Expenses of administration, maintenance, repair and replacement of
the common elements.
b. Expenses declared to be common expenses by provisions of condominium
declaration or bylaws.
c. Expenses agreed upon as common expenses by the unit owners.
Reserve Fund
A fund to be set aside by the condominium association to cover the
repair and replacement of the common elements.
5 Day Right to Cancel
Within five (5) days of receipt of a Condominium Information Statement,
a purchaser, before conveyance, may cancel any contract to purchase a
unit from the declarant.
7 Day Right to Cancel
Within seven (7) days of receipt of a Property Report, a purchaser,
before conveyance, may cancel any contract to purchase a unit from the
declarant.
Disclaimer
THE CONTENT OF THIS WEBSITE IS PROVIDED FOR INFORMATIONAL PURPOSES
ONLY. FOR ADVICE ON A SPECIFIC ISSUE OR QUESTION, YOU SHOULD CONSULT
YOUR OWN ATTORNEY.
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