Humber/Ontario Real Estate Course 4 Exam Practice

What is a key requirement of equity co-ops in Toronto?

1. Board of directors approval for any buyer

2. No need for occupancy agreement, just an agreement of purchase and sale

3. Individual mortgage liability without blanket mortgage responsibility

4. Property taxes paid separately from monthly charges

5. Property ownership transfer purely based on sale agreement

6. Licensing agreement after purchase

The correct answer is: Board of directors approval for any buyer

Equity co-ops in Toronto require board of directors approval for any buyer, which is a key component of how these cooperatives operate. This requirement is in place to ensure that new members align with the cooperative's values and contribute positively to the community. Since equity co-ops are often characterized by shared ownership and governance, the board plays a crucial role in maintaining the integrity and cohesion of the community. This approval process helps safeguard the interests of existing members and ensures that new buyers are financially stable and responsible, fostering a sense of trust and accountability within the cooperative. The other options highlight various aspects of real estate transactions and ownership models but do not encapsulate the unique governance structure of equity co-ops effectively. While some may touch on relevant topics, such as financial responsibilities or agreements, they do not specifically address the paramount importance of the board's role in approving new buyers, which is central to the cooperative model.