Real Estate Glossary > C > Condominium Definition

A condo is a unit that you own in a multi-unit complex, such as an apartment building. While each condo is individually owned, the common spaces are shared by all the owners in the complex. Condo developments are managed by a Homeowners Association A group that manages a shared housing complex, establishes guidelines and provides funding for repairs, grounds maintenance and security for the building by collecting money from the homeowners in the community. that collects monthly dues Fees paid by homeowners within a shared complex to pay for building repairs and operation costs. , maintains operations and enforces policy.

Condo buildings are different from co-ops. With a co-op A type of residence where the buyer owns shares in the corporation that owns the building and has the right to live in a specific unit, but doesn't actually own the space. , the homeowners own shares in the corporation that owns the building, not the actual units themselves. Condo buildings have an elected homeowners association that may have members that don't live in the building. Each member of a co-op is expected to serve on the association board at some point during the time he lives in the building. In a tenancy-in-common An arrangement where two or more people, related or not, hold joint ownership of a home. Each owner's name will be on the title and they can decide how they want to divide ownership of the home. complex, multiple owners hold joint ownership in a unit whether they're related or not. Different from a condo or a co-op, tenancy-in-common owners can be on the same mortgage and if anyone stops making his monthly payments, the entire building is in risk of foreclosure Foreclosure is a process that transfers the right of home ownership from the homeowner to the bank or lender. A home goes into foreclosure when the owner stops paying his mortgage loan payments. .