Ownership: Condos are like apartments in that they are units bound together by common space. Unlike a rental, where a tenant rents out the space by paying the owner, condo units are bought and you become the owner. Okay, but how does it work with the common space, you ask. It's pretty simple. You, as the owner of a condo, own the apartment unit, meaning the walls, windows, floors and doors, as well as a percentage of the common space, that is the hallways, lobby, swimming pools, gyms, etc.
Financing the Purchase: If you need a loan to purchase a condo (and most of us do!) then you would take out a mortgage, the same type of loan that is used for buying a house. Like most loans, mortgages are given out by lenders such as banks, who base your eligibility on your credit history.
Governing Bodies: All condo owners in a building belong to a condo association, which typically requires a monthly fee that is used to cover building maintenance. The association is overseen by a board of directors, who are elected by the condo association. This board manages the maintenance of the building, including the allocation of the funds. The specific duties of the board vary from condo to condo. Some condos spell out specific duties in their documents, whereas others leave it up to the board to decide what the needs are for the building.
Fees and Taxes: Owning a condo is like owning a house--the physical property belongs to you. This means you must pay property taxes in addition to monthly fees to your condo's association. The monthly condo fee should be used to pay for maintenance of the common areas as well as building up a a pool of money to cover any emergencies.
