Humber/Ontario Real Estate Course 4 Exam Practice

Salesperson Kim calls Buyer Green about a new listing at 200 East Avenue. Kim describes the property as an individual ownership of a specified unit within a larger complex, along with joint ownership of shared areas with other unit owners. What type of ownership is Kim explaining?

1. Co-operative ownership

2. Co-ownership

3. Condominium ownership

4. Fee simple ownership

5. Joint tenancy

6. Tenants in common

The correct answer is: Condominium ownership

Kim is explaining condominium ownership, which is characterized by individual ownership of a specific unit within a building or complex, coupled with shared ownership of common areas and amenities. In condominium ownership, each unit is owned separately, providing the owner with the rights of ownership and the ability to modify their living space, while also being part of a larger property that includes shared facilities like hallways, elevators, and recreational areas. This shared ownership among unit owners is formalized through a declaration and bylaws that outline the rules and responsibilities pertaining to common areas. Other forms of ownership, such as co-operative ownership, involve owning shares in a corporation that owns the entire property, rather than direct ownership of a unit. Fee simple ownership is outright ownership of a property and the land it sits on without shared spaces, which does not fit the context of shared areas. Joint tenancy and tenants in common cover ownership structures for real estate where two or more individuals hold title to a property, but do not specifically relate to the shared amenities typical in a condominium setting. Therefore, the description provided in the question aligns perfectly with the unique characteristics of condominium ownership.