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What are Condominiums?

Condominiums, also known as "condos," offer many of the same amenities as home ownership, except that the development is managed by an "association" that acts much like a company's board of directors. Individual owners of condominium units share in ownership of common areas, such as corridors and recreation rooms indoors and courtyards outdoors. The association makes sure that the common areas are kept in good repair. There may be an on-site superintendent, or there may be a maintenance crew on call.

Sale and Ownership

Condominium sales are treated just like house sales; the buyer secures a mortgage and on the day of purchase receives an actual deed for the unit. The deed does not grant the same level of ownership that a deed to a house would provide. All the buyer really owns is their unit. Because the common space is jointly held by all the residents, they are restricted and often prohibited from making any changes, even beneficial ones. Thus, a condominium owner who wants to renovate indoors can install new fixtures, tear out non-supporting walls, even install a new kitchen or bathroom. That same owner is probably not allowed to do any exterior painting or do any gardening outdoors, not even moving a bush or planting a tree without the approval of the condominium association. (In some complexes, property is set aside for this purpose, but even then any plantings must conform with the overall character of the development.)

Condominium Property Characteristics

Condominiums can take many forms structurally. They may be like regular apartments, or they may be townhouses. In fact, many are converted apartment houses or townhouse complexes. Some condominium communities actually offer individual standalone houses; these communities look like typical housing tracts, but again the residents own only their unit. Even though each may have a fair amount of property, that property is managed by the association and not the individual owners.

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