What Developers Should Know Before Creating a Condominium in Ohio
Condominium developments can be an attractive option for developers, offering flexibility in design, diversified ownership, and long-term value. But developing a condominium involves far more than constructing a building and selling units. In Ohio, the process is governed by the Ohio Condominium Act (Ohio Revised Code Chapter 5311), which imposes detailed legal and technical requirements that are best addressed early, before plans are finalized or ground is broken.
1. Understanding the Condominium Concept
A condominium is a form of ownership, not a building type. While buyers acquire title to their individual units, they also hold an undivided interest in common elements such as hallways, parking lots, and green spaces. For developers, this means that decisions made during design and construction directly affect ownership rights, maintenance obligations, and long-term operational responsibilities. Proper planning at this stage helps avoid unintended consequences that can surface years after the last unit is sold.
2. The Declaration of Condominium
Every condominium project is built on its Declaration of Condominium and the accompanying certified drawings, both of which are recorded with the county recorder. Together, these documents define the legal framework of the project, including:
- The property boundaries and unit configurations
- The number, type, and layout of units
- Percentage ownership interests in the common elements
- Easements, restrictions, and use rights
- The structure and authority of the condominium association
Because these documents become part of the permanent title record, precision matters. Ambiguities or drafting errors can create financing issues, trigger disputes among owners, or complicate future development phases.
3. Establishing the Condominium Association
Developers are responsible for establishing the unit owners’ association that will govern the condominium. The association’s bylaws address governance, assessments, maintenance responsibilities, reserve funding, and meeting procedures. During the initial phase of the project, developers typically retain control of the association, with control transitioning to unit owners once statutory or contractual thresholds are met. Thoughtful planning during this phase can reduce friction later and help ensure a smooth handoff when developer control ends.
4. Development Disclosure Statement
Before marketing or selling units, developers must provide prospective buyers with a developer statement, a comprehensive disclosure document required by law. This document outlines critical information such as:
- Project plans and amenities
- Association budgets and fees
- Maintenance obligations
- Apportionment of voting rights
Failing to provide an accurate and complete development statement can result in penalties or give buyers the right to cancel their purchase. Making careful preparation is essential.
5. Compliance with Local Zoning and Building Codes
Even before any construction begins or before filing condominium documents, developers must ensure the project complies with local zoning regulations, subdivision rules, and building codes. Working with legal counsel early can help navigate zoning approvals, variances, and municipal requirements that could delay development.
6. Transition Planning
As units are sold and the project nears completion, developers must prepare for the transition of control to the condominium association. This includes the orderly transfer of:
- Governing documents and records
- Financial statements and reserve accounts
- Warranties and construction documentation
A well-managed transition protects both the developer’s reputation and the long-term stability of the association, reducing the likelihood of disputes after turnover.
Final Thoughts
Condominium developments can be rewarding, but they require careful planning, legal documentation, and compliance with Ohio’s statutory framework. Addressing these issues early, and with a long-term perspective, helps protect the project, the developer, and future owners. Working with an experienced real estate attorney ensures that every phase, from concept to completion, is handled properly and that your investment is protected.
Kocher & Barney, LLC assists developers and property owners in navigating the complexities of condominium and real estate law. If you’re considering developing or converting a property into a condominium, contact our office.