Definitions
The realm of condominium (condo) law encompasses various terms that are pivotal for understanding how condos are managed, bought, sold, and lived in.
By-Laws:
The rules governing the internal management of the condominium corporation, including the duties of the board of directors, voting rights, and procedures for meetings of the corporation.
Condominium (Condo):
A form of real estate ownership where individual units of a larger complex are owned by individuals, and common areas are owned jointly by all unit owners.
Common Elements:
Parts of a condo complex that are owned by all unit owners collectively. This includes the land, exterior of buildings, hallways, roofs, amenities, and any other spaces designated for shared use.
Declaration:
A legal document that, along with by-laws, outlines the condominium's governance, operations, and rules. It may include descriptions of common and private elements, ownership rights, and restrictions.
Condo Board or Board of Directors:
An elected group of unit owners who manage the daily affairs of the condominium corporation, enforce the declaration and by-laws, and make decisions regarding the maintenance and administration of the common elements.
Exclusive Use Common Elements:
Parts of the common elements designated for the exclusive use of one or more unit owners but are not owned by any individual owner. Examples include balconies, parking spaces, or storage areas.
Homeowners Association (HOA):
An organization in a condominium or similar residential complex that makes and enforces rules for the properties and its residents. Those who purchase property within an HOA's jurisdiction automatically become members and are required to pay dues, known as HOA fees.
Management Company:
A third-party entity hired by the board of directors to manage the day-to-day operations of the condo complex, including maintenance, financial management, and enforcement of rules.
Master Deed:
A document similar to a declaration that establishes the existence of the condominium and contains descriptions of the common and individual units.
Reserve Fund:
A savings account or other form of financial account that is used to cover future maintenance and repairs of common elements within the condominium complex. Condo laws typically require a portion of homeowners' association fees to be allocated to the reserve fund.
Special Assessment:
An additional charge to condo owners, over and above the regular HOA fees, for unexpected repairs or unforeseen expenses related to the common elements.
Unit:
The individual apartment or space within a condominium complex owned by the unit owner. The boundaries of the unit are usually defined in the declaration.
