What are limited common elements? A guide for your condo

Living in a condominium community offers many benefits, from shared amenities to a strong sense of neighborhood. However, the unique structure of condo ownership can also bring questions about property lines and responsibilities. One area that frequently causes confusion is the distinction between different types of property within the community.

In this article, you’ll learn a clear explanation of limited common elements (LCEs). We will define what they are, provide specific examples, and clarify who is responsible for their maintenance, repair, and insurance. By understanding these concepts, boards and residents can better navigate their tour rights and responsibilities as condo owners.
 

What are limited common elements?

To understand limited common elements, you must first understand the three types of property in a condominium association:

1. The unit: This is the space you own exclusively. It typically includes the interior space of your home, bounded by the unfinished walls, ceilings, and floors.
    
2. Common elements: These are areas and facilities owned collectively by all members of the association. All owners share the right to use these spaces.
    
3. Limited common elements (LCEs): These are a special category. LCEs are technically common elements, but their use is restricted to a specific owner or a small group of owners.

So, what is a limited common element and give an example of it? A limited common element is a part of the shared property that is designated for the exclusive use of one or a few units, but not all. A classic example is a balcony attached to a single condominium unit. While the balcony structure is part of the building’s common property, only the owner of the connected unit has the right to use it.

These areas are also sometimes referred to as limited common areas. The specific definition and designation of LCEs are always outlined in your community’s governing documents, such as the Covenants, Conditions, and Restrictions (CC&Rs) or the master deed. These documents are the final authority on what constitutes an LCE within your specific association.
 

Examples of LCEs

The items designated as limited common elements can vary significantly from one community to another. It all depends on what is written in the governing documents. However, some common examples of LCEs include:

• Balconies and patios: As mentioned, these are perhaps the most frequent examples. A patio or balcony is attached to the common structure but serves only the adjoining unit.
   
• Designated parking spaces: A parking spot assigned for the exclusive use of a particular unit is an LCE. While the parking lot itself is a common element, your specific spot is reserved for you.
   
• Storage lockers: Individual storage units located in a common area like a basement or garage are often designated as LCEs.
   
• Doorbells and doormats: The area immediately outside your front door, including the doorbell mechanism and the stoop, can be considered an LCE.
   
• Window boxes and shutters: Exterior fixtures that serve a single unit, like decorative shutters or window boxes, often fall into this category.
   
• Attics or rooftop areas: In some building designs, specific attic spaces or sections of a rooftop deck may be assigned to a top-floor unit.
   
• Fenced-in yards: For townhouse-style condos, a small, enclosed yard space attached to a ground-floor unit is typically an LCE.

What are some examples of common elements?

To further clarify what LCEs are, it helps to contrast them with general common elements. These are spaces and amenities available to every resident in the community.

• The building’s foundation, roof, and exterior walls.
   
• Lobbies, hallways, and elevators.
   
• Community swimming pools, clubhouses, and fitness centers.
   
• Shared laundry rooms.
   
• Landscaped grounds, sidewalks, and community roads.
   
• The general parking lot (excluding assigned spaces).

These areas are for the enjoyment and use of all owners and are managed and maintained collectively by the homeowners association (HOA) or condo board.
 

Who is responsible for limited common elements?

This is one of the most critical questions for condo owners. The answer determines who pays for upkeep, repairs, and replacements. Responsibility for limited common elements is a shared concept, and the specifics are, once again, detailed in your community's governing documents. Generally, the responsibility of limited common elements is split between the owner and the association.

• Owner's responsibility: The owner who has exclusive use of the LCE is often responsible for routine maintenance and keeping the area clean. For a balcony, this might include sweeping, cleaning the glass, and checking that it remains free of clutter. For a designated parking spot, it means keeping it clean of debris or personal items. This is sometimes called the "surface level" responsibility.
   
• Association's responsibility: The association is typically responsible for major repairs and replacements of the LCE's structural components. For a balcony, the association would likely handle repairs to the concrete slab, railings, or structural supports. For a designated parking space, the association would handle repaving or line restriping.

This division of labor makes logical sense. The owner benefits from the exclusive use, so they handle the day-to-day upkeep. The association is responsible for the long-term structural integrity because the LCE is still part of the overall common property.
 

What is the difference between deeded and limited common elements?

The distinction between deeded property and limited common elements is a crucial one in real estate law.

• Deeded property: When something is "deeded" to you, you own it outright. A deeded parking space, for example, is your personal property. You receive a separate property title for it, it is assessed for taxes separately, and you can sell it independently of your condo unit (unless restricted by the governing documents). It is an asset you own.
   
• Limited common elements: An LCE is not something you own. It is common property that you have the exclusive right to use. The ownership remains with the association, meaning all owners collectively own it. You cannot sell your LCE parking space separately from your unit because you don't own it, so you only have the right to use it as long as you own the associated unit.

This difference has significant implications for value, taxes, and transfer of property. Deeded property is generally more valuable as it represents true ownership.
 

Who insures limited common elements of a condo?

Insurance for limited common elements follows the same logic as maintenance responsibility. It’s a shared duty, and coverage is typically split between the association's master policy and the individual owner's condo policy (HO-6).

• The association's master policy: The master policy generally covers the structural components of the limited common elements. It insures the "studs out," meaning it covers the building's main structure. In the case of a balcony, the master policy would likely cover damage to the slab, railings, and permanent fixtures from a covered peril like a fire or storm.
   
• The owner's HO-6 policy: The individual owner's policy typically covers their personal property on or within the LCE. It may also provide coverage for any part of the LCE that the governing documents make the owner's responsibility. For example, if you have patio furniture on your balcony, your HO-6 policy would cover it. If the governing documents state you are responsible for the balcony's flooring surface, your policy might need to cover damage to that specific element.

It is essential to read your governing documents and then speak with your insurance agent. You need to review that your personal HO-6 policy provides adequate coverage that complements the association's master policy, leaving no gaps.

Understanding limited common elements, or limited common areas, is a key part of being an informed and responsible condo owner. These unique spaces provide the benefit of personal use while being part of the community's shared property.

By familiarizing yourself with your association's governing documents, you can clearly identify your LCEs, understand your maintenance duties, and secure the right insurance. This knowledge helps prevent disputes and promotes the long-term health and value of both your unit and the community as a whole. When in doubt, always reach out to your property management company or condo board for clarification.

FirstService Residential understands the complexities of managing limited common elements within condo communities. Our experienced team of experts brings clarity to property management issues.

We offer direct support for boards, owners, and residents, reviewing that responsibilities are communicated clearly and the value of your community is protected. Our service-focused approach provides reliable guidance every step of the way, enhancing the value of every property and the life of every resident.

To learn more about how our professional management solutions can help your community, contact FirstService Residential today.