Condominiums

A "condominium" is a form of home ownership in which the property is made up of "units" and "common elements." The unit is typically the residential interior, and the common elements are all other areas in the property. A unit owner in a condominium owns the unit in his or her own name and has an undivided interest in the common elements. A condominium can be a townhouse-type development, in which the interior of the townhouse is the unit and all other areas, such as yard areas, parking lots, sidewalks and driveways are common elements. A condominium can also be an apartment structure, in which the interior of the apartments are units and the other areas, such as elevators, stairwells, parking areas and sidewalks, are common elements.

Condominiums are popular for several reasons. They have a freedom of maintenance that is not enjoyed in a separate single-family residence because the care of the property outside of the unit is the responsibility of the condominium association. This makes them similar to an apartment. Yet the owner of a condominium can enjoy the appreciation in market value of the unit, and the mortgage interest and real estate taxes are deductible, like other homes.

But condominiums are not the right choice for everyone. It may be a somewhat different lifestyle than you are accustomed to. People with large families or who want to be completely in control of their property may find the limitations of condominium living too restrictive. You are required to pay your share of common area expenses even if you disagree with a condominium association decision, such as painting exteriors or repaving driveways.

If you are considering the purchase of a condominium unit, it is important for you to review the Condominium Declaration and the rules and regulations of the unit owners association to understand what your rights and responsibilities will be as a unit owner.