It is called PUD in short and can be of two types, either entire land is used for constructing residential plots or for commercial purpose like shopping malls, restaurants DC Fawcett Real Estate .
Benefits and Drawbacks of PUD:
DC Fawcett Reviews talks about how PUD’s are constructed, benefits and drawbacks. These homes are not constructed as per standard zoning regulations due to the floor plan deviation, thus master design approval is required from municipality. Changes are done to preserve natural resources, conserve energy.
The appearance of PUD is more like a single-family home, commercial property or recreational property or can be a mix of all the property types and legal structure resembles that of a condo.
Just like town homes and condos, PUD’s are also managed and administered by HOA. The owner has to pay certain amount to the association based on the percentage of ownership, and they can enjoy the services offered by the community like swimming pool, fitness center, play area and club house. The amenities vary according to each community. These homes are considered to be safe for families having kids.
To know more about condo, town homes and other types of properties involving HOA, you can refer DC Fawcett virtual real estate investing club blogs. If you are investing in PUD for the first time and want to know more other property types, these blogs will help you to choose the best one that suits your lifestyle.
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Rules and Regulations:
The HOA specifies certain rules and regulations that are to be obeyed by the owners in the community. These rules are documented and it includes
- Budget: The budget will help the owners to get an idea about the property value. It also includes how much every owner should bear for the common maintenance area.
- CCR declarations represent do’s and don’ts to be followed by the owners in the community.
These rules vary depending on the community you choose, so read the CCR declarations before purchasing the PUD.
You should inform the mortgage lender that your property is a PUD first, so the loan approval will go smooth without any hindrance. Your HOA documents are reviewed by the lender, and he can even write an offer letter in favor of you to purchase the property.
The procedure is just like getting a mortgage sanctioned for a condo. Approach a mortgage lender who had previously approved PUD property loans. The borrowers should ensure that your mortgage doesn’t exceed the budget.
Apart from that, every year the income collected from the owners is contributed to HOA reserve account which clarifies that the property is residential and not commercial. They are referred to as planned unit residential development (PURD).
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