Owning a condo is considered a hybrid type of ownership, as it is not a traditional ownership structure. There are some characteristics that can help in the definition of condominium ownership. An individual property unit is the space that falls within the limits that have been specified. This can include multiple rooms, as well as an interior wall dividing different rooms into that specific unit. It also includes storage areas and balconies. The unit is airspace with no land, but is still considered real property.

Common areas

The common areas are the other parts of said property. This is the area shared by all unit owners. This includes the roof, lobbies, hallways, foundations, floors, elevators, ceilings, and basement, etc. Others are facilities such as water, gas, electricity and heating. There are other areas such as the parking lots, the pool, etc., which are also part of the common areas shared by the owners of the units.

ownership interest

Ownership interest in the property is conveyed through deed. The owner can sell his interest if he wishes. Like other types of property, ownership can be held by one individual, or by two or more than two individuals, by a wife and husband, or by a business entity.

Taxes

As is the case with other types of property, condo unit owners have to part with property taxes as required by law. Each unit and interest in common areas are generally considered as a package and are taxed and assessed on an individual basis. Common areas are not assessed or taxed separately. The owner is responsible for taxes within his own parcel.

Associations

Typically, condominiums or unit owners associations are established when condos are created to make sure that all owners can maintain and manage the entire property as a team. A third-party property manager is typically assigned to handle all property development and management. There are some developments that have a community of owners and a community of condominium owners where they have responsibilities in different aspects related to the administration of the developments, as well as their maintenance.

There are governing documents that are created to offer guidance on how associations are supposed to operate. They also include some rules that all tenants, owners, and guests must abide by. These are the legal documents that can specify anything, including the type of pets allowed and the consequences of breaking any of the stated rules. Some of the consequences may include a lawsuit, enforcement, and even fines.

monthly expiration

The association receives payments at different times of the year and this is the responsibility of the unit owners. These dues cover maintenance and management expenses. Usually fixed and variable expenses owed like taxes, pool maintenance, gardening, garbage collection, building insurance, and also something to add to the reserve fund. If the money in a reserve fund is not enough, a special assessment may be charged to homeowners to handle improvements and special projects, such as furnace and roof repairs, etc.