Real Estate Law · Haute Lawyer Network

What Is a Condominium and How Does Ownership Work?

Last reviewed: November 2026

A condominium is a form of property ownership in which you own your unit outright, plus an undivided share of the building's common elements, such as lobbies, hallways, amenities and building systems. Florida's condominium statute is a useful example: it defines a condominium as property made up entirely of units, with an undivided share in the common elements attached to each unit. That share goes with the unit. It can't be sold or mortgaged separately, and owners can't force a partition of the common areas. Each unit, together with its share, is a separate parcel of real estate that you can buy, sell, mortgage and insure. In Florida, buyers of new-construction condos can cancel within 15 days after signing and receiving the developer's required documents.

Condominium ownership is governed by a set of recorded documents — the declaration, the recorded document that creates the condominium; it identifies each unit and, with its survey and plot plan, the common elements; the bylaws (governance rules for the condo association), and the rules and regulations.

The condominium association — whose members are the unit owners (membership comes automatically with ownership) — is responsible for maintaining and managing the common elements, funded through regular assessments (monthly or annual maintenance fees) and special assessments, which are any charges outside the annual budget, such as for a major repair. In Florida, the notice of a special assessment must state its purpose, and the money can be used only for that purpose.

Florida example: what condo buyers get to review

Florida law gives condo buyers specific rights to see an association's documents and finances before they close:

Resale units. A buyer is entitled, at the seller's expense, to the declaration, articles of incorporation, bylaws and rules, the latest annual financial statement and budget, a frequently-asked-questions document, the milestone inspection summary (if one applies), and the association's structural integrity reserve study or a statement that none exists. If the buyer didn't receive the core documents more than 7 days before signing (excluding weekends and legal holidays), the contract can be voided within 7 such days after the buyer signs and receives them.
New construction from a developer. The buyer can cancel within 15 days after signing and receiving all of the developer's required documents, including the prospectus. A buyer can't waive these voidability rights.
Building safety and reserves. Residential condo buildings three habitable stories or higher must have a milestone structural inspection by December 31 of the year the building turns 30 (25 if the local agency requires it, for example near salt water), and every 10 years after that. Those buildings also need a structural integrity reserve study at least every 10 years. For budgets adopted on or after December 31, 2024, owners in those associations can't vote to waive or reduce reserves for the items the study covers.
Unpaid assessments. A Florida buyer is jointly and severally liable with the seller for assessments unpaid at closing. That's why closings rely on the association's estoppel certificate, which the association must issue within 10 business days of a request.

Other states have their own condo statutes, so check the law where the property sits.

Further reading: How to Read a Florida Condo Prospectus, Florida Condo Special Assessments: What Buyers Must Ask, Miami New Development Delayed? What Happens to Your Deposit, Florida Condo Law HB 913: What Buyers Should Know, What Is Florida's Condo Milestone Inspection? and How Do I Evaluate a Condo's Financials? from the Haute Real Estate Network; and on Haute Lawyer, What Is a Homeowners Association (HOA)?, What Is a Right of First Refusal on Real Estate?, Title Insurance, Closings, and Contract Red Flags and What Is a Homestead Exemption?.

Featured attorneys: Robert Elias (The Elias Law Firm PLLC, Miami Lakes, FL; commercial and residential real estate, corporate, estate planning/probate, asset protection and lender representation throughout Florida) and Glenn L. Udell (Chicago; real estate, corporate transactions and commercial litigation). See all real estate attorneys or find a lawyer. Browse the Real Estate Law hub.

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Frequently Asked Questions

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What is the difference between a condominium and a cooperative?

In a condo, you own your unit as real estate plus a share of the common elements. In a co-op, an entity (usually a corporation) holds title to the building; residents own an interest in that entity and hold a lease, often called a proprietary lease, for their unit. Co-op purchases are often subject to board approval.

Can the association approve or reject buyers?

It depends on the declaration. Some give the association a right of first refusal or an approval process for sales or leases, so read the documents before signing. Any approval process has to comply with the federal Fair Housing Act, which bars refusing to sell or rent because of race, color, religion, sex, familial status, national origin or disability.

What is a special assessment?

Any charge to owners outside the regular budget, often for a large repair or replacement. In Florida, the notice has to state the purpose, and the funds can be used only for that purpose. Ask whether any are pending or under discussion before you buy. See Florida Condo Special Assessments: What Buyers Must Ask.

Do I need title insurance for a condominium?

If you're borrowing, most lenders require a lender's title policy, which protects the loan. An owner's policy is optional but protects your own investment against claims from before you bought, such as a prior owner's unpaid taxes or contractor liens. Separately, ask the association for an estoppel certificate showing what the seller owes.

What are reserve funds?

Funds set aside by the condo association for future capital expenditures. Well-funded reserves reduce the likelihood of special assessments. Prospective buyers should review the reserve study and reserve fund status before purchasing. In Florida, condo buildings three habitable stories or higher must have a structural integrity reserve study at least every 10 years, and since budgets adopted on or after December 31, 2024, owners can't waive reserves for the items it covers. A resale buyer is entitled to a copy of the study or a statement that none exists. See also How Do I Evaluate a Condo's Financials?.

Am I responsible for the seller's unpaid condo fees?

In Florida, yes: a buyer is jointly and severally liable with the seller for assessments unpaid at transfer, though the buyer can seek repayment from the seller. Get the association's estoppel certificate before closing.

Can I cancel a condo purchase after signing?

In Florida, often within a short window. A resale contract can be voided within 7 days (excluding weekends and legal holidays) after signing and receiving the required association documents, unless you got them more than 7 such days before signing. A new-construction purchase from a developer can be canceled within 15 days after signing and receiving the developer's documents.

Do Florida condos have to do milestone inspections?

In Florida, residential condo buildings three habitable stories or higher generally must complete a milestone structural inspection by the year the building turns 30 (or 25 near salt water when the local agency requires it), and every 10 years after that. See What Is Florida's Condo Milestone Inspection? for details.

What Is a Condominium and How Does Ownership Work?

Florida example: what condo buyers get to review

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