Humber/Ontario Real Estate Course 1 Exam Practice

What can a buyer own in a standard condominium arrangement?

1. A share in common elements as a tenant in common

2. Fee simple ownership of the unit

3. Leasehold interest excluding common areas

4. Common elements separately from the unit

5. Part ownership with limited control

6. Exclusive rights to improvements made

The correct answer is: Fee simple ownership of the unit

In a standard condominium arrangement, a buyer typically owns the unit in fee simple, which is a form of absolute ownership. This means that the buyer has full ownership rights over their individual unit, allowing them to live in, sell, or rent it without restriction from the condominium corporation, as long as they comply with the established rules and regulations. Fee simple ownership is one of the most complete types of ownership available, giving the buyer not only the right to possess the unit but also the ability to transfer, mortgage, or lease it as they see fit. In the context of a condominium, this ownership usually extends to the interior space of the unit itself. While buyers in condominiums also share ownership of common elements, such as hallways, pools, and other amenities, these are typically held as a tenant in common with other owners and do not equate to owning the unit itself. Other forms of ownership or rights, such as leasehold interests or separate ownership of common elements, do not apply in standard condominium arrangements where fee simple ownership is the prevalent structure.