What does a condominium consist of in terms of property interest?

A condominium consists of a fee interest in a specific unit owned by an individual and an undivided interest in the common areas shared among all unit owners. This structure allows the owner to possess their unit in severalty, meaning they have exclusive rights to the interior of their unit, while simultaneously holding a shared ownership stake in the common elements of the condominium, such as hallways, recreational facilities, and landscaping.

This combination of ownership types is a distinctive feature of condominiums, differentiating them from other types of real estate ownership where ownership might be more singular or complete. The undivided interest in common areas ensures that all condominium owners have a stake in the maintenance and upkeep of shared facilities, establishing a community responsibility among residents.

Other potential answers describe ownership structures that do not accurately reflect the unique characteristics of condominium ownership. For instance, having only a shared interest in a rental unit ignores the individual ownership aspect of condo units. Ownership that only includes common areas misrepresents the necessary individual ownership of a unit. Lastly, a separate interest in land outside the structure does not pertain to condominium ownership, which is fundamentally about shared living spaces and common property. Thus, the accurate understanding of a condominium's structure is reflected in the correct choice.