In one sentence
A legal structure dividing a property into individually owned units and shared common elements, governed by a declaration.
The longer version
A condominium regime, established by a recorded declaration, creates separately owned units within a building or project, with shared ownership of common areas through an association. Commercial condos and mixed-use projects use the structure.
Lending on a condo unit or a whole condominium adds diligence on the declaration, the association, and the regime's rules, which affect the collateral and its financeability.
Common questions
- What is a condominium regime?
- A legal structure dividing a property into individually owned units and shared common elements, governed by a recorded declaration and an owners' association.
- How do condo regimes affect lending?
- A lender may finance units or a whole building. The declaration, association finances and voting rights affect the collateral's value and control.
- What is a commercial condominium?
- A condominium of commercial units, such as office or retail space, letting owners buy space in a building rather than lease it.
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