Did You Know?

The Difference between a Condominium and a Planned Community

The primary difference between a Condominium and a Planned Community is the ownership of the common elements. In a Condominium, the Owners typically own an undivided interest in the common elements and such ownership is reflected in the Declaration and on each Deed. In a Planned Community, the Association typically owes the common elements (or has an easement or covenant to maintain roadways).

Pursuant to ARS Section 33-1202(10) of the Condominium Act, “Condominium” means real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners.

Pursuant to ARS Section 33-1802(4) of the Planned Communities Act, “Planned community” means a real estate development that includes real estate owned and operated by or real estate on which an easement to maintain roadways or a covenant to maintain roadways is held by a nonprofit corporation or unincorporated association of owners, that is created for the purpose of managing, maintaining or improving the property and in which the owners of separately owned lots, parcels or units are mandatory members and are required to pay assessments to the association for these purposes. Planned community does not include a timeshare plan or a timeshare association that is governed by chapter 20 of this title or a condominium that is governed by chapter 9 of this title.