Fee simple vs. monthly association fees

Re: Fee simple vs. monthly association fees

• tbridetobe member

  April 2012

  I think you are comparing apples to oranges.  My understanding is that fee simple is a type of ownership interest you have in a home, short for "fee simple absolute."  It means you own the entire bundle of rights in a property (your specific condo unit), versus other types of ownership such as co-ops where you are buying a percentage interest in the condo building as a whole.

  Monthly association fees, on the other hand, do not effect the type of ownership you have in the property.  You can have HOA fees whether you have fee simple ownership or another type of ownership in the property.

  I would check with your real estate attorney and realtor because I'm not from your area so this could be different there.

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• MaLove07

  April 2012

  Hmm.  Okay.  I will check with our realtor.  Thanks!

  

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• Santorini2011 member

  

  April 2012

  Bridetobe is correct. 

  

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• GeorgiaRiah member

  

  April 2012

  Fee Simple are normally townhouses.  It usually means that you own the land that is underneath the property and well as the building.  You usually are responsible for all exterior and everything on the land but a few HOA's run things differently.  If it is not fee simple then you usually do not own the land and a lot of times the HOA covers more with exterior.  I really think they both have benefits and drawbacks.  If they are not fee simple and you are buying with HOA then you need to make sure that the complex is approved by the FHA.  I found that with the new FHA rules most are not approved.  Even if you are not buying with an FHA loan, a lot of buyers are and it can be harder to sell down the road.  I also found that with a lot of fee simple town homes that your neighbors may not be taking care of their houses.  This can cause damage to yours.  Good luck with your house hunt!
  

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• MaLove07

  April 2012

  GeorgiaRiah:

  Fee Simple are normally townhouses.  It usually means that you own the land that is underneath the property and well as the building.  You usually are responsible for all exterior and everything on the land but a few HOA's run things differently.  If it is not fee simple then you usually do not own the land and a lot of times the HOA covers more with exterior.  I really think they both have benefits and drawbacks.  If they are not fee simple and you are buying with HOA then you need to make sure that the complex is approved by the FHA.  I found that with the new FHA rules most are not approved.  Even if you are not buying with an FHA loan, a lot of buyers are and it can be harder to sell down the road.  I also found that with a lot of fee simple town homes that your neighbors may not be taking care of their houses.  This can cause damage to yours.  Good luck with your house hunt!
  

  Thanks! That really cleared some stuff up for me!

  

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