Condominiums, Condominium Associations, Maine State Bar Association, Lawyer Referral Service

Condominiums can only be created through legal documents which must comply with relevant laws in order to be valid and so the advice of an attorney is essential. The statutes that most often dictate Condominiums and Condominium Associations’ structure and operation include the Maine Condominium Act and the Maine Nonprofit Corporation Act. Other laws and regulations that may come into play in a Condominium matter include the Federal Interstate Land Sales Act, the Americans with Disabilities Act, and the Fair Housing Act, as well as various municipal or state zoning and subdivision ordinances and statutes. These laws and the documents forming the Condominium describe what the officers or executive board of any Condominium Association must do to operate and manage the Condominium. Therefore it is important that the officers and board members understand unit lien laws, assessment laws and the laws relating to Declarants.

Whether you are interested in re-developing property you own into a Condominium or purchasing one and thus joining an existing Condominium Association, getting an attorney’s advice will help ensure that you understand the restrictions Condominiums impose on your use or sale of the property and ensure you know the costs of helping to maintain the common elements of the Condominium.

If you are having a dispute with your Condominium Association officers or board members, you should contact an attorney who understands all the relevant Condominium laws mentioned above, plus the unique tort and contract liability provisions within Maine statutes in particular.

Forming a Condominium allows a property owner to maximize the number of useable units property can be developed into. Additionally, buying a Condominium can really minimize the cost and effort of keeping up with the usual maintenance of property you own or rent.. However, a Condominium and the Association necessary to operate it is not a club. The laws that govern what Condominiums and Condominium Associations –are complex. When Condominiums are formed and operated properly they can benefit all members; but careless or manipulative actions can land members as well as officers or board members in court. Retain an attorney to advise you.

Related Legal Terms and Definitions

Allocated Interests - the undivided interests in the common elements, the common expense liability and votes in the association allocated to each unit.

Common Elements - all portions of a condominium other than the units.

Common Expenses - expenditures made by or financial liabilities of the association, together with any allocations to reserves.

Condominium - real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions under a declaration, or an amendment to a declaration, duly recorded pursuant to the Maine Act. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners. Any real estate development consisting exclusively of clustered, detached, single family residences is not a condominium, unless so designated in the declaration.

Declarant - any person or group of persons acting in concert who: (i) as part of a common promotional plan, offers to dispose of his or its interest in a unit or units not previously disposed of; or (ii) reserves or succeeds to any special declarant right.

Executive Board - the body, regardless of name, designated in the declaration to act on behalf of the association.

Articles of Incorporation - the original or restated articles of incorporation and all amendments thereto. It includes the certificate of incorporation, articles of merger, articles of consolidation and, in the case of a corporation created by special Act of the Legislature, the special Act and any amendments thereto.

Board of Directors - the group of persons vested with the management of the affairs of the corporation irrespective of the various names, such as board of trustees or board of managers, by which such group is designated.

Bylaws - the code or codes of rules adopted for the regulation or management of the affairs of the corporation irrespective of the name or names by which such rules are designated and includes the corporation's constitution unless the constitution is filed as the articles of incorporation or enacted by the Legislature in a special Act.

These definitions describe only some aspects of Maine’s laws governing Condominium Associations. For more information and guidance, consult a Real Estate attorney with Condominium Law experience.

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