If you are buying (or already own) a condominium unit, you probably know that you won't end up with a parcel of land that's all yours, as you would when buying a traditional single family home. But what will you actually own? That's what we'll discuss here, including:
Basically, condo buyers will own the condominium unit itself, and what's called an "interest" (along with all other owners) in the "common elements," sometimes called "common areas," of the condominium project.
Just what the above terms mean depends on the details in the documents governing the condominium project, namely, the condominium map (sometimes called a condominium plan) and the Covenants, Conditions, Restrictions and Easements (CC&Rs), as discussed next.
You can (if you're still in the purchase process) get a copy of the relevant governing documents (condominium map and CC&Rs) from either your real estate agent, a real estate attorney, the title company handling the purchase transaction, or the real estate records in the county the condominium is located in.
The condominium map for the project will depict the exact physical location of the unit: where in the condominium building the unit is located and where the boundaries of the unit are drawn. This makes it a good starting point for learning where the basic lines are between your property and the commonly owned property.
However, looking at the map is not enough. You probably will not be able to tell from the map exactly what things, such as what interior fixtures, or what parts of the doors and windows, are included as a part of the unit you're buying.
The CC&Rs for the project will likely tell you whether the following things are part of your unit or part of the common elements (keeping in mind that the exact determinations vary among condo associations):
Anything that is not part of a condominium unit is ordinarily considered a common element. Not all common elements are alike, however, so if you want to know the extent to which you have a right to use them, you'll need to look a little further. You might see (identified on the map and defined in the CC&R's) what are referred to as "general common elements," "limited common elements," and "exclusive common elements."
General common elements are those that all owners in the condominium project can use. Stairways, lobbies, hallways, and amenities are often found on this list, as is the land the condominium sits on.
Limited common elements are those that fewer than all the owners have the right to use. For example, use of a common patio might be limited to all owners of a certain floor of the condominium building .
Exclusive common elements are limited common elements that only the owners of one unit have the right to use. (Some condominium projects do not separately define these as exclusive, but as limited common elements with "exclusive use rights.") For example, a balcony accessed by only one unit, or a parking space assigned to a specific unit, might be an exclusive common element.
As a buyer of a condominium unit, you might be concerned only with having a nice place to live. Why bother with the details about what your unit actually includes? Well, apart from knowing just what you are spending your money on, there are a number of reasons to understand exactly what's included with your unit, as described below.
Your maintenance responsibilities with respect to the property, and therefore your costs for repairs and so on, will depend on what you actually own. A unit owner is usually made responsible for the maintenance of everything that is a part of the unit.
So, for example, if a "unit" in your condominium complex is defined to include the exterior shutters on windows, those will be your responsibility to maintain. If the shutters fall apart a couple of years after you move in, you will likely not be able to call on the condo association for help (barring evidence that the shutters were defective to begin with.)
However, the owner's association for the condominium project (often called the "HOA") is typically responsible for the maintenance of anything that's a general common element. So, if the shutters are not a part of the unit, but instead are included in the definition of the general common elements, you can leave their maintenance to the association.
When it comes to limited and exclusive common elements, however, things can get confusing. The terms of the CC&R's determine who has the responsibility to maintain, repair, or replace these .
The condominium association must, in most cases, repair and replace limited common elements, but the owner or owners with rights to use the limited common elements might have the responsibility to keep them in good condition and repair. For example, if the shutters in your community are considered a limited or exclusive common element used by your unit only, you might be responsible for their general upkeep; but if they blow off in a windstorm, the association might be responsible to replace them.
The only way to know exactly what things you must maintain, repair, or replace as an owner is to look to the terms of your project's CC&Rs.
Anything that you don't own outright is probably not going to be yours to use or change without specific rights having been granted to you under the association documents. So, it's important to know what is and is not included a part of the unit.
For example, if you purchase a unit and decide at some point you want to do a remodel that requires moving an interior wall, and if the wall turns out to be a common element, you might have just kissed your remodel plans goodbye. If you are not the owner of the wall, you have no right to alter it without the approval of the association.
Knowing what you own, and what you are responsible for, can also help you know where to turn if something goes wrong. If, for example, a huge windstorm knocks off half your deck railings, or a flood ruins your walls, you'll need to know who owns these to determine whether it's a problem your own homeowner's insurance should cover, or whether the association's insurance is responsible for coverage.
In some cases, unfortunately, the unit owner's insurance won't cover it, but the condo association hasn't bought sufficient insurance, leaving homeowners in the lurch.
If you are trying to figure out what exactly you will be buying when purchasing a condominium unit, or what you already own, a real estate attorney in your area can help. The attorney can get a copy of the condominium map and the CC&Rs for the condominium project, help you review them, and point out exactly what is included in the unit.