What is a Condominium?

A “condominium” 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
or syndicates of co-ownership in Quebec.
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
parties, 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, bylaws 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.

All above material extracted from Canadian Mortgage and Housing Corporation. For more information please visit www.cmhc.ca