Hi everyone,

It’s Justin Moles with The Moles Group, and this week I want to tackle one of the most confusing topics I see in our local MLS: what you actually own when you buy into an HOA community. Too often, the same attached home is labeled a “Planned Unit Development,” “fee simple,” or “condo” at different times, even when the legal ownership never changed. That inconsistency creates confusion for buyers, sellers, lenders, and even agents. This newsletter is designed to give you clear language and a better framework for understanding it.

The Four Main HOA Ownership Types

1. Cooperative (Co‑Op)
In a co‑op, you don’t own your individual unit with a deed. Instead, you buy “shares” in a corporation that owns the entire building and receive a lease giving you the right to occupy a specific unit. Financing is often more limited and board rules can be stricter, because decisions are made collectively and the structure functions more like a business than a standard subdivision.

2. Condominium
A condominium is legally defined as a “unit” in the subdivision map and CC&Rs. That unit can look like a townhouse, an apartment‑style home, or even a detached single‑family, but the law sees it as a three‑dimensional “unit envelope” in a larger common‑interest project. When you see the word “unit” on the preliminary title report or governing documents, you’re almost always looking at a condo, which typically comes with more rules around exterior changes and shared elements like balconies and decks.

3. Planned Development (PUD / Fee Simple)
In a planned development, your interest is usually described as a “lot.” You own the land within the lot lines and the building on it, even if the homes appear attached from the street. There may be an HOA for shared areas (parks, private streets, etc.), but there’s no overlapping airspace the way you see in stacked condo buildings, and lenders tend to view these more like traditional single‑family homes.

4. Community Apartment
A community apartment project is essentially a shared‑ownership structure where a group collectively owns a single parcel or building and each person has exclusive rights to one unit, often functioning similarly to a timeshare or older cooperative‑style arrangement. Usage and occupancy are tightly governed by the recorded documents.

Why the Distinction Matters

You might ask, “If it looks like a townhouse, why does the label matter?” From a practical standpoint, it impacts:

• Financing: Condos and co‑ops often face more scrutiny from lenders, especially around reserves, building condition, and HOA compliance, while fee‑simple planned developments can be treated more like standard single‑family homes.

• Maintenance responsibility: In condos, the HOA typically controls and maintains more of the exterior and structural elements; in planned developments, the owner usually carries more responsibility for the building itself.

• Risk and long‑term cost: New safety and inspection laws focus heavily on condo and HOA‑controlled components, which can influence future dues, assessments, and resale value.

It is also important to remember that “townhouse” or “row house” describes architecture, not ownership. You can have a townhouse that is legally a condo or a townhouse that is legally a fee‑simple lot; the exterior style alone doesn’t tell you what you own.

New 2026 Deck Inspection Rule for Condos

California’s newer balcony and deck inspection laws require condominium HOAs to inspect certain exterior elevated elements (like balconies and decks) on a recurring schedule, generally every nine years under SB 326. Starting in 2026, HOAs must provide copies or summaries of these inspection reports upon request, and they are obligated to keep prior reports as part of their long‑term records. For owners and buyers, this creates more transparency on safety issues and future repair budgets—but it also means inspection findings can directly affect dues, special assessments, and lending eligibility.

How I Can Help

As Realtors, we are our clients’ best line of defense against misunderstanding by helping them know not just what they’re buying, but how they’re expected to maintain it over time. If you’re unsure whether your current home—or a property you’re considering—is a condo, planned development, co‑op, or community apartment, I’m happy to review the map, CC&Rs, and prelim with you and translate the legal language into plain English.