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
Real Property vs. Personal Property
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint Tenancy
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
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
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
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.
Cooperative Ownership
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Frequently Asked Questions
Test Your Ownership Knowledge
Practice with exam-style questions to make sure you can apply Condominium Ownership and other ownership concepts.