In a condominium, the owner holds fee simple title to the airspace within their unit walls and an undivided percentage interest in common elements (lobbies, elevators, parking, pools, grounds). A condominium association manages the common elements and collects monthly assessments. Each unit has its own legal description, can be independently bought, sold, and mortgaged, and is separately assessed for property taxes. The condominium is created by recording a declaration (master deed) and bylaws.
A buyer purchases Unit 405 in a condominium building. The buyer owns the airspace inside the unit and a 1/200 undivided interest in the common areas. The monthly HOA assessment of $350 covers maintenance of common areas, insurance on the building, and reserves for future repairs.
Condo owners own AIRSPACE, not the land or structure. Compare with PUD owners who own the land AND building. The key document creating a condo is the DECLARATION (master deed). Each unit is separately taxed and can be independently financed. Assessments are mandatory and enforceable by lien.
Related Terms
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
A freehold estate represents ownership of real property with an indefinite duration.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
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