Which statement best describes condominium ownership with respect to deeds and encumbrances?

Which statement best describes condominium ownership with respect to deeds and encumbrances?

• A. Each unit has its own deed and may be conveyed or encumbered as if separate
• B. Common areas are owned by the HOA
• C. Units cannot be mortgaged separately
• D. Only the developer can encumber common areas

Answer: (A)

In a condominium, each unit is a separately deeded parcel, so the unit owner has a deed to that specific unit and can convey or encumber it as a standalone property. Alongside the unit, owners share an undivided interest in the common elements (lobby, hallways, amenities), typically managed by the condo association for the benefit of all owners. This structure means you can buy, sell, or place a mortgage on an individual unit without needing to deal with the other units, while the common areas are collectively owned and maintained for everyone. That’s why the best description is that each unit has its own deed and may be conveyed or encumbered as if separate. Statements suggesting the common areas are owned only by the HOA, or that units can’t be mortgaged separately, or that only the developer can encumber common areas, don’t fit the real setup of condo ownership.

In a condominium, each unit is a separately deeded parcel, so the unit owner has a deed to that specific unit and can convey or encumber it as a standalone property. Alongside the unit, owners share an undivided interest in the common elements (lobby, hallways, amenities), typically managed by the condo association for the benefit of all owners. This structure means you can buy, sell, or place a mortgage on an individual unit without needing to deal with the other units, while the common areas are collectively owned and maintained for everyone.

That’s why the best description is that each unit has its own deed and may be conveyed or encumbered as if separate. Statements suggesting the common areas are owned only by the HOA, or that units can’t be mortgaged separately, or that only the developer can encumber common areas, don’t fit the real setup of condo ownership.