Buying a Condo

Legal advice on how to buy a condo in ontario, canada

Buying a condo isn’t quite the same as purchasing a traditional home. There are different rules, added fees, and shared responsibilities to consider before you commit. If you're exploring the idea of buying a condominium, whether it’s your first property or not, it’s important to ask the right questions early on. Knowing how condo ownership works can help you avoid surprises down the road. If you're planning to buy a Condo, our team can walk you through the legal side of things.

What is the condominium act in Ontario?

A condominium act in Ontario, often called a condo, is a type of property where you own a specific unit within a larger shared building or community. This unit could be an apartment, a townhouse, or even a freehold-style detached home. Each condo unit comes with its own legal description and is treated as individual real estate.
Beyond your own space, common areas like lobbies, hallways, and amenities are jointly owned by all unit owners.

These shared spaces are managed by a condominium corporation, which is overseen by an elected board of directors. If you’re buying a condo in Ontario, understanding how ownership and responsibilities are divided is essential before finalizing the purchase.

Types of Condominium in Ontario

Before buying a condo in Ontario, it’s helpful to understand the different forms of condominium ownership. Each type offers its own structure and legal setup.

Common Elements Condominium

There are no separate condo units in this setup. Instead, you own your home as freehold and also share ownership in features like roads, driveways, and recreational spaces.

Phased Condominium

These developments grow in stages. New units or shared facilities are added over time, and each phase becomes part of the same condo corporation.

Leasehold Condominium

Here, you own the condo unit and a share in the building’s common elements, but not the land. The land is leased, typically for 40 to 99 years, yet you’re free to sell or lease your unit without needing the landlord’s approval.

Standard Condominium

This is the most common condo type: individual units in buildings managed under a single condo corporation.

Ownership Rules Under the Ontario Condominium Act

When you buy a condo, several documents are registered on the title to your unit. These shape how the property is run and what you're allowed (or not allowed) to do with your unit. These documents are governed by the Ontario Condominium Act, which sets out the legal framework for condominium ownership and management in the province.
Key documents include:

Declaration

This outlines unit boundaries, how expenses are divided, and which common areas are reserved for exclusive use. It can also include conditions or restrictions on how units can be used.

By-laws

Created by the condo’s Board of Directors, these define how the Board functions, how members are elected, and how the condo is managed overall; including rules around using corporate assets.

Rules

Set or updated by the Board, rules can directly impact how you use your unit or shared spaces like hallways, gyms, and outdoor areas.

Why are common expenses required?

Common expenses; also known as maintenance or condo fees, are monthly payments each unit owner makes. These fees go toward shared costs for operating and maintaining the property. That includes cleaning shared areas like hallways and elevators, snow removal, repairs, landscaping, and utilities tied to common areas. They also cover property management services.

What is the purpose of the Reserve Fund?

The Reserve Fund is created by the condo’s developer and is used to pay for significant repairs or upgrades to the building. A portion of your monthly condo fees goes directly into this fund to ensure that long-term maintenance needs are covered.

What is a special assessment?

A special assessment is an additional fee charged to unit owners if the Reserve Fund falls short. It’s often used to cover unexpected repairs or a deficit in the condo’s operating budget. These charges can be a surprise, so it's wise to ask early if one is planned.

Why is a Status Certificate important?

A Status Certificate gives a snapshot of the financial and legal health of the condo unit and its corporation. It includes info on monthly fees, any unpaid charges, pending lawsuits, and whether special assessments have been imposed.

Having a real estate lawyer in Oakville for reviewing the Status Certificate is important. It outlines debts, legal issues, insurance coverage, and details about the Reserve Fund, so you understand exactly what you’re buying into.

Additional Considerations When Buying a Condo

When purchasing a condominium in Ontario, there are several practical and legal elements that buyers often overlook. These considerations can significantly impact your long-term satisfaction and financial well-being. Our real estate lawyers at Khan Law help ensure you understand the full scope of your purchase and sale.

Lifestyle Restrictions

Condominiums often come with rules that affect day-to-day living. These may include limits on pet ownership, restrictions on smoking, or bans on using outdoor grills on balconies. There may also be specific rules regarding parking types or visitor access. If any of these are non-negotiable for you, it’s essential to flag them early and discuss them with your real estate agent and lawyer.

Understanding Your Property Rights

Ownership in a condominium doesn’t always mean you fully own every space assigned to you. Parking spots or storage lockers, for instance, may be part of the common elements, meaning you have exclusive use, but not ownership. At Khan Law, we help clarify exactly what you own and what you have rights to use under the condo agreement.

Realty Tax Assessments

If you're buying a newer resale unit in a recently developed building, be aware of the status of the realty tax assessment. In some cases, taxes are still based on the undeveloped land value, which means a future reassessment could lead to a significant increase in your annual property taxes. We review the property’s assessment status to avoid surprises and work to ensure you’re not liable for outstanding taxes owed by a prior owner.

Other Key Aspects to Keep in Mind

As you move closer to finalizing your condo purchase, there are several other topics worth reviewing with your lawyer:

Title Transfer: Protects against title defects, fraud, and issues missed during a property search.
Electronic Registration & Legal Representation: Ensure your lawyer is equipped to handle electronic closings efficiently.
Land Transfer Tax (Ontario & Toronto): Understand what taxes apply and whether you're eligible for any refunds.
Closing Adjustments: Items like prepaid utilities or condo fees are adjusted at closing, so know what to expect.
GST/ or HST Rebates: Applicable when purchasing a new condo from a builder.
Mortgage Financing & RRSP Withdrawals: Take advantage of programs like the Home Buyers’ Plan.
New Home Warranty (Tarion): Offers protection if you're buying a newly built condo.
Condo Act Compliance & Rules: Changes in legislation or corporation policies may affect your ownership rights or obligations.
Utilities & Insurance: Be sure to review what's covered by the condo corporation and what you need to arrange yourself.

How Khan Law Can Help

Buying a condo is a big decision, and having the right legal support makes all the difference. At Khan Law, our real estate lawyers take the time to understand your needs and offer clear, practical guidance every step of the way. We’re here to make the process smoother, protect your interests, and help you feel confident about your purchase. Reach out to us today we’re ready to help you move forward with clarity and peace of mind.

Contact us now

In Canada, buying a condo involves several legal steps to ensure your ownership is protected. Lawyers at Khan Law will handle your purchase agreement, review the condo status certificate, and complete the closing process securely and efficiently.

Request a consultation today to discuss your condo purchase in Ontario or anywhere across Canada and get expert legal assistance from our real estate lawyers.

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