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 Condominium
living can offer the prospective homeowner many desirable attributes
such as affordable housing and low maintenance requirements.
Many condominiums have enhanced security
features over that found in single family houses. Condominiums can be
complete communities within one complex offering a wide range of social,
entertainment and recreational activities.
However, buyers should be aware—before
they buy—of many issues surrounding the purchase of, and the lifestyle
in, a condominium.
What Is a
Condominium?
A “condominium” typically refers to a form of legal ownership, as
opposed to a style of construction.
Condominiums are most
often thought of as high-rise residential buildings, but this form of
ownership can also apply to townhouse complexes, individual houses and
low-rise residential buildings. Condominiums are also known as strata in
British Columbia. Condominiums consist of two parts.
The first part is a
collection of private dwellings called “units”. Each unit is owned by
and registered in the name of the purchaser of the unit. The second part
consists of the common elements of the building that may include
lobbies, hallways, elevators, recreational facilities, walkways,
gardens, etc. Common elements may also include structural elements and
mechanical and electrical services. The ownership of these common
elements is shared amongst the individual unit owners, as is the cost
for their operation, maintenance and ongoing replacement.
Each unit owner has an
undivided interest in the common elements of the building. This
ownership interest is often referred to as a “unit factor”. The unit
factor for any particular unit will generally be calculated in
proportion to the value that the unit has in relation to the total value
of all of the units in the condominium corporation. The unit factor will
tell you what your ownership percentage is in the common elements and
will be used in calculating the monthly fees that you must pay towards
their upkeep and renewal.
The creation of a condominium is regulated by provincial or territorial
condominium legislation and municipal guidelines. It can be created in
many different ways. In some provinces, a developer, or other interested
party,may register a declaration to create a condominium, while in
others, an application may be made to have title issued for the units
pursuant to an “approved plan of condominium.” The operation of
condominiums is also governed by provincial or territorial legislation
and the condominium corporation's own declaration, by-laws and rules.
Once a condominium
corporation has been established, a Board of Directors, elected by, and
generally made up of, the individual condominium owners, takes
responsibility for the management of the corporation's business affairs.
There is usually a turnover meeting where this transfer of
responsibility takes place. Each unit owner has voting rights at
meetings. Your voting rights will generally be in proportion to your
unit factor.
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