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Common Interest Developments (aka Homeowner Associations)

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Ownership and Possession

Ownership and Possession

If the LCE is assigned to a particular unit or lot on a map or plat recorded separately from the CC&Rs, the sale or exchange would require an amendment of the map or plat as described in the previous answer. If the LCE is assigned to a particular unit or lot only in the CC&Rs and/or the initial deed conveying the unit or lot, and is not assigned on the map or plat, the sale or exchange will require an amendment to the CC&Rs and/or a new deed. In these cases, the owners directly involved with the sale or exchange will need the approval and cooperation of both the association and of their mortgage lenders. The CC&Rs may also require approval and cooperation of some or all the other owners and their mortgage lenders.

Rental restrictions in governing documents are generally legal and enforceable provided they are uniformly applied to all owners, do not discriminate against particular group of potential renters, and can be shown to serve some legitimate purpose.

Most CC&Rs state that the homeowners’ association has the right to enter any unit or lot whenever necessary to fulfill the association’s duties. Among the duties that would justify entry are common area maintenance, verification of an owner’s compliance with owner maintenance requirements or alteration restrictions, and pet rules. Often, the CC&Rs will require that the association provide advance notice of the entry except in an emergency. When the CC&Rs are silent on these issues, both the right of entry, and the requirement for advance notice, would be implied.

The term “limited common elements” (“LCE”) refers to parts of a condominium project that are not within the defined boundaries of a unit but are intended to be used exclusively by one owner. Technically, LCEs are part of the common elements owned by all the owners, but one owner holds a type of easement which gives him/her exclusive usage rights. The easement is permanent, and cannot be taken away by the association or by the other owners. Decks, patios, parking spaces, and storage spaces are often assigned as LCEs on the recorded plat or survey map, in the CC&Rs, or in the deed conveying the unit to its owner.

The terms “percentage interest” and “common interest” are used only when the shared area is jointly owned by the individual owners (rather than by the association). In these cases, terms “percentage interest” and “common interest” refer to the percentage share of the common area/common element owned by an owner. An owner’s “percentage interest” or “common interest” does not necessarily determine that owner’s usage rights or cost responsibilities.

The term “party wall” usually means a shared wall, fence, or other building element that sits on the border of two or more lots or between two or more units in a condominium. Where there are party walls, the CC&Rs will usually allocate responsibility for maintenance, impose restrictions on alterations, and provide access rights for maintenance. When the CC&Rs are silent on any of these issues, general rules of law apply. These laws are complex and beyond the scope of this article. For additional information, consult an attorney.

In a condominium project, the individually owned area is called the unit. The exact physical location of each condominium unit within a project is shown on the recorded map or condominium plan for that project. The map or plan, and/or the CC&Rs, will also contain a definition of the term “unit” as it is used for that project, listing the elements of the building that are part of the unit. These definitions vary significantly from project to project, and it is unwise to apply generalizations or assumptions. Instead, read the definition with the following questions in mind:

  • Does the unit include any exterior surfaces such as roofing, siding, or foundation?
  • What portions of the interior walls does the unit include? The whole wall (i.e., both sides and everything in between), half the wall (i.e. everything from one side to a point halfway to the other side), one finished surface (i.e., only the wallboard or plaster on one side), or just the finish (i.e., the paint or paper)? Note that some unit definitions distinguish perimeter walls (i.e., walls between units, or between a unit and the common area) from partition walls (i.e., walls between rooms in the same unit), or structural walls (i.e., walls that help hold up the building) from non-structural walls (i.e., those that simply divide rooms). Where these wall-type distinctions are made, the portions of the wall that are part of the unit will vary depending on wall type.
  • What portions of the floors and ceilings does the unit include? The entire floor or ceiling, all portions up to a midpoint, the finished portion (i.e., ceiling plaster or sheetrock, finished wood flooring), or just the finish (i.e., paint or carpet)? Here again, some definitions distinguish floors and ceilings between units, or between a unit and the common area, from floors and ceilings between levels of the same unit.
  • What portions of the windows and doors does the unit include? The entire window or door, or only glass and screens? Note that some definitions distinguish interior doors from exterior doors. Does the definition include window and door frames? Does it include window and door hardware?
  • Does the unit include all of the fixtures and appliances located within it? Note that the term “fixtures,” when used in this context, encompasses cabinetry, lights, electrical outlets, sinks, showers, and tubs.
  • What portions of the plumbing, electrical, heating, and air conditioning systems are part of the unit? All elements that serve only the unit, or only elements visible from within the unit?
  • Does the unit include any decks, balconies, or patios, and if so, how does the definition describe the boundaries of these areas? Note that even if the unit does not include these areas, they may be assigned as exclusive use common area as discussed below.
In a planned development, the individually owned area is called the lot and typically consists of a piece of land and everything on it. The exact physical location of each lot within a project is shown on the recorded map for that project. Where there are walls or fences that sit on the border of two lots, ownership may be shared or may be owned by the Association unless the CC&Rs provide otherwise. Note that the map and/or CC&Rs for planned developments sometimes give neighbors and even the public the right to cross a private lot (a type of “easement”).
Title to the common area can be held by the homeowners’ association in a planned unit development or by the owners of percentage shares in a condominium. The decision is made by the developer at the time the governing documents are prepared and is very difficult to change later. To determine who owns the common area in an association, refer to the CC&Rs. The method of common area ownership has no significant consequences in a properly insured association. Note that in condominium projects, title to the common elements must be by undivided interest to all owners. The percentage held by each owner does not necessarily determine that owner’s usage rights or cost responsibility.

Use of Common Area

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