Before we move on to learn about the various types of condos, let us first see what is a condo at first:
A condominium or condo (as is popular among the masses) is a single building or a community of buildings with separate units owned by individual residents. Like apartments, condos generally differ in size or style, which varies from single-family homes to high-rise buildings. Unlike apartments, residents own and maintain their own interior units. However, they do not own the property where the building is located.
The exterior, lawns, and shared spaces are generally owned by apartment companies and maintained by the Homeowners Association (HOA). The company is jointly owned by all apartment owners and collects overhead maintenance and overhaul costs. Residents are answerable to their sole personal homeowner's insurance, but shared space insurance has to be included in the fees paid. It is important to consider that condos and townhouses are common concepts and can go hand-in-hand together.
The term freehold condos mean that the apartment developer owns the land on which the unit is being built, so ownership can be transferred to potential buyers. For solely owned condos, unit buyers will not only own the units they purchase but also the land on which the buildings are located. For this reason, freehold condos are considered a more valuable investment than other different types of condos which include single-family homes.
Owners of freehold condos are responsible for the maintenance of their units, including the exterior walls and ceilings, as well as the garages, gardens, and driveways. Publicly owned items, such as visitor parking areas, recreational facilities, and walkways, are the responsibility of the condo company.
Standard condominiums are referred to as the most common one among the different types of condos available. Generally, this type of condo is structured into a building that is divided into independent units. While buying a standard condo, you should be well aware that your ownership rights will only be limited to the door, including ownership of the walls, ceiling, and floor of the unit, as well as the pipes and cables in your home.
However, in some cases, you might enjoy the privilege of having parking space with your purchase. Everything else that remains outside the door of your condo is considered a common item. Always remember, public spaces, such as hallways and driveways are owned jointly by you and your neighbors. For ensuring proper and timely maintenance of these spaces, you must collectively pay a monthly fee to the homeowners association.
Do you plan to buy a condo? Check this: Condos for Sale in Newmarket and Aurora
Out of all the different types of condos available, vacant land condos are the most unique ones as these types of condos only come with bare lots of land that are generally sold as units. Before any sort of construction begins, the owning company registers and sells its land as a condominium.
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If you buy a vacant land condo, you not only enjoy the ownership rights of your apartment but also the land on which your house sits upon. What's even better is that the maintenance cost of this type of condos are comparatively low.
Among the different types of condos available, leasehold condos are the second most common type, where condo companies do not hold the right of the land. In fact, the landowner leases the property to the developer for a lease period of at least 40 or more years. If you buy this type of property, you will not own the unit but rather only have the lease rights of the property. The cost of the land is not included in the common expenses, but rather a part of the rent you pay to the owner is included in it.
If you own this type of condos, you can take action on your unit without the owner's permission, even sell it or use it as a mortgage. Note that if you sell it, the unit price may be affected by the time remaining on the land lease. Once the land lease expires, the unit owner's right to occupy the condo will automatically end.
Common element condos are the only type in the list of different types of condos. When you buy a public element apartment, there are no units involved, just shared spaces or convenience facilities where interest is attached to the plot, which is collectively called PTOL.
The owners of these parcels are responsible for maintaining common elements through cost-sharing.
We have listed the most common types of condos available in and around the Greater Toronto Area above. Now, you might be wondering which condo to go for while choosing a house of your own.
There are so many choices and you might at times get overwhelmed by them. However, do not hesitate but rather base your decision on personal preference, affordability, and accessibility. At the end of the day, your personal satisfaction is what matters the most.