property

condominium

A condominium is a form of ownership in which each owner holds fee simple title to an individual unit plus an undivided interest, as tenants in common, in the common elements such as hallways, roofs, grounds, and amenities. An owners association manages the common areas and collects fees. Each unit is taxed and mortgaged separately. Condominium creation and resale rules are governed by state law.

Exam tip: Contrast condo ownership (real property, deed to the unit) with a cooperative (shares in a corporation plus a proprietary lease, treated as personal property).
Example: A buyer purchases unit 4B and receives a deed to that unit plus a 2% interest in the pool, lobby, and parking lot, paying $350 a month in association dues.

1. After a developer turns a condominium over to the owners, the community's rules are enforced and budgets set by the:

Answer & explanation

Answer: C. The HOA, run by an elected board, enforces the CC&Rs, sets budgets and reserves, and levies assessments.

Related terms & state variants

CC&Rs cooperative homeowners association planned unit development tenancy in common

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23