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5 House Types in Ontario – Condominium Apartments

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Real Estate Sales Representative

5 Types of Homes in Oshawa, Ontario

Condominium Apartments (Condos)


image of a buildingThe variety of home types in Oshawa can be confusing and, just to be difficult, there are variations within the house types.

 

The information set out in this article also applies to:

·    house types in Clarington

·    house types in Whitby

·    house types in Ajax

·    house types in Pickering

and most other cities and communities within the South Durham Region of Ontario.

 

The 5 major home types in these areas are:

The 5 major home types in these areas are:

  •       Detached Houses
  •       Link Houses
  •       Semi-Detached Houses
  •       Townhouses
  •       Condominium Apartments (Condos)

 

This Article Discusses Condominium Apartments

photo of a high rise condo building(also known as Condos)

 

Condominium Apartments

Condominium ownership is a significant, expanding, section of the Ontario Real Estate market.

 

A very wide range of home types fall within the concept of a condominium.

They include:

  •       Luxury residential dwellings, particularly in downtown Toronto
  •       Condominium Townhouses
  •       Common Elements Condominiums
  •       Leisure developments as cottage alternatives
  •       Senior’s retirement complexes

 

The objective of this article is to focus on standard, residential condominium apartments.

 

A condominium is legally created through the registration of:

  •       a Declaration (often referred to as the condominium constitution); and
  •       a Description

 

The Declaration sets out information required by the Condominium Act including:

  •       The proportionate contribution of Unit Owners to Common Expenses
  •       Details of any part of the Common Elements specifically allocated for the exclusive use of particular Unit Owners

 

The Description is a diagrammatic representation of the total property and comprises a series of plans and specifications including:

  •       Unit boundaries
  •       The shape, dimensions and location of each unit
  •       Details of the Common Elements

 

The Condominium is divided into:

  •       Units (exclusively occupied by Owners); and
  •       Common Elements (held by all Owners as tenants in common).

 

Each Unit Owner:

  •       has title to their Unit together with an undivided interest in the Common Elements, as tenants in common
  •       is responsible for a proportionate share of Common Expenses

The relevant proportions are set out in the Declaration.

 

The Common Elements comprise all of the property within the Condominium Corporation excluding the Units.

 

One of more Owners of Units may have exclusive use of specific parts of the Common Elements, such as parking spaces.

 

A Condominium Corporation, without share capital, is automatically created on registration of the Condominium.

The members of the corporation are the Unit Owners.

 

The objects of the condominium corporation centre on management of the property and corporation assets.

These functions are paid for by Unit Owners through Common Expenses which are contributed by the Unit Owners in proportions specified in the Declaration.

 

It is important to note that the Condominium Corporation does not provide limited liability to the Members (Unit Owners) who are personally liable for all the debts and obligations of the Condominium Corporation.

 

In a Condo Apartment the owner has title to a residential unit in the building and shares the Common Elements with other Unit Owners.

 

image of a multi-storey building

If you are considering purchasing a condo apartment, there are a couple of very important issues that you must consider:

Parking; and

Storage (locker)

 

Parking:

 Parking availability depends upon the provisions in the Declaration, and entitlement may as follows:

 

  •       Freehold:

Here, the Unit Owner owns the parking space.

It can be part of the Unit description or there may be a separate title for it.

  •       Lease:

In this case, the Condominium Corporation owns the parking spaces and leases them to Unit Owners.

  •       Exclusive use to part of the Common Elements:

Here, the parking spaces are owned by the Condominium Corporation which grants exclusive rights to use specific parking spaces according to the terms of the Declaration

  •       Allocated:

The parking spaces are owned by the Condominium Corporation which can allocate specific parking spaces to Unit Owners on a discretionary basis.

 

Storage Lockers:

Sufficient storage space is always a concern for owners of condo apartments, particularly for those who are downsizing.

 

Lockers, if provided, can be dealt with in the Declaration in the same ways as set out above for Parking. Of course, in each Declaration, the Lockers may be dealt with differently to the Parking provisions.

 

All business of the Condominium Corporation is deal with by a Board of Directors. Appointment of Directors is set out in the Declaration.

 

It is usual for the Directors to appointment a professional condominium corporation management organization to handle the day to day business of the corporation, leaving it to the Directors to focus on making the important decisions.

 

In addition to the Declaration, there are 2 other documents that deal with the rules and regulations of the condominium:

  1.      By-Laws; and
  2.     Rules

 

By-Laws:

  •      The By-Laws set out the standard procedures and requirements relating to the condominium’s internal governance.
  •      They are made, amended or repealed by the Board of Directors of the Condominium Corporation
  •      They must be consistent with the Condominium Act and the Declaration of the Corporation

 

Rules:

  •      Rules are established by a Condominium Corporation
  •      Their purpose is to:

        protect the safety, security and welfare of the Unit Owners

        protect the assets of the Corporation

        prevent unreasonable interference with the use and enjoyment of Common Elements

 

Key Considerations If You Are Intending to Buy a Condo Apartment:

  1.     Declaration, By-Laws and Rules:

Read them carefully.

If you buy the condo you will be bound by the provisions of these documents.

In particular, take note of any Use Restrictions which can cover matters such as no pets, types of vehicles allowed in parking areas, alterations requiring consent of the Condominium Corporation, signs (e.g. real estate agent’s FOR SALE signs), etc.

  1.     Common Expenses:

Check:

  •        The amount of Common Expenses in respect of the relevant Unit;
  •        What they cover; and
  •        Whether they have been paid by the Seller.

Default in payment by the Seller can impact upon a Buyer as any default amount can be recovered from the Buyer.

Your lawyer should take this into account in adjusted figures on closing.

  1.     Reserve Fund:
  •      Reserve Fund contributions are included in Common Expenses paid by the Unit Owners
  •      The Reserve Fund is set aside, in a trust account, to be used only for major repairs and replacement of Common Elements (such as repairs to the building and building services, replacement of items such as the roof etc)
  •      Adequate Reserve Funds are essential because a Special Assessment (payable by Unit Owners) may be made if the Reserve Funds are insufficient for a major repair.

The Board of Directors is required to have regular studies carried out to ensure that the Reserve Fund is adequate for anticipated future requirements

  1.     Status Certificate:

The Status Certificate is a document provided by, or on behalf of, the Condominium Corporation. It contains information regarding the operational, legal and financial positions of the Corporation.

An offer to purchase a condo apartment usually contains a provision that the offer is conditional upon the Buyer’s lawyer reviewing the Status Certificate and Attachments and finding them satisfactory in that Lawyer’s sole and absolute discretion.

A time limit is usually included as part of this condition, having in mind that the Corporation is required to provide the Status Certificate within 10 days of receiving the request plus fee (currently a maximum of $100).

 

Attachments to the Status Certificate include copies of the current:

  •      budget
  •      financial position
  •      Declaration
  •      By-Laws
  •      Rules

 

If you are considering buying a condo, it is important that you know, and understand, what your rights and obligations will be with regard to the Condominium Corporation.

 

As previously mentioned, these obligations include the requirement to pay regular Common Expenses set by the condo corporation. These are based on budgets to meet the day to day running of the corporation plus contributions to the Reserve Fund to meet future obligations of the corporation for maintenance and repair of the structure and facilities.

 

Buyers should carefully review all condominium documentation, particularly any restrictions on use set out in the Declaration, By-Laws and Rules. In is advisable for the review of the documentation to be carried out with the assistance of an experienced lawyer.

 

Owner alterations and additions within a Seller’s Unit can create problems, at the time of closing a sale of the condo, if proper procedures relating to alterations and additions have not been followed.

 

Find Attached Houses for Sale in Oshawa, Whitby, Clarington, Ajax & Pickering, Ontario

 

YOU ARE INVITED to visit my website, at any time and as often as you like, to find pictures & details of homes for sale.

 

For photos and details of attached homes currently for sale:

 

Attached Homes in Pickering

 

Attached Homes in Ajax

 

Attached Homes in Whitby

 

Attached Homes in Oshawa

 

Attached Homes in Clarington

 

You can also arrange to be notified when homes, that meet your criteria, come onto the market.

These services are available to you without obligation.

 

If you are thinking of selling, you can also:

ü Search on my website for homes, similar to yours, that would be competition for your home, if you list it for sale

ü Obtain an indication of the market value of your home

 

For answers to your questions, email me; or call 905-723-5944.

 

About the Author:

Brian Wiseman LL.B., CIPS, is a Sales Representative with Keller Williams Energy Real Estate Brokerage in Ajax & , Ontario, Canada.

 

In his past lives, Brian was a Partner in Legal Practices, specializing in Real Estate and Business Law (not in Family Law!) in Australia and a Principal of a successful Financial Planning Practice in Australia.

 

After the sale of his business interests in Australia, Brian started a new adventure by relocating to Canada with his Canadian wife.

 

He is particularly interested in relationships in real estate:

ü when 2 or more are purchasing a property;

ü when a relationship has ended and the home is to be sold – see The Future Focus Method

 

Brian has completed a basic intensive training course in Dr. William Glasser’s Choice Theory Psychology, upon which The Future Focus Method is based.

 

Brian is not authorized to give legal advice or financial planning services in Canada.

 

He is not authorized to provide marriage counselling.

  

He IS AUTHORIZED to provide real estate advice in Ontario.

 

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