DannyKolenko

	Condo Basics	< Back To Tips
	Buying a condominium is quite different from a typical house purchase. Whether this is a first home, or the first purchase of a condominium after many years of owning a house, you need to be aware of the unique aspects of a condominium purchase and the questions that you need to ask to protect yourself. What's a condominium? A condominium is a residential structure in which apartments or townhouses (both kinds are called "units") are individually owned as pieces of real estate while the land and common elements (e.g., elevators, hallways and/or sidewalks) are jointly owned by all of the unit owners. A condominium unit could be a suite in a high-rise tower, a townhouse, or even a detached house. Each unit is given a legal description, based on the space that it occupies. Storage lockers and parking spaces can be created as units within the condominium or they can comprise part of the common elements, designated for the exclusive use of a specific dwelling unit. The condominium corporation operates the condominium and the land. The unit owners elect a Board of Directors to oversee the running of the condominium corporation, including financial decisions. The Board may contract out the day-to-day workings of the condominium (e.g., paying of utility bills for the common elements, cleaning the common elements, snow removal, etc.) to a property manager or property management company or they may run the day-to-day workings of the condominium themselves. There are many different kinds of condominiums in Ontario, including: Common elements condominiums: In a common elements condominium, you own the freehold land and the building(s) on the land. There are no specific units. You also own a percentage interest in the common elements. For example, homes could be freehold, but roads and facilities, like a recreational centre, could be common elements. Phased condominiums: In a phased condominium development, different parts (e.g., new units or new recreational facilities) of a single condominium can be built in phases. As each phase is constructed, it is added into the already existing condominium corporation. Vacant land condominiums: In a vacant land condominium, you purchase the land as a unit in the condominium. Then, you may decide what type of structure, if any, will be built on the land, subject to restrictions in the Declaration. Leasehold condominiums: In leasehold condominiums, you own a unit and a share of the common elements, subject to the ground lease of the property on which the units and common elements are constructed. The initial term of the lease must be between 40-99 years and the owner of the leasehold unit can sell, mortgage, or lease the unit without the consent of the landlord. Standard condominiums: Standard condominiums are those that aren't defined as the other types of condominiums (i.e., common elements condominium, phased condominium, vacant land condominium or leasehold condominium).
	Source: CMHC	< Back To Tips