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 of - before they buy - the 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 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 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.

What Types of Condominiums Are There?
Residential condominiums can be high-rise or low-rise (under four storeys), town or row houses, duplexes (one unit over another), triplexes (stack of three units), single detached houses, stacked townhouses or freehold plots. There are even mixed-use condominiums that are partly residential and partly commercial buildings. They come in various sizes with diverse features and they can be found in almost every price range.

What Do I Own When I Buy a Condominium?
When you buy a condominium, you own your unit, as well as a percentage of the common property elements allocated to the unit. The boundaries of each individual unit and the percentage of common elements you own may vary from condominium to condominium, depending on how they are specified in the condominium's governing documents. Sometimes, the unit boundary can be at the backside of the interior drywall of the unit’s dividing walls. Alternatively, the unit boundary can be the centre line of the unit’s walls. The boundaries of your condominium unit are an important consideration at the time of purchase - particularly if alterations and renovations are a potential part of your purchase plan.

The unit typically includes any equipment, systems, finishes, etc. that are contained only in the individual unit. The right to use one or more parking spots and storage areas may be included. While you may have exclusive access to parking spot or storage area, you seldom actually own the space itself.

For a freehold condominium (or a bare/vacant land condominium), the unit may be the entire house including the exterior walls, the roof and in some cases, the land surrounding the structure. Prior to making a purchase, you may wish to hire a professional surveyor to review the site plan for the condominium corporation so you know exactly where you unit’s boundaries lay.

Components of building systems that serve more than one unit, such as structural elements and mechanical and electrical services, are often considered part of the common property elements, particularly when they are located outside of the unit boundaries specified in the condominium’s governing documents.

There may be some parts of the condominium complex that are called “exclusive use common property elements.” They are outside the unit boundaries, but are for the exclusive use of the owner of a particular unit. Balconies, parking spaces, storage lockers, driveways and front or rear lawn areas are common examples of exclusive use common property elements. It is important to be aware of any exclusive use common property elements before you make an offer to purchase a condominium. While these spaces are exclusive to your use, there may be restrictions on how and when you use them. For instance, you many not be able to park a boat, RV or commercial vehicle in your assigned parking spot. There may also be restrictions on what you can place on your balcony.

Are Condominium Regulations the Same Across Canada?
No, each province and territory has its own regulations and legislation specific to the registry, construction and operation of condominiums. You should become familiar with the regulations and legislation in your own province or territory before you buy a condominium.

What Rules and Restrictions Might I Encounter in a Condominium?
Every condominium is governed by its own unique rules, regulations and by-laws. These may be very strict or very relaxed depending on the nature of the condominium corporation. These are necessary to ensure that condominiums are properly operated and maintained, and to define the rights and obligations of the individual owners.

With respect to rules regarding the individual owners, condominiums may have restrictions regarding the number of occupants per unit, pets, noise, parking and when certain amenities may be used.

Many condominiums have strict rules concerning the alteration of the unit space or its appearance. For example, the condominium corporation may require all the exterior doors of units to be the same colour to keep the architectural and community aspect of the condominium intact. Additionally, you may have to get the permission from the condominium’s Board of Directors before you change exterior fixtures or install a satellite dish, especially as some changes may affect the condominium structure or safety.

Noise is an important consideration, especially for people moving from a single-family dwelling to a multi-unit condominium. Many condominiums have rules regarding what noise levels will be tolerated and at what hours. For example, if you are hosting a party in your unit, you may be asked to turn the music down at a specific hour. You may wish to clarify the rules regarding noise, and if possible, talk to current residents about any noise problems they have experienced in the past and how they were handled.

Individual condominium owners may be obliged to attend condominium meetings or serve on condominium boards and committees. Almost all condominiums have requirements for the payment of monthly condominium fees. There can also be mandatory charges for unforeseen repairs to the condominium common elements. Ensure you carefully review and consider all rules and obligations when considering the purchase of a condominium. They should be available from the unit’s vendor (the seller), the property manager or the Board of Directors. The rules of the condominium will be clearly outlined in the condominium governing documents, and you should become familiar with them prior to purchasing a particular condominium unit. While the rules and regulations of condominiums may initially seem to be overly strict, particularly to those used to rental housing or owning their own home, they help to ensure that condominiums are safe and enjoyable communities to live in for all concerned.

What Does Freehold Mean?
The biggest difference between a freehold condominium and a regular condominium is what is included as part of the unit. With a freehold condominium, you own the plot of land and any structure on that land such as a house or townhouse. You are normally responsible for the care and upkeep of the entire house, including the exterior walls and roof, as well as the lawn, garden, driveway and garage.

With a freehold condominium, the common property elements might include access roads to the units, recreational facilities, visitor parking area or a park with a playground. These items may be the responsibility of the condominium corporation. All unit owners pay a monthly condominium fee toward their upkeep.

With a regular townhouse or house condominium, the unit typically consists of the interior of the house itself, while the exterior of the house and the plot of land on which the unit sits are considered part of the common elements. This means that repair and maintenance of items like exterior walls, windows, lawns, gardens and driveways may be the responsibility of the condominium corporation. In a freehold condominium, you usually have more freedom to make improvements, such as landscaping features, to the unit. However, there are usually provisions that give the condominium corporation some control over owners modifying the unit, such as determining when the roof will be repaired, and what colour the shingles must be. So if you want to change the colour of your door or build a deck in your backyard, you may have to ask for permission from the Board of Directors.

Note: In some provinces, there are bare/vacant land condominiums.The land and any structure on it make up the unit and maintenance can be fully the responsibility of the condominium corporation or the unit owner.

Who Takes Care of the Building and Grounds?
Most condominium corporations contract-out the day-to-day operations of the condominium to a property management company under the direction of the condominium’s Board of Directors. The cleaning of common areas, payment of common area utility bills, operation and maintenance of the central space and domestic hot water heating and air-conditioning systems, snow and garbage removal and the collection of monthly maintenance fees may fall under the jurisdiction of the property manager. There are usually limits on the property manager’s authority. For example, anything that requires a major expenditure, or an expenditure not accounted for in the annual budget, may have to be approved by the Board of Directors.

The property manager is not usually responsible for items or operational problems within individual units, unless they are related to the common elements (e.g. heating systems, roofs, windows, exterior walls).

Some condominiums prefer to deal with the management of daily maintenance themselves. These are sometimes referred to as “self-managed” condominiums. Under this management style, the Board of Directors— and in some cases, volunteers who are residents or owners - will carry out the day-to-day tasks of operating the condominium. It is important when considering the purchase of a particular condominium, to ensure you are comfortable with the management style, whether it is a contract property manager, or self-managed. This may have implications on both condominium fees

Under most provincial condominium legislation, with reasonable notice, a person authorized by the condominium corporation may enter your unit to carry out inspection and maintenance of the common elements of the condominium (such as inspection and repair of parts of the commo elements such as windows, mechanical and electrical systems that serve your unit and others).

The unit owner may be responsible for insuring: