Condominiums are a system of land ownership where an individual owner holds title to a specific unit and owns a share of common property, referred to as common elements. Condominiums are found in rural and urban markets, can be broadly grouped into two types (leasehold or freehold), and come in many shapes and forms to meet diverse lifestyles. In other words, trading in these types of properties is complex.
The Residential Real Estate Transaction course contains a section on residential condominiums. Take the following True-False quiz to determine if you are prepared to represent condominium buyers and sellers. Answers will be provided in next week’s blog.
1. Condominium monthly maintenance fees always include expenses such as building insurance, heat, and hydro. TRUE / FALSE
2. A Status Certificate is a document that can be provided by the property manager of a condominium, and the document only confirms that the seller is a resident owner in the condominium. TRUE / FALSE
3. Rules cannot be made, amended, or repealed by the Board of Directors without holding a general meeting of owners. TRUE / FALSE
4. The floor level and exposure of a condominium unit can have a major impact on the monthly maintenance fee paid by the unit. TRUE / FALSE
5. The balcony of a condominium unit is described as a common element. TRUE / FALSE
6. The money in a reserve fund can be used to pay for major repairs and replacement of common elements. TRUE / FALSE
7. Condominium unit owners need the approval from the Board of Directors for a major renovation to their units. TRUE / FALSE
8. A phased condominium is a condominium corporation that allows the declarant to create additional units within the corporation. TRUE / FALSE
9. Bylaws can be amended by a vote of at least 33 per cent of the unit holders in a condominium. TRUE / FALSE
10. The Board of Directors usually carries out the day-to-day duties of a condominium corporation such as collecting the maintenance fees and paying the condominium expenses. TRUE / FALSE
Ontario Real Estate Association and Acronamic Learning Systems Inc. (2014). Real estate as a professional career. Don Mills, ON: MediaLinx Printing Group.