In general, each condo unit owner owns a percentage of the land collectively as dictated by the declaration and/or its amendments. It's part of the common elements.
The first owners buy the units from the developer. After the developer sells all of the units they intend to sell, future owners will buy from existing owners.
When developers to decide to build a building, they typically buy the land themselves or partner with another company/investment group to develop the property in the form of equity investments or debt financing.
having been with a firm that handled the bookkeeping and tax returns for developers. here's what happens from the developers standpoint . it purchases the land which is recorded as an asset then build the condominium which is recorded as an asset. the developer assigns ownership % to each unit which includes the common elements - the common elements including the land. when a unit is sold the sales price is recorded as income and the % interest related to the unit in land and building is recorded as the cost. when a specific number of units are sold the land is deeded to the condo association. so the original purchasers in fact have paid for the land even though title rests with the condo association and don't the original sellers try recoup what they paid for the land and building when they sell. your deed probably includes a notation as to the percent of the common elements you own and that includes land as well as the other condo's common elements.
admittedly, I have heard arguments both ways as to whether a portion of the cost of the condo purchase should be allocated to land.
you ownership interest includes an ownership interest in the condo association. if you didn't own the land, how could you deduct the portion of the real estate taxes or other costs pertaining to the it.
