Declaration

Definition

A declaration in real estate signifies two core meanings:

Formal pleadings by a plaintiff describing the facts and circumstances that form the basis of their lawsuit. In a legal context, this is often a statement made outside the court to support the cause of action.

Example:
- An unhappy land buyer offered a declaration explaining the claim that the property was misrepresented by the seller.
A legal document crucial in creating a condominium. It contains pivotal information such as descriptions of the property, the designation of individual and common ownership elements, and the rules and procedures for amending the declaration.

Example:
- A developer constructs a series of apartments and wishes to sell them as condominiums. He prepares and records a declaration, which includes descriptions of individual and common areas, a set of bylaws, and the master deed of the project.

Examples

Scenario A: Legal Action
- A property owner files a lawsuit against a contractor over incomplete work. The declaration details the original agreement, work performed, and the contractor’s failure to meet the terms.
Scenario B: Condominium Development
- A real estate developer finalizes and records a declaration to establish a new condominium complex. This document specifies the boundaries of each unit, shared amenities, and regulations for property use and amendments.

Frequently Asked Questions

What is the primary purpose of a declaration in condominium development?

The primary purpose is to legally outline the configuration of the condominium, detailing each individual unit, the common elements shared by all unit owners, and governing rules.

Can a declaration be amended?

Yes, declarations can be amended. The original declaration will typically outline the procedures and requirements for making amendments.

What are common elements in a declaration?

Common elements refer to parts of the property that are shared by all unit owners, such as lobbies, hallways, swimming pools, and other communal facilities.

Is the declaration the same as a master deed?

No, while both documents are essential in condominium developments, the declaration is a detailed document outlining the rules and structure of the condominium, whereas the master deed officially records the establishment of the condominium in public records.

How important is the declaration in real estate litigation?

Declarations in real estate litigation are crucial as they’re formal statements attesting to facts and can significantly impact the outcome of the case.

Common Elements

Areas shared by all condo owners, such as pools, gardens, and gyms.

Master Deed

The initial deed recorded to create a condominium, establishing the legal framework for property division.

Bylaws

Rules governing the operation of the condominium, typically detailed in the declaration.

Condominium

A type of residential property ownership where individuals own specific units within a larger complex while sharing ownership of common areas.

Online Resources

References

“Real Estate Law,” Marianne M. Jennings, 9th Edition
“Condominium and Homeowner Association Practice: Community Association Law,” Wayne S. Hyatt, 4th Edition
“The Law of Real Property,” Richard R. Powell and Michael Allan Wolf, 2012 Edition.

Suggested Books for Further Studies

“Real Estate Law” by Marianne M. Jennings
“Condominium and Homeowner Association Practice: Community Association Law” by Wayne S. Hyatt
“The Law of Real Property” by Richard R. Powell and Michael Allan Wolf

Real Estate Basics: Declaration Fundamentals Quiz

### What does a declaration commonly include in condominium development? - [x] Description of the property, common elements, individual units - [ ] Only the description of individual units - [ ] Market value assessments for each apartment - [ ] Landscaping details of the property > **Explanation:** A declaration in condominium development includes vital information such as a description of the property, the common elements, individual units, and the rules for amending the declaration. ### Who typically prepares and records a declaration for a condominium? - [ ] A real estate broker - [x] A developer - [ ] An individual unit owner - [ ] A tenant association > **Explanation:** A real estate developer usually prepares and records the declaration which details the configuration and guidelines of the condominium project. ### Can a declaration be considered a master deed? - [ ] Yes, they are the same. - [x] No, they are different documents. - [ ] Only if specified by the unit owners. - [ ] Only in commercial properties. > **Explanation:** A declaration and a master deed are different documents. The declaration outlines the structure and rules of the condominium, while the master deed is the document that officially records the condominium in public records. ### What are community amenities in the context of a declaration? - [x] Common elements - [ ] Individual units - [ ] Zoning regulations - [ ] Lease agreements > **Explanation:** Community amenities, referred to as common elements in a declaration, are shared facilities like pools, gyms, and gardens. ### When filing a lawsuit, what function does a declaration serve? - [x] Providing a formal statement of facts - [ ] Submitting financial records - [ ] Appraising property value - [ ] Issuing a demand for sale > **Explanation:** In legal situations, a declaration provides a formal statement of the facts and circumstances that gave rise to the cause of action. ### What term describes the shared parts of a property in a condominium setup? - [x] Common elements - [ ] Private elements - [ ] Zoning areas - [ ] Exclusive rights > **Explanation:** Common elements are shared parts of a property owned collectively by all unit owners in a condominium arrangement. ### What must be specified in a declaration for condominium ownership? - [x] Description of units and common elements - [ ] Loan agreements - [ ] Insurance policies - [ ] Market valuations > **Explanation:** The declaration must specify descriptions of individual units, common elements, and the overall framework for condominium ownership and management. ### Why is a declaration crucial for real estate disputes? - [ ] It provides local market data. - [ ] It offers insights into personal finances. - [x] It outlines the formal facts leading to the dispute. - [ ] It lists asset holdings. > **Explanation:** A declaration in a real estate dispute serves the purpose of outlining the formal facts and circumstances that form the basis of the legal action. ### How can declarations impact the management of condominiums? - [x] By defining unit and common area usage and management rules - [ ] By increasing property taxes - [ ] By providing tax status clarifications - [ ] By documenting individual lease agreements > **Explanation:** Declarations impact the management of condominiums by providing clear definitions of unit and common area usage, alongside rules on how the property is to be managed and governed. ### Which document records the establishment of a condominium in official records? - [ ] Declaration - [x] Master deed - [ ] Bylaws - [ ] Sales contract > **Explanation:** The master deed is the document that officially records the establishment of a condominium in official public records, making it legally recognized.