Condominium Ownership
Definition
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
Example
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.
Exam Tip
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 Ownership Terms
Bundle of Rights
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.
Freehold Estate
A freehold estate represents ownership of real property with an indefinite duration.
Leasehold Estate
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
Life Estate
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Water Rights: Riparian and Littoral
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
Real Property vs. Personal Property
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Frequently Asked Questions
Test Your Ownership Knowledge
Practice with exam-style questions to make sure you can apply Condominium Ownership and other ownership concepts.