Understanding Ownership in Condominiums: Do I Own the Building?

When you purchase a condominium, you may wonder: who owns the building and the common areas? The short answer is that while you own your individual unit, the building and common spaces are typically owned collectively by all unit owners through a Homeowners Association (HOA) or Condominium Association (COA). This collective ownership and management model ensures that all residents benefit from shared spaces and services.

Role of the Condominium Association

The condominium association, often referred to as the Condominium Association (COA), is a separate legal entity that manages the building, maintains common areas, and enforces community rules. All unit owners are members of this association and contribute to its operations through monthly fees known as condo fees. These fees are used to upkeep and service shared facilities such as hallways, elevators, and recreational spaces.

Ownership Details

When you purchase a condo, you only own the inside of your unit, which extends from the midpoint of the wall inward (or sometimes only the drywall over the studs, depending on your condo’s specific property documents). The structure of the building, including its walls, roof, and any amenities attached to it, is considered common property. This common property is owned collectively by all condo owners.

To understand the extent of your ownership in the common elements, you should carefully review your governing documents. These documents outline your specific share of the common areas. The percentage of common elements you own can vary based on factors such as the size of your unit or the specific rules set by your association.

Examples and Clarifications

In most cases, if there are 100 units, you would own a percentage of the roof, walls, pool, and other common spaces. For instance, if you own a unit in such a building, you might own 1% of these shared facilities. This shared ownership is referred to as percent ownership of common elements.

It's important to note that in some instances, the land on which the building sits may still be owned by the developer or an assignee. While you will likely have the right to continue living in your condo, you should take into consideration the long-term implications of this.

Consequences of Shared Ownership

Your share of the common property means that you share the financial responsibility for its maintenance and upkeep. This includes regular maintenance tasks, as well as any larger assessments that may arise due to unexpected repair costs, such as a new roof or major lawn work.

While some shared spaces may be maintained by the association, you might also have a secondary fee for yard work and parking lot maintenance. These fees can vary, so it's important to review your property documents to understand what you are responsible for.

Typically, the condo contract will specify what services and responsibilities are covered by the association versus what you are individually responsible for. This can include things like structural repairs, regular maintenance, and any large-scale improvements or replacements.

By understanding your specific share of the common property and the responsibilities that come with it, you can better appreciate how your condo works and what you can expect from your association's management.

Understanding the dynamics of condominium ownership is crucial for any new or existing condo owner. By knowing who owns what and what responsibilities come with it, you can make informed decisions and enjoy a comfortable and secure living environment.