Thursday, December 07, 2006

Interesting question to ponder...condo parking space issue

I've been speaking with a lawyer friend about the following...I don't know the answer. Does anyone?

Client wants to sell a parking space he owns in a condominium association. Just by way of an explanation, condo parking spaces are typically either deeded or they're limited common elements owned by the association. I'm not talking about the common element scenario here.

So how does he sell just a parking space? In my experience, when there's deeded parking, the parking spot is either going to be shown as a "unit" that's part of the legal description for the condo unit itself OR there's a separate legal description/deed for the parking spot. Also, typically the parking spot will have it's own Permanent Index Number from the county treasurer. The problem seems to be if the parking unit is part of the same deed as the condo unit, then the property's mortgage is secured by the property...how do we release just the parking space so it can be sold free from the mortgage? Will a mortgage company allow this? Not likely I'd think. If there is a separate deed, then likely it's not too tough.

Something to keep in mind though before just throwing the parking legal and PIN on the same deed as the unit. If the parking spot is going to be sold separately, you may want to keep it unencumbered from any mortgages for ease of transfer.

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