Things to know about the purchase and sale of a Condominium unit
A system of ownership for a multi unit building is generally referred to as a condominium. The land, building and other parts of the property are divided into units and common elements. In Ontario condominium law is governed by the Condominium Act, 1998 and its regulations. This Act covers both new and used condominium units.
Common Elements:
Shared parts of the condominium are referred to as common elements and are owned as tenants in common by all the unit owners. Common elements include everything that is located inside the land boundaries of the condominium and exclude the units and what is located inside those units. Building elevators, lobbies, fitness facilities, electrical and plumbing systems are some examples of common elements.
Common Expense:
Every unit owner is responsible for paying their share of common expense and this is usually paid out monthly. This money is allocated towards the budget of the condominium corporation. Each year the board is responsible for approving a new budget for the coming year.
The Condominium Corporation:
When you hear the word corporation the first thing that probably comes to your mind is a business. However, a condominium corporation is not a business, but an entity created by the statute to carry out tasks such as repairs, maintenance and manage other affairs of the condominium property. There are different types of condominium corporations, and its members are the owners of the units in the property. Elected board members are responsible for the governance of the condominium corporation.
Important Condominium Documents:
- The declaration
This is a primary document that is required to contain information including each unit’s boundaries, common expense percentage that a particular unit owner must pay. Declaration can be amended if a certain percentage of unit owners vote for such a change or if a judge orders it. If you need assistance in this regard please contact a real estate lawyer in Mississauga. - Condominium plan and legal description of units
This is also a primary document that is prepared by the Ontario land surveyor. It fully describes the land and building that form parts of the condominium property through a set of surveys, architectural and structural plans. - By-laws
A by-law that prescribes the functionality of the board, procedures for their elections, meetings etc. is required for a condominium corporation to operate. To be effective all by-laws must be registered on title. - Rule
Board has the authority to make, repeal and change rules. According to s.58 of the Condominium Act, 1998, Rules are there to “promote the safety, security or welfare of the owners and of the property and the assets, if any, of the corporation” and “prevent unreasonable interference with the use and enjoyment of the units, the common elements, or assets if any, of the corporation”. Rules often deal with the use of common elements and units.
Storage spaces and parking:
Parking spaces and storage units such as lockers can be assigned in several ways. They could be transferable, separately identifiable, form part of the main dwelling, general common element, or exclusive use common element.
