By: Robin Tully
In purchasing an apartment residence there are three forms of ownership: condominium, co-ownership and co-operative.
In Condominium:
- Purchasers own their suite (“unit”) from the walls in and own the common areas jointly with all other owners.
- Purchasers receive a deed to their unit giving them absolute and legal possession of the premises.
- The rights and obligations of owners are distinct and separate from one another. Each owner receives his or her own tax bill, utility bills etc.
- Monthly fees are paid to the condominium corporation to cover the maintenance and management of the property and amenities. These fees are known as common element fees, maintenance fees or condos fees.
- Financing is generally speaking, readily available, both conventional and high ratio funds.
- There is legislation in place to govern the creation and continuation of a condominium (the Condominium Act).
- The condominium is a corporation and a board of directors is appointed by owners to oversee the property. Each unit has a voting right in the condominium.
- Purchasers do not usually require approval by the board of directors
- Status Certificate is available upon request and payment.
In Co-ownership:
- Purchasers own a percentage interest in the entire land and building.
- Purchasers receive a deed to the property and take title along with all other owners as tenants-in-common.
- Purchasers are granted the right to occupy a particular suite in the building through an “Occupancy Agreement”.
- The rights and obligations of owners are intertwined: the property receives one tax bill, one utility bill for each utility etc., and these expenses are apportioned across all owners according to their percentage interest in the property.
- Monthly maintenance fees are paid to the co-ownership’s management company to cover maintenance and management of the property and amenities.
- Conventional financing is, typically, not difficult to come by.
- A set of agreements establish parameters with regard to the rights and obligations of everyone involved.
- The owners in a co-ownership appoint a board of directors to oversee the property. Every owner is entitled to a vote in matters relating to the co-ownership.
- Prospective purchasers may require approval by the board of directors.
- Something akin to a Status Certificate is available, known as an Estoppel Certificate.
In Co-operatives:
- In a non-equity co-operative, a co-operative corporation owns the entire building and the land and purchasers buy shares in that corporation thereby acquiring a percentage interest in the building and the land.
- The corporation is registered on title; the purchaser receives share certificates from the corporation but does not receive a deed.
- The purchaser is granted the right to occupy a particular suite through an “occupancy agreement”.
- Rights and obligations of the owners are intertwined: the property receives one tax bill, one utility bill for each utility etc., and these expenses are divided across all owners according to their percentage interest in the co-operative corporation.
- Monthly maintenance fees are paid to the co-operative corporation to cover maintenance and management of the property and amenities.
- Mortgage money is, typically, less readily available. Lenders generally lend up to approximately 66% of the value of the apartment.
- There is legislation in place to govern the creation and continuation of a co-operative (the Co-operative Corporation Act).
- Purchasers are shareholders and are entitled to vote in matters relating to the co-operative.
- Prospective purchasers require approval by the co-operative’s board of directors.
- An Estoppel Certificate is available.
Robin Tully is a Broker with Royal LePage R.E.S. Ltd. – Johnston & Daniel Division. Robin’s website is located at www.robintully.com
