What is a Condominium in Canada?

Explore what a condominium is, its ownership structure, and how shared amenities and common areas work for residents.

A condominium is a type of property ownership in which an individual owns a specific unit while sharing ownership of communal spaces with other unit owners. Common spaces are jointly held through a tenancy-in-common arrangement.

Types of Condominium Ownership

Condominiums are categorized into various ownership types. Freehold condominiums are the most prevalent and allow owners full ownership of their unit and the land it occupies. Owners are responsible for maintaining their unit’s interior and any areas designated for exclusive use. Leasehold condominiums are less common and involve purchasing the unit while leasing the underlying land from its owner. These leases often last extended periods, such as 99 years.

Another type is common elements condominiums. In this case, owners may not have full ownership of the unit or land but share rights to certain building components like walls, roofs, and foundations. Owners are responsible for interior upkeep, while the shared areas are managed by the condominium corporation. Vacant land condominiums involve ownership of undeveloped land within a designated condominium corporation. Owners maintain their specific parcel of land, while shared components are managed collectively.

Creation and Governance

Condominiums are established under statutory regulations. Developers must specify individual units and shared spaces during the planning process. Approval from the local municipality is required, and a certain percentage of units—commonly 70 percent—must be sold before construction begins. When completed, the property is legally registered as a condominium with a condominium corporation representing the collective ownership.

Condominium Corporation

The condominium corporation serves as the governing body for the property. Ownership of a unit automatically grants the owner membership in the corporation. This entity manages shared areas, oversees the reserve fund, and enforces building rules aligned with governing condominium legislation in the province or territory.

Board of Directors
A Board of Directors, elected by unit owners, runs the condominium corporation. This group, often composed of volunteer unit owners, handles decision-making for daily operations, including security, maintenance, and the upkeep of shared facilities. Subcommittees may also be formed for specific tasks, such as managing communal space decor or improving shared greenery.

Property Management
Condominium corporations frequently hire property management companies to assist with daily operations. Roles include recommending improvements to the board, managing maintenance of shared spaces, and handling service-related contracts. Major decisions, however, remain under the Board of Directors’ authority.

Financial Obligations
Unit owners are financially responsible for costs associated with their unit, such as utilities and interior maintenance. They also contribute to a shared fund for the upkeep of common spaces through regular maintenance fees. These fees cover cleaning, repairs, and reserve fund contributions for long-term property maintenance.

Regional Variations
Ownership terminology and legal frameworks for condominiums vary across provinces. In British Columbia, the property model is referred to as strata title, while in Quebec, the term divided co-property is used, translated from the French copropriété divisée.

Common Areas
Communal or shared spaces in condominiums include amenities such as parking garages, lobbies, recreation rooms, and shared grounds. These spaces are maintained by the condominium corporation, and owners share access to these spaces as part of collective ownership.

Turnover and Meetings
Once construction is complete, a turnover meeting occurs where the developer officially transfers property control to unit owners. This event involves electing the first Board of Directors and introducing building rules. Subsequent annual meetings are held to review finances, address concerns, and make voting decisions that impact the condominium corporation.