When buying a new condo, you may come across different categories of condo corporations in Ontario. The different corporations have slight variations on what your mortgage or maintenance fees may cover.
As outlined on the Condominium Authority of Ontario (CAO) website, we have highlighted the main differences so you understand exactly what property includes, and what you’re paying for.
For legal clarity on the details of your new condo, you should consult a real estate lawyer specifically experienced in condominium purchases. He or she will be able to determine any additional land interests and associated costs attached to your property.
Types of Condominiums
Condo corporations in Ontario are divided into two categories: freehold and leasehold. The latter is treated the same way as freehold condos, except that the homeowner does not own the land the structure rests on.
In freehold condos, the land is owned by the condominium corporation, and is further divided into three subcategories:
- Standard Condo Corporation: These are typically stand-alone townhouses, row-townhouses, or units in a high-rise. Ownership includes the unit/townhouse from the condo corporation, as well as an interest in the common elements of the property, such as hallways and elevators.
- Common Elements Condo Corporations: These are generally neighbourhoods with shared common elements made specifically for the homeowners, such as roads, parks and other recreational elements included with the property, such as golf courses. Ownership includes the unit or townhouse, as well as maintenance and repair of these shared elements
- Vacant Land Condo Corporations: These units or dwellings are purchased before the structures are built. The details of the property and any associated interests in common or shared elements are contained in the structure’s declaration document. This document outlines the details and rights attached to the size, construction, design and maintenance of the property.
Know Where Your Money Is Going
Understanding how your finances and mortgage will be distributed will help you plan your monthly payments. Always make sure that a legal professional has reviewed your purchase documents if you are unsure of the exact details of the property.