Are We Condos or Townhouses or…?
From time to time, the question arises whether our homes are condos or townhouses. Usually the issue comes up because someone wants to use FHA lending to purchase a unit.
While “Condo” is in the official name of the association, we are technically not condos nor townhouses. The development was established as Planned Unit Development or PUD. Our attorney made this statement in an email to the association in January 2011, “Technically, [Brookwood] was developed as a “PUD” (Planned Unit Development), and not a condo (even though it has “condo” in its name). Note the term “PUD” in the plats, the declarations, and even the legal descriptions on the deeds.”
FHA lending can be used to purchase these units and has been done so in the past. While the HOA operates very much like a condo HOA and is called so in its name, we are technically a PUD and not condos. The significant difference is explained in the article.