BAR FLASHCARDS - P16 Condos
CONDOMINIUMS AND HOMEOWNERS’ ASSOCIATIONS
.
CONDOMINIUMS
In a condominium, each owner owns the interior of their individual unit plus an undivided interest in the exterior and common elements. Because condominium unit ownership is treated as fee ownership, the ordinary rules against restraints on alienation apply.
What are some examples of common elements? Common walkways, halways, pool, gameroom.
HOMEOWNERS’ ASSOCIATIONS
- Each condo owners is member
- Oversee common elements
- Board enforces Coventans, conditions, restrictions (CCRs)
- Special assessment = one-time fee if dues do NOT cover an expense.
Membership: The owner of each condominium is a member of the homeowners’ association (HOA). The members vote to elect a board, which manages the property. The association is usually a legal entity, such as a corporation or LLC. What does the HOA oversee?
Association Rules Most HOAs pass charters and bylaws that place requirements
or restrictions on each owner’s use of her property. These rules contained in what’s called a declaration of covenants, conditions, and restrictions (or CC&R) that prescribe what owners can and cannot do with their property. For example, CC&Rs might prohibit pets or the posting of “for sale” signs or require that balconies be kept free of trash.
Who enforces the CC&Rs?
Fees: Each condominium unit owner must pay regular (for example, monthly) dues to the HOA which are used by the association to maintain the common elements. But what if the monthly fees are insufficient to pay necessary expenses (for example, a major roof repair is needed)?
COOPERATIVES
In a cooperative, title to the land and buildings is held by a corporation that leases individual apartments to its shareholders.
Because of their economic interdependence and because the individual owners are regarded as tenants, a direct restraint on the alienation of an individual interest is valid.
