Condo Glossery
Association Dues - Usually monthly fees to maintain the Home Owners Association. This fee can pay for building management, common area utilizes, hazard insurance, trash, sanitation, water, use and maintenance of common areas, capital reserves and staff. Review the Resale Disclosure Certificate closely to see what is covered in any condo you buy!
By Laws – These documents dictate how the board can govern, how elections are held for board seats, adoptions and enforcement of the Rules and Regulations, conduct in meetings and how the budget should be prepared.
Common Areas– Areas within the condo or townhome association for use of all residents. Many developments have party rooms, exercise rooms and meeting rooms. You also might find some with business centers, pool, hot tub and outside common areas.
Condo, Condominium or Loft – is the individual ownership of a single unit within a multiple unit building.
CO OP – A co-op bears some similar to a condo but is different in one respect, in a co-op you are a stock holder in the corporation, not an individual owner of the unit. There is only 1 title to the building. Your “shares” give you exclude use or lease of the unit.
Declaration (Articles of Incorporation) -Also called master deed; declaration of restrictions; covenants, conditions and restrictions (CCR); This is legal document and must be written to Minnesota State guidelines.
HOA – Home Owners Association
HOA Documents - A set of documents including articles of incorporation, by-laws and rules and regulations. The documents along with the Resale Disclosure Certificate are required to be delivered to buyer for a 10 day review period.
HO6 Insurance Policy “Personal Property Insurance” – A supplemental insurance policy that covers your personal contents, fixtures within your condo unit.
Resale Disclosure Certificate- A form completed by the association that describes current assets, liabilities, assessments, budgets and other valuable information as to the current health of the HOA. This form along with the HOA Documents are required to be given to buyer in the State of Minnesota upon transfer of a condo or townhome.
Rules and Regulations – A set of rules set forth by the HOA Board in addition to by laws. Many times these rules include noise, pets, guest, parking and governing proper behavior.
10 Day Right of Rescission– Upon the sale of a condo or townhome (or prior to the sale) the seller must furnish the buyer a copy of the HOA Documents and Resale Disclosure Certificate. Once the buyer signs a receipt for these items a ten-day time table starts. If the buyer has already entered into a purchase agreement, the buyer shall have the right to cancel said purchase agreement for any reason upon review of these documents.
