Certified Residential Appraiser Practice Exam

In a condominium ownership, what do residents own individually?

1. The entire property

2. Unit and share of common areas

3. Only the common areas

4. Nothing individually

The correct answer is: Unit and share of common areas

In a condominium ownership structure, residents individually own their specific unit, which includes everything from the walls inward, while also possessing undivided shares in the common areas of the property. This means that residents have direct ownership rights over their private living space, allowing them to modify and use their unit as they see fit, subject to any association rules. Additionally, as owners of a portion of the common areas, they share the responsibility for the maintenance and management of spaces such as hallways, pools, and other facilities that are designated for collective use. This dual ownership model is key to the condominium structure, differentiating it from other forms of property ownership where either an entire property is owned individually or all areas remain communal without private ownership. This understanding of ownership delineates the rights and responsibilities of condominium residents, ensuring that while they maintain a private unit, they also participate collectively in the governance and upkeep of the entire community.