Hi Bette,
Dane did a great job answering this question - I would like to add one other thing specific to financing. Over the last 18 months, many federal banks and many local banks are no longer willing to finance condex homes. This would be when you have 2 units in one free standing building. It has created a hardship for both buyers and sellers of condex units. There are still mortgage companies that will indeed finance them, but they need to be weeded out before an offer is put in. I am aware of a number of situations recently where the banks refused to lend on a one of these properties and sales fell apart because of it. FHA is certainly not a fan! So, if you or a client is thinking of purchasing a condex, please make sure that all due diligence is done before an offer is put in - the loan should be pre-approved based on not only the buyer's ability to buy but the bank also reviewing the condo docs if any, insurance etc - that way there are no surprises after the fact.

Good luck

Lisa Newman
Better Homes & Garden Real Estate http://www.Masielo.com

offen lenders want proof of an arbitration agreement with condexes...i.e. if one owner refuses to pay for a needed paint job....the case goes to arbitration not court. That is found in the docs. Other wise...condexes are a lot like Single family homes. Condos are another story...depends on type of financing, ownership, # of units, management questionarres....condo fees affect ratios (no fees with condex).....

Hi Betty,

Basically LEGALLY there is no difference, BUT often banks and the FHA draw a difference because they are concerned with the management and the balance of the ownership. If one party owns say 10% or more of the units (which is the case in many local condos) then the lenders are wary of control by one party of the votes in the condo association.

The word condex implies 2 units or dual ownership, call it 50/50. So the borrower (and if a foreclosure, the bank which becomes the new owner) will not be outvoted or subjected to onerous expenses for future repairs and etc by a condo association that is controlled by one or two persons.

But outside of the implication of dual ownership, a condex may also have very simple "covenants and documents", which may run from a simple handshake agreement to split any bills that are relating to the building's exterior, (insurance. snow removal, future roofing, well, septic, etc.) to multi-page agreements that spell out acceptable uses of the yard, setbacks, fences, garbage and drying yards; they may even specify if you can have a pool (and what kind of pool) in your own back yard.

In a condex agreement, usually the rules can be changed if both parties agree (depending on the wording of the agreement), but not if only one wants to make the changes--so always read the condo docs.

A condex building can be a part of a larger condominium association, Winding Brook in Stratham has free standing single houses, duplex/condexs, triples and quads. They run right up to $450K meaning they are nice homes and they have all the rules and regulations that you would imagine, and maybe a few more. In their case, a condex is not exactly a condex, rather it's 2 units.

Hope this helps,

Dane Hahn
NH Broker
Betty LaBranche Realty
603-566-5460