What Actually IS a Condo?

So first, let’s establish precisely what do we mean when we use the term “condo”?  This is a surprisingly oft-misunderstood term.  So obviously the term condo is an abbreviation of the term condominium.  But what is a condominium?  A condominium is a particular property in a horizontal property regime (HPR).  It’s a form of ownership. The term does NOT denote a particular “style of construction”.  This is very important to understand.

Many people believe that a townhome construction style makes for a condo.  Or maybe they think a duplex or quadraplex makes for a condo.  It’s important from the outset to understand that the style of construction has nothing to do with whether or not something is a condominium.  Instead the issue is whether the property is registered as a horizontal property regime (HPR).  That HPR form of ownership is what makes something a condominium.  So this is to say that a free-standing ranch, a 3-story townhome an apartment style property, whatever form of construction could be a condo if it were registered as a horizontal property regime.

It’s perhaps easiest to explain the horizontal property regime form of ownership with an example:  Let’s say there are one hundred residences in a neighborhood.  If that community were to be registered as a horizontal property regime, then the properties would be considered condominiums.  And then each owner owns their property from the wall studs-inward and additionally owns 1/100^th of the exteriors of all the other properties and common areas.  (Some HPRs deed some land with the particular condo and others make all land part of the common areas that are jointly owned.)  So to restate and summarize that point, if you own a condo, you own that particular unit from the studs inward and outwardly you own your pro-rated percentage of the exteriors and common areas of the rest of the community (with the exception being that sometimes you own some land specifically as well as common area land).