Humber/Ontario Real Estate Course 4 Exam Practice

What is a defining characteristic of an equity housing co-operative in Ontario?

1. It has no share capital.

2. It has share capital.

3. It receives funding from the provincial government.

4. It is governed by the Condominium Act.

5. It functions as a non-profit entity.

6. It operates under municipal housing guidelines.

The correct answer is: It has share capital.

An equity housing co-operative in Ontario is characterized by having share capital, where members purchase shares in the co-operative. This share capital allows members to have ownership stakes in the co-op, which provides them with the right to occupy a unit and participate in governance. This model is distinct from non-equity co-operatives, where members do not own shares or have the same level of financial investment. In contrast to other characteristics, such as not having share capital or operating under municipal housing guidelines, the presence of share capital is fundamental to how equity housing co-operatives function. This structure enables members to build equity in their homes over time, contributing to their financial investment and providing potential benefits upon exiting the co-op.