Condominium

Brief Historical Background

The condominium form of ownership has its earliest foundations during the time of the Roman Empire. The term condominium is a derivative from the language of the time, meaning common ownership by two or more people. Reference can also be found to condominiums during the Middle Ages, and the concept was first put into law in 1804 in the Napoleonic Code of France. With its unique parts, the condominium concept in America, however, is relatively new, and it did not become widespread in the United States until the adoption of the Housing Act of 1961 authorizing FHA insurance on condominium unit mortgages.

Covenants

The parts of the condominium are created by written covenants that encumber the real property and “run with the land” as permanent restrictions governing its use by the owners, and the written covenants remain effective until the condominium itself is terminated. An individual covenant is a commitment, agreement, or contract, which grants a right or imposes a liability. The set of multiple written covenants creating the condominium property—the declaration of condominium—includes many such rights, liabilities, and commitments that govern the use and occupancy of the property. The covenants are an accepted part of condominium living and are recognized by specific provisions in the law of all 50 states. While there are rare instances where condominiums existed as a matter of common law prior to the enactment of state implementing statutes, condominiums today are considered “creatures of statute,” and the condominium form of ownership comes into existence by complying with the state law that authorizes its establishment pursuant to the covenants in a declaration of condominium.

The covenants in the declaration may range from the obligation to pay a portion of the common expenses to restrictions on manner of use that may be made of the condominium property. The covenants often restrict the number of pets an owner may have, the type of vehicles that are permitted on the property, the rental terms for the individual units, the number of guests that are authorized to use the property, and the age and occupancy restrictions that apply to permanent residents. The covenants can impose limitations on activities permitted at the property, or they may guarantee the rights of owners to use and enjoy the amenities on the property. Each unit owner in the condominium and its association has the ability to enforce these rights and restrictions found in the declaration against any other owner or the association when a violation of the covenants occurs. Because the covenants in the declaration run with the land, a person who buys a unit assumes ownership with the presumed knowledge of the content of the covenants that govern the property. Each new unit owner is presumed to know and understand the content of the declaration of condominium at the time of his or her purchase, and each owner is expected to abide by terms and conditions found in the declaration.

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