CONDOMINIUMS AND HOMEOWNERS’ ASSOCIATIONS

Question 1

CONDOMINIUMS

Answer 1

• In a condo, each owner owns interior of their individual unit plus an undivided interest in exterior & common elements.
• B/c ownership is treated as fee ownership, ordinary rules against restraints on alienation apply.

Question 2

HOMEOWNERS’ ASSOCIATIONS: Membership

Answer 2

• Owner of each condo is a member of HOA.
• Members vote to elect a board, which manages the property.
• Association is usually a legal entity

Question 3

Association Rules

Answer 3

• Most HOAs pass charters & bylaws that place requirements/restrictions on each owner’s use of property.
• Rules are in a declaration of covenants, conditions, & restrictions (CC&R) that prescribe what owners can & cannot do w/ their property.
• Ex. CC&Rs might prohibit pets or the posting of “for sale” signs or require that balconies be kept free of trash.

Question 4

Fees

Answer 4

• Each condo unit owner must pay regular dues to HOA which are used by association to maintain common elements.

Question 5

COOPERATIVES

Answer 5

• In a cooperative, title to land & buildings is held by a corporation that leases individual apartments to its shareholders.
• A direct restraint on alienation of an individual interest is valid.