Humber/Ontario Real Estate Course 2 Exam Practice

What kind of ownership does a buyer obtain when purchasing a unit in a standard condominium?

1. A fee simple ownership of that unit, as well as a proportionate undivided interest as a tenant in common in the common elements

2. A joint tenancy ownership of that unit, as well as a leasehold interest in the common elements

3. An exclusive use ownership of that unit, with no interest in the common elements

4. A tenancy in common ownership of that unit, as well as a proportionate divided interest in the common elements

5. A leasehold ownership of the unit along with a divided interest in the common elements

6. Tenant-in-common ownership of the entire property with proportional interests

The correct answer is: A fee simple ownership of that unit, as well as a proportionate undivided interest as a tenant in common in the common elements

When a buyer purchases a unit in a standard condominium, they obtain a fee simple ownership of that specific unit. This type of ownership grants the buyer full rights to the condo unit, allowing them to use, sell, or mortgage it as they see fit, subject to the regulations set forth by the condominium's governing documents. Additionally, the buyer also acquires a proportionate undivided interest in the common elements of the condominium. Common elements typically include areas and amenities shared by all unit owners, such as hallways, pools, and gardens. The term "tenant in common" indicates that each unit owner holds an equal right to these spaces, although they do not own a specific portion of the common areas—rather, they own a share of the total common property. This combination of fee simple ownership of the unit along with shared ownership of the common areas is what distinguishes condominiums from other forms of real estate ownership, ensuring that buyers have both private living space and communal rights.