Condominiums and Homeowner Associations

Question 1

Condominiums

Answer 1

• each owner owns the interior of their individual unit plus an undivided interest in the exterior or common elements
• because condominium unit ownership is treated as fee ownership, the ordinary rules against restraints on alienation apply

Question 2

HOAs - Membership

Answer 2

• owner of each condo is a member of the HOA
• members vote to elect board -> manages the property
• HOA usually a legal entity, such as corporation or LLC
• HOA oversees the common elements

Question 3

HOAs - Association Rule

Answer 3

• most pass charters + bylaws that place requirements or restrictions on each owner’s use of her property
• contained in declaration of covenants, conditions + restrictions (CC&R)-> prescribe what owners can + can’t do w/ property
  -> Board enforces these

Question 4

HOAs - Fees

Answer 4

• each condo unit owner must pay regular dues to HOA which are used by the association to maintain common elements
• can also impose special assessments (one-time fees assessed against all residents for certain expenses dues don’t cover)

Question 5

Cooperatives

Answer 5

• title to land + buildings held by a corporation that leases individual apartments to its shareholders
• b/c of economic interdependence + b/c individual owners regarded as tenants, a direct restraint on the alienation of an individual interest is valid