Owning a condo is seen as a hybrid kind of ownership as it is not a traditional structure in property ownership. There are some characteristics that can help in the definition of ownership of condominiums. An individually owned unit is the space that is within the boundaries that have been specified. This can include multiple rooms as well as interior wall that divides different rooms in that specific unit. It also includes storage areas and balconies. The unit is airspace without land, but is still considered real estate.
Common areas are the other parts of such a property. This is the area that all unit owners share. This includes roof, lobbies, halls, foundation, floors, elevators, ceilings and basement and so on. Others are installations like water, gas, electricity and heating. There are other areas such as the parking lots, swimming pool and so on, which are also a part of the common areas that are shared by the unit owners.
Property interest in the property is conveyed through deed. The owner can sell his interest if he wills to do so. Just like other kinds of property, an individual can hold ownership, or by two or more than two individuals, by a wife and a husband or business entity.
Just as is the case with other kinds of properties, the condo unit owners have to part with property taxes as required by law. Every unit and the interest in common areas are usually deemed as a package and is taxed and assessed at an individual level. Common areas aren’t assessed and taxed separately. The owner is responsible for the taxes within their own parcel.
Usually, condominiums or unit owners associations are established when the condos are created so as to make sure that all the owners are able to maintain and manage the entire property as a team. Usually, a property manager from outside is assigned so as to deal with all the developments and property management. There are some developments that have homeowners association and condo association where they have responsibilities for different aspects relating to managing the developments as well as its maintenance.
There are governing documents that are created so as to offer guidance on how associations are supposed to operate. They also include some rules that all the tenants, owners and guests need to adhere to. These are the legal documents that can specify anything, including the kind of pets allowed and the consequences of breaking any of the set rules. Some of the consequences can include a lawsuit, forced compliance and even fines.
The association receives dues on different times of the year and this is the responsibility of the unit owners. These dues cover the maintenance and the management expenses. Usually, the dues cover variable and fixed expenses like taxes, pool maintenance, landscaping, garbage removal, building insurance and also something to add to the reserve fund. If the money in a reserve fund isn’t enough, then special assessment can be charged to owners so as to handle the special improvements and projects like furnace and roof repairs and so on.
Source by Shalini Madhav