Many people think of condominiums as being tall buildings with many units and perhaps some amenities. But, there are a number of different types of arrangements for condominiums in Ontario. One of those arrangements is called a “common elements condominium,” where there is a parcel of tied land (POTL).
With this type of arrangement, each home or townhome owner typically owns a piece of land and the building on it, and also has a part ownership in the common elements in the condominium. The common elements can include things like parking areas, access roads, sidewalks, parks, playgrounds, trails, community centres, etc. This type of arrangement can also be popular in waterfront communities where there is shared access to waterfront amenities, such as a beach, docks, etc.
You’ll want to remember that with part ownership of the common elements, there are also rights and obligations. Like a traditional condominium, owning a POTL means you’re responsible for your share of the expenses related to the operation and maintenance of the common elements. And your use of the common elements or amenities is also shared with other owners.
An important thing to remember is that your property will be permanently “tied” to the land of the common elements condominium, meaning your property cannot be sold separately from its interest in the condo corporation.
I always encourage buyers to get informed when they’re on the hunt to buy a new property. Your registered real estate professional can be a valuable asset in helping you learn about the property to determine if it’s the right place for you. With a condo, part of that due diligence process should include a review of the status certificate. It’s a document that the condominium corporation is required to provide on request, which includes a lot of critical information about the condo corporation that you will be buying into. This includes financial records of the corporation, common element fees and any bylaws you would be required to abide by.
Typically, offers to buy a condominium are conditional on the review of the status certificate. It’s a smart idea to have your real estate lawyer review the status certificate before you proceed with the purchase. That way, if the status certificate reveals bylaws that you aren’t comfortable with, concerns with the condo corporation’s finances or the physical condition of the structure, including for example, if there are any special assessments outstanding for major repairs, you may be able to walk away from the deal.
The Ministry of Government and Consumer Services offers a guide to help you make informed decisions and know your rights and responsibilities when buying a condo. Find it at ontario.ca/condos .
You’ll want to remember that with part ownership of the common elements, there are also rights and obligations. Like a traditional condominium, owning a POTL means you’re responsible for your share of the expenses related to the operation and maintenance of the common elements. And your use of the common elements or amenities is also shared with other owners.
An important thing to remember is that your property will be permanently “tied” to the land of the common elements condominium, meaning your property cannot be sold separately from its interest in the condo corporation.
I always encourage buyers to get informed when they’re on the hunt to buy a new property. Your registered real estate professional can be a valuable asset in helping you learn about the property to determine if it’s the right place for you. With a condo, part of that due diligence process should include a review of the status certificate. It’s a document that the condominium corporation is required to provide on request, which includes a lot of critical information about the condo corporation that you will be buying into. This includes financial records of the corporation, common element fees and any bylaws you would be required to abide by.
Typically, offers to buy a condominium are conditional on the review of the status certificate. It’s a smart idea to have your real estate lawyer review the status certificate before you proceed with the purchase. That way, if the status certificate reveals bylaws that you aren’t comfortable with, concerns with the condo corporation’s finances or the physical condition of the structure, including for example, if there are any special assessments outstanding for major repairs, you may be able to walk away from the deal.
The Ministry of Government and Consumer Services offers a guide to help you make informed decisions and know your rights and responsibilities when buying a condo. Find it at ontario.ca/condos .
RSS Feed
