One of the most important exhibits to every association's Declaration is the statement of ownership percentages. This document details the portion of the common elements owned by each unit. Ownership percentages are determined by the developer when the condominium is created and are based on a number of marketing criteria at the developer's discretion. A smaller unit on an upper floor might have a greater ownership percentage assigned than a larger unit on a lower floor, if city or lake views make the unit more desirable, for example.
All owners pay assessments based on their ownership percentages as a portion of the total annual operating budget. Special assessments also must be paid based on ownership percentages. A unit with 10% ownership does not pay the same amount toward a new roof as a unit with 20% ownership. Boards should be sure to calculate all assessments correctly to ensure enforceability if collection action is needed.