| The term condominium, condo for short, is a commonly | | | | no hassle of personally maintaining a yard or others |
| misunderstood word. A condo describes a method of | | | | structures outside of your unit. So if you like living next |
| owning real estate, not a particular style of building. A | | | | to many neighbors and want access to a variety of |
| single condo is one housing unit within a larger complex | | | | amenities at an affordable price, then condominium |
| of units, and a condominium complex is used to | | | | ownership may be a good option. |
| describe the collection of all units within the same | | | | While condos tend to be less expensive than other |
| development. The type of unit could be an apartment, | | | | forms of real estate ownership, there are also |
| a townhouse (which is sometimes referred to as a | | | | drawbacks. Condo units tend to be connected to one |
| row house), or any other multi-unit property. | | | | another, which increases the chance of hearing noise |
| When you buy a condo, what you actually own is the | | | | from adjoining units. Condo owners usually do not have |
| inside of the unit itself; all unit owners own everything | | | | their own yard because individual unit owner do not |
| outside of their unit, proportionately and collectively. For | | | | own the land underneath their unit. Unit owners must |
| example, you as an owner of a unit and all the other | | | | share available resources such as the pool, tennis |
| unit owners collectively own hallways, stairs, pools, | | | | court, recreation center, etc with all other residents. |
| recreation centers, grass areas, etc. | | | | The monthly condo fee mentioned above tends to |
| Since all unit owners collectively own anything that is | | | | increase every year in most communities, as the price |
| outside of the individual units, all owners must provide | | | | of good and services retained by the community |
| funds to maintain these common elements. In most | | | | increases. |
| communities, owners elect members from their ranks | | | | Because of these drawbacks, many buyers shy |
| to form a Condominium Association (CA), whose | | | | away from purchasing a condominium. Moreover, |
| charter is to establish a budget, collect dues from unit | | | | depending the condition of the real estate market, |
| owners, manage the repair and maintenance of | | | | condos are often harder to sell then real estate |
| common elements, and to oversee the affairs of the | | | | owned by other methods such as Fee Simple. |
| community. Many CAs hire Property Managers to | | | | As mentioned above, the elected Condo Association is |
| undertake these functions, but the responsibility and | | | | responsible for the affairs of the community. This body |
| accountability remains with the CA. | | | | typically meets monthly and has the authority to pass |
| The Condominium Association is responsible for | | | | actions that impact all owners with regard to the |
| determining the amount of money needed to manage | | | | amount of monthly dues, the community rules, etc. The |
| the affairs of the community. In addition, the CA must | | | | members of the Condo Association are typically |
| maintain sufficient funds in reserve to address any | | | | elected annually, although this can vary from |
| emergency costs and to prepare for larger | | | | community to community. Since management of the |
| maintenance projects that occur less frequently (e.g. | | | | Condo Association is a democratic process, it has all |
| replace all roofs in the community). Based on | | | | the peculiarities of any political body. Therefore, most |
| anticipated expenses and the need for reserve funds, | | | | owners find it beneficial to attend all monthly meetings, |
| the CA sets the amount of the monthly "condo fee," | | | | so that their voices are heard. |
| which must be paid by all unit owners. The CA can | | | | The authority of the CA and other rules of a |
| also impose special assessments on the owners if | | | | community are usually detailed in a document called |
| unforeseen expenses are incurred. | | | | the Covenants, Conditions and Restrictions (CCRs). Be |
| Condos offer a variety of benefits to their owners. | | | | sure that you and your legal representative review this |
| Condos tend to be less expense than real estate | | | | document before buying a condominium, and consult a |
| owned by other methods, many communities offer | | | | knowledgeable Real Estate agent to represent you |
| amenities such as pools and tennis courts, and there is | | | | throughout the buying process. |