For the purposes of income tax laws and other laws regarding real estate, a condominium is treated as a single-family home. But an association has the right to impose maintenance fees, demand escrow payments for large repair bills, and manage the overall operation of the entire building. In single-family home ownership, the control, decisions, and expenses are the responsibility of the owner, subject to zoning restrictions established by local law and any restrictions contained in the declaration of the builder who originally developed the property. If you are considering a common-interest purchase, be sure to obtain all the information on the terms of sale and such regulations. Ask to see the bylaws, operating budget, management agreement, and regulating agreement, and then give them to your lawyer to review.
Many states require disclosures to the purchasers of units in a common-interest community.
Some states have a central agency that licenses and regulates the development and sale of common-interest community units. The cost of the unit is not the limit of your financial obligation with multi-unit real estate. There will be monthly assessments to cover maintenance and related expenses for operating the common areas. These assessments will be in proportion to the percentage you own of the total complex. If all the apartments in a ten-unit building are the same size, each owner would have a 10 percent ownership stake.