Condominium Defined
Condominiums remain one of the most important pathways to homeownership in the United States. The term “condominium” is Latin in origin and means co-ownership. A condominium is defined as "an estate in real property, consisting of an undivided interest in common in a portion of real property coupled with a separate interest called a unit.” (Civ. Code § 4125) Unless the declaration or condominium plan provides otherwise, if walls, floors, or ceilings are designated as boundaries of a separate interest, the interior surfaces of the perimeter walls, floors, ceilings, windows, doors, and outlets located within the separate interest are part of the separate interest, and any other portions of the walls, floors, or ceilings are part of the common area. (Civ. Code § 4185(b)) Unlike stock cooperatives, condominium owners hold title to their units.
Condo Unit. A condominium “unit” is typically a cube of air bounded by unfinished floors, ceilings, and perimeter walls. The boundaries of units and common areas are described in a condominium plan.
Membership. Owners automatically become members of a nonprofit corporation or an unincorporated association created to manage the development. Any conveyance, whether voluntary or involuntary, of an owner’s interest in the unit automatically includes the owner’s membership in the association. (Civ. Code § 4630)
Governance. A board of directors elected by the membership governs associations. (Corp. Code § 7210)
Forms of Condominium Developments
Condominium developments are typically in one of four forms: (i) townhouse, (ii) stacked lowrise, (iii) stacked midrise, and (iv) stacked highrise. A fifth form, the airspace subdivision, is used for mobilehome parks. A condominium unit can also be filled with a combination of air and water, becoming a “dockominium.”
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1. Townhouse Condominiums
Townhouse condominiums, also called patio homes, are side-by-side units that share a party wall. They have no units above or below them. The number of side-by-side units can range from two to a dozen or more. Townhouses are typically 2- or 3-story structures. All owners jointly own the townhouse and the lot on which it rests. The airspace inside the townhouse is owned separately by each unit owner. Parking is either in garages or carports. Management is usually offsite, and budgets depend on the amenities and number of units. |
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2. Lowrise Condominiums
These are stacked condominiums, two or three stories tall, with or without elevators. Parking is either in exposed lots or carports. For most, management is offsite. If the condominium complex is large and has significant amenities, management may be onsite. Budgets will vary with the size of the complex and the number of amenities. |
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3. Midrise Condominiums
Midrise condominium structures are four to eight stories tall with elevators. Parking is normally underground. Budgets are moderate, and management is often offsite but could be onsite if the complex is large enough. |
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4. Highrise Condominiums
A "highrise" is technically defined by its physical height rather than a fixed number of floors. Under the International Building Code and the National Fire Protection Association, a highrise is any building with an occupied floor located more than 75 feet above the lowest level of fire department vehicle access. Because the average residential story spans 10 to 12 feet, this threshold is crossed around the 7th floor. Parking for condo highrises is typically underground. Luxury buildings will often have large budgets and large staffs, including onsite management, housekeeping, maintenance, security personnel, and valet parking. |
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5. Airspace Condominiums
Airspace condominiums are also referred to as airspace lots, or condominium lots. The condominium is a cube of air defined by a survey and legal description of the lot. All structures and improvements inside the airspace are owned by the condominium buyer. This type of ownership is common in mobilehome developments, especially conversions from rental parks. Mobilehome condominiums where cubes of air where owners park their mobilehomes. Mobilehome park conversions are allowed under California Government Code § 66427.5 and can be structured as condominiums, stock cooperatives, or planned developments. |
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6. Live-Work Loft Condominiums
Loft condominiums, also known as live/work projects, often appear in cities transitioning from industrial warehouse districts to mixed-use residential areas. They offer housing to people who want to live where they work. Loft condominiums are built into the industrial buildings. “Loft-style” may also refer to developments in which a street-level business occupies the first floor and the residential loft the second.
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7. Timeshare Condominiums
A timeshare condominium is a vacation property arrangement in which multiple owners each have the right to use the same unit for a specific period each year and share the costs of maintenance, taxes, and other expenses. A deeded timeshare gives you a recorded real property interest in a specific unit or week, while a right‑to‑use timeshare gives you a contractual license to use the property for a set number of years without owning the real estate. You receive a deed to a fractional interest in a specific unit
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8. Condo Hotels
A condo hotel (or condotel) is a hybrid property where individual units in a high-rise building or resort are privately owned as condominiums, but function as part of a managed hotel when the owners are not using them. Condo hotels are often sold as second or third homes, not primary residences, so the units become part of the hotel’s rentable inventory. For more information, see "Mixed-Use Developments."
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9. Dockominiums
A dockominium is a marina-based version of a condominium. It consists of an undivided interest in the common elements of the marina coupled with a separate interest in a boat slip. The boat slip may consist of a cube of water extending to the land beneath it, plus the air above the water where the boat would be parked. Condominium boat slips can be bought and sold like condominiums. Members pay monthly fees that fund the marina's maintenance and administration.
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10. Horse Condos
Horse stall condominiums were proposed as early as 1988 by the Los Angeles Equestrian Center in Griffith Park. The plan called for 1,100 horse stalls, with people buying stalls for $30,000 and paying a $205 monthly maintenance fee.
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