More and more people are turning to a maintenance-free living arrangement: the condominium.  Literally translated from Latin, condominium means, roughly, “joint dominion.”  There are many reasons why people enjoy condominium life, but there are also certain restrictions which may make condo life undesirable for some.   On July 20, 2004, Ohio passed a bill that overhauled its condominium laws. 

Q: My condominium is new right now, but what happens in a few years when the roof needs repairs, the driveways need resurfacing, and the siding is fading?  Is the condo association responsible for the expense, and if so, where does the association get the money to make the repairs?
A:  Ohio law requires the unit owners’ association to adopt and amend budgets and to collect assessments for common expenses from unit owners.  Unless the condominium organizational documents say otherwise, the code also requires the association to set aside reserves adequate to repair and replace major capital items without requiring a special assessment, but no less than 10 percent of its annual budget.  A condo association’s board of directors may decide to waive the 10 percent set-aside, but doing so requires not only the approval of association board members, but also the approval every year by the majority of the unit owners.  Typically, the monies saved from the set-aside are used to fund the maintenance of the condominium. 

Some states, such as Florida, require the association to set aside a certain amount per year, based on a depreciation schedule for the large maintenance items that will be required.  For example, if the roof life expectancy is twenty years, a Florida association would reserve 5 percent of the cost of a new roof each year so that there will be enough money in reserve when the repair is needed.  If, however, the association does not have the necessary funds for a necessary major expenditure, it can assess every condo owner to fund the expense.

Q:  The owners’ association won’t let me enclose the deck on the back of my condo or let me put a clothes line or garden in my back yard.  Does the association have the power to keep me from making these changes to my own back yard?
A: It is very likely that they can keep you from making these changes.  While the owners’ association generally cannot dictate what you may do inside your unit, the areas outside of your unit, including your deck and yard, are referred to as a “common element.”  Even though some of these common element areas may be reserved solely for your use (a “limited common element”), the association still may set rules and regulations about virtually every aspect of the common element areas.  These rules will apply uniformly to all the units in the condominium, creating a consistent appearance. 

Q: I am going to be a first-time condominium owner.  Is there anything specific I should know about the closing process?
A: First, consult with your attorney.  The cost of an attorney’s counsel is extremely small compared to the potential costs of trying to correct a problem later on down the road.  You should be aware that some issues are unique to condominiums.  Before closing on a condominium unit, be sure to read the articles and bylaws of the unit owners’ association, along with the association’s financial records and meeting minutes.  As a prospective buyer, you can get this information from the seller or directly from the condo association.  If anything seems suspect, or there are any terms you cannot live with (or without), it is best to resolve these issues before buying.  These documents will also alert you to who is responsible for what (maintenance, snow removal, lawn care, etc.) 

You also may want to check for limitations on condo use.  For example, some condominiums are created for an “over 55” population, some don’t allow renting or leasing, and others don’t allow pets.  In general, the more information you know before you buy, the happier you will be with your decision to buy.

8/18/2008

Law You Can Use is a weekly consumer legal information column provided by the Ohio State Bar Association (OSBA).  This article was prepared by R. Nigel Davies, Esq. of Davies & Ruck, PLL, located in Pemberville, Ohio.  For more information on a variety of legal topics, visit the OSBA’s Web site at www.ohiobar.org.