Humber/Ontario Real Estate Course 1 Exam Practice

Which statement about co-ownerships, co-operatives, and condominiums is incorrect?

1. You buy a percentage of the property and get a specific unit in co-ownership.

2. In an equity co-operative, you acquire a percentage of property with occupancy rights to a unit.

3. In a condominium, you own a unit and share common elements.

4. Some non-profit co-operatives assist with government housing programs.

5. In co-ownership, individual ownership of units exists independent of the collective property.

6. Condominium owners have shared ownership of communal spaces.

The correct answer is: In an equity co-operative, you acquire a percentage of property with occupancy rights to a unit.

In an equity co-operative, individuals do not acquire a percentage of the property with occupancy rights to a unit. Instead, in an equity co-operative, individuals acquire shares in a corporation. These shares provide them with the right to reside in a particular unit within the co-operative housing complex. The ownership is in the form of shares in the co-operative corporation rather than direct ownership of property or a percentage of the property itself. Therefore, choice B is incorrect. Choices A, C, D, E, and F are accurate statements regarding co-ownerships, co-operatives, and condominiums. In co-ownership, individuals buy a percentage of the property and get a specific unit. In a condominium, owners own a unit and share common elements. Some non-profit co-operatives assist with government housing programs. In co-ownership, individual ownership of units exists independent of the collective property. Condominium owners indeed have shared ownership of communal spaces.