Condominium: Definition, Features and Ownership Rights

For people hunting for a place to call home, condominium living is a popular choice. It provides numerous advantages of home ownership and the ease of apartment-style living. Condo living can be a pleasant experience with the right know-how. 

This guide will help you in understanding the fundamentals of condo living, including the benefits and drawbacks, the expenses of ownership, and advice for successfully residing in a condo.

What is a Condominium?

A condominium is a property type in which individual residents own individual units within a structure,  however, common facilities like lobbies, outdoor areas, and amenities like a swimming pool, tennis courts, or fitness centre are shared by all the owners. Condominiums are generally located in posh areas with parks, stores, and entertainment venues in vicinity.

Now, you might think of how a condo house differs from an apartment, right? Well, we’ve got an answer to this question. When it comes to an apartment, a single family purchases both the residential unit and the land it is built upon. On the contrary, in case of a condominium, the ownership is slightly different. An individual owns the unit but has no say in the functioning of the larger building or plot of land. Instead, a homeowners’ association is formed to help with property management. 

The best thing about condo houses is that an excellent balance between the ease of living in an apartment and the security of owning one’s own property is offered by this sort of property. 

Moreover, one thing to note is that when you purchase a condominium, you’re responsible for maintaining your unit as well as paying fees that contribute to the maintenance of the common facilities. This type of property always proves to be a great deal for those looking for a budget-friendly and convenient way to purchase their own house.

Features of Condominium

The features of a condominium are as follows:

• Shared Ownership: Condo Apartments are owned by individual unit owners, but shared ownership of common areas, and facilities is a key feature of the condo lifestyle. All owners collectively share in the upkeep and maintenance costs. 
• Flexibility: Condo houses are often easier to rent out than single-family homes, making them a more flexible investment option for homebuyers. 
• Amenities: Condominiums often involve amenities such as swimming pools, gymnasiums, spas, saunas etc. Many also have concierge services, high-end security services, and social gathering spaces. 
• Maintenance: The cost of condo maintenance is typically less than that of maintaining a single-family home or an apartment, since the maintenance fee is shared among all owners. 
• Location: Condo apartments are usually located in prime locations, like urban centres or waterfront areas. 
• Space: Condos typically offer more living space than traditional apartments, making them an excellent option for families or people who want additional room.

Difference Between Condo, House, Townhouse and Apartment

If you are unsure about the type of property you ought to choose between a condo, house, townhouse or apartment, then here are some critical differences between them that’ll help you make a better and informed decision. 

Difference Between Condominiums and Apartments

The difference between Condominium and Apartment is stated below in the form of a table:

Why Should a Condo Owner Pay the Property Manager?

A condo owner must pay the property management to ensure that the building is adequately maintained. The building’s manager will make sure that all required repairs are completed, bills are paid on time, and residents’ needs are met quickly.  A property manager may offer condo owners helpful advice and guidance as well as assist in settling disputes between residents.

How to Choose Between Condominiums and Apartments?

When it comes to choosing between condominiums and apartments, there are a few factors that you must consider. 

• It is important to assess your budget. Condo houses tend to be more expensive than apartments, and the price can vary significantly depending on the property’s locality, size and features. 
• Think about the level of privacy you and your family want. Luxury condos usually offer more privacy than apartments, as they typically have exterior walls, rather than shared walls between units. 
• Consider the level of maintenance required. With condominiums, common areas are typically managed and maintained by the association, meaning that you don’t need to worry about maintenance. On the other hand, apartments require you to take on the responsibility of maintenance tasks. 
• Last but not least, think about the amenities available. Condominiums involve amenities such as gymnasiums, swimming pools, and playgrounds, whereas apartments have more basic amenities. 

But when choosing between an apartment or a condominium, it is important to consider your requirements and understand the differences between the two. This will for sure help you make the best decision. 

Are Condominiums Common in India?

In the United States, condominiums are a very popular form of ownership. In India, condominiums have been around for more than 50 years, but they are not as widely used as the cooperative housing society model, which is more popular in Maharashtra. Condominiums are becoming increasingly popular in India, particularly in cities like Bangalore and Mumbai.

The Maharashtra Co-operative Societies Act of 1960 governs rules related to cooperative societies in the state. In 1970, the Maharashtra Apartment Ownership Act introduced an alternative to the housing society, allowing people to come together and form condominiums. 

Requirements for a Condominium

The Declaration of Covenants, Conditions, and Restrictions is a legal document that outlines the regulations and rules for owners of condominium units. It outlines the acceptable use of the unit and how limited and general common areas should be used. The declaration also outlines the criteria for appointing the board of the homeowners’ association, which is responsible for managing the condominium development. 

The individual unit owners are liable to pay a condo fee to the condominium association. This fee typically covers the cost of insuring the building, shared utilities, and a reserve of funds for future building maintenance. It may also include fees paid to a management company for the daily operations of the development. 

Furthermore, it’s important to note that condo fees can increase if the building requires major maintenance. Any additional costs not covered by the reserve funds can be billed to the individual unit owners. 

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Advantages & Disadvantages of Condominiums

The advantages and disadvantages of condos are as follows:

Advantages

• Amenities: Condominiums come with access to multiple amenities like swimming pools, fitness centres, gymnasium and more.
• Low Maintenance: Another benefit of owning a condo house is that you don’t have to worry about the same level of maintenance as a single-family home. Condo owners are responsible for the interior of their units, but the exterior is usually taken care of by the condominium association. 
• Affordability: Condominiums are often more affordable and budget-friendly than single-family homes. This makes condo houses an excellent option for first-time homebuyers. 
• Community: One of the best parts of owning a condo is being part of a community. Many condo associations organise events and activities, so owners can get to know their neighbours.
• Security: Many condo buildings offer additional security measures like gated access and security guards, which gives peace of mind to owners.

Disadvantages

• Reduced Privacy: You may experience less privacy if you own a condominium because you share walls, floors, and ceilings with your neighbours. You will therefore need to make an extra effort to minimise your noise. 
• Limited Parking: You’ll probably have few parking options if you live in a condo building. Depending on the building policies, a parking space might cost extra.
• Higher Maintenance Costs: When you own a condominium, you’re highly responsible for the maintenance of your own unit and a portion of the shared areas. This means that you’ll need to pay higher monthly fees to maintain the building and its common areas, in addition to the cost of all the improvements and repair you make to your own unit. 
• Potential Issues with Other Residents: If you value your privacy and don’t want to be in close quarters with other residents, then a condominium might not be a suitable living option for you.

Maintenance Cost of Condominiums

Many people prefer to live in condominiums due to low maintenance costs. Usually, residents are expected to pay a certain amount either annually or monthly, to cover the cost of general upkeep and maintenance. This way, they don’t need to take care of any repairs themselves, all they need to do is inform the authorities, and the issue will be resolved. Some condominiums even provide regular inspections to ensure that any issues that may arise are immediately addressed.

Condominium Insurance

Condominium insurance is a kind of property insurance that covers the inside of a condominium unit as well as the owner’s personal belongings. Additionally, it might offer liability protection beyond what the condominium association’s master policy covers. In general, the policy covers liability for injuries sustained inside the insured condominium unit as well as damages brought on by fire, theft, vandalism, and other covered dangers. 

Condo owners pay a cheaper insurance cost than those who own single-family homes since they just need to insure the possessions of their unit, and not the entire building. As a result, condo homeowners insurance is more affordable.

Rules to Let Out a Condominium in India

As an apartment owner in a society, you must obtain the consent of the managing committee if you wish to rent out your house. On the contrary, if you own a luxury condominium, you do not need to seek approval from the board of managers, elected by members of the apartment owners association. You can give the house on lease or leave and licence without their approval.

Factors to Consider When Buying a Condominium

Following are factors that one must consider when buying a condominium:

• Location: Location is the foremost and important factor to consider when buying a condominium. Look at the nearby amenities, access to public transportation and the overall atmosphere of the locality.
• Financing: Consider your financing options and make sure you understand the terms of the loan or other financing you may have to use to purchase a condo house.
• Costs: Look into ownership costs, such as monthly fees, taxes, insurance, maintenance fees and any special assessments. Understand all the costs and expenses of owning a condo before purchasing.
• Building: Pay attention to the age, condition and amenities of the building. Check for any signs of disrepair, or wear-and-tear. 
• Security: Ensure the building has adequate security features, such as locked entry systems, cameras and alarm systems.
• HOA Rules and Regulations: Understand the Homeowner’s Association (HOA) rules and regulations and make sure you are comfortable following them.
• Resale Value: Consider the resale value of the condominium. Make sure you research the local market to understand how the condominium value may change over time.

FAQ’s about Condominium