Condo Association (Owners Association)

Definition

In an industrial condominium, each buyer owns their unit plus an undivided interest in common elements—typically the roof, exterior walls, parking, drive aisles, and landscaping. The condo association (also called an owners association or HOA in casual speech) adopts budgets, levies regular dues and special assessments, enforces rules, and contracts for shared maintenance and insurance on common property. For garage condo and warehouse condo buyers, association health matters as much as the unit: underfunded reserves, deferred roof or paving work, or loose enforcement can erase the benefit of owning versus leasing. Lenders and appraisers review association budgets, reserve studies, insurance, and delinquency rates before financing a unit. Dues function similarly to CAM in a leased NNN building, but the owner is both occupant and co-owner of the shared plant.

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