Limited common elements are a typical source of confusion for many board members and unit owners. Since these areas are not always clearly defined, associations often struggle to determine who is responsible for maintenance, repairs, and insurance. When everyone understands these elements, decisions and responsibilities can remain consistent.
What are Limited Common Elements in a Condo?
Under the Virginia Condominium Act, limited common elements are defined as portions of the common elements that one or more units, but fewer than all units, have exclusive use rights on.
In simpler terms, these are shared association components that only certain owners can use. Although they are part of the common elements under the COA, access and use remain limited to specific unit owners.
It is important to check the condo’s governing documents, specifically the CC&Rs and the plat. This will help identify which portions of the property qualify as limited common elements. From there, boards can determine who is responsible, as these can vary from one association to another.
In many cases, the association owns the area, while the unit owner has the right to use the space exclusively (either alone or with other owners).
Limited Common Element Examples
Limited common elements can differ greatly depending on the community. That said, common examples include:
- Balconies
- Patios
- Assigned parking spaces
- Carports
- Storage lockers
- Exterior doors serving one unit
- Limited-use hallways
- Certain windows
- Decks attached to specific units
- Chimneys serving individual units
For example, a balcony attached to one condo unit may technically remain part of the common elements, but only that owner can use it. Similarly, assigned parking spaces in a garage often qualify as limited common elements because ownership remains with the association even though specific owners have exclusive use rights.
What are the Common Elements?
Condo common elements refer to the portions of the property shared by all owners. These areas are not reserved for exclusive use by individual units. Under Section 55.1-1900 of the Virginia Condominium Act, common elements generally include all portions of the condominium other than the units themselves.
Examples include:
- Roofs
- Elevators
- Clubhouses
- Pools
- Sidewalks
- Lobbies
- Shared hallways
- Landscaping
- Structural components
- Fitness centers
The association usually maintains, repairs, and insures these areas. To pay for these expenses, the condo uses funds collected from all unit owners (i.e., regular dues and assessments). Since all owners benefit from these spaces, the costs are typically shared across the community.
What are Exclusive Use Common Elements?
The term “exclusive use common element” is commonly used to describe limited common elements. These areas remain association property but are designated for the use of one or several specific owners.
Even with exclusive use rights, the governing documents may still place certain maintenance duties on either the association or the owner. This is where confusion often begins.
An owner may assume the association will handle repairs because the area is technically a common element. Meanwhile, the board may believe the owner is responsible because only one resident benefits from it.
It is important to refer to the governing documents for clarification. The CC&Rs and community plat usually determine who is responsible for routine maintenance, structural repairs, replacement costs, and even insurance obligations.
The Importance of Understanding Limited Common Elements
Boards need to understand limited common elements before making decisions involving maintenance, insurance, repairs, and owner responsibility. Misunderstanding these distinctions can lead to financial problems, disputes, and inconsistent governance.
Here are the top reasons it’s imperative to understand limited common elements.
1. Prevents Maintenance Disputes
One of the biggest sources of conflict involves maintenance responsibility. More often than not, owners and boards disagree over who must repair balconies, windows, doors, patios, and plumbing lines.
When the board properly understands the governing documents, it can avoid inconsistent decisions and reduce owner disputes. Of course, proper education is also paramount. Boards must communicate what the governing documents say so that owners can adjust their expectations.
2. Improves Budget Planning
Limited common elements don’t stay in the same condition forever. Every now and then, they will require routine maintenance, repairs, and even replacement. These costs can quickly pile up.
Boards that misunderstand obligations may underfund reserves or budget incorrectly. For example, if a board mistakenly believes that owners are responsible for balconies, it may fail to factor in the cost of repairs into the operating and reserve budgets. This will result in a budget shortfall.
3. Helps With Insurance Decisions
Common elements, including limited ones, must be covered by insurance. But these obligations will often depend on whether the area qualifies as a unit component, a common element, or a limited common element.
When definitions aren’t clear, it can result in gaps in coverage, denied claims, and redundant policies. After a loss, owners and boards may become embroiled in disputes.
4. Supports Consistent Rule Enforcement
Boards must enforce rules in a fair and consistent manner. When associations misunderstand limited common elements, they may enforce the rules unevenly and approve modifications incorrectly.
As a result, these misunderstandings can cause problems within the community. They can lead to accusations of selective enforcement or favoritism, even if the board acted without malicious intent. Lawsuits may soon follow.
5. Reduces Legal Exposure
Vague maintenance obligations and insurance responsibilities can turn into disputes. These disputes often become legal issues down the road. Owners may also challenge the board on their repair decisions, dues allocations, and enforcement actions.
Of course, all of this can be prevented if the board understands the limited common elements. Ignorance may not seem damaging at first, but it can inadvertently expose the association to liability.
6. Clarifies Owner Expectations
Many owners don’t really understand the difference between private property and limited common elements. This usually leads to complaints and disputes that can quickly escalate into heated arguments and threats of litigation.
When board members understand limited common elements, they can educate owners as well. This will help reduce confusion regarding maintenance responsibilities, architectural approvals, insurance obligations, and usage rights.
A Domino Effect
Limited common elements play an important role in condominium operations, maintenance, and governance. Since these areas exist between private ownership and shared association responsibility, boards must understand how the governing documents classify and assign responsibilities for them. In turn, this will help the board make better decisions.
Keymont Community Management offers expert management services to associations in Virginia, Maryland, and Washington, DC. Call us today at 703.752.8300 or request a proposal to start your journey!
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