Owning a condominium is a unique form of property investment, offering a blend of private ownership and shared community responsibility. To fully understand your investment and avoid potential disputes, it is crucial to know your rights and responsibilities as defined by the governing law, the Condominium Act.
This article breaks down the essential definitions and privileges every condo owner must know.
What Exactly is a Condominium?
Legally, a condominium is a distinct interest in real property. It consists of two main components:
A Separate Interest in a Unit: This is the private space intended for independent use (residential, industrial, or commercial).
An Undivided Interest in Common: This is a shared ownership stake in the land and all the Common Areas of the building.
The Condominium Project refers to the entire property divided into these units, including all structures on it.
Unit Boundaries: What’s Yours?
Your unit is your exclusive domain. The boundaries of this granted space generally include the interior surfaces of the perimeter walls, floors, ceilings, windows, and doors.
It is critical to understand what is excluded from your unit and forms part of the Common Areas. This includes load-bearing walls, columns, floors, roofs, foundations, lobbies, stairways, and hallways. These are the structural and communal elements.
If your Condominium Corporation’s declaration of restrictions specifies different boundaries, that document supersedes the general rule.
Co-Ownership and the Condominium Corporation
When you purchase a unit, you become more than just a homeowner—you become a co-owner of the entire project.
The Common Areas are owned and held by the Condominium Corporation, which is formed specifically for this purpose. As a unit owner, you are essentially a member and shareholder in this corporation.
Important Note: Ownership over a condominium unit, and thus shareholder status in the corporation, is typically acquired only after the full purchase price has been paid (as established in cases like Sunset View vs. Campos).
Four Fundamental Rights of a Condominium Owner
Your status as a unit owner and corporation shareholder comes with specific, legally protected rights:
- Exclusive Airspace Easement. The exclusive right to use the airspace within the boundaries of your unit, allowing you to lawfully alter or reconstruct the unit over time.
- Equal Share in Common Areas. The right to an equal, undivided share in the common areas, proportional to your unit’s interest.
- Right to Interior Decoration. The exclusive right to paint, tile, and apply other forms of decoration within the interior surfaces of your unit.
- Absolute Right to Sell/Dispose. The absolute right to sell or otherwise dispose of your unit. Caveat: This right may be subject to a “right of first refusal” clause, which requires you to offer the unit to existing condominium owners within a reasonable period before offering it to outside parties, if stipulated in your deed of restrictions.
Selling Your Condominium Interest
When you sell your condominium unit, you are not just transferring the physical unit itself. You are simultaneously selling three things:
The separate interest in your unit.
Your interest in the common areas.
Your membership and shareholdings in the Condominium Corporation.
Partition and Protection of Common Areas
The Condominium Act provides a clear rule regarding the project’s longevity and common areas. An action can be brought to partition (sell) the entire project, treating all unit owners as co-owners of the whole in proportion to their interest in the common areas. The condominium corporation is strictly prohibited from selling, exchanging, leasing, or otherwise disposing of the common areas unless it is authorized by the affirmative vote of ALL its stockholders or members. This “rule of alteration” requires unanimous consent, ensuring the shared integrity of the project is protected.
Understanding these rights, boundaries, and co-ownership duties ensures that you can enjoy your property while contributing positively to the overall condominium community. Always consult your specific deed of restrictions and corporation bylaws for the most detailed information.
