What Do You Own When You Buy a Condo?
Unpack the complexities of condo ownership. Understand what you truly own, from your private unit to shared community elements.
A condominium presents a distinct form of residential ownership. Unlike a traditional single-family home, which typically involves owning both the structure and the land it sits on, a condo represents a unique blend of individual and collective property rights. It allows for private ownership of a specific living space while simultaneously involving shared interests in the broader community. This dual structure creates a different set of responsibilities and benefits for the owner.
Understanding Condo Ownership
A condominium is a legal form of property ownership where an individual possesses exclusive rights to a specific unit within a larger multi-unit complex. This structure differs significantly from renting, where no ownership interest is held, and from owning a single-family home, where the entire property, including the land, is typically under one owner.
In a condominium arrangement, the owner holds title to their individual unit and also an undivided, shared interest in the common elements. This dual nature means a condo owner has direct control over their private living space but also shares in the ownership and responsibilities for areas used by all residents. The concept allows for homeownership in settings where a detached house might be less feasible or desirable, such as urban environments or vacation destinations. The unit itself is typically a defined space within a building, while the common elements encompass all other parts of the property necessary for its operation and enjoyment.
Your Exclusive Unit Ownership
What an owner exclusively possesses typically refers to the interior space of their specific unit. This includes the airspace contained within the unit’s boundaries, often described as “paint in,” meaning everything from the interior surfaces of the walls, floors, and ceilings inward. Fixtures, appliances, and personal belongings located within these boundaries are also part of the individual unit owner’s property. This exclusive ownership grants the owner the right to maintain, repair, and make improvements to the interior of their unit, subject to any rules set forth by the condominium association.
However, structural components that support the building, such as load-bearing walls, the roof, and the foundation, are generally considered common elements and are not part of individual unit ownership. This means that while an owner can renovate their kitchen or bathroom, major structural changes are typically outside their purview. The owner is solely responsible for the upkeep and maintenance of everything inside their unit, including plumbing fixtures, electrical outlets, and interior finishes.
Shared Ownership of Common Elements
Beyond the private unit, common elements are areas and facilities jointly owned and used by all unit owners. These are broadly categorized into general common elements and limited common elements.
General common elements include the land upon which the building stands, the exterior walls, roof, foundation, and shared utility systems up to the point of entry into individual units. These shared areas also encompass hallways, stairwells, elevators, lobbies, and recreational facilities such as swimming pools, gyms, or clubhouses. Landscaping, shared parking areas, and other amenities for the collective benefit of all residents fall under this category. All unit owners share in the cost and responsibility for the maintenance, repair, and insurance of these general common elements, typically managed through regular assessments.
Limited common elements, while still legally part of the common elements, are designated for the exclusive use of one or more specific units. Examples often include balconies, patios, assigned parking spaces, or individual storage units. Although their usage is exclusive to a particular unit, ownership of these spaces remains shared, and their maintenance is generally the responsibility of the condominium association, funded by overall fees.
Rules, Responsibilities, and Costs
Condominium ownership involves rules, responsibilities, and financial obligations overseen by a Homeowners Association (HOA), also known as a Condominium Owners Association (COA). This governing body is responsible for managing the common elements, enforcing community rules, and maintaining the overall property.
The authority of the HOA is derived from the condominium’s governing documents, which are legally binding for all unit owners. The Declaration of Condominium, also known as the Master Deed or Covenants, Conditions, and Restrictions (CC&Rs), defines the property, outlines the units and common elements, and establishes the fundamental rules of the community. Bylaws complement this by detailing the operational procedures of the HOA, including election processes, meeting schedules, and the specific duties of the board. These documents dictate what owners can and cannot do, covering aspects like pet policies, exterior modifications, and even rental restrictions for individual units.
Regular HOA fees, also called assessments, are recurring payments made by unit owners to cover the maintenance, repair, and insurance of common elements, as well as the operational costs of the HOA. These fees fund services like landscaping, common area utilities, and contributions to reserve funds for future major repairs or replacements. Beyond these regular fees, special assessments may be levied as additional, one-time charges for unexpected major repairs or improvements that are not adequately covered by the existing reserve funds.
Each unit owner is also responsible for paying property taxes on their individual condominium unit, similar to how property taxes are paid on a single-family home. This tax is assessed based on the valuation of the specific unit. Regarding insurance, the HOA maintains a master insurance policy that covers the building’s structure and all common elements. However, individual unit owners must secure their own insurance policy, typically an HO-6 policy, which covers the interior of their unit, personal belongings, and liability within their private space.