|
|
|
|
- A Type of Ownership
- Condominium is a form of ownership of real estate.
- Each unit owner of a condominium has individual title to the space inside his unit, plus an undivided interest in the common elements, which are owned jointly with the other condominium unit owners.
- The individual space may be described as beginning with the paint on the walls.
- The common elements include the physical components of the buildings, walkways, amenities and land.
- Not a Type of Building
- Condominium type of real estate ownership is not limited to certain building designs.
- A condominium may be an apartment, duplex, townhome, or homes with individual yards.
- In apartment style projects it is obvious that the unit owners do not own parts of the land individually. However, this applies to all condo regimes.
- An Undivided Interest
- A condominium may be built as two units of a duplex.
- In this case, the two owners may decide that each one will maintain his own side, and each will have a fenced yard.
- However, this does not mean that each unit owner owns a divided share of the land and buildings.
- Their interest in the whole site and structure is undivided.
- By setting up the units of a duplex as condos, the developer is able to sell them to two different owners.
- Common Areas
- A condominium association is often elected to handle repairs and administrative work related to the common areas.
- Normally, each unit owner pays fees for common maintenance.
- The association holds a master insurance policy covering the jointly owned areas and the exterior of the building, while individual owners carry insurance for the interior components of their units.
- Greater Density
- The creation of a condo regime allows the developer to get more density approved than would be allowed for single-ownership lots.
- This is the reason why the condo regime is done instead of a development with single ownership lots.
- Rules and Regs
- No assumptions should be made about how a condominium is managed and what is covered by the common budget.
- Each condo project has its own specific rules. It is very important to read the condo documents carefully.
- Review Documents
- The real estate contract for condominiums requires that the buyer be given a copy of the condo documents, with three days to review them.
- During the document-review period, the buyer may terminate the contract without penalty.
- Who Handles What
- The condo documents spell out which repairs will be handled by the common budget.
- In some cases, the association may maintain all exterior components, decks, pools, sidewalks and driveways.
- In other cases, the individual owners may be responsible for their own roofs, decks and exterior painting.
- Ask Questions First
- Make sure you have a clear understanding of the responsibilities of the condo association and the individual unit owners.
- If you have a question, the condo board itself is the best source of answers.
- The board members can give you their interpretation of the rules and clarify how the issue has been handled in the past.
|
|
|
|
