Condominium

Co-operative (No Shared Liability)

Purchaser acquires ownership of an individual Unit by a Deed.

The Co-operative Corporation is the only registered owner of the property (registered on title). The Purchaser does not own Unit but acquires shares in the Co-operative Corporation and is a Shareholder in the Co-operative Corporation.

Purchaser acquires ownership to individual Unit by a Deed pursuant to provisions of the Condominium Act, 1998.

Purchaser acquires the exclusive right to occupy a specific Unit through a Proprietary Lease, Shareholder’s Agreement, Occupancy Agreement, not a Deed.

Purchaser acquires a percentage interest in the common areas of the building.

Purchaser acquires a percentage interest in the Corporation commensurate with the percentage interest represented by his/her shares, based on the size of the subject Unit.

Purchaser becomes a Member of the Condominium Corporation which:

(a) manages the affairs of the building on behalf of the members according to the Condominium Act, 1998, and more particularly the Declaration, By-laws and the Rules and Regulations; and,

(b) represents the interests of the Owners.

Purchaser becomes a Shareholder of the Co-operative Corporation which:

(a) owns and manages the affairs of the building on behalf of the shareholders according to the Co-operative/ Shareholder/ Occupancy Agreement, the Corporation’s By-laws, and the Rules and Regulations;

(b) grants exclusive occupation rights to shareholders of a specific Unit; and,

(c)   represents the interests of the Shareholders.

Condominium

Co-operative (No Shared Liability)

Purchaser can individually finance her/his own Unit.  Large numbers of lending institutions finance purchases of Condominiums by way of a Mortgage and/or a Line of Credit.

Only a few lending institutions finance these types of purchases of shares and/or grant Loans and/or Line of Credit on these types of properties.

Purchaser can finance the Unit, using his/her shares and leasehold interest in the Unit, only if there is no prohibition on pledging shares as security.

Owner is assessed for percentage share of common expenses, based on the size of Unit in comparison to the whole building.

Shareholder pays for his/her percentage share of property taxes as a part of their monthly common expenses.  The Co-operative building is assessed and taxed as one structure.  Shareholder does not receive an individual tax bill.

Owner receives an individual property tax bill and pays for his/her own property taxes.

The Condominium Act, 1998 requires a Reserve Fund to be established for maintenance of building.  Must comply with the provisions of the Act and generally with the Reserve Fund Study.  Study must be updated every 3 years.

No legislation requiring a Reserve Fund to be established for maintenance of building.  Most Co-operative Corporations do have a Reserve Fund for maintenance of building. No legislation exists requiring or outlining requirements for a Reserve Fund Study. No legislation exists requiring compliance with the recommendations of a Reserve Fund Study.

Owner can participate in management decisions by sitting on the Board of Directors and / or voting as a member of the Condominium Corporation at Annual General Meetings.

Shareholder can participate in management decisions by sitting on the Board of Directors and / or voting as a shareholder of the Co-operative Corporation at the General Annual Meetings.

Owner is subject to the Declaration, By-laws and Rules and Regulations of the Condominium Corporation.

Shareholder is subject to the Co-operative/Shareholder/ Occupancy Agreements, By-laws, Rules and Regulationsof the Co-operative Corporation and other contractual documentation.

Condominium

Co-operative (No Shared Liability)

Owner does not need consent of the other owners or the Condominium Corporation to sell his/her Unit.

Owner does not need consent to rent or mortgage his/her Unit.

Shareholder does need consent of the Board of Directors of the Co-operative Corporation to sell shares, and assign Lease for Unit. Shareholder does need consent of the Board of Directors to rent their Unit, which is not unreasonably withheld.  There is the odd exception.  Buyer / existing Shareholders require consent to pledge his or her shares as security for a loan and to rent their Unit. *Note: Some buildings prohibit the pledging of shares and the Assignment of the individual’s Occupancy rights.

Purchase of a Unit should be conditional upon receipt of a Status Certificate satisfactory to the Purchaser and their lawyer which identifies any outstanding or pending payments, special assessments, or legal actions, re:  the Owner, the Unit or Corporation, amongst other items together with all other documents required to be included.

Purchase of a Share should be conditional upon receipt of an Estoppel Certificate satisfactory to the Purchaser and their lawyer which identifies any outstanding or pending payments, special assessments, or legal actions, re: the Shareholder, the Unit / Shares or Corporation amongst other items, together with all other documents which are included.

Condominium Corporations must have, with certain limited exceptions, yearly Audited Financial Reports.

Condominium Corporations are almost always managed by a Professional Management Company or may be self-managed.

Co-operative Corporations may (but are not required to) have yearly audited Financial Reports.

Co-operative Corporations are managed by a Professional Management Company, or in a number of cases may be self-managed.

Condominium

Co-ownership

Purchaser acquires ownership of an individual Unit by a Deed.

Purchaser acquires ownership of a percentage interest in the Co-ownership Corporation by a Deed.

Purchaser acquires ownership to individual Unit by a Deed pursuant to provisions of the Condominium Act, 1998.

Purchaser acquires exclusive right to occupy a specific Unit through the provisions of the registered Co-ownership Agreement.

Purchaser acquires a percentage interest in the common areas of the building, represented by the size of the subject Unit.

Purchaser acquires ownership of a percentage interest in the building commensurate with the percentage interest of the purchaser as represented by the size of the subject Unit.

Purchaser becomes a Member of the Condominium Corporation which:

(a) manages the affairs of the building according to the Condominium Act, 1998, and more particularly the Declaration, the By-laws, and the Rules and Regulations; and,

(b) represents the interests of the owners.

Purchaser becomes a Member of the Co-ownership Corporation which:

(a)  manages the affairs of the building according to the Co-ownership Agreement, the Corporation’s By-laws and the Rules and Regulations; and,

(b) represents the interest of the members.

Purchaser can individually finance her/his own Unit.  Large number of lending institutions finance purchases of Condominiums by way of a Mortgage and/or a Line of Credit.

Purchaser can individually finance her/his own Unit. A limited number of lending institutions finance purchases of Co-ownership Units by way of a Mortgage and/or a Line of Credit.

Purchaser is assessed for percentage share (based on the size of Unit in comparison to the whole building) of common expenses.

Purchaser is assessed for percentage share (based on the size of Unit in comparison to the whole building) of the common expenses.

Purchaser receives an individual property tax bill.

Purchaser pays for their percentage share of property taxes as a part of their monthly common expenses.  The Co-ownership building is assessed and taxed as one entity.

The Condominium Act, 1998 requires a Reserve Fund to be established for maintenance of building.  Must comply with the provisions of the Act and generally with the Reserve Fund Study.  Study must be updated every 3 years.

No legislation requiring a Reserve Fund, but Co-ownership Agreement may require a Reserve Fund to be established for maintenance of building.  No legislation exists requiring or outlining requirements for a Reserve Fund Study.  No legislation exists requiring compliance with the recommendations of a Reserve Fund Study.

Purchaser can participate in management decisions by sitting on the Board of Directors and / or voting as a member of the Condominium Corporation at Annual General Meetings.

Purchaser can participate in management decisions by sitting on the Board of Directors and / or voting as a member of the Co-ownership Corporation at Annual General Meetings.

Purchaser is subject to the Declaration, By-laws, and Rules and Regulations of the Condominium Corporation.

Purchaser is subject to the Co-ownership Agreement, By-laws, Rules and Regulations, and other contractual documentation of the Co-ownership Corporation..

Purchaser does not need consent of the Board of Directors of the Condominium Corporation to sell, rent or mortgage his/her Unit.

Purchaser does not generally need consent of the Board of Directors or Co-ownership Corporation to sell, rent or mortgage his/her Unit.  (There is the odd exception).

Purchase of a Unit should be conditional upon receipt of a Status Certificate satisfactory to the Purchaser and their lawyer which identifies any outstanding or pending payments, special assessments, or legal actions, re: the Owner, the Unit, or Corporation, amongst other items together with all other documents required to be included.

Purchase of a Unit (Percentage Interest) should be subject to receipt of an Estoppel Certificate satisfactory to the Purchaser and their lawyer which identifies any outstanding or pending payments, special assessments, or legal actions, re: the Owner, the Unit or Corporation, amongst other items together with all other documents required to be included.

Condominium Corporations must have yearly Audited Financial Reports issued to all owners.

Condominium Corporations are almost always managed by a Professional Management Company or may be self-managed.

Co-ownerships may have yearly Audited Financial Reports but not legislated. However, they should have some form of Financial Statements.

Co-ownership Corporations are almost always managed by a Professional Management Company or may be self-managed in some cases.