Whether you are a first-time home buyer or looking to downsize, ownership in a Condominium is an attractive option for many Ontarians. It involves communal living and decision-making and shared ownership of the Condominium’s common elements.
The Condominium Act, 1998 provides a legal framework for establishing and governing all condominiums in Ontario. In accordance with the Act, Condominium Corporations produce a number of governing documents at the outset of a condominium’s development, including a Declaration and Bylaws, and Unit owners are bound by them.
Condo Types
Within Ontario there are two main types of condominiums; freehold and leasehold. The distinction is in the ownership of the land. While the much more common freehold condominiums own the land on which units are built, leasehold condominiums rent it.
Within the freehold category, among other subcategories, there are Standard Condominium Corporations, which consist of individual units and may or may not include ownership in common elements. There are also Common Elements Condominium Corporations, without individual units and solely consisting of common elements such as a shared private road.
What is a Status Certificate?
Prior to purchasing a Condominium unit, you should be certain that you are satisfied with the rules and restrictions contained in the governing documents. A thorough review of a Condominium’s Status Certificate package prior to entering into a firm Agreement of Purchase and Sale is highly recommended. This package will provide specific information about the Unit you wish to purchase as well as the Condominium Corporation’s financial status.
Pre-Construction or Resale?
You can purchase a Condominium as a resale home or prior to the completion of construction. When purchasing pre-construction Unit you may benefit from lower prices, depending on market conditions, and greater selection in Units. Conversely, your deposit may be tied up for lengthy period of time during construction. Resale Units may provide more predictability with respect to the move-in date however older Units may have higher maintenance fees as the building ages.
Ownership in a Condominium comes with many considerations and complexities. Retaining experienced legal counsel to review documents and guide you through the process can save you from headaches or possible financial challenges down the road.
This article is intended for general information purposes only and is not intended to provide legal advice. Readers with concerns about how this information affects them or ongoing transactions should obtain the independent review and advice of legal counsel.