How does a Condominium Work?
Condo owners often claim to own the “air space” of an area in a multi-unit building. This means that the condo owner’s title to the property excludes the four walls that separate their unit from the other units or common facilities on the property. The condo’s floor, ceiling, sidewalks, stairwells, and outdoor areas are all considered restricted common areas. One popular sort of condominium is a residential high-rise that houses multiple families. However, the concept does not apply only to high-rise buildings or residential properties. Residential townhouses are sometimes converted into condominiums. Office condominiums are one type of commercial property that can be converted into a condo.
The declaration of agreements, conditions, and constraints is a legal document that specifies the rules that condominium unit owners must follow. This document specifies the permissible uses of the unit. It describes how the owner uses both limited and general shared areas. The declaration specifies how the homeowners’ association’s board will be selected. This board oversees the development, orders repairs and maintenance in the shared spaces, and sets fees. Unit owners are responsible for paying condominium fees to the association. These payments often cover the cost of building insurance, shared utilities, and a reserve money for future building maintenance. They may also include fees paid by the association to the management firm responsible for the development’s day-to-day operations. Condo fees are subject to change, and if the building requires serious repair, any costs that are not covered by reserve funds may be billed to the unit owners.