The Condominium Law means all applicable local, state and federal laws, rules and regulations which effect the establishment and maintenance of condominiums in the applicable State where each Condominium(s) is located.[1] Let us learn more on this with the help of this article.
Example: “Condominium title to a condominium that is part of a building, which is governed by both the rules under the Condominium Law and by the Civil Code, is another form of title that can be held by a single person separately from other condominium owners of the building. Trust beneficial interests in real estate are typically issued when a real estate owner places the real estate in a trust.”[2]
Another Definition explains: “Condominiums (or condos) are a type of residential common interest development where each member owns the title to their unit. Each condo comes with a membership in the governing association, and the governing association elects a board of directors that manage the condo complex. Owners of condos benefit from the common areas and amenities that come from the complex, but each owner must pay routine fees to the governing association. Further, each condo title often comes with restrictive covenants controlling how owners use and maintain their unit.”[3]
All the time more a conventional type of property “condominiums” date back to the Ancient Rome, as such the reason for the Latin name. “The owner of the condominium also owns a common tenancy with owners of other units in the common area, which includes all the driveways, parking, elevators, outside hallways, recreations, and landscaped areas, which are managed by a homeowners or tenants association. If the condominium unit is destroyed by fire or other any disaster, the owner has the right to rebuild in his or her airspace. Most states have adopted statutes to cover special issues involving development, construction, management, and taxation of condominium projects.”[4]
Let us discuss the law in the state of Illinois: “One of the most important things to know about condo law is that it exists at the state level. State statutes create condominiums. The key statute that governs condos in Illinois is the Illinois Condominium Property Act ((765 ILCS 605/1, et seq.)). Both condo owners and condo boards should understand the implications of this law.
Including state law, there may also be local regulations that govern condo associations. For example, the Chicago City Council has enacted regulations that affect the rights and duties of condo owners and community associations. Navigating condominium laws can be complicated. If you have any specific questions, you should seek guidance from an experienced legal professional.”[5]
Discussion on the Condominium Law in Myanmar: “In December 2017, the Ministry of Construction passed the much-anticipated Condominium Rules under notification No. 267/2017 (the “Condo Rules”), almost two years following the enactment of the Condominium Law (2016) (the “Condo Law“). With investment in Myanmar’s condominium market slowing considerably over the last year, the introduction of the Condo Rules reflects the Myanmar Government’s continued recognition of the need for a robust framework in the sector to encourage continued foreign and domestic investment and has been the source of much discussion in the real estate sector in Myanmar.”[6]
The Condominium can be abbreviated as also the condo laws and they provide various advantages, we have cited one of them briefly here: “The Condo Rules provides various investor protection mechanisms against errant developers. In addition to a general condominium developer licence, the developer requires a separate licence for each particular condominium development, for which the Condo Rules prescribe extensive qualification requirements. Pre-sale of condominium units is only permitted once 30% of the foundations have been completed. The developer must set up a designated bank account for each development into which it must deposit 20% of the estimated development costs (or such other percentage as stipulated by the management committee), and must send the management committee quarterly bank statements. In addition, the developer has various management obligations and is responsible for the maintenance of the project throughout its construction and for one year following completion of the project. It is hoped that this combination of qualifying requirements and ongoing obligations for developers, including ongoing reporting to the relevant authorities, will help sieve out errant developers and provide an increased level of investor protection.
Certain restrictions are applicable on the sale of condominium units, including a provision in the Condo Rules stipulating that no more than 25% of the units in a condominium may be registered in one person’s name. Such a restriction seeks to prevent monopolistic behavior and developers hoarding units. There is also a restriction that at least 25% of the units in the condominium shall be sold to ‘buyers in the market’. However, the meaning of this phrase is unclear.
The ability for an owner to mortgage its condominium is also addressed in the Condo Rules. An investor may use its condominium registration certificate as security for the purposes of procuring a bank loan (rule 41 of the Condo Rules). The express recognition of an owner’s ability to leverage the condominium asset as security is certainly encouraging in the context of the current retail lending market, as immoveable property has traditionally been a challenging asset to leverage in Myanmar.”[7]
[1] Condominium Law Definition | Law Insider [2] Ibid. [3] condominium | Wex | US Law | LII / Legal Information Institute (cornell.edu) [4] Condominium law legal definition of Condominium law (thefreedictionary.com) [5] What is Condominium Law? (kmlegal.com) [6] Condominium Law And Rules: Update - Construction & Planning - Worldwide (mondaq.com) [7] Ibid.
