Def: Condominium

CONDOMINIUM DEFINED

Con·do·min·i·um

/ˌkändəˈminēəm/

DEFINITION: Condominium - A form of joint ownership of real property. Three distinct parts make up a condominium.

1. Exclusive ownership of a single unit

2. Joint Ownership, as tenants-in-common with others of the common areas

3. An Agreement or scheme among owners for the management and administration of the total condominium property

A Condominium is not accurately described when one refers to an individual unit being occupied or owned. A Condominium is the entire grouping three specific parts; the exclusive ownership of a unit, the joint ownership as tenants in common and the association. These are all distinctly separate pieces that are grouped together to define the entirety of a C O N D O M I N I U M.

In short a condominium is comprised of the UNIT, COMMON ELEMENTS, and ASSOCIATION.

UNIT

This is defined as the portion or part of the condominium property which is subject to EXCLUSIVE ownership. In order to find the boundaries and description of each unit find the DECLARATION of CONDOMINIUM.

In order to use the unit owners must abide by the RULES and REGULATIONS set forth by the ASSOCIATION.

COMMON ELEMENTS

The portion of the condominium property jointly owned by all of the owners. No portion of common elements is subjected to exclusive OWNERSHIP. However the common elements are subject to exclusive USE by a particular unit if the Declaration of Condominium permits it. If there are common elements that are established for exclusive USE then they are referred to as "Limited Common Elements", (ex. Balconies, Patios, Storage Lockers, Assigned Parking Spaces, etc.)

ASSOCIATION

The corporate entity responsible for the management and operation of the condominium property. The board of administration (directors) are responsible for the association. Associations are required to be either a For-Profit or Not-For-Profit Corporation. An association is created by the ARTICLES OF INCORPORATION. The Association is the designated representative of unit owners, they are authorized to act on behalf of all members concerning matters of common interest.

*All owners are members of the association, this is an appurtenance to their ownership of a Condominium Unit. No member is allowed to act for the association simply by virtue of being a member.

PROSPECTUS

A prospectus sets forth in an outline the summary of all restrictions, financial obligations, and liabilities of an owner in the condominium.

What is contained in a PROSPECTUS?

• A copy of the Annual Financial Report

• Governance Form

• Summary Sheet entitled "Frequently Asked Questions and Answers" - informs owners about key provisions in the condominium documents relating to use restrictions, voting rights, and individual financial responsibilities and other important matters.

ARTICLES OF INCORPORATION

Establishes which parts of the condominium are to be maintained for maintenance, management and outlines the operation of common elements and property.

BYLAWS

Establishes the internal governance for the associations and procedures for carrying out the responsibilities of the association. Defines the powers & procedures for the board of directors.

RULES AND REGULATIONS

Supplemental restrictions and procedures authorized by the BYLAWS.