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
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Frequently Asked Questions
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