'Modules' condo project per 66427(e)

[Elias French]

For the map act Gurus.

66427(e) states:
If the governing body has approved a parcel map or final map for the establishment of condominiums on property pursuant to the requirements of this division, the separation of a three-dimensional portion or portions of the property from the remainder of the property or the division of that three-dimensional portion or portions into condominiums shall not constitute a further subdivision as defined in Section 66424, provided each of the following conditions has been satisfied:
of the following conditions has been satisfied:
(1) The total number of condominiums established is not increased above the number authorized by the local agency in approving the parcel map or final map.
(2) A perpetual estate or an estate for years in the remainder of the property is held by the condominium owners in undivided interests in common, or by an association as defined in Section 4100 or 6528 of the Civil Code, and the duration of the estate in the remainder of the property is the same as the duration of the estate in the condominiums.
(3) The three-dimensional portion or portions of property are described on a condominium plan or plans, as defined in Section 4120 or 6540 of the Civil Code.

I've been recently advised by an attorney that 'modules' or 'future phase condominium parcels' on a "one lot condomium parcel" may be created solely via condo plan, and financed, sold, and developed separately in phases, without going through the local agency review process as this is an 'exempt' from SMA. For example in the case of multiple condo buildings on one large parcel to be built in phases.

This sounds fine in theory and I've seen examples, just haven't done it in practice, and have received conflicting attorney opinions on whether they can be sold separately. One said yes, the other said no. title companies seem similarly conflicted.

What is your experience? Are these modules somewhere in between condo units and legal land parcels: able to be sold separately, without agency oversight as to dimensions, size, setbacks, etc; but tethered to each other somehow as part of the original Condo Subdivision of the original "Parcel A" of the one lot condominium parcel/final map?

In my area these are usually handled via "condos within condos" or airspace/3d subdivision maps...

Thanks and have a good weekend,
Eli

[Warren Smith]

This likely is worked through the Department of Real Estate as it reviews the diagrammatics, CC&Rs, and issues its public report for buyers. To the extent the CC&Rs address modifications, it should work.

The building plans themselves should be reviewed by the Building Department for adherence to codes.