People, who are planning to buy a condo, need to know that buying a condo is different than buying any other real estate. Here, in this article we will have a look at all the points which make a condo different than other property types and also the points which should be known to the people who are going to engage their money in it.
- 1 You Own The Air Space Not The Land
- 2 Shared Space
- 3 Ownership Of The Unit And Interest
- 4 Tax Payments
- 5 Management By Associations
- 6 Monthly Dues
- 7 How Living In Condo Is Different Than A House
- 8 Freedom Of Improvements
- 9 Time In Maintenance Saved
- 10 Additional Expenses Are Saved
- 11 Various Amenities
- 12 Safety
- 13 Investment Option
You Own The Air Space Not The LandUnlike a single family home, if you buy a condo you get a space within the limits of the walls, that space can be divided into rooms and other useful spaces. There are balconies and storage units also available but you don’t have it built on a land but in an air space. Even being in the air space, it’s called real estate due to its own kind of value. So here, you just get a living space with many people living around, next to the walls of your space.
You have many facilities in a condo but some space is shared. For example parking, halls, elevators, roof, floors etc will be owned and used commonly. Other basics requirements like water, electricity, heating, gas etc will be commonly arranged though there will a separate billing system as per the uses.
Ownership Of The Unit And InterestThe Unit owner gets a recorded deed of the particular unit. Every owner has his own interest recorded in the deed and if the person wants can sell his interest also.
Tax PaymentsCondo unit owners also have to pay some taxes as decided by the law, like how it is paid by other property type owners. Usually in a package, which includes the interest in common areas and the unit’s taxes are deemed and then calculated and taxed individually. Common area taxes are not calculated separately and it’s the owner’s responsibility to pay the taxes for their own area.
Management By AssociationsAs a condominium is formed by various people and units, maintaining the property becomes a challenge. Hence to make sure every owner’s contribution and to maintain it as a team, unit owners associations are created at the time of the condos get into existence. To make the work easy for everyone and get all the management and development activities done, a professional called property manager from outside is hired. Condo associations and home owners associations have their own responsibilities related to maintenance and development of the condominium. In order to decide the responsibilities of home owners associations, few documents also prepared which govern these associations to work properly.
These documents are also meant for the guest coming in the condo, people living there and the owners and they need to follow the rules mentioned in these. There are rules for everything related to living in the condominium like what kind of pets can be kept and how the vehicles should be kept and how any functions can be organised in the area. There are also the consequences mentioned on paper if someone living in the condo breaks those rules in order to maintain discipline and to make it possible for many people live in a campus together. Legal action also can be taken against people in severe cases. There is a possibility even of a lawsuit. There are fines for breaking many rules and people can be made to compliance with few rules forcefully as well.