Page 28 - CTT Subdivision_Manual_CA

CommerCial Condominiums and mixed-use developmenTs
Commercial Condominiums follow the same basic procedure for approval and preparation for sales as residential condominiums with one big exception: they are exempt from the filing requirements of the DRE.
Their ownership and maintenance structure can also be quite different, to allow for the different needs and expectations of a commercial owner. For instance, the Condominium Plan can be drawn with fixed units or with a grid format with one to two foot squares being deeded. The grid format provides for maximum flexibility in selling by square foot but it has its challenges in other areas. The CC&Rs can also be creative in the way parking and maintenance obligations are handled.
The attorney, engineer and Chicago Title Subdivision Title Officer play a significant role in designing the documents to fix the developer’s marketing plan. An early planning meeting of these team members is essential for a smooth subdivision process.
Commercial Condominiums are not exempt from the filing requirements for a Builder’s Exclusion with the County Assessor’s office. The Builder’s Exclusion or Construction Exclusion (“ConEx”) forms should be obtained from the Assessor’s office and filed within 30 days from the start of construction to insure that no Supplemental Bill will be issued based on the recording of the Notice of Completion.
Mixed Use Developments are usually a hybrid of a residential condominium and a commercial condominium. Most often, they are separated by different legal lots on a Tract Map but their separation can also be by Modules on a Condominium Plan. They usually have two separate associations with a Reciprocal Easement Agreement (REA) or other agreement that governs their relationship with each other. If one association and condominium plan is used
for both ownerships, the entire project is submitted to the DRE for review. Otherwise, just the residential condominium is filed with the DRE.
The commercial aspect of the mixed use does not have to be in a condominium format. As long as there is a separate legal description provided on the tract map or Condominium Plan, the ownership can be singular with the same rental rights as a standard commercial project.
In addition to the attorney, engineer and Chicago Title Subdivision Title Officer, the budget preparer can play a significant role in helping to plan the project successfully and should be included in early meetings.
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