What is the difference between condo, co-op or co-ownership?

Now, this isn’t the most exciting topic, but I feel the need to explain the difference between a condo, co-op and co-ownership.

Let’s start with the most common, a condo or condominium. These types of properties allow you the same property rights as a freehold house. You can buy, sell or lease the space on your own accord.  These rights are governed by the Condominium Act, 1998. You pay your own property taxes and maintenance fees which are proportionate to the unit size and what is included with the unit ie. (parking, locker, utilities). All owners contribute to the reserve fund through their maintenance fees on a regular basis which can be used for the upkeep of common areas like the lobby and amenities.

Co-operatives ownership or co-ops, on the other hand, have a different structure of ownership. Buyers purchase shares in a corporation that owns and manages the building.  Kind of like stock. For these shares, you get the right to occupy a certain unit in the building called a leasehold interest, but you don’t technically own the unit. All members are subject to board approval due to the shared interests in the building and shared expenses ie. property taxes. These types of properties can prove to be a little more difficult to attain but do have advantages such as lower prices and larger square footage.

Co-Ownerships are somewhat of a combination of condo and co-op ownership. Instead of buying shares in a corporation that owns the building you are buying a percentage of the building’s title which also includes the right to occupy a unit. There are shared expenses common to a co-op, but buyers may not be subject to board approval prior to buying, selling, renting or mortgaging.

Both co-ops and co-ownerships prove to be more difficult to get financing due to the structures of ownership. Most require 20%-30% downpayment.

What is the difference between condo, co-op or co-ownership? Explained!

This is a quick overview of condos, co-ops & co-ownerships. If you have any more questions or have a specific building of interest in Toronto please contact david@davidspeedie.com or 647 244 3931.