It looks like a Single Family Residence. The Appraisal shows it as a PUD and the Preliminary Title Report shows it as a Condominium. Which is it really and what is the difference? Let us explain!
A Single Family Residence (SFR) is a single, freestanding, detached residential dwelling structure built on a single parcel of land or Lot. The Lot is generally delineated on a Recorded Tract Map. A Condominium (Condo) is a dwelling unit, defined in a recorded Condominium Plan, together with an undivided interest in a common area; which would also be a Lot on a recorded Tract Map or a Parcel on a Recorded Parcel Map. A PUD (Planned Unit Development) is a type of development which can include various land uses such as Single Residential, Multiple Residential, Commercial, Industrial, Retail, Park and Recreation all contained within one subdivision or development. Examples of Planned developments in Orange County include Woodbridge and Coto De Caza.
Historically, our perception of the difference between a Single Family Residence and a Condominium was quite simple. If it was attached, it was a Condo. If it was not attached, it was an SFR. In recent years this has become more complicated. It may look like a detached SFR but in fact be a Condominium. Traditionally, a Condominium Unit was defined in the recorded Condominium Plan as the “Airspace” Contained within the walls of the “Unit”. More recently, the definition of a Condominium Unit has evolved to include the “Airspace” and “Improvements” within a defined boundary.
The following is an example of this type of Condominium Unit definition found in a recorded Condominium Plan:
“Each Unit consists of two (2) three-dimensional volumes of real property, containing earth or airspace, or both, and all Improvements located within each such volume of real property as shown on this Condominium Plan. The lower vertical boundary of the Unit extends to the center of the earth. The upper vertical boundary of the Unit Extends indefinitely upward excepting the Common Area”.
In other words, the Condominium Unit is not the Structure; it is the land that structure is built on or in a manner of speaking, the Lot. It includes the Earth, Airspace and Improvements contained within the area delineated on the Condominium Plan as the “Unit”.
To continue learning about the differences between Single Family Residences, Planned Urban Developments, and Condominiums check out Ticor Title’s “SFR, PUD, or Condo?” report!