What's the difference between a
Condominium and a Site Condominium?
(condos) are a form of property ownership under which an occupant owns the condo "unit" (i.e. building, dwelling within a multiple family structure, boat slip, etc.).
The land surrounding the unit is held under the joint ownership of a condominium association. The land in a condominium development is not divided; it remains as one parcel.
A~ In a Site Condo,the occupant of the building also owns the area surrounding the building footprint, often referred to as the
In addition, there are two types of land held in joint ownership by the condo association:
Limited Common Elements: Areas restricted for the exclusive use of the building owner; and,
General Common Elements: Areas used by all members of the development, such as roads, utilities, Common Open space, etc.
Each purchaser of a condominium "Unit" receives an individual deed to his Unit. The Unit and the Common Elements (which are legally inseparable from the Unit) are generally described in the Master Deed, and the Unit boundaries are shown in the Condominium Subdivision Plan attached to the Master Deed, subject to such modification or correction as is permitted by statue and by the Condominium documents.
All portions of a condominium project not included within the Units constitute the Common Elements and are owned by all Co-owners in undivided portions equal to the percentages of value attributable to each Unit as set forth in the Master deed.
A "site" condominium project is different and involves a space in which a Co-owner may construct a single-family residence. Each Co-owner of a unit also owns the land and air, which constitutes a building site in which the residence will be constructed. Although a site condominium is analogous to a subdivision platted in accordance with the Subdivision Control Act of 1967, as amended (the "Plat Act"), there are significant differences between a site condominium and a subdivision.
The plat of a subdivision is reviewed and approved by the State of Michigan while the documents establishing a condominium are not. In a subdivision, the lot owner has fee ownership of the entire lot. While in a condominium, yard areas are Limited Common Elements. Co-owners of site condominium Units have certain statutory rights and obligations with respect to the maintenance and management of the Common Elements, which are not regulated by statute in subdivision developments. Moreover, purchasers of condominium Units enjoy statutory rights, which are not given to lot owners.
In order to promote the development of a beautiful and harmonious living environment, certain restrictions and obligations are imposed on each co-owner for the mutual benefit of all Co-owners. Such restrictions and obligations are contained in the Condominium Bylaws, which are recorded as part of the Master Deed and include, among other things, architectural controls and building restrictions. The Condominium Bylaws also have the goal of promoting architectural harmony and minimum building standards, which will promote and enhance the values in the entire development. All Co-owners and residence must be familiar with and abide by such documents if a condominium project is to be a beautiful and enjoyable place to live.