Thursday, April 7, 2016

What is a Condominium?

Condominium was created in the 60's to describe that space that could be legally titled for mortgage and owner ship purposes.

Well that's my explanation.

But condo's have evolved to be business space, shared recreation facilities and even detached homes with a common element land ownership.

 The definition of “condominium” is no longer limited to the commonly held perception of a stand-alone residential apartment building. In Ontario, for example, the Condominium Act, 1998 created several new ways of structuring condominium projects such as Common Element, Vacant Land (known “Bare Land” in Alberta), and Phased condominiums.
The legal construct of the condominium is being stretched to new and creative uses in many markets, including urban, retail/industrial, suburban and recreational properties. Regardless of the type or structure, however, the essence of a condominium is that purchasers are buying one or more units, together with an interest in an active corporation, sharing both the benefits and the liabilities of that corporation.
In urban centres, a premium on downtown space and an abundance of developers’ creativity has led to such entities as mixed use “live/work” units and residential properties with an investment component, such as hotel condominiums, often with rental management agreements. In addition to the normal residential concerns, the purchaser may have to take into account business and tax considerations of their investment. The purchaser must also be aware of the exact nature of the condominium corporation’s business, and of the fact that not all investments turn out to be profitable

Yet Condo Ownership by design, affordability and preference seems to be in excess of 50% of the Toronto Real Estate Market.

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