What it is:
A landominium is a housing community in which residents own the housing units as well as the land on which they are built.
How it works (Example):
Typically developed as retirement communities, landominiums are usually multiple single-family homes surrounded by a plethora of amenities, including gardens, parks, golf courses and recreation facilities. Occupants own both their homes and the land itself.
Maintenance and beautification of a landominium are governed by a board of homeowners. The board determines the overhead costs of maintaining the complex's public spaces (for example, walkways, parks and any shared facilities) and the fees residents must contribute each month. Residents assume joint and several responsibility since they all own the land itself.
Why it Matters:
It is important not to confuse a landominium with a condominium. In a condominium, residents own only the individual units of a building. The land is typically owned by the development company. As a result, condominium residents have no obligations in connection with the actual land. An independent company typically maintains the structure and surroundings in return for a monthly fee.