In a condominium, an individual owns their specific unit in fee simple. The common areas, such as the land, hallways, elevators, and recreational facilities, are owned collectively by all the individual unit owners. The legal structure for this shared ownership is a tenancy in common, where each owner holds an undivided fractional interest in the common elements. This interest is appurtenant to their unit, meaning it is inseparable from the unit and is automatically transferred to the new owner upon the sale of the unit.

A. its duly elected Board of Directors.

The Board of Directors manages and administers the common areas on behalf of the owners' association, but they do not hold legal title to the property.

B. those owners who were original owners of the units.

Ownership interest in the common elements is tied to unit ownership and transfers to the new owner when a unit is sold.

C. any individuals who pay a prorated share of the taxes and maintenance.

Paying maintenance fees is an obligation of ownership, not the basis for it. Ownership is established by the deed to the unit.

1. New Jersey Condominium Act, N.J.S.A. 46:8B-1 et seq.

N.J.S.A. 46:8B-3(d) defines "Common elements" as property owned in common by the unit owners.

N.J.S.A. 46:8B-6 states, "The proportionate undivided interest in the common elements assigned to each unit shall be inseparable from such unit..." This establishes the principle of undivided interest held by all owners, which is the definition of a tenancy in common.

2. French, E. F. (2000). The Constitution of a Private Residential Government: The Smith Act and the Declaration of Covenants, Conditions, and Restrictions. Cornell Real Estate Review, 1(1), 12-19.

Page 13, Paragraph 2: "In the condominium, individual owners hold title to their individual units... and an undivided interest as a tenant in common in the common areas." This academic source confirms the legal structure of common element ownership.

3. New Jersey Real Estate Commission. (2023). New Jersey Real Estate License Law and Rules. N.J.A.C. 11:5.

While not a direct quote, the principles underlying the regulation of condominiums (e.g., N.J.A.C. 11:5-9.3, Public Offering Statements) are based on the foundational ownership structure defined in the NJ Condominium Act, where unit owners collectively own common elements as tenants in common.