A condominium (condo) in real estate is a legal ownership structure where individuals own separate units within a building or development while sharing ownership and maintenance responsibilities for common areas.
Condos feature deeded interest in each unit—usually from the interior walls inward—and collective ownership of shared spaces such as lobbies, roofs, grounds, and amenities like pools or gyms.
Purchasing a condo grants you a deeded title to your individual unit, giving you full control over the interior space and any improvements you make.
All unit owners share proportional ownership of common elements—parking lots, hallways, landscaping—and decisions about maintenance and repairs are made collectively.
CC&Rs are legal documents that outline owners’ rights and responsibilities, setting rules on everything from exterior modifications to use of amenities and assessments for maintenance.
HOA fees fund upkeep of common areas, landscaping, exterior repairs, security, insurance for shared structures, and access to community amenities.
Monthly fees vary widely: urban high-rises can exceed $500, suburban communities often range between $200–$400, while smaller or less amenitized associations may charge under $200.
Special assessments are one-time charges for major repairs or improvements not covered by the reserve fund; buyers should review association financials to anticipate potential costs.
Lenders typically require 5–20% down on condo purchases; some programs may mandate higher down payments due to association health and condo approval status.
Condo projects often must be approved by lenders or agencies (FHA, VA) to ensure financial stability and compliance; individual borrowers undergo standard credit and income checks.
Mortgage rates for condos can be slightly higher than single-family homes due to perceived risk; buyers can choose fixed-rate, adjustable-rate, or government-backed loans.
The HOA maintains a master insurance policy covering common structures, while owners purchase an HO-6 policy to insure interior improvements, personal property, and liability.
HO-6 typically covers fixtures, appliances, personal belongings, and liability; it excludes damage to common areas, which falls under the master policy.
Premiums vary based on location, building age, amenities, deductible levels, personal coverage limits, and claims history.
The condo board—elected by owners—manages budgets, enforces rules, and hires vendors or management companies.
Bylaws establish governance processes, voting thresholds for budgets or special assessments, and protocols for meetings and elections.
CC&Rs commonly limit pet types or sizes, cap rentals, and require board approval for interior or exterior modifications.
Sarah is a marketing professional searching for an affordable, low-maintenance home near downtown.
She compares associations’ budgets, notes pending special assessments, secures pre-approval with a lender, and confirms the building’s FHA status.
Sarah’s diligence in reviewing CC&Rs, financial statements, and meeting minutes helps her avoid surprises and make an informed purchase.
A condominium is an individually owned unit combined with shared ownership of common areas in a building or development.
Unlike rented apartments, condos are owned; townhomes are attached homes often with exterior maintenance managed by an HOA.
HOA fees pay for common-area upkeep, insurance, amenities, and reserves; typical ranges are $200–$500+ per month depending on location and amenities.
Many associations limit the number or duration of rentals; CC&Rs and bylaws specify rental caps and approval processes.
Owners maintain the interior of their units; the HOA covers common-area maintenance based on the master plan.
Owners need an HO-6 policy for interior and personal coverage; the HOA carries a master policy for shared structures and liability.
Lenders require condo projects to meet certain financial criteria, and down-payment or interest rates may differ slightly due to association underwriting.
Advantages include location, amenities, and low maintenance; disadvantages include HOA fees, restrictions, and less privacy.
A board of elected owners enforces bylaws and CC&Rs, manages finances, and makes decisions via established voting procedures.
Review financial reserves, meeting minutes, pending assessments, rule restrictions, and the association’s litigation history.
Thoroughly read governing documents to understand fees, rules, and reserve funding.
Observing a board or community meeting reveals real-time issues, community dynamics, and upcoming projects.
Factor in HOA fees, special assessments, insurance, taxes, and utilities for a true monthly budget.
Schedule professional inspections to uncover structural, plumbing, or safety issues in both your unit and shared facilities.
Condos offer ownership convenience, shared amenities, and urban living but require fee commitments and rule compliance.
Define your budget, research buildings and associations, secure financing pre-approval, and work with a real estate agent experienced in condos to close confidently.
