Real Estate — Condominium Law
Condominiums are one of the most popular forms of homeownership in the United States — but they come with a unique legal structure that every buyer and owner should understand before signing anything.
What is a Condominium?
A condominium — commonly called a condo — is a type of real estate where individual units within a larger building or community are owned privately, while common areas are owned jointly by all unit owners. Unlike renting an apartment, you actually own your unit and build equity. Unlike a single-family home, you share ownership of and responsibility for common spaces.
What Do You Actually Own?
As a condo owner, you typically own:
- The interior of your unit — from the walls inward
- Any fixtures, flooring, and improvements inside your unit
- A percentage interest in the common elements of the building
The exact boundaries of your ownership are defined in a legal document called the Declaration of Condominium — one of the most important documents you should read before purchasing.
What Are Common Elements?
Common elements are the parts of the property shared by all owners. They typically include:
- Hallways, lobbies, and stairwells
- Elevators
- Roof, foundation, and exterior walls
- Swimming pools, gyms, and other amenities
- Parking lots and driveways
- Landscaping and grounds
Some condos also have limited common elements — areas that are shared but reserved for the exclusive use of specific units, such as a balcony or assigned parking space.
How is a Condo Governed?
Every condominium is governed by a Homeowners Association (HOA) — specifically called a condominium association. The association is run by a board of directors elected by unit owners. It is responsible for maintaining common areas, enforcing the rules, collecting fees, and managing the building’s finances.
The association operates under several key documents:
- Declaration of Condominium — the master legal document establishing the condo
- Bylaws — the rules governing how the association operates
- Rules and Regulations — day-to-day rules for living in the community
What Are Condo Fees?
As a condo owner you pay monthly HOA fees (also called condo fees or maintenance fees). These cover the cost of maintaining common areas, building insurance, reserves for future repairs, and sometimes utilities like water and trash. Fees vary widely — from a few hundred to several thousand dollars per month depending on the building and its amenities.
In addition to regular fees, the association can levy a special assessment — a one-time charge to all owners when a major unexpected expense arises, such as a roof replacement or structural repair.
Key Documents to Review Before Buying
- Declaration of Condominium
- Bylaws and Rules and Regulations
- Meeting minutes from recent board meetings
- The association’s financial statements and reserve fund balance
- Any pending special assessments or litigation
Always have a real estate attorney review these documents before you close on a condo purchase. What you find in them can significantly affect your decision.
Key Takeaways
- A condo is privately owned unit within a shared building or community
- You own your unit’s interior and a percentage interest in common areas
- A condominium association governs the property and collects monthly fees
- Special assessments can be levied for unexpected major expenses
- Always review the Declaration, Bylaws, financials, and minutes before buying
- Have a real estate attorney review the documents before closing
Disclaimer: The information on LegalConsultants.com is provided for general informational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice specific to your situation.