Humber/Ontario Real Estate Course 4 Exam Practice

Which of the statements below is correct about condominium ownership?

1. Applies exclusively to freehold ownership.

2. Does not involve any type of concurrent ownership.

3. Involves owning an individual unit title.

4. Is solely for high-rise buildings.

5. Only applies to detached homes.

6. Is a temporary arrangement.

The correct answer is: Involves owning an individual unit title.

Condominium ownership is characterized by owning an individual unit title within a multi-unit development. This ownership structure allows the unit owner to have full ownership rights over their specific unit while sharing common elements with other owners, such as hallways, elevators, and recreational facilities. The legal concept behind this arrangement involves the creation of a condominium corporation that manages these shared spaces and enforces the rules applicable to the properties within the development. The other statements do not accurately reflect the nature of condominium ownership. For instance, it is not exclusive to freehold ownership, as condominiums represent a specific type of ownership separate from traditional freehold properties. Additionally, condominium ownership does involve concurrent ownership of common areas. The form of buildings can vary widely, and condominiums can exist in low-rise, mid-rise, or high-rise formats and may include various forms of housing, not limited to detached homes. Furthermore, condominium ownership is not considered a temporary arrangement; rather, it represents a permanent form of property ownership defined by legal and financial agreements lasting until the property’s title is transferred.