ARE ALL CONDOS CREATED EQUAL?? NOT QUITE!!
Site Condominiums Versus Traditional Condominiums

We will try here to compare a residential site condominium to a traditional residential condominium. There are many, many variations between condominium projects, so here we will merely compare typical projects.

All condominiums in Michigan are regulated by Michigan statute and by regulations adopted by the Michigan Department of Labor and Economic Growth. For comparison purposes, our traditional condominium will be a residence located within a building which also contains one or more other residences, commonly referred to as a single-family attached residence.

Our site condominium is a vacant piece of real estate within which the owner of the condominium is allowed to build a residence. Sometimes, a site condominium is a two-dimensional area that looks much like a lot in a subdivision. Such a site condominium is commonly referred to as a single family detached residence.

Condominiums are self-administered by a condominium association that consists of all the owners of condominiums within a particular project. The association is responsible for performing certain responsibilities for the common good of all owners. A good example of this would be the cost of maintaining and operating a community building or a tennis court.

The costs associated with such common expenses are paid by the owners in the form of “association fees”. These fees are determined annually by the association and may be paid in one or more installments. Monthly association fee payments are typical in a traditional condominium project. Association fees for a site condominium project are often much lower than those in a traditional project. There are some really good reasons for this. The following chart will illustrate.

By way of example, in a traditional condominium project the association paints the exterior of a building when it needs painting. The cost is funded through association fees. In the site condominium project, the owner of the residence is financially responsible for all repairs to the residence.

The association fees in a site condominium with public streets and no community facilities would be very small since the bulk of the costs associated with ownership (lawn care, building maintenance, insurance and the like) would be paid by each respective condominium owner.

Although association fees in a traditional condominium are typically higher, the long-term savings to the individual owner together with the additional services provided (like lawn care) tend to offset the higher fees.

THE LANDINGS AT RAYNER PONDS ARE TRADITIONAL CONDOMINIUMS!