Condominium (Condo)

A building or housing development where each person owns his or her unit and shares ownership of the common areas

Owning a condo is very similar to owning a house, you have a separate deed and mortgage, and pay property taxes on your unit. The major differences are: (1) you have a joint ownership of the common areas, including the land itself, staircases and swimming pool and (2) you have to pay monthly dues to cover maintenance and repairs for the facilities that you share with everyone else, such as garbage collection, lighting in the hallways and landscaping.

Condos also follow a set of strict rules called Covenants, conditions and restrictions, which specify everything from how maintenance is handled to what color curtains you can or cannot hang on your windows. It’s a smart idea to read them before buying a condo. Also, ask for recent reports that outline future plans for the condo, which might impact your dues.

See: Assessment, Covenants, conditions and restrictions
Compare: Cooperative