Real Estate Law · Haute Lawyer Network
What Is a Condominium and How Does Ownership Work?
Last reviewed: June 2026
A condominium is a form of real estate ownership in which individual units are owned separately while common areas — lobbies, hallways, amenities, and building systems — are owned collectively by all unit owners as tenants in common. Each unit owner holds a deed to their individual unit and an undivided interest in the common elements.
Condominium ownership is governed by a set of recorded documents — the condominium declaration (the primary governing document establishing the condominium and recording boundaries and common areas), the bylaws (governance rules for the condo association), and the rules and regulations.
The condominium association — composed of all unit owners — is responsible for maintaining and managing the common elements, funded through regular assessments (monthly or annual maintenance fees) and special assessments for major unexpected expenses.
Frequently Asked Questions
What is the difference between a condominium and a cooperative?
In a condominium, you own your unit and a percentage of the common areas as real property. In a cooperative (co-op), you own shares in a corporation that owns the building, with a proprietary lease giving you the right to occupy your unit. Co-ops are common in New York City.
What is a condo association's right to approve buyers?
Many condominiums have right of first refusal provisions allowing the association to purchase a unit before a third party can buy it. Some associations can approve or reject prospective buyers — though approvals cannot be based on protected characteristics.
What are special assessments?
One-time charges levied by the condo association to fund major capital expenditures not covered by reserves — such as a roof replacement or elevator overhaul. Special assessments can be substantial and unexpected.
Do I need title insurance for a condominium?
Yes. A condominium owner's title insurance policy protects against the same title defects that affect other real property — plus condominium-specific issues such as the association's compliance with its governing documents.
What are reserve funds?
Funds set aside by the condo association for future capital expenditures. Well-funded reserves reduce the likelihood of special assessments. Prospective buyers should review the reserve study and reserve fund status before purchasing.
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