What defines a condominium in real estate?

A condominium in real estate is defined by the concept of individual ownership combined with shared ownership of common elements. In a condominium, an owner holds title to a specific unit within a larger building or complex, which provides the owner with certain rights and responsibilities associated with that unit. Alongside this individual ownership, all condo owners together hold an interest in the common areas and facilities that are shared, such as hallways, recreational areas, and landscaping.

This structure allows for both private ownership and communal living, where each unit can be owned and modified privately while also benefiting from shared amenities and spaces. The governing documents of the condominium association outline the rights, responsibilities, and rules for the common areas, ensuring that they are maintained for the benefit of all residents. This model is particularly popular in urban areas where multifamily housing is more common, allowing for the efficient use of space while fostering a sense of community.

In contrast, the other options reflect different ownership structures that do not capture the essence of condominium living, such as complete ownership by one entity or shared ownership of the entire property without the concept of individually owned units.