ABA Family Legal Guide

Home Ownership

Shared Ownership: Condos and Condominiums

What are the basic types?

Because state governing laws differ, the terminology for these ownership forms can be confusing. Whatever the general description, there are three distinct types of common-interest communities with three distinct types of ownership: the cooperative, the condominium, and the planned community or planned unit development (PUD). You can't tell which is which by looking at the architectural form of the buildings. For example, in some states, "site condominiums" look just like single-family detached homes, but the land--not the home--is part of the condominium. However, the form of ownership has significant legal implications. Be sure you understand the type specified in the community's declaration, which is essentially its constitution.