A Condominium is typically an individual unit within a residential building complex. The National Association of Realtors (NAR) explains that when a condo is owned, this usually includes the individual unit and a percentage interest of the land, building, common areas and amenities.
In alignment with NAR, blog publications from ARMLS explain, “A condominium is not a type of property you dwell in, but rather the type of ownership you have of that property.” Remember, condo is a generic description of a property type that could mean several different things.
Let’s Dig Deeper
NAR explains that when a person buys a condominium, they will own the individual unit while sharing ownership of common areas with other residents. “Condos are operated by homeowners’ associations (HOAs) that maintain these shared spaces, enforce community rules, and collect monthly condo fees to cover maintenance, operations, and building amenities.”
Have More Questions?
If you are still unsure, check the tax records in CurbView, talk to your broker, read the Condo Covenants, Conditions and Restrictions (CC&Rs) and consult with the lender, if possible. Additionally, NAR recommends being up-to-date with condominium underwriting guidelines that lenders must follow.
Consumer Guidelines
According to NAR, the potential buyer should exercise due diligence. Some tips are:
- Talk to your lender and insurance agent
- Request a copy of all governing documents
- Find out about the COA’s finances
- Ask about any past or planned special assessments
- Find out about the COA’s fees and fines
