Condo's and the land under them?

Question

To start from the beginning, I am a veteran, and spoke to
another veteran about buying a condo (this had nothing to do with REI).  He stated that if I was to buy a condo
with the VA loan to make sure I was ALSO buying the land under the condo.  WHAT?!?!  Is that not included?

Is this something that will be an issue if I was to
wholesale, flip, etc. when doing REI. 
I do not intend to use my VA loan, but looking for further understanding
and advice in regards to REI and condos. 
Thanks in advance.

Rob Beland · Answer

When you buy a condo you are buying into the condo association that owns the land. You will receive a deed for your unit only. The deed for the land is separate and is held by the association. Condos can be flipped and wholesaled.

Account Closed · Answer

Condominimum is just a form of ownership.  Individual condos can own the land under their property as well as their share of the common land area as fee simple.  You can also own a condo on leased land,  There you do not own the land but own the physical apartment/home structure.

Account Closed · Answer

Kinda like your local AND state AND federal government can do only your vote is drastically diluted unlike within a HOA.

Hal Thompson · Answer

Is it true that it's never possible for you to own the land your home is built on, and also to be part of an association? An HOA is a collective, the terms of which are defined by the Declaration. It seems at least theoretically possible to own the land your house is built on, but also to have covenants as part of an HOA. Clearly in a condominium building or attached townhouse project this would never be the case, but in a homeowner's community with each home having it's own plot and shared services between owners (ie security guards, pool, etc), it seems possible to have fee simple ownership of the land, subject to whatever covenants are in the condo declaration?

I've never come across this setup before, so maybe it doesn't exist. But I'm wondering if legally speaking, it isn't possible?

Taylor West · Answer

Wayne-  Thanks. Yes that does help once it is explained.  I needed that explanation rather than the 'wrong' statement since I still not understand why.

Jon-  Thanks.  I will keep that in mind.  I have always believed HOA's are to an extent silly.  My parents live under one in their neighborhood (houses, not condos).  And my dad was on the board for a short period of time and we could not believe the amount of passiveness and excuses board members would make when something was needed: grip tape on stairs, repairs, etc.

Jon Holdman · Answer

With condo's you are typically just buying the airspace.  Land is not part of the deal.

Condo's aren't the most attractive investment, but not for this reason.  They're unattractive because you will always have a silent partner - the HOA - that can send you bills and impose restrictions on you but you have little say over what they dictate.

Wayne Brooks · Answer

Please understand, by definition, with a condo, no unit owner Ever owns the land "under their condo".  It's not possible, has never happened, and will never happen.  With a condo, you "own" the space within the walls, floor and ceiling of your unit, you don't even own the walls or the concrete under the floor.  Along with that you own your percentage share, along with all the other unit owners, a percentage of the "association" which actually owns  the structure and the ground.  It's like buying GM stock......you own a percentage interest in the whole company, you don't own a specific individual brick at their headquaters building.  Enough said?

Taylor West · Answer

It would only be irrelevant if it was true with VA loans, no?  Or for REI?

Wayne Brooks · Answer

It's an irrelevant thought.  Your friend could not be more wrong.

Taylor West · Answer

Tracking.  Does that make buying a condo for wholesale less attractive? Or does that not matter and/or to those folks who truly care about owning both deeds for the land and condo?

Condo's and the land under them?

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