Corporate Ownership Of Units In The Community

More associations are gaining new owners in their communities in the form of corporations. Questions inevitably arise when one considers who will be living in the Unit. A corporation has a board of directors, much like the association itself. This board of directors will ultimately decide who lives in the unit.

A common misconception is that the resident which a corporation places in the unit is a tenant. Typically this is not the case. A corporate entity has the ability to appoint a person to serve as the corporate representative. This representative becomes the resident and, typically, will also have a proxy for the corporation. If the association allows for rentals, a corporation may purchase a unit for investment purposes and rent the same; however, unless there is a lease and rentals are permitted, the resident is not a tenant.

The corporate entity does have a duty to inform the association’s secretary, in writing, who the corporate representative is, their contact information and any other information required by the governing documents. In all other respects, the corporation is treated the same as other unit owners. They pay maintenance fees and must follow the governing documents.

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