Today we’re going to cover off the basic definition of a condominium to help you gain an understanding of what they are, and why they exist.
First, let’s start with the most obvious question, what is a condominium?
Legally speaking, a condominium is a form of property ownership with Condo Contributions, also known as Condo Fees, ownership is broken into two parts.
For one part, you own the legal title to the apartment or townhome unit, meaning you own and are responsible for maintaining and repairing everything inside the home itself.
The second part is the joint ownership of what’s called the common property, you own this in partnership with the other owners in the area. This includes things like shared land, hallways, landscaped areas, and the exteriors of the homes.
When we build a new condominium community we form something called a Condominium Corporation which is an entity that will help manage the maintenance of the property on behalf of all the owners. This corporation will be governed by owners that are elected to the Condo Board.
So, why do condominium communities exist?
First, when a new area of the city is developed it is a requirement from the city to have some land designated for condominium properties. This is to give the community a wide array of housing options and make home ownership affordable for all.
Secondly, we develop condominium communities in order to provide a lifestyle that can’t be obtained through standard ownership. Contributing a small fee for a lock and leave, maintenance free lifestyle means you have more time to do the things you love!
I hope that this has been able to provide you with a bit more clarity around condominium communities. In our next video we will explore the Condo Fees themselves and break down what they typically cover.