Common area

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A common area in a library
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Common area at the Guantanamo Bay detention camp
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A makerspace

A common area is, in real estate or real property law, the "area which is available for use by more than one person..." [1] The common areas are those that are available for common use by all tenants, (or) groups of tenants and their invitees. [2] [3] In Texas and other parts of the United States, it is "An area inside a housing development owned by all residents or by an overall management structure which charges each tenant for maintenance and upkeep." [4] [5]

Contents

Common areas often exist in apartments, gated communities, condominiums, cooperatives, and shopping malls. [6]

In any situation where there is a tenancy in common, all the tenants in common collectively own the common areas, meaning that any one individual owner does not possess more control over the land than any other owner. [7]

This differs from a commons or common land, as used in English law, which is owned by one person, but which may be used by a group of persons.

Examples

Examples of common areas include:

Case law

In Maryland v. Garrison , the US Supreme Court found that police may enter a common area when executing a search warrant. [12] [13] Also, in Illinois v. Rodriguez the US Supreme Court held that "a warrantless entry is valid when based upon the consent of a third party whom the police, at the time of the entry, reasonably believe to possess common authority over the premises, but who in fact does not do so." [14] Furthermore, the court held:

a person who permits others to have "joint access or control for most purposes ... assume[s] the risk that [such persons] might permit the common area to be searched." [15] 415 U.S., at 171, n. 7; see also Frazier v. Cupp , 394 U.S. 731, 740 (1969) (holding that defendant who left a duffel bag at another's house and allowed joint use of the bag "assumed the risk that [the person] would allow someone else to look inside"). As the Court's assumption-of-risk analysis makes clear, third-party consent limits a person's ability to challenge the reasonableness of the search only because that person voluntarily has relinquished some of his expectation of privacy by sharing access or control over his property with another person.

—  [16]

Residence halls

In residence halls of colleges and universities, the common areas are those spaces in a dorm that are for the use of all the student residents. In order to paint murals, improve with fixtures, or otherwise change the common area, permission may have to be obtained from the director of residential life. [17] Legally, there is nothing that a tenant can do if they do not approve of their common area furnishings, decorations, etc. unless it interferes directly with a disability. Anything pertaining to religion or beliefs are all covered under the Fair Housing Law. The only way to control common areas in this regard is if a serious threat was posed. State-run universities do have the authority to prohibit use of common areas should they see fit (whether that be decorating, furnishings, or physical use). For-profit housing can only limit these things to some extent. They cannot legally control every aspect of common area use because of the aforementioned Fair Housing Laws.

Business spaces

Common area also applies to organizations such as shopping malls and strip malls, in which multiple businesses operate. [5] Oftentimes, business parks, malls, and other multi-company facilities will have a common area. This could be any one of the examples listed above or it could take form of a "break room". These areas are generally centrally located and for everyone's use within the businesses involved. There can be stipulations on conduct within the common areas as well as availability of the common areas. Businesses may also have common areas within themselves. Typically the businesses with common areas will have their own rules that cater to their business type, policy, and company vision.

Real estate taxation of common areas

States vary in how they tax common areas, for real estate tax purposes. It may depend on whether it is a condo or a co-op. For example, the state of Arizona taxes "residential common areas" in housing developments with a flat tax, but common areas of condominiums and golf courses are assessed separately. [18]

Stipulations with various common area types

Depending upon the common area type (i.e. business, residential, state-owned) there are certain precautions one must take with utilizing them.[ citation needed ] Some require leases, some require contracts, and some only require a spoken pledge. For example, businesses may share common areas in a store that accepts vendors from multiple backgrounds. It is understood in a lease or contract that they will share space with these different vendors. With apartments, there are two different types of common areas a developer can have. One would be under contract and the other would be under lease. Apartments that rent by the unit (i.e. conventional housing) are signed for by one individual. That one individual legally decides the use of the common area should they ever gain a roommate in the future. If an apartment complex leases by the bedroom, there is a clause or paragraph detailing how the space is to be used equally between all lease holders. Lastly, there are state-owned and mandated common areas. Forts and bases, government run facilities, and even jails have common areas. There is no agreement in a lease stating how those areas should be used. There are different kinds of common areas and all of them have different rules and stipulations. They all have different legal proceedings should something happen in those areas.[ citation needed ]

Loss factor

In commercial real estate in the US, a building's loss factor is the percentage of the building's area shared by tenants or space that are dedicated to the common areas of a building used to calculate the difference between the net (usable) and gross (billable) areas. [19]

That portion of the space is considered "lost" because it cannot be directly leased and the maintenance and operation costs must be covered by the other rentable areas. [20]

The loss factor is often confused with load factor, but the formulas for each term vary. [21]

The loss factor is calculated as follows:

The Building Owners and Managers Association has established a standard with American National Standards Institute, ANSI/BOMA Z65.1-2010 for measuring floor area and calculating gross leasable area and loss factor. [22]

See also

Related Research Articles

In common law and statutory law, a life estate is the ownership of immovable property for the duration of a person's life. In legal terms, it is an estate in real property that ends at death, when the property rights may revert to the original owner or to another person. The owner of a life estate is called a "life tenant". The person who will take over the rights upon death is said to have a "remainder" interest and is known as a "remainderman".

<span class="mw-page-title-main">Apartment</span> Self-contained housing unit occupying part of a building

An apartment, flat, or unit is a self-contained housing unit that occupies part of a building, generally on a single storey. There are many names for these overall buildings. The housing tenure of apartments also varies considerably, from large-scale public housing, to owner occupancy within what is legally a condominium, to tenants renting from a private landlord.

<span class="mw-page-title-main">Renting</span> Payment for temporary use; hiring

Renting, also known as hiring or letting, is an agreement where a payment is made for the use of a good, service or property owned by another over a fixed period of time. To maintain such an agreement, a rental agreement is signed to establish the roles and expectations of both the tenant and landlord. There are many different types of leases. The type and terms of a lease are decided by the landlord and agreed upon by the renting tenant.

<span class="mw-page-title-main">Condominium</span> Form of ownership of real property

A condominium is an ownership regime in which a building is divided into multiple units that are either each separately owned, or owned in common with exclusive rights of occupation by individual owners. These individual units are surrounded by common areas that are jointly owned and managed by the owners of the units. The term can be applied to the building or complex itself, and is sometimes applied to individual units. The term "condominium" is mostly used in the US and Canada, but similar arrangements are used in many other countries under different names.

<span class="mw-page-title-main">Eviction</span> Removal of a tenant from rental property by the landlord

Eviction is the removal of a tenant from rental property by the landlord. In some jurisdictions it may also involve the removal of persons from premises that were foreclosed by a mortgagee.

<span class="mw-page-title-main">Housing cooperative</span> Type of housing development that emphasizes self-governance and quasi-communal living

A housing cooperative, or housing co-op, is a legal entity, usually a cooperative or a corporation, which owns real estate, consisting of one or more residential buildings; it is one type of housing tenure. Typically housing cooperatives are owned by shareholders but in some cases they can be owned by a non-profit organization. They are a distinctive form of home ownership that have many characteristics that differ from other residential arrangements such as single family home ownership, condominiums and renting.

<span class="mw-page-title-main">Lease</span> Contractual agreement in which an assets owner lets someone else use it in exchange for payment

A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment are also leased. In essence, a lease agreement is a contract between two parties: the lessor and the lessee. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree to the condition that the car will only be used for personal use.

A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant has rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a leasehold estate is typically considered personal property.

<span class="mw-page-title-main">Land tenure</span> Legal regime in which area owned by an individual is held by another person

In common law systems, land tenure, from the French verb "tenir" means "to hold", is the legal regime in which land "owned" by an individual is possessed by someone else who is said to "hold" the land, based on an agreement between both individuals. It determines who can use land, for how long and under what conditions. Tenure may be based both on official laws and policies, and on informal local customs. In other words, land tenure implies a system according to which land is held by an individual or the actual tiller of the land but this person does not have legal ownership. It determines the holder's rights and responsibilities in connection with their holding. The sovereign monarch, known in England as the Crown, held land in its own right. All land holders are either its tenants or sub-tenants. Tenure signifies a legal relationship between tenant and lord, arranging the duties and rights of tenant and lord in relationship to the land. Over history, many different forms of land tenure, i.e., ways of holding land, have been established.

Section 8 of the Housing Act of 1937, commonly known as Section 8, provides rental housing assistance to low-income households in the United States by paying private landlords on behalf of these tenants. Approximately 68% of this assistance benefits seniors, children, and individuals with disabilities. The Department of Housing and Urban Development (HUD) oversees Section 8 programs, which are administered locally by public housing agencies (PHAs).

Property management is the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and land real estate. Management indicates the need for real estate to be cared for and monitored, with accountability for and attention to its useful life and condition. This is much akin to the role of management in any business.

A rental agreement is a contract of rental, usually written, between the owner of a property and a renter who desires to have temporary possession of the property; it is distinguished from a lease, which is more typically for a fixed term. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the renter as the lessee.

<span class="mw-page-title-main">Multifamily residential</span> Type of housing development that emphasizes density and proximity of many neighbors

Multifamily residential, also known as multidwelling unit (MDU)) is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. Units can be next to each other (side-by-side units), or stacked on top of each other (top and bottom units). Common forms include apartment building and condominium, where typically the units are owned individually rather than leased from a single building owner. Many intentional communities incorporate multifamily residences, such as in cohousing projects.

Landlord harassment is the willing creation, by a landlord or their agents, of conditions that are uncomfortable for one or more tenants in order to induce willing abandonment of a rental contract. This is illegal in many jurisdictions, either under general harassment laws or specific protections, as well as under the terms of rental contracts or tenancy agreements.

In the field of commercial real estate, especially in the United States, a net lease requires the tenant to pay, in addition to rent, some or all of the property expenses that normally would be paid by the property owner. These include expenses such as property taxes, insurance, maintenance, repair, and operations, utilities, and other items. These expenses are often categorized into the "three nets": property taxes, insurance, and maintenance. In US parlance, a lease where all three of these expenses are paid by the tenant is known as a triple net lease, NNN Lease, or triple-N for short and sometimes written NNN.

Rent regulation in New York is a means of limiting the amount of rent charged on dwellings. Rent control and rent stabilization are two programs used in parts of New York state. In addition to controlling rent, the system also prescribes rights and obligations for tenants and landlords.

The Republic of Panama's real estate industry relies on foreign investment. The sector has grown since 2006, as such investment has helped to fuel Panama's economy and housing market.

Real estate is property consisting of land and the buildings on it, along with its natural resources such as growing crops, minerals or water, and wild animals; immovable property of this nature; an interest vested in this (also) an item of real property, buildings or housing in general. In terms of law, real relates to land property and is different from personal property while estate means the "interest" a person has in that land property.

<span class="mw-page-title-main">Real property</span> Legal term; property consisting of land and the buildings on it

In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, refers to parcels of land and any associated structures which are the property of a person. In order for a structure to be considered part of the real property, it must be integrated with or affixed to the land. This includes crops, buildings, machinery, wells, dams, ponds, mines, canals, and roads. The term is historic, arising from the now-discontinued form of action, which distinguished between real property disputes and personal property disputes. Personal property, or personalty, was, and continues to be, all property that is not real property.

<span class="mw-page-title-main">Retail leasing</span>

A retail lease is a legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee use of an asset and guarantees the lessor regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid.

References

  1. 1 2 3 4 "St. George.com glossary". Archived from the original on 2008-04-30. Retrieved 2008-05-06.
  2. ↑ "Fx Realty web site". Archived from the original on 2008-05-14. Retrieved 2008-05-06.
  3. 1 2 3 4 5 6 kwcondo Archived 2008-07-24 at the Wayback Machine
  4. ↑ "Pride of Texas web site". Archived from the original on 2008-05-04. Retrieved 2008-05-06.
  5. 1 2 Common Area. laws.com retrieved from real-estate.laws.com Accessed 28 November 2012.
  6. ↑ "Landlord Tenant Common Areas Law & Legal Definition". definitions.uslegal.com. Retrieved 2009-03-12.
  7. ↑ City of davis web site Archived 2011-07-25 at the Wayback Machine
  8. 1 2 3 Tracy, William, Understanding Common and Useable Areas, found at Building Area Measurement LLC web site Accessed May 8, 2008.
  9. 1 2 United Housing Foundation, Inc. v. Forman , 421 U.S. 837, 856 (1975), found at Findlaw.com. Accessed May 8, 2008.
  10. ↑ Multi-housing Laundry Association (MLA) web site Archived 2008-03-31 at the Wayback Machine . Accessed May 8, 2008.
  11. ↑ Spitz, H. May (15 August 2005). "It's up to the landlord to maintain a building's common areas". Los Angeles Times. Retrieved 16 December 2017.
  12. ↑ "We have no difficulty concluding that the officers' entry into the third-floor common area was legal; they carried a warrant for those premises, and they were accompanied by McWebb, who provided the key that they used to open the door giving access to the third-floor common area. If the officers had known, or should have known, that the third floor contained two apartments before they entered the living quarters on the third floor, and thus had been aware of the error in the warrant, they would have been obligated to limit their search to McWebb's apartment." Maryland v. Garrison , 480 U.S. 79, 87 (1987), found at Findlaw.com web site. Accessed May 6, 2008.
  13. ↑ See also Rakas v. Illinois, 439 U.S. 128 (1978), dissent by Justice Byron White, dissenting, footnote 11, citing United States v. Matlock, 415 U.S. 164, 169, and 171 n. 7 (1974) ("The authority which justifies the third-party consent does not rest upon the law of property, with its attendant historical and legal refinements, . . . but rests rather on mutual use of the property by persons generally having joint access or control for most purposes, so that it is reasonable to recognize that any of the co-inhabitants has the right to permit the inspection in his own right and that the others have assumed the risk that one of their number might permit the common area to be searched"), found at Findlaw.com. Accessed May 8, 2008.
  14. ↑ Illinois v. Rodriguez , 497 U.S. 177, 179 (1990), found at Findlaw.com. Accessed May 8, 2008.
  15. ↑ This also cites United States v. Matlock, 415 U.S. 164, 171 n. 7 (1974)
  16. ↑ Illinois v. Rodriguez , 497 U.S. 177, 194 (1990), found at Findlaw.com. Accessed May 8, 2008.
  17. ↑ Appalachian State University, Dept. of Housing and Residence Life web site (Boone, NC) [ permanent dead link ]. (Pdf document.) Accessed May 8, 2008.
  18. ↑ Arizona Department of Revenue, Property Tax Division, Guideline, Residential Common Areas, March 31, 2000, citing Arizona Revised Statutes sections 42-13401 et seq., found at Pinal County, AZ web site Archived 2009-01-06 at the Wayback Machine . (pdf doc). Accessed May 8, 2008
  19. ↑ Real Estate Investment and Finance. Arnold, Maryland: Building Owners and Managers Association. pp. G16.
  20. ↑ "How is loss factor calculated?...and more questions answered". The Real Deal online. Korangy Publishing Inc. Archived from the original on 7 December 2011. Retrieved 5 December 2011.
  21. ↑ "Glossary of Square Footage Terms". Building Area Measurement LLC. Retrieved 13 May 2013.
  22. ↑ "Office Buildings: Standard Methods of Measurement and Calculating Rentable Area (2010)". Building Owners and Managers Association. 2010. Archived from the original on 2010-04-14.
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