What are condominiums? A condominium is not a specific kind of home, but rather a specific kind of ownership. Condominiums can be townhouses, high-rise flats, or even detached houses. Instead of owning a piece of land outright, as with freehold ownership, condo owners own a space, called a unit, in the condo structure. Each unit is defined by the Condominium Declaration, which is a legal document that describes the condo development in detail and allocates a strictly defined space to each owner. This space usually includes the interiors of the unit (flat or townhouse), down to the drywall or plaster, and in some cases includes public areas like a foyer, interior hallways, party rooms, and gym facilities.

Who runs the condominium development? Every condo development is run by a board of directors composed of elected condo owners. The board is responsible for maintaining condo development. The condo corporation is required by law to establish and maintain a reserve fund, which is a fund set aside for major scheduled maintenance or unexpected repairs. The corporation also collects the monthly common fees from owners to cover the costs of property taxes and insurance.

How is condominium and home ownership different? The main difference is that condo owners must pay monthly common fees, which cover the cost of insuring and maintaining the condo development. Common fees are in addition to paying the costs of financing the condo purchase and vary with the percentage of the total developed space occupied by an owner