A Limited Common Element (LCE) is a property element that is intended for the exclusive use by a certain group of owners or tenants within a multi-unit building or complex. While all owners may own an undivided interest in the common elements, a limited common element is considered exclusive, meaning that it can only be used by one or a select few of the owners.

Typically, ownership of limited common elements is outlined in a development’s declaration document or bylaws. Examples of these elements may include balconies, decks, gardens, and stairwells, each of which serves the unit’s occupants exclusively. The purpose of specifying that a certain element be a limited common element is to provide more certainty to the owners and occupants of each unit as to the terms and conditions that apply to those elements.

Management of a limited common element typically depends on the governing rules and regulations of the development. Usually, the limited common elements are managed by the unit owners, who are responsible for ensuring that they are kept in good condition. An owner’s association may also be responsible for the upkeep of the common elements, as well as any repairs that may be required.

When it comes to partitioning of a limited common element, it is important for the owners of the individual units to be aware of their rights and the rules of ownership that apply. Some common elements are bound by boundaries that can often be determined by either physical markings or the use of survey markers. Other elements, such as parking spaces or balconies, may not be able to be partitioned in the same way, so the allocation of use must be agreed upon between parties.

When allocating responsibility for maintaining a limited common element, typically each owner will be responsible for their individual unit. They will also be responsible for the upkeep of any exclusive portions of the common elements allocated to their respective units. That being said, sometimes a management company or an owner’s association is selected to manage the look, maintenance and repairs of the common elements in general.

When disputes arise regarding limited common elements, they are typically settled through a process of mediation, through the application of the law and/or through arbitration. Before any action is taken, it is always important to review the governing documents to ensure that they are properly adhered to.

Any ownership of a limited common element can often be key to increasing the value of a property. Limited common elements add to the comfort of occupants and can increase the aesthetic appeal of a unit, which can be appealing to potential buyers. Ultimately, having the knowledge of how a limited common element works can be beneficial to anyone who is thinking of buying or renting a property.