Living in a condominium association is like joining a club. Rules and regulations are set and you agree to follow them when you buy your condominium. A condominium is a type of housing, usually attached, where the owners own their unit and a portion of the private land that it sits on. They also own a share in the amenities like swimming pools and clubhouses. All condominium buildings have associations that govern the policies of the condominium project, allocate expenses for maintenance, and collect the monthly, quarterly or annual association fees that each owner pays for building, insurance and community maintenance. All owners of the condominiums are members of the association.

Everyone who buys a condo receives a set of the covenants, conditions and restrictions, known as CC&Rs. Before they sign the contract, the selling agent must disclose what the rules and regulations of the association are. There could be restrictions about pets roaming free, overnight guest parking, or types of landscaping the owners can put on their patios or balconies. Federal, state and local laws dictate what can be included in the rules and regulations.

All condominiums have homeowner’s associations that enforce the CC&Rs. The associations are a legal entity that have enforcement powers to collect the fees, enforce the rules and regulations, put liens on homes or even initiate foreclosures should the owners fall behind on the association fees. Residents who want to make an exception to the CC&Rs have to ask for permission if they want to alter the exterior appearance of their unit, for example, or get approval if they want to change their window coverings if the CC&Rs have rules about the appearance of the unit from the street.

If an owner breaches the CC&Rs of their homeowner’s association, it is possible that they could incur a number of severe penalties. These could include monetary fines, a suspension of onsite privileges, or, in more serious cases, a lawsuit.

The condominium association has a board of directors whose members are owners of units in a building. In the case of a project under construction, the builder comprises the majority of the board until all the units are sold. The owners of the units elect the board members annually, and the associations must have a president, secretary and treasurer. These individuals are responsible for approving all policy and planning that affects the short and long-term future of the condominiums.

Most condominium projects use outside vendors for the maintenance of the landscaping, pool, and building services that maintain the exteriors and roofs of the buildings. Many condominium associations elect to turn the entire management of their project over to a property-management company who hires subcontractors to maintain the property. The management company reports directly to the board of directors and attends the board meetings.

All owners in the community must pay monthly or annual fees that cover the expenses associated with maintaining the property. The associations also have “reserve” accounts that they use for emergencies. An association can anticipate how much their fixed expenses will cost, but have no control over emergencies like storm damage, liability lawsuits, or accidents that could damage a unit and cost money to repair. The board can also institute assessments above the regular fees in order to restock the reserves or pay for major expenses. Thirty states have a minimum amount condominiums must set aside for those reserves.