Understanding Condominiums And Co-ownerships

Prepared By:
Martin K.I. Rumack - Barrister & Solicitor
2 St. Clair Avenue East, Suite 202
Toronto, Ontario, M4T 2T5
(416) 961-3441 Fax (416) 961-1045

Condominiums and co-ownerships are legal structures that define both the exclusive rights and the shared rights of individuals who purchase portions of buildings registered under these structures.

IMPORTANT FEATURES OF CONDOMINIUMS AND CO-OWNERSHIPS FOR THE PURCHASER

Condominium
Purchaser obtains ownership of individual unit (deed)

Purchaser gains ownership to individual unit by a deed pursuant to provisions of The Condominium Act

Purchaser gains a percentage interest in the common areas of the building

Purchaser becomes a member of the Condominium Corporation which:

(a) manages the affairs of the building according to the Condominium Act, and more particularly the Declaration and the By-laws.

(b) represents the interests of the owners

Purchaser can individually finance her/his own unit

Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of common expenses

Condominium Act requires a reserve monetary fund to be established for maintenance of building

Purchaser can participate in management decisions by sitting on the Board of Directors and voting at Annul General Meeting

purchaser is subject to the Declaration, rules and by-laws of the Condominium Corporation

Purchaser does not need consent of the other owners or the Condominium Corporation to sell, rent or mortgage his/her unit.

Dale of unit is subject to receipt of an estoppel certificate which identifies any outstanding or pending payments, assessments, or legal actions, re: the unit or Corporation.

Condominium Corporation has yearly audited financial reports issued to all owners and is managed by a professional Management Company.

Co-Ownership
Purchaser obtains ownership of a percentage interest by (deed)

Purchaser gains exclusive right to occupy a specific unit through a registered Co-ownership Agreement and the provisions of the Co-ownership Agreement

Purchaser obtains ownership of a percentage interest in the common areas of the building

Purchaser becomes a member of the Co-ownership Corporation which:

(a) manages the affairs of the building according to the co-ownership agreement, the corporation by-laws and or private contracts

(b) represents the interest of the owner

Purchaser can individually finance her/his own unit

Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of common expanses

Co-ownership agreement requires a reserve monetary fund to be established for maintenance of building

Purchaser can participate in management decisions by sitting on the Board of Directors and voting at Annul General Meeting

Purchaser is subject to the Co-ownership Agreement rules and by-laws and other contractual documentation of the Co-ownership Corporation

Purchaser does not need consent of the other co-owners for co-ownership Corporation to sell, rent or mortgage /his/her unit.

Sale of unit subject to receipt of an estoppel certificate which identifies any outstanding or pending payments, assessments, or legal actions, re: the unit or Corporation.

Co-ownership has yearly audited financial reports issued to all owners and is managed by a professional Management Company.

These materials have been prepared to provide information of a general nature only.  If you are interested in a Condominium and / or Co-ownership, you should insure that your Real Estate Agent and your Solicitor are knowledgeable about these types of ownership.  The Real Estate and Business Brokers Act and the common law respecting the duties and obligations of Real Estate sales persons apply equally to the sale/purchase of both condominiums and co-ownerships.

The above information cannot be copied without permission of the writer/Solicitor