Dockominium
Encyclopedia
A dockominium is the water-based version of a condominium
Condominium
A condominium, or condo, is the form of housing tenure and other real property where a specified part of a piece of real estate is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights...

; rather than owning an apartment in a building, one owns a boat slip
Slipway
A slipway, boat slip or just a slip, is a ramp on the shore by which ships or boats can be moved to and from the water. They are used for building and repairing ships and boats. They are also used for launching and retrieving small boats on trailers and flying boats on their undercarriage. The...

 on the water. The term is a portmanteau of "dock" and "condominium." In addition to the exclusive right to use the boat slip, ownership also provides one with the right to use the common elements of the marina
Marina
A marina is a dock or basin with moorings and supplies for yachts and small boats.A marina differs from a port in that a marina does not handle large passenger ships or cargo from freighters....

, much the same as one would have the right to use the common areas in a residential condominium development. Also, unit owners may use, rent or sell their unit at any time, subject to association approval.

Condominium

Similar to a condominium, a management company manages the common areas and provides all required services such as maintenance, security, insurance, bookkeeping, legal and overall management and supervision of the dockominium facility. A monthly fee is charged to cover these expenses. Typically, water is included, while electricity and cable, etc. are billed separately via the management association. Real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

 taxes are separately assessed by the municipality and are the responsibility of the unit owner.

Purpose

A dockominium is created when a marina converts or sells individual slips to individual owners. Traditionally, marinas are in the business of renting or leasing space. A comparison would be the conversion of a rental apartment to a condominium. An association is created that monitors the maintenance and operation of the marina. Individuals owner is responsible for paying their monthly, quarterly, or annual association dues and for their own property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...

es assessed on the slip. Dockominium conversions are a popular trend taking place in the marina industry in high demand areas focusing on the luxury markets.

Limits

However, despite the advantages, whether or not dockominium sales are legal vairies according to laws of each area. Few marina owners also own the land under the water, and most have only an easement to the property. Individual unit sales may violate law, thus following the legal concept of the public trust doctrine
Public trust doctrine
The public trust doctrine is the principle that certain resources are preserved for public use, and that the government is required to maintain them for the public's reasonable use.-Origins:...

 that provides that public trust
Public trust
The concept of the public trust relates back to the origins of democratic government and its seminal idea that within the public lies the true power and future of a society; therefore, whatever trust the public places in its officials must be respected....

lands, waters, and living resources in a state are held by the State in trust for the benefit of all of the people.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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