Condominium Law: Owner Rights, Board Authority, and Litigation Standards

Ownership is bifurcated into distinct categories that dictate maintenance and liability:

• The Unit: Generally defined as the space from the interior surface of the drywall inward. The owner has a fee simple interest, allowing them to sell, mortgage, or lease the property.
• Common Elements: Includes the roof, lobby, elevators, and structural walls. These are owned collectively by all unit owners as tenants-in-common.
• Limited Common Elements: Features like balconies or designated parking spots that are common property but reserved for the exclusive use of one owner.

The authority of a condominium association is established through a specific hierarchy:

• The Declaration: The constitutional document that creates the condominium and defines the percentage of common interest.
• The Bylaws: The operational manual governing board elections, meeting procedures, and assessment calculations.
• House Rules: Regulates day-to-day conduct, such as pet restrictions and move-in schedules.

Courts analyze condominium disputes by reviewing governing documents, statutory obligations, and the scope of association authority.

Governance in a New York condominium is a representative system. Owners have the right to elect board members and vote on major amendments to the Declaration. If a board attempts to bypass these voting requirements, their actions may be challenged as ultra vires - meaning they have acted beyond their legal power.

In condominium law disputes, courts focus on whether board actions were authorized, reasonable, and applied in good faith.

• Levandusky v. One Fifth Ave. Apt. Corp.: 
• This landmark New York case established that the 'Business Judgment Rule' protects board decisions from judicial second-guessing as long as the board acts in good faith and within its authority.
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• Matter of Pelton v. 77 Park Ave. Condominium: 
• This case further clarified that individual board members are generally immune from personal liability unless they commit independent tortious acts.

Boards must adhere to evolving standards of transparency. Under the NYC FARE Act (Local Law 119 of 2024), which took full effect on June 11, 2025, the party who hires a broker is responsible for the commission. If a condominium board hires an agent to lease association-owned units, they are legally barred from shifting that fee to the tenant.

• Common Charges: Monthly fees for operating expenses (staff, utilities, insurance).
• Special Assessments: One-time charges for major projects, such as a roof replacement.
• Procedural Rails: An assessment is only valid if it follows the specific notice and voting procedures outlined in the Bylaws.

Failure to pay is a terminal risk. Condominium law allows the board to record a condominium lien against the unit.

• Lien Filing: Serves as a public notice of the debt.
• Foreclosure: Unlike a co-op, a condo must go through a formal court foreclosure process to sell the unit to satisfy the lien.
• Priority: The lien is often subordinate to a first mortgage but superior to most other debts.

A board cannot choose to enforce pet rules against one owner while ignoring similar violations by another. This is known as selective enforcement and is a valid defense in litigation. Owners often challenge board fines if the board failed to provide a hearing or a chance to cure the violation.

• Alterations: Owners must usually obtain an Alteration Agreement. Disputes arise when boards withhold consent 'unreasonably'.
• Leasing: While condos are more permissive than co-ops, boards often retain a 'Right of First Refusal'. In the post-June 2025 era, any brokerage fees involved in these transactions must follow the FARE Act mandates regarding who hired the agent.