Condominium Basics ? Part 1 of 2
The decision of whether or not to purchase a condominium is much easier when you have a more thorough understanding of what you would be purchasing.? At closing, the buyer receives title to the new living unit along with a percentage of ownership in the common areas of the remainder of the complex. ?Shared space may include hallways, basements, green space, community rooms, recreation areas and anything outside the actual walls of your living space. This joint ownership is shared by all owners who automatically become members of the association.
An association typically has a governing body elected from the membership who is charged to carry out the bylaws of the organization. An individual can choose to be involved in the regular meetings or to just stay abreast of developments via newsletters or written notification if they prefer. This type of regular communication is customary with many of these living arrangements. Many associations will also contract with a management company who will take responsibility for the day to day affairs associated with maintaining the physical plant such as cutting the lawn, removing snow, cleaning the hallways, helping with transfer of title and maintaining the financial accounts. Outside audit of financial statements by a certified public accounting firm is also typical.