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What is a Condo?

Identifying the different types of condo corporations

A condominium is a specific kind of ownership structure that involves shared ownership of common elements and community decision-making. In Ontario, there are several different types of condo corporations and understanding each will help you make an informed decision whether you are planning to live in one or buy one.

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Summary

  • There are different types of Condo corporations in Ontario.
  • The two main categories are freehold and leasehold.
  • The four types of freehold condos are: standard, phased, vacant land and common elements condo corporation
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Living in a Condo Community

Most people think of condos as homes in large towers in dense urban areas. A better way to think of a condo is as a shared real estate ownership structure where owners engage in collaborative decision making. Condos are also diverse, with many existing in suburban and rural areas and with unique and differing needs. 

What this means is that purchasing a condo makes you part of a community where you are directly responsible for paying your share of that community’s upkeep, following its rules, staying informed about its needs, voting and more. Here’s a summary of what condo owners can, should and must do:

Owners can:

  • Seek election to their condo’s board of directors
  • Request an owner’s meeting to discuss important matters in their community
  • Use amenities in accordance with the governing documents
  • Request and access condo records
  • Add items to owner’s meeting agendas

Owners should:

  • Attend and vote at owners’ meetings
  • Resolve issues collaboratively
  • Review and provide feedback on materials provided by their condo corporation, such as information certificates, financial statements, reserve fund studies and any other communications

Owners must:

  • Abide by the governing documents
  • Notify their corporation if they lease their unit
  • Repair and maintain their unit in accordance with the Act and governing documents
  • Pay condo fees on time

Freehold Condominium Corporations

A freehold condo is one where the land is owned by the condo corporation. Here are the four kinds of freehold condo types under the Condo Act;

Standard condo corporation

  • The most common type of condo corporation in Ontario
  • Has individual condo units
  • May include common elements and amenities such as a foyer, exterior walls, pools, gardens, etc.

Phased condo corporation

  • A condo corporation that is intended to be built and registered in phases
  • New condo units and common elements are built and then added to the condo corporation
  • A phased condo corporation becomes a standard corporation upon completion

Vacant land condo corporation

  • The condo units may be vacant lots at the time of purchase and the layout of the lands may resemble a subdivision
  • Common elements are often things such as roadways, sewer systems; or amenities such as parks or recreation facilities
  • The developer can sell the lots as vacant or build on them first and then sell

Common elements condo corporation

  • There are no condo units in this type of condo corporation
  • Owners purchase a part of a common elements. Examples include shared roads, golf courses, or ski hills

Leasehold Condo Corporation

These are condo corporations built on leased land for a term between 40 and 99 years. Owners have a leasehold interest in the units and common elements but do not actually own the land. Some key points about leasehold condo corporations include:

 

  • Common expenses include a portion of the rent payable to the landowner
  • Once the lease expires, the owner’s rights to occupy the condo unit is automatically terminated
  • Leasehold condo corporations are not common in Ontario

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