Frequently Asked Questions Regarding Condominiums:
 | What exactly is a condominium? A condominium is
developed real property that has been subjected to a state's condominium
enabling statutes. |
| How do the condominium statutes work? Statutes vary from
state to state, but essentially, as in Ohio, they enable a piece of developed
real property to be lawfully divided into separate parcels of space. Each
parcel of space has all of the essential legal attributes of any other
separate parcel of real property - that is, each can be separately owned,
conveyed, taxed, mortgaged, liened, bequeathed and inherited. |
| How does a condominium operate? Unit owners in a condominium
jointly own "common elements" such as the land and buildings. An "association"
of these unit owners makes decisions and takes actions affecting this
jointly-owned property. |
| How is a condominium operated? By law, an association of
unit owners automatically comes into existence the moment a condominium is
created. This association controls this jointly-owned property and all aspects
of its use and maintenance. In fact, it is a "mini-government" with powers to
determine and collect assessment, and to spend this money in order to fulfill
its functions. |
| Is the association incorporated? Although the
association is created by law as an "unincorporated" association, most
creators of condominiums incorporate these associations as non-profit
corporations by filing charters or articles with the appropriate public
authorities. This gives the associations structure and attributes not
available to unincorporated associations. These include: 1) protection against
personal liability for volunteers; 2) procedures for meetings and elections;
and 3) potential protection for unit owners from personal liability for
association obligations. |
| How is the association structured? Whether
incorporated or unincorporated, the association's structure is the same,
although terminology is somewhat different. In each instance, the members (or
condominium unit owners) elect representatives to actually do the work of the
association. These elected representatives are called "managers" or
collectively, a "board of managers" under Ohio's condominium laws, and
"trustees" or "board of trustees" if the association is incorporated as a
non-profit corporation. A condominium is a representative democracy, much like
a for-profit corporation or the government. |
| What are the functions of this board? The board has full power, authority and responsibility to manage and operate the jointly-owned condominium property - except for some major items set forth in the condominium laws or the documents creating the condominium, such as the right to change basic ownership interests or to amend the controlling condominium documents. These powers and responsibilities include establishment and collecting assessments, enforcing restrictions, hiring service providers (such as attorneys, accountants and professional property managers), determining repair and upkeep requirements, and engaging services of others to actually perform this work. |
Answers taken from Governmental
Affairs, Do You Know a Condominium When You See One?
by Betty Sekula, Director, Home Builders Association of Mahoning Valley,
June 2000
Home Builders and Remodelers
Association of Mahoning Valley, Ohio