What Is A Condominium Exactly?

by | Mar 13, 2013 | Real Estate

A condominium is often though as being a certain kind of building, it is not. A condominium refers to the ownership of the building regardless of what its style is. A condominium corporation is a legal form of ownership whereby individual ownership in a multi-family building or multi-unit complex as well as a proportionate share of the common space and amenities is titled.

The buildings most often thought of as residential condominiums can be high rise units, townhouses, semi detached and attached single family homes and mid rise loft style. Commercial units can also be condominiums where individual stores or shops in a complex form the unit, plus a share of the common space.

The responsibilities of condo ownership

The owner of the condominium, regardless of the building or whether the property is for residential or commercial use holds a negotiable title to the specific unit purchased while at the same time sharing with all other unit owners the title and cost of running the complex. The term condominium does not refer to the building itself, as noted the buildings can be high rise, low rise or any kind of property imaginable. In Jacksonville condos for sale include those located on the beach or in the city and suburbs.

The common areas in condominium buildings include halls, staircases, lobbies, the laundry area, recreational facilities etc. Condo ownership may also include limited common elements which normally refer to parking spaces, storage rooms etc.

Condominium ownership is very different to owning a housing unit in a co-op. In the condominium the unit is owned outright whereas a co-op is a legal entity wherein you purchase shares of stock in the corporation that is formed to own the complex and then the stock holder gets a proprietary lease on the unit purchased. The lease gives exclusive rights to the unit as long as all financial obligations are met and that the stock owner abides by all the rules of the corporation. Jacksonville condos for sale are rarely co-operative units; they are owned outright and are deeded.

Leasehold condos, the drawbacks

There is also what is known as “leasehold condos”. These are units that you own but the unit sits on land owned by a third party and all the owners pay rent to the land owner. The lease that the condo association or individuals have with the land owner may include a provision for rental increases, usually tied to the consumer price index. Some Jacksonville condos for sale that are considered “leasehold” will offer the owner the right to purchase the land in the future, if this is not a provision then the units revert to the owner of the land at the termination of the lease period.

Jacksonville condos for sale invariably have an association which can be considered as the governing body of the project. The board of the association is made up of unit owners and they are charged with the responsibility of management and operations.

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