High-Rise, High Stakes: Towering Insights into Condo Ownership in Toronto!
Purchasing a condo in Toronto means more than just owning a unit—it also means becoming a shareholder in the condominium corporation. Understanding this structure is key to making informed decisions about your investment.
What You Own
Your condo unit is your private property, with legal boundaries defined in the condominium’s Declaration. However, many buyers assume they also own their balcony, when in fact, balconies are typically designated as “exclusive use common elements.” This means that while no one else in the building can use your balcony, it is not part of your owned title and is therefore not included in the unit’s official square footage in sale listings.
If you love condos as much as we do, check out our binge-worthy Condo Corner video playlist right here.
Shared Ownership & Governance
Beyond your unit, you also have a proportional ownership share of the condo corporation, often called your “unit factor” or “proportionate interest.” This share grants you a role in how the building is managed, covering aspects such as maintenance, property taxes, and operational decisions.
Condo corporations operate as non-profit entities governed by bylaws and regulations. These rules help maintain order within the community and can include:
- Rental restrictions, such as a ban on short-term rentals.
- Pet policies, which may limit the number, size, or type of pets allowed.
- Renovation approvals, requiring written consent for modifications to your unit.
Owning a condo is a lot different than owning a house. For more condo videos, watch these next:
Maintenance (Condo) Fees
A key aspect of condo living is paying monthly maintenance fees, also known as common expenses. These fees cover the costs of building upkeep, utilities, amenities, and the reserve fund for future repairs. Even in buildings with minimal amenities, running and maintaining a condo involves significant expenses, making these fees essential.
For a deeper dive into what maintenance fees cover, check out my dedicated video on the topic right here.
Your Rights & Responsibilities
As a condo owner, you have voting rights at the Annual General Meeting (AGM) and other decision-making meetings. These votes influence board member elections, major expenditures, and amendments to condo bylaws.
If you want a more hands-on role, consider joining your condo board. This allows you to be directly involved in shaping the management and policies of your building. For those curious about this process, I have another video detailing how condo boards function.
Reviewing the Status Certificate
Before finalizing a condo purchase, it’s crucial to review the condo corporation’s financial and legal health. This is done through the status certificate documents, which provide transparency on the building’s reserve fund, outstanding legal matters, and financial obligations. If you’re in the market for a condo, be sure to check out my video on understanding status certificates here.
Final Thoughts
Owning a condo comes with unique considerations compared to owning a house, but it offers a balance of convenience, community, and investment potential. Whether you choose to be actively involved or take a more hands-off approach, understanding condo ownership ensures you make the most of your home and investment.
If you have condo questions, we’re happy to answer them. Get in touch by filling out the form on this page, calling 416-909-9235, or emailing info@yaelandco.com.
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