What is a Condominium?

The word condominium comes from a Latin word meaning common ownership or control. Ordinarily, it means individual ownership of all the space inside the inner walls of an apartment or house and common ownership of the structures and land. This division between exclusive and common ownership exists regardless of the form or design of the project. The project may take the form of a high-rise, duplex, townhouse or single family dwelling. 

 

Some of the commonly owned property such as your patio or balcony or carport space is called limited common elements and is restricted to use by your family only.  The rest of the common elements-roads, green areas, recreation facilities-are termed general common elements and are available for use by everyone in the development.

 

The co-owners of a condominium are legally organized into an association, which is responsible for governing and maintaining the common elements for the condominium. Each co-owner pays a monthly fee or assessment for these services.

 

 

How they began

Condominiums are not a new concept in housing. The Romans used them and they were popular in the walled cities of the Middle Ages in what is now Western Europe. In the first half of the 20th century, other European countries enacted statues permitting condominiums.

A few condominiums existed in the United States as early as 1947, but they were not legally established in this country until 1961.

 

 

The buyer and the Association

When you take title to your unit, you automatically become a co-owners and a voting member of the co-owners' association formed to administer the affairs of the condominiums. The association is usually a non-profit corporation.

 

 

Who's in Charge?

The association is governed by a board of directors appointed by the developer until the first annual meeting. This initial meeting of the co-owners to elect members to the board of directors may take place one year or more after the master deed is recorded. The provisions for holding the annual meeting and designating the voting procedures are included in the condominium bylaws, along with other information about the operation of the association.

 

 

Associations have Bylaws Too!

The association also operates under its own the State of Michigan bylaws, in addition to the Pheasant Run Condominium bylaws. Association bylaws provide for the operation of the association as a non-profit corporation including details regarding officers, directors, meetings, the order of business and so forth.

 

 

Rights and Responsibilities

The association usually is responsible for maintenance of the outside of the condominium units, such as hallways, lobby, building exterior, lawn care, snow removal, trash pick-up, and operation of the common elements, including the recreation facilities. These jobs are done through a management firm or manager hired by the association, by an employee hired directly by the association, or, in some cases, by co-owners themselves

The association sets fees for the maintenance of those common elements which fall under its responsibility as stated in the master deed or other condominium documents and may increase the charges. Special assessments may be made by the board of directors to cover capital improvements, but generally, any substantial increase in the monthly assessment must first be approved by a vote of the co-owners. The condominium bylaws often set the dollar limit on what may be approved by the board of directors without a vote of the co-owners.

The condominium bylaws also provide methods for settling disputes concerning interpretation or application for the master deed, bylaws, management agreement or between co-owner, between co-owners and the association, or between the association ad the management firm.

 

 

The Co-Owners

While the association is responsible for maintaining the common elements of the condominium, you are responsible for the maintenance and upkeep of your unit interior.

There may be restrictions on your use of your unit that can be enforced by the association. They include such things as restrictions on pets; selling or renting your unit to someone of your choice; willing it to another person. Check for these in the condominium bylaws,

The association also sets rules for use of the recreational facilities and other common elements. It may require the approval of repairs or structural modifications you wish to make in your unit. If you mortgage your units, you must notify the association of the name of the lender who is holding the mortgage, and the association may inform the mortgage holder of unpaid assessments due from you for your unit. Late charges and other penalties for non-payment of assessments are also common provisions found in the condominium bylaws. Late charges and other penalties for non-payment of assessments are also common provisions found in the condominium bylaws.

The monthly assessment is considered as lein on the condominium and you cannot exempt yourself from paying it, whether you use all the facilities provided or not.

 

All condominium associations created and operating under the Condominium Act must make provisions for a reserve fund to be used for major repairs and replacement of common elements. Ultimately, the co-owners must determine whether the mount kept in the reserve account is adequate for their project.

 

 

Condo Advantages

Condominiums account for an increased sharing of the housing market. There are several reasons for this:

• Condominiums, like single-family homes, offer owners certain tax deductions, appreciate inequity value and (unlike rentals) offer the assurance of long-term occupancy.

• Condominiums often are more to shopping and business facilities due to land use patterns and demand less individual maintenance than single-family homes.

• Condominium projects may contain more recreational facilities (such as swimming pools and tennis courts) than an individual homeowner could reasonably afford.

• Condominiums are an economical and environmentally sound use of land compared to a subdivision containing the same number of living units.