-- Originally posted on: https://dekrupelaw.ca/do-you-need-a-lawyer-when-buying-a-condominium-in-toronto/
If you need a quick answer, yes, you definitely need a condominium lawyer to purchase a condo in Toronto. Why? Lawyers usually know the ins and outs of any real estate closing, saving you an enormous amount of time and money. However, the speed with which they close deals stems not only from theory, but also from experience and legal practice. While you can’t gain the last two without proper education, you can read this article further to learn condominium buying basics.
What Is a Condominium?
In simple terms, a condominium is just what people call a flat or apartment. However, legally, all these terms differ in ownership rights, responsibilities, and documents required. So, as a real estate lawyer in Toronto explains, condominium ownership is a form of real estate ownership where an individual owns a specific unit within a larger property, while also sharing common areas with other unit owners.
Despite detached, single-family homes (that are top sellers for many consecutive months, according to Toronto Real Estate Market Statistics), condominiums combine private ownership with shared responsibility. What does this mean to you? This fact creates both opportunities and obligations:
- Individual ownership supposes full ownership of your private living space (unit)
- Shared responsibility (which can also be sometimes titled as shared ownership) is a proportional share in the common areas, amenities, and land where the building sits
A condominium corporation in Canada (or Condominium Authority of Ontario) governs every condominium type. They manage the property, oversee finances, and enforce rules from pet policies to renovation timelines. So, with great power comes great responsibility, which includes, but is not limited to:
- Maintenance of common areas
- Budgeting and collecting monthly fees
- Enforcing bylaws and regulations
- Overseeing community improvements
- Helping resolve potential disputes
- Reviewing the status certificate
There are also organizations, such as the Community Associations Institute (CAI) and the Condominium Institute of Canada (CCI), that offer further education and support to those who already own a condo. Meanwhile, during the process of buying a condo, a condominium lawyer will help you properly budget maintenance fees and explain your rights and obligations as a future condo owner in plain language.
Main Condominium Types in Ontario
Before making a significant decision, such as buying a condo, you definitely need to know exactly what you are buying. There are no simple ways to do so, except for learning about the main condominium and ownership types. Each type of ownership carries unique rights, responsibilities, and benefits.
Moreover, each type belongs to either freehold or leasehold property titles. In a freehold condominium unit, owners own a “fee-simple” interest in the unit (and share of common elements), including the land. In simpler words, you’ll have permanent ownership of both the unit and the land it occupies.
On the other hand, there are leasehold condos, where you lease the land beneath the apartment, not own it. Typically, lease terms range from 40 to 99 years. It is definitely more affordable to buy a leasehold condo. However, you may face issues with lease expiry. Here’s the table with a detailed explanation of each condo type, as outlined in the Ontario Condominium Act (1998).
Types of Property Ownership
Now that you know each and every condominium type that exists in Ontario, you are ready to learn more about legal ownership types. We previously mentioned individual ownership and shared responsibility. However, there’s more to it. Main types of ownership in Canada include:
- Sole Ownership (or Registered Ownership) – only one person is the legally registered owner of the property.
- Co-Ownership (Cooperative or Joint Corporate Ownership) – several persons legally own equal parts of the property. It is more common for residential properties.
- In Trust – The registered owner is not the “actual” owner of the property. One party holds legal title to the home and maintains it, for the benefit of another party (the “actual” owner).
To define and transfer the title and ownership, you need a condominium lawyer. Legal procedures can be different depending on the condominium and ownership types, whether it’s a new condo, resale, or pre-construction, or you’re going to lease a unit.
Why Should I Hire My Own Condo Lawyer for a Real Estate Purchase or Closing?
We already mentioned several benefits across the article, but if you’re still not convinced enough, this paragraph is for you. While it may be cheaper to use the seller’s agent in a real estate purchase, in some cases, the purchaser may not have the best lawyer for their rights and needs.
What else makes hiring condominium lawyers worth it? They:
- Know local real estate market insights
- Ensure compliance with Ontario’s Condominium Act
- Provide you with legal guidance during purchase, sale, or dispute resolution
- Review contracts and agreements
- Handle closings and other more complex condominium transactions
Real Estate Lawyer VS Condominium Lawyer
At this point, it is okay to wonder what the difference is between a real estate lawyer and a condominium lawyer, and which one do you need to buy a condo in Toronto? In general, there’s almost no difference between them, except for the fact that condominium lawyers are supposed to have a deeper knowledge of condominium transactions and represent governing bodies rather than individual condo buyers. Here’s the comparison of these two legal fields:
- A real estate lawyer handles a wide range of property transactions, such as the purchase, sale, and lease of all types of real estate. They represent individual buyers and sellers. Main tasks are to:
- Draft and review contracts, including purchase agreements and deeds.
- Conduct title searches to ensure clear ownership.
- Prepare closing documents and streamline the transfer of ownership.
- Resolve boundary disputes or other roadblocks during a transaction.
- Handle a specific transaction or several transactions.
- Meanwhile, a condominium lawyer specializes in the legal issues unique to co-owned properties, such as condo bylaws, shared maintenance, and disputes between owners and the condominium corporation. They represent condominium corporations and co-owners in their collective and individual capacities. Main tasks are to:
- Draft and interpret condo bylaws, rules, and policies.
- Advise the condo corporation on day-to-day administrative matters.
- Handle disputes over everyday expenses, unpaid charges, and maintenance of shared areas.
- Address construction defects, design issues, and other claims against the corporation.
- Assist with co-owner meetings, budgets, and resolutions.
- Provide ongoing legal administration and address complex interpersonal issues within a condominium community.
Generally, a real estate lawyer possesses a broader knowledge of all property law, whereas a condo lawyer has a deeper, specialized understanding of condo law. Regardless of your legal issue, you can contact our law firm today to receive a clear and free consultation.
Conclusion
Condominium ownership offers a wide range of opportunities, but also comes with an exhaustive list of responsibilities. You definitely already know a lot about the community where you want to buy a condo. And now, after reading this article, you also know more about legal considerations.
With De Krupe Law condominium lawyers, you can enjoy all the condo benefits, from lower maintenance to strong investment potential and beyond, without thinking about legal complexities at all. Contact De Krupe Law’s real estate lawyers for assistance with your condominium purchase or ownership needs.
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