Condo developments are often developed in stages with new units added as the initial units are sold or leased. Developers of Condos sometimes reserve land for later development. This land is likely to be included in the initial master deed of the condo development. The condo association typically owns all of the land and structures in a the development while the condo owners only own the interior space of the condo. This makes the ownership of undeveloped land a little murky.
When buying undeveloped land from a condo association, you may actually be buying the "development rights" to that land rather than the land itself. Normally, the condo association would have the right to review and approve the new structure and when it was complete, the condo association may well own the land and the structure, while the "purchaser" would actually own only the condos therein.
That is not necessarily a bad thing. The condo association would in all likelihood have the responsibility to maintain the exterior of the structure and perhaps some of the mechanicals and common area. The condo owner would have to abide by the condo rules and regulations and would have to pay association dues.
If you decide to purchase undeveloped land in a condo association, it would be wise to have a real estate attorney review the situation. The important thing is to be sure that you understand what you are buying and the implications and costs of doing so.
Have a great day, all. Let me know if I can help you with your real estate needs.
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Parkway
Louisville, KY 40299
ofc: (502) 379-6005
dmccoy@ccre.biz
You can also find me on Twitter @mccoydw
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