{"id":369379,"date":"2016-04-04T10:47:24","date_gmt":"2016-04-04T15:47:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/condominiums-and-cooperatives.html"},"modified":"2023-11-30T11:29:44","modified_gmt":"2023-11-30T16:29:44","slug":"condominiums-and-cooperatives","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/condominiums-and-cooperatives.html","title":{"rendered":"Condominiums and Cooperatives"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Condominiums and Cooperatives<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/aisha-success-esq\/\">Aisha Success, Esq.<\/a>\n                | Last updated\n        <time>\n                            November 30, 2023\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Condominiums and cooperatives are forms of common-interest ownership of property. Some state laws or&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/statute.html\" target=\"_blank\" rel=\"noopener\">statutes<\/a>&nbsp;refer to them jointly as common-interest communities. Common interest developments (CIDs) are types of communities that are maintained by&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/home-owners-associations.html\">community associations or homeowner associations<\/a>&nbsp;(HOAs).<\/p>\r\n<p>Real property that is part of a condominium project or planned community may be subject to&nbsp;one or both of the following:<\/p>\r\n<ul>\r\n<li>Uniform Common Interest Ownership Act (UCIOA)&nbsp;<\/li>\r\n<li>Uniform Condominium Act (UCA)<\/li>\r\n<\/ul>\r\n<p>The UCIOA and UCA are model templates that states can follow in creating statutes that govern CIDs. These laws will affect the rules in governing documents created by owners&#8217; associations. Property owners in condos and cooperatives share common elements. Thus, the documents regulate their ownership interests.<\/p>\r\n<p><a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/ccrs.html\">Covenants, conditions, and restrictions (CC&amp;Rs)&nbsp;<\/a>and bylaw amendments restrict unit owners. HOA board members or board of directors can require residents in condominiums and cooperatives to:<\/p>\r\n<ul>\r\n<li>Maintain certain decor in their units<\/li>\r\n<li>Respect their neighbor&#8217;s rights of way in common areas<\/li>\r\n<li>Refrain from keeping certain kinds of animals<\/li>\r\n<li>Control noise levels<\/li>\r\n<\/ul>\r\n<p>The UCIOA and UCA may guide the extent and legality of these restrictions. In general, federal and state laws invalidate CC&amp;Rs that violate public policy. For example, governing documents that discriminate against homeowners will violate housing laws. HOA rules that violate the law cannot be enforced in court.<\/p>\r\n<h2>Condominiums<\/h2>\r\n<p>By far the most popular form of common ownership is the condominium. A condominium, or condo,&nbsp;is characterized by separate ownership of identified portions of property. Some&nbsp;examples&nbsp;of condo ownership&nbsp;include:<\/p>\r\n<ul>\r\n<li>Individual apartment in a multi-unit building<\/li>\r\n<li>Undivided or joint ownership of the remainder, such as&nbsp;the common areas of that apartment building<\/li>\r\n<\/ul>\r\n<p>The most common form of a condominium is the residential, high-rise apartment-style building, but the condominium concept is not limited to this form. Condominiums exist in commercial real estate settings, such as office condominiums. They also exist in other residential forms, such as condominium townhouses.<\/p>\r\n<p>A condominium is a form of ownership, not a type of building. Existing apartment buildings can be turned or&nbsp;converted&nbsp;into condominiums. Condominiums can be changed back into traditional apartment buildings. Condominium units can be bought and sold individually. Each can be transferred with a separate deed and mortgage, as would be the case if each were a separate single-family home. At the same time, each condominium owner retains an undivided interest in the common areas, such as:<\/p>\r\n<ul>\r\n<li>Hallways<\/li>\r\n<li>Exterior grounds<\/li>\r\n<li>Landscaping and the like<\/li>\r\n<\/ul>\r\n<p>In general, the condominium is&nbsp;created by a condominium declaration. The declaration includes, among other provisions:<\/p>\r\n<ul>\r\n<li>Descriptions of the units and common areas<\/li>\r\n<li>Any material restrictions on the occupancy or use of the units<\/li>\r\n<\/ul>\r\n<h2>Condo Management<\/h2>\r\n<p>The condominium is managed by the Condominium Association, which:<\/p>\r\n<ul>\r\n<li>Is composed of the owners of the individual units<\/li>\r\n<li>Makes and enforces rules,&nbsp;much like the landlord of a traditional apartment building<\/li>\r\n<li>Sets and collects the dues and maintenance fees necessary to maintain the structure<\/li>\r\n<li>Manages the common areas<\/li>\r\n<\/ul>\r\n<p>The rights associated with a common-interest ownership will also be governed by state law. All fifty states have passed statutes governing condominiums. Some have passed broader statutes governing common-interest communities in general.<\/p>\r\n<p>Any prospective condominium buyer should have an understanding of:<\/p>\r\n<ul>\r\n<li>The restrictions and conditions contained in the condominium&#8217;s declaration<\/li>\r\n<li>The rules and regulations established by the association<\/li>\r\n<li>The powers of the association<\/li>\r\n<\/ul>\r\n<p>In any common-interest community, much of what an owner can do is governed by a vote of the owner&#8217;s neighbors. That includes maintaining the property and its facilities, as well as paying fees and assessments.<\/p>\r\n<h2>Cooperatives (Co-ops)<\/h2>\r\n<p>A cooperative is also a form of shared or common-interest ownership, but it is much less common than a condominium. Real estate cooperatives are formed on the same theory as other cooperative organizations. Examples of cooperative organizations include banking or credit cooperatives. They are owned by and operated for the benefit of those using the organization&#8217;s services.<\/p>\r\n<p>There is a major difference between a condominium and a cooperative. The co-op distinction is that each owner does not have outright ownership of any specific, identifiable unit. Rather, title to the entire property is held by the cooperative,&nbsp;usually a corporation. The residents own stock in that corporation. As shareholders, the residents elect directors to manage the building. In turn, the co-op corporation provides each resident with a long-term renewable lease to their specific apartment unit.<\/p>\r\n<h2>Having Issues? Contact a Lawyer<\/h2>\r\n<p>Consulting with a&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>&nbsp;experienced in condominium and cooperative law can go a long way. It ensures that prospective purchasers&nbsp;know what they are buying into. Additionally, a lawyer can help explain an owner&#8217;s rights if and when a dispute arises.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        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3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p 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