What is a Condominium?
A condominium is a form of Real Estate Ownership where you own your “unit” and you also have an ownership interest in the “common” property. There are residential condominiums and office condominiums. There are site condominiums and traditional condominiums. But, regardless of the type, when you purchase a condominium you own your real estate and gain all of the advantages that come with ownership. The general benefit of Condominium Ownership is the maintenance free lifestyle it provides. Additionally, Condominiums show a consistent neighborhood presentation with all lawns mowed and all buildings maintained. This uniformity avoids neighborhood blight and protects the property values for all of the Condominium owners.
Since Condominium Owners share “in common” elements, there is an Association of Co-Owners. This Condominium Association manages the property according to the Master Deed and Bylaws. The Co-Owners elect a Board of Directors from their members to manage the Association’s affairs. The Board uses the Association Bylaws and Master Deed to apply the rules. Master Deeds and Bylaws are NOT always the same. Some Condominiums are very restrictive and others are very lenient. The rules and regulations are found in the Master Deed and Bylaws and they should be reviewed before entering into a binding purchase agreement. These documents are recorded with the State and the County Clerk and provide the absolute governing authority for the specific Condominium.
All Condominiums have specifically defined elements of Ownership and Commons. Traditional Condominiums are buildings where the Master Deed defines the limits of Ownership. The limits of Ownership usually go from drywall to drywall and basement floor to drywall ceiling. All other parts of the building are common. Site Condominiums define an area of land as the ownership unit. The Owner of a Site Condominium can usually place any sized building on the piece of land that they own. Site Condominiums can look like single family neighborhoods.
Condominiums usually provide a “maintenance free” life style. Grounds maintenance is usually the responsibility of the Association. The co-owners are obligated to contribute money to the Association to cover the expenses of maintaining the Condominium. It is important to know what items the Association is committed to maintain and if the budget and reserves are sufficient to cover the costs. Is the Association responsible for the roads, the building skins, roof shingles, clubhouse, swimming pool, tennis courts, landscaping, snow removal, insurance, garbage pickup, or a myriad of other items? It is important to determine that the Association is financially solvent and has money for long term replacement items.
Condominium ownership works for a lot of people. If the Association is managed properly, there should be no fear to own a Condominium.
