A condominium is a form of real property consisting of condominium units and common elements. Condominium Units are the parts of the condominium property which are subject to exclusive ownership. Common elements are the portions of the condominium property not included in the Condominium units. Proportionate ownership of the common elements is an appurtenance to a unit, meaning that it comes with the purchase of a unit and cannot be divided from the unit. Every owner of a condominium Unit is a member of the Homeowners Association.

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The declaration of condominium is one of the most important condominium documents as it is the document that creates the condominium (when it is recorded in the official records of the county in which the condominium is located). Some of the issues addressed in the declaration include: membership and voting rights of unit owners; the manner of sharing in the common expenses, common surplus, and ownership of the common elements; the maintenance responsibilities of the association and of the unit owners; identification of the units; use restrictions; the manner in which alterations may occur within the condominium; insurance requirements of the association and of the unit owners; rights of the developer during the period of developer control and the sale of units; and procedures for amending the declaration. Reading this document will assist you to understand what you will own when you purchase a condominium unit. A purchaser usually obtains ownership and exclusive possession of everything inside the unfinished interior surfaces of the walls, floors, and ceilings of the unit, including the interior partitions, cabinets, appliances, and fixtures. The land and structural parts of the building are usually common elements.

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The association’s articles of incorporation address: the purpose of the articles, the powers granted to the association, the rights of members, the number of directors and officers, an indemnification clause for directors and officers, and procedures for amending the articles.

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The association bylaws address items such as: the type, frequency, and location of meetings; meeting notice requirements; powers and duties of the association; duties of officers and directors; procedures for amending the bylaws; use restrictions; financial reporting and other pertinent information.

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A Homeowner Association is typically a not for profit corporation registered with the state in which the property is located. The Association is responsible for operating the condominium. The association’s responsibilities include maintaining, repairing, and protecting the land and the facilities in the condominium such as swimming pools, landscaping, clubhouses, common amenities, etc. The condominium association is run by a Board of Directors, initially appointed by the developer, but ultimately turned over to unit owner elected directors.

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The association is funded by a pre-determined monthly assessment collected from each individual property owner. Maintenance and operating expenses are paid from these funds, as well as reserve accounts for capital repair and replacements established in accordance with the annual budget.

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The estimated operating budget provides estimates of various common expenses that are to be shared by the unit owners. The budget also includes information regarding future capital expenditures and deferred maintenance projects and related reserves. The budget is initially established at the beginning of a project conversion based on prior operating history of the apartments and based upon the Developer’s past experience in the operations of condominium associations.

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Depending upon the filed declaration documents creating the condominium and the Homeowners Association, the monthly Homeowner Assessments are typically based on the Estimated Operating Budget established at the beginning of a project, which is then allocated to each unit owner based upon the percentage of ownership assigned to each unit within the condominium project. The percentage ownership ratio is set forth in the recorded declaration and does not usually change. Each year a new operating budget is approved by the Board of Directors of the Homeowner’s Association and the new budget creates the basis for the individual unit allocation of the monthly Assessment.

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Yes. However, this depends on the effects of the overall economy and the costs of various services. If the Board of Directors establish the assessments on an annual basis, the assessment will typically remain constant for the year unless: a certain majority of the homeowners vote to increase services that demand an increased assessment, or the Board of Directors increases the assessment with a 'board action' in accordance with the association's legal documents. There are limitations on the amount by which an assessment can be increased each year. These limitations are contained within the Declaration.

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Condominium life requires that you live in close proximity to your neighbors, abide by restrictions on the use of your unit and common elements, and that you be personally involved in the operation of your condominium association. In order to protect your investment, it is important to attend meetings to keep informed on the issues pertaining to the operation of the condominium.