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How is the percentage of ownership (undivided interest in the common elements) for a condo determined? Is there a formula that is used that is used based on square footage, value, or both? Can the combined percentages be greater than 100%?
The assigned percentages for units in my condo are 0.364, 0.365, 0.535, and 0.799. We have 202 units and I am fairly certain the percentage is based on square footage. Adding these together does not equal 100%. What am I missing in here?
The reason I am asking is that my condo board recently determined that our association fees have evidently been miscalculated from the start of our condo 10 years ago. Of course, mine was one that set lower and is going to see a $100 increase.
The percentage is determined by the CC&R. Check your documents for the answer. This can differ dramatically between one association and another. Nobody here is qualified to answer your question from a legal standpoint.
I am not asking for legal advice. I am just trying to get a better understanding of how a developer would start from scratch and assign percent of ownership for a condo based on square footage. I would think there is a simple general formula that would be used.
Often determined by both percentage square foot compared to other units and location within the building with back and middle units often considered less valuable.
> I am just trying to get a better understanding of how a developer would start from scratch and assign percent of ownership for a condo based on square footage
The developer could assign ownership percentage based on color if he wanted to. This will be in the original documents and would have been agreed to by all the buyers.
I understand the developer assigns the value and the buyer agrees when purchasing.
I also understand that it would be beyond a monumental task to have the percentages changed.
What I don't understand is how various management companies over the years can misinterpret the docs. But I am not trying to figure that out.
What I am trying to find out is how a developer would specifically used say square footage as a means to assignment value? What is the formula, the underlying principles, etc., that he would use?
Absolutely not! Keep asking, bring this up to your neighbors. Go attend a board of directors meeting and bring this up. It is possible there was a mathematical error and may have to deal with it, but they owe you a solid explanation you can understand. The management company is hired by the HOA - head over to your elected officers.
Thanks, that is why I am trying to understand the process better myself...
Ask yourself which unit would be more valuable. A 1800sq ft unit on the 2nd floor rear, overlooking the parking lot or a 1000sq ft unit on the 12th floor overlooking the ocean?
Tighten it up some. A 1200sq ft unit on the 12th floor overlooking downtown or a 1000sq ft unit on the 12th floor overlooking the ocean?
What I am trying to find out is how a developer would specifically used say square footage as a means to assignment value? What is the formula, the underlying principles, etc., that he would use?
Am I asking a stupid question?
The answer was above. There is not a specific formula that is universally used by developers. Developers can use any means of assigning value they choose to use. As others have said, it might be sq. feet, location within a building, views, proximity to the beach, two balconies versus one balcony, whatever....
The means for determining percentage maybe in your documents.
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