Common Property

Definition

Common Property refers to real estate or portions of real estate that are owned collectively by a group of individuals or entities. In a residential context, common property areas typically include spaces such as lobbies, recreation areas, corridors, parking lots, and other shared amenities. In a municipal context, common properties may include parks, public squares, and other community resources.

Common Property is a significant term in community living settings like condominiums, cooperatives, and homeowner associations (HOAs), where certain areas are maintained for the use and enjoyment of all residents.

Examples

Recreation Area of a Cooperative Apartment Building: In a cooperative, residents collectively own and manage common areas like swimming pools, gyms, and parks within the property.
Municipal Park: A city park maintained by a municipal government for public use is another example of common property. Citizens collectively benefit from and share responsibility for the upkeep of such spaces.

Frequently Asked Questions (FAQs)

Q1: Who is responsible for the maintenance of common property?

A1: Typically, a Homeowners Association (HOA) or similar governing body manages and maintains common property. Expenses are often covered by fees collected from all property owners in the group.

Q2: Can changes be made to common property without consulting all members?

A2: No, changes to common property generally require approval from a majority of the group’s members, according to the community’s bylaws or governance documents.

Q3: How are disputes regarding common property resolved?

A3: Disputes are usually handled through the HOA or cooperative board. If necessary, mediation or legal proceedings may be used to resolve conflicts.

Q4: Can an individual sell their share of common property?

A4: Typically, the individual’s share of common property cannot be independently sold or mortgaged and is tied to their individual unit or property. Selling occurs as part of transferring ownership of the home or unit.

Q5: Are repairs and upgrades to common properties tax-deductible?

A5: This can vary by jurisdiction, but often fees paid to HOAs or cooperatives for common property maintenance are not tax-deductible. Owners should consult a tax advisor for specific advice.

Common Areas: These are the parts of a building or its property shared by all the residents, excluding privately owned units. For example, hallways, lobbies, and elevators.
Homeowners Association (HOA): An organization in a planned community, condominium, or subdivision that enforces rules for the properties and their residents. Owners are typically members and pay dues for the upkeep of common areas.
Condominium: A type of real estate divided into several units, each separately owned, surrounded by common areas jointly owned.
Cooperative (Co-op): A legal entity, usually a corporation, that owns real property. Each shareholder in the co-op is granted the right to occupy a unit.

Online Resources

References

Community Associations Institute (CAI)
National Association of Housing Cooperatives (NAHC)
U.S. Department of Housing and Urban Development (HUD)

Suggested Books for Further Studies

“The Homeowners Association Manual” by Peter M. Dunbar
“Complete Guide to Homeowner’s Associations: Management, Rights, Responsibilities, and Resources” by Helen M. Fried
“The Condominium Concept: A Practical Guide for Officers, Owners, Real Estate Professionals, and Attorneys” by Peter M. Dunbar
“The Co-op Bible: Everything You Need to Know about Co-ops and Condominiums” by Sylvia Shapiro
“Real Estate Law” by Marianne M. Jennings

Common Property Fundamentals Quiz

### What is common property? - [x] Property owned equally by all members of a group. - [ ] Property owned by the government. - [ ] Property owned by an individual. - [ ] Unclaimed property. > **Explanation:** Common property is defined as property owned equally by all members of a group, often seen in communities like condominiums, cooperatives, and HOAs. ### Which of the following is an example of common property in a cooperative apartment building? - [x] The recreation area. - [ ] Individual apartments. - [ ] Privately-owned backyards. - [ ] Individual garages. > **Explanation:** In a cooperative apartment building, areas like the recreation area, lobbies, and hallways are considered common property shared by all residents. ### Who is typically responsible for the maintenance of common property? - [x] Homeowners Association (HOA) or cooperative board. - [ ] Individual residents. - [ ] The local government. - [ ] Private maintenance companies. > **Explanation:** The Homeowners Association (HOA) or cooperative board is generally responsible for maintaining common property, funded by fees from the residents. ### How are changes to common property generally approved? - [x] Through approval from a majority of the group's members. - [ ] By the will of a single property owner. - [ ] By local government decree. - [ ] Automatically by the property management company. > **Explanation:** Changes to common property typically require approval from a majority of the group's members, guided by governing documents and community bylaws. ### Can disputes regarding common property be resolved exclusively by the cooperative board? - [ ] Yes, the board has final say. - [ ] No, only courts can resolve disputes. - [x] Sometimes, but if necessary mediation or legal proceedings may be used. - [ ] Yes, but with external consultants. > **Explanation:** While the cooperative board can address many disputes, mediation or legal proceedings might be needed for resolution. ### Can an individual sell their share of common property separately? - [ ] Yes, shares can be sold independently. - [x] No, it's usually tied to the unit or property. - [ ] Yes, but only with board approval. - [ ] No, shares cannot be sold under any circumstance. > **Explanation:** An individual's share of common property is usually tied to their private unit and cannot be sold independently. ### Are fees paid for the maintenance of common property tax-deductible? - [ ] Yes, always. - [ ] No, never. - [ ] Sometimes, depending on the state. - [x] It varies by jurisdiction and specific circumstances; consult a tax advisor. > **Explanation:** Tax treatment can vary by jurisdiction, and homeowners should consult a tax advisor for specific advice regarding deductions. ### What term applies to parts of a property that shared by all residents, like hallways and lobbies? - [x] Common Areas - [ ] Private Property - [ ] Restricted Areas - [ ] Development Zones > **Explanation:** Common Areas refer to parts of property like hallways and lobbies shared by all residents. ### Which legal entity typically owns a cooperative housing property? - [x] A corporation. - [ ] A municipality. - [ ] An individual tenant. - [ ] A nonprofit organization. > **Explanation:** A cooperative (co-op) is usually a corporation that owns the property, with residents holding shares that grant them occupancy rights. ### Who retains the right and responsibility for common areas in a condominium setup? - [ ] Individual unit owners. - [ ] Local municipalities. - [x] Condominium Association. - [ ] A private maintenance company. > **Explanation:** In a condominium, the Condominium Association typically retains responsibility and rights for common areas.