Who owns the land underneath a Detached condo ? HOA ? And what is the worst that could happen to Condo owners?

I am planning to buy a 1800 sq.ft Detached condo (4500 lot) but some appraiser forums & reports have me really scared that I do not own the land below it nor the walls, only the interior. And hence the appraisal value is a lot less compared to SFR of similar specs ?

So what happens if the house gets blown away or gets burned down. I believe the insurance will pay for the re-built ? right !?

2 Responses to “Who owns the land underneath a Detached condo ? HOA ? And what is the worst that could happen to Condo owners?”

  1. Zeltar Says:

    This is normal for condo’s, detached or not. The outside walls and roofs are covered by the HOA. They have reserve funds and insurance that will provide for the maintenance of those "common" areas. Your responsibility is the interior of the home.

    This setup works great for many people. For some, they don’t like it at all. It’s personal preference.

  2. macaca Says:

    When comparing a Condo vs. Single Family Residence (house) there are important distinctions that you need to be aware of before you purchase. For a house, you own the land plus the improvement (building). You are responsible for maintenance and upkeep of the entire property, as well as insurance. In a condo the entire physical space that the community is, is jointly owned in equal parts by each homeowner. So, if you have 100 units in a complex and you buy 1 unit you are deeded 1/100th ownership of the community. Instead of paying Homeowners insurance you will pay Homeowners Association Dues. Everybody that lives there pays the same amount. These dues will cover the insurance policy for the entire area, landscape and maintenance, pool maintenance, rec room, and whatever other amenities that are available. So, if your condo burns down the HOA Insurance will rebuild. FYI, that policy does NOT cover contents, so you will want to take out a renters policy to cover your stuff in case of loss.