I know I am a little late to this game but am very curious how you came to the conclusion that title and lender went by the appraisal? title examines all past recorded documents. The property was evidently found to have been organized as a PUD. PUD's can be condos, townhomes, single family, common wall, etc. Being in a PUD does not require the formation of a HOA unless it was organized as such. There could easily be both a condo and PUD rider to a TD or Mtg.
Someone in this thread mentioned that perhaps the lines have been blurred between condos and townhomes and that is most definitely the case. Townhomes historically have included the ground they sit on, condos did not. Both have common areas which vary from project to project, locale to locale. But now we have townhome style condos, condo style townhomes and every combination you could likely imagine. One reason for the blurring happened because developer/builders took existing or “canned” plans and tacked on their own specifics to create a not so clear condo, pud, townhome plan. They submitted them to planning departments that hadn’t really worked with that type of project, they were approved and so many new variations and definitions were spawned.
The naming of the project is not so important come time to sell or transfer as is the chain of title. The value of the property will be determined by the marketplace, not the title.
As an owner, I would certainly want to be knowledgeable about the development document, declarations and cc&r’s and understand the type of ownership interest. However, in the case presented by the OP, I would have suggested they sign and let title clear if needed. The good news is that when title makes an error in the type of rider that is attached, it can always be cured and at title’s expense. Also, it would be unusual for a lender to tell title that they used the wrong rider, not impossible, but unusual.
fyi: my backgound includes appraising, real estate development, loan origination and underwriting. I don't claim to be an expert just opinionated! |
