Humber Real Estate - Course 3, Module 1, Introducing Residential Condominiums |179 questions and answers 2023.docx

Title Condominium owners hold ______ to their private living space (unit) and share ownership jointly of the common areas (common elements) with other owners in the condominium corporation. A legal entity that represents the collective interests of its property owners. What is the definition of a 'Condominium Corporation'? The condominium board Who establishes the rules and bylaws in a condominium? To secure the assets of the corporation and ensure residents live harmoniously. What is the aim of condo bylaws and rules? - Freehold - Standard - Freehold - Common Element - Freehold - Vacant Land - Freehold - Phased - Leasehold Name the 5 types of condominium ownership. Owners own their unit and an interest in the property's common elements which cannot be separated from the ownership of the unit. Describe Freehold - Standard condominium ownership. Contains no units but has common elements such as roads or a community centre. Owners own their house and land it sits on (parcel of tied land, aka POTL), and share in the ownership and expenses of the common elements. Describe Freehold - Common Element condominium ownership. When a builder registers the corporation before the condominium units are constructed and sold. Title is transferred to buyers with the commitment that homes and other structures will be built at a later time. The declaration contains restrictions concerning future construction such as building size, design, standards and the approximate completion dates. The owner's share of interest in the condominium corporation is based on the size of their land unit. Describe Freehold - Vacant Land condominium ownership. When a builder sells units in the property and reserves the right to create additional units or common elements in future stages of development under the same condominium corporation. Describe Freehold - Phased condominium ownership. A condominium on a piece of land that is rented for a term from 40 years to 99 years vs. a freehold condominium. It's located on a piece of land owned by the condominium corporation. The lease can be traded or mortgaged. Describe Leasehold condominium ownership. - All condominiums are subject to this act - Regulates the creation, governance and bylaws of condominiums in the province - Significantly revised in 2015 for the first time in over 16 years Describe the Condominium Act, 1998. - This bill amends the Condominium Act and the Ontario New Home Warranties Plan Act - Implements the Condominium Management Services Act, 2015 and makes changes to other related legislation - Establishes 2 delegated administrative authorities: The Condominium Authority of Ontario and The Condominium Management Regulatory Authority of Ontario Describe the Protecting Condominium Owners Act, 2015. - The Condominium Authority of Ontario - The Condominium Management Regulatory Authority of Ontario What were the 2 delegated administrative authorities established by the Protecting Condominium Owners Act, 2015? When the declarant (usually a builder) files a declaration and description at the Land Registry Office. When are condominium corporations legally created? - Street and mailing address of the condo - Statement that the Condominium Act governs - Consent of all registered mortgagees - Proportionate share of common elements assigned to each unit - Proportionate contribution of unit owners to common expenses - Common elements for designated units (exclusive use common element), if applicable - Corporation address for service - Any conditions required by approving authority Note: To change the declaration requires the support of at least 80% - 90% of the owners, depending on the case. When a condominium corporation is registered at the Land Registry Office, what information is included in the Condominium Declaration? To oversee the business matters of the condominium corporation and ensure its operations comply with the Condominium Act. What is the role of a condo's Board of Directors? Directives and regulations developed by a condominium corporation. What are condo rules? Documented standard procedures and requirements related to a condominium's internal operations. What are condo bylaws? A fourth level of government. Owners elect members of the Board of Directors who are given the authority to create and enforce bylaws and rules to ensure the good operation of the corporation. The governance structure of condominiums has been likened to what? True. They also share ownership of the common elements with the other owners. True or false? A condominium owner exclusively holds the sole title to their unit. The Condominium Manager Who does the day to day running of a condominium, including tasks such as preparing financial statements? - A plan of survey depicting legal boundaries - Architectural plans and certificate of architect - Unit boundaries, shape, dimension and location - Definitions of common elements and exclusive use common elements - Proportion each unit pays in condominium fees - Structural plans, certificate of engineer, Ontario Land Surveyor certificate - All interests pertaining to the land that is included in the property To change the description requires the support of 80% - 90% of the owners, depending on the case. When a condominium corporation is registered at the Land Registry Office, what information is included in the Condominium Description? The square footage of the individual unit. What are maintenance costs for a standard condo unit based on? Freehold A common element condominium must be a __________ condo and not a vacant land or a phased condominium. Sold separately In a Common Element Condominium, your property will be permanent "tied" to the land of the common elements condo, meaning your property cannot be ________ ___________ from its interest in the condominium corporation. True. This is how Freehold - Vacant Land condos are registered. To do this, the declarant must construct the buildings and structures on common elements prior to registration or provide a bong to guarantee subsequent construction. Once all buildings, structures, facilities and services are completed and approved, the developer's security is released. True or false? A developer can install the services and related infrastructure, sell land to buyers and register the corporation prior to any construction occurring on individual land units. The size of their land unit. The owner's share of interest in a condominium corporation is based on what? By the registration of an amendment to the original declaration and the description of the corporation. In a Freehold: Phased Condominium, how are additional units and common elements created? To sell, transfer and mortgage the unit without the consent of the landowner. When the ground lease expires, the owner's right to occupy the unit is automatically terminated. What are the rights of a leasehold owner of a condominium? When buyers want some of the benefits of freehold ownership (the ability to sell, transfer and mortgage the unit) without having to invest funds in owning land, which is often the costliest part of a real estate purchase. This is a popular option for retirees and other buyers on a fixed or reduced income. What are some benefits to a Leasehold Condominium? A common type of condominium development, popular in the urban core, where residential units are located above retail or commercial spaces at street level. What is a mixed-use building? Because in some mixed-use buildings, residential unit owners above the commercial businesses below can end up paying a disproportionate share of the utilities, maintenance or repair costs for the building. It's not mandatory under the Condominium Act, but this type of agreement is a good idea to ensure the costs are paid by each unit owner in proportion to the amount of use. This agreement helps to protect a buyer from inflated condominium fees. Why is it a good idea for a condominium corporation that is sharing land with a developer to enter into a 'Shared Facilities Agreement'?