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How Big Is Your Condo? There Is No Right Answer.
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Why do developers want to increase the square footage? There are two reasons:
First, because too many potential home buyers are hung up on the amount of space they will get, using the centerline approach makes the unit more attractive.
Second, adding space will decrease the stated cost per square foot, which is yet another issue of major concern to many buyers.
One condominium developer's lawyer from the West Coast recently told me that he worries about liability for misrepresenting the unit area and thus violating his state's condominium act. That act -- which is similar to laws in many other states and the District -- requires that the declaration state the approximate area of the unit.
According to this lawyer, "This implies to me that the surveyor should measure according to the boundaries. In a 'walls, floors and ceiling' condo, this rule should mean excluding the thickness of the walls, and excluding limited common elements such as patios, storage areas and garages."
Does this mean the developers are engaged in misrepresentation?
In most cases, I don't think so. There is no standard for measuring condominium units. If the developer -- and the engineer who does the measuring -- decides to use the standard for houses, that is perfectly legal, as long as this method is fully disclosed to potential buyers.
One appraiser told me that in the 1970s, when the condominium market started to heat up here in Washington, most developers used the centerline approach. The appraiser calls this "mid-wall to mid-wall." However, in recent years, this has shifted to what he calls the "paint-to-paint" approach, which more accurately reflects the true usable space in the apartment.
Older condo units will continue to pose the problem you are facing. Sellers obviously want to get the best price for their unit and are reluctant to lower the square footage that has been associated with their unit for years. Real estate agents rely on the printed material and information in the historical legal documents, of which the square footage is often a part. And lenders and their appraisals still favor the earlier, middle-wall-to-middle-wall approach.
However, that appraiser told me that though he will use the stated information when he prepares his report, he will also do his own measurements. If he finds that the estimates submitted by the seller or the real estate agent are different from his measurements, he will note this as a footnote to his appraisal report.
As you can see, this is complex. However, does it really make a difference what the square footage is? Are you happy with the unit? Are you comfortable with the price? Have you made sure that your furniture will fit in the new apartment?
I believe that too much emphasis is being placed on square footage because it is a small aspect of purchasing a condominium unit, either new or resale.
However, I strongly urge the real estate community to press for a uniform standard. There is such a standard for single-family houses and commercial properties. Why are condominiums being ignored?
Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed, stamped envelope to Benny L. Kass, 1050 17th St. NW, Suite 1100, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, http:/


