Sometimes, in my opinion, there is a reason to use a two tier condominium structure (a condominium within a condominium). Sometimes, there are reasons to use a single tier condominium structure, creating just one condominium.

A two tier condominium differs from the more traditional single tier condominium. For example, I recommend the two-tier approach when the bottom half of the building is a hotel and the top half of the building are to be luxury residential condominium units. The hotel wants to be totally independent of the residential condominium units. In this scenario, there will be a two-unit primary condominium consisting of the hotel unit and the residencies. There will also be a secondary condominium consisting of all the residential units. The hotel will want broad power. For example, the primary condominium will be run by three directors. The hotel will want to select two of the three directors with only one director selected by the residences, but the residential director will have a veto over “major decisions.” The concept of a condominium within a condominium works in this situation.

I favor a single tier condominium because, in my opinion, a single tier condominium can accomplish everything that a two-tier structure can accomplish and is much easier for laymen and lawyers to understand!

Some of my thoughts on mixed-use, single tier condominiums come from my work on the Clarendon Condominium in the Back-Bay section of Boston. I prepared the condominium documents, as special condominium counsel, for the Clarendon Condominium, a 33-story mixed-use building at the corner of Clarendon and Stuart Sts. in Boston, which consists of 103 luxury residential condominium units, 176 rental apartments, 3 commercial units and a garage unit with below-grade parking spaces. I used a single tier condominium.

Saul Feldman, Esq., is the founder of Feldman Law/Feldman & Kozeli, P.C., Boston, Mass.