Each week we receive questions about condominium Common Elements, the responsibilities for them, and the relationship with Units. We will examine how they are defined, what are examples, who is responsible for decoration, maintenance, repair, replacement, and insurance, and what exceptions can change that.
Definitions
The Condominium Act, Act 59 of 1978, uses a “what it is not” formula to define Common Elements, General Common Elements, and Limited Common Elements.
- “Condominium unit” means that portion of the condominium project designed and intended for separate ownership and use, as described in the master deed, regardless of whether it is intended for residential, office, industrial, business, recreational, use as a time-share unit, or any other type of use. MCL 559.104(3)
- “Common elements” means the portions of the condominium project other than the condominium units. MCL 559.103(7)
- “General common elements” means the common elements other than the limited common elements. MCL 559.106(5)
- “Limited common elements” means a portion of the common elements reserved in the master deed for the exclusive use of less than all of the co-owners. MCL 559.107(2).
Common Elements, when used alone, include both the General Common Elements and the Limited Common Elements.
But what does this mean?
Units
The Unit is the portion of the condominium project that the co-owner owns exclusively.
- For an attached condominium, this is the individual residence.
- For a site condominium, it is usually the entire yard, what would be equivalent to a lot in a subdivision or homeowners association.
- For a business condominium, it is office space or store space.
The assumption is the co-owner decorates, maintains, repairs, and replaces everything in the Unit.
The co-owner also insures the Unit.
- For an attached condominium, the co-owner usually carries an HO-6 condominium owners insurance policy, which does not cover the building structure outside the Unit.
- For a site condominium, the co-owner usually carries an HO-3 homeowners insurance policy, the same as a single-family home outside an association.
- For a business condominium, the co-owner carries commercial insurance.
An exception to maintenance responsibility can occur when damage to a Unit occurs because of a failing common element. The most frequent example is when a shared roof leaks and water damages the Unit interior. Some master deeds make the association responsible for incidental or consequential damage caused by a common element.
An exception to insurance responsibility for attached condominiums can occur regarding interior walls, cabinetry, and flooring. Some master deeds make the association responsible to insure the Units to the finished, unfurnished builder-grade condition originally provided by the developer. This may lead to an overlap between the co-owner’s HO-6 insurance policy and the association’s master insurance policy.
General Common Elements
General Common Elements are intended for common use or are necessary for the existence, upkeep, and safety of the Project.
- For attached condominiums, examples include shared roofs, exterior walls, lawns, and landscaping.
- For site condominiums, examples include entrances, roads, parks, and clubhouses.
- For business condominiums, examples include the parking lot, building exterior, and atrium or lobby.
General Common Elements are not necessarily the same as common areas. Common areas in homeowners associations, subdivisions, or leased commercial space are open and accessible to all the owners or the public. Common Elements may be limited in use to one Unit, or may be located inside the Unit, contrasting with the concept of a common area. For example, the water distribution system is normally a General Common Element. For a site condominium, this frequently includes the service line to the meter, meaning that a General Common Element runs through the Unit under the yard. For an attached or business condominium, this may include water supply lines running through Unit walls all the way to the tap or fixture.
Areas or items may be designated as General Common Elements by default. Many master deeds contain a “catch-all” definition stating that any other elements of the project not herein designated as General or Limited Common Elements which are not enclosed within the boundaries of a Unit, and which are intended for common use or are necessary to the existence, upkeep and safety of the project are General Common Elements.
The assumption is the association decorates, maintains, repairs, and replaces the General Common Elements.
The assumption is the association insures the General Common Elements.
An exception to maintenance responsibility can occur when the co-owner has made alterations or improvements under MCL 559.147, or improvements or modifications for persons with disabilities under MCL 559.147a. In either case, the co-owner will be responsible for maintaining the improvement. Alterations or modifications to the General Common Elements always require architectural approval from the association.
An exception to repair and replacement responsibility can occur when the co-owner causes damage to the common elements through negligence or misuse. Most master deeds hold the co-owner responsible for the costs, or at least up to the association’s insurance deductible.
An exception to insurance responsibility can occur when the co-owner does an activity or keeps property that increases the cost of the association’s master insurance. In that case, the co-owner is responsible for the cost of the increased premium or the rider.
Limited Common Elements
Limited Common Elements are the gray area of the project. They may be located outside the boundaries of a Unit but are not for use by all the co-owners.
- For attached condominiums, one-Unit examples are balconies, decks, patios, and air conditioning condensers. A multi-unit example is two townhouses opening onto a shared porch and stairs. A non-obvious and frequently discussed example is the interior surfaces of windows and shared walls or perimeter walls that are otherwise General Common Elements.
- For site condominiums, examples may include driveways and mailboxes. There may also be no Limited Common Elements at all.
- For business condominiums, examples may include exterior signs, private entrances, or reserved parking spaces.
Distinguished from General Common Elements, Limited Common Elements do not exist by default. Limited Common Elements must be specifically defined in the master deed.
There is no assumption regarding the responsibility for decoration, maintenance, repair, and replacement of Limited Common Elements. The master deed will define the responsibilities of the association and the co-owner. Shared or split responsibility is common.
There is no assumption regarding insuring the Limited Common Elements. The condominium bylaws will define the insurance responsibilities of the association and the co-owner. Overlapping coverage is frequent.
The same exceptions to maintenance, repair and replacement, and insurance responsibilities that apply to General Common Elements may also apply to Limited Common Elements. Because responsibilities for Limited Common Elements are non-standardized, it is always necessary to consult the condominium documents.
Alterations or modifications to the Limited Common Elements usually require architectural approval from the association, particularly if they will be visible from the unit exterior, or if they will affect an association responsibility.
We Can Help
Do you have questions about condominium Common Elements? Our attorneys have decades of experience with these matters. Please call us at (248) 349-6203 or email us using the contact form.
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