202-281. Cl LAIR AVENUE EAST ‘TORONTO, ONTARIO. E:MAIL: MARTINGMARTINRUMACK.COM WEBSITE: WWW.MARTINRUMACK.COM CHART : UNDERSTANDING CONDOMINIUMS AND CO-OPERATIVES ‘Condominiums and Co-operatives are legal structures tnat define both the exclusive rights and the shared rights of individuals who purchase a univpercentage interest in buildings created as one of these types of legal entity. IMPORTANT FEATURES OF CONDOMINIUMS AND CO-OPERATIVES FOR THE BUYER ‘Buyer aoquires ownership ofan individual unit by @ Deed. Buyer acquires owmership to individual unit by a Deed pursuant to provisions of the Condominium Act, 1998, Buyer acquires @ percentage interest inthe ‘comman areas of the building, Buyer becomes a member of the condominium corporation which: (2) manages the affair ofthe bulking on Bhat! ofthe members according to the Condominium Act, 1998, and more particularly the Declaration, By las and the Fules and regulations; and, (©) represents the interests ofthe Owners. Buyer can individually finance her/his own Unit, Large numbers of lending institutions finance purchases of condominiums and/or grant leans on these types of properties. ‘The co-operative corporation is the only registered ‘owner of property (registered on tite); buyer does ‘ot own unit but acquires shares inthe co- ‘operative corporation and is a shareholder inthe corporation. ‘Buyer acquires the exclusive right to occupy & ‘specific unit through a Lease, or Occupancy ‘Agreement, nota Deed, Buyer acquires a percentage interest in the building commensurate with the percentage interest represented by hishher shares, based on the size ofthe subject unt. ‘Buyer becomes a shareholder of the co-operative corporation which: (2) owns and manages the afairs of the building ‘on behalf ofthe shareholders according to the Co- ‘operative! Shareholder/ Occupancy Agreement, the Corporation's By-laws, andlor private contrac, and the Rules and regulations; (b) grants exclusive occupation rights to shareholders ofa spectic unit; and, (©) represents the interests of the Shareholders. Buyer can finance the uni, using his/her shares land leasehold intrest in the unt, only if there is no prohibition on pledging shares as security Only afew lencing nstitutons finance these types of purchases of shares and/or grant loans on these ‘ypee of properties. you! IR LEGAL COMPASS.MARTIN K.1. RUMACK, 202-2'8T. CLAIM AVENUE EAST TORONTO, ONTARIO ‘Owmer receives an individual property tax bil Buyer's assessed for percentage share of ‘common expenses, based on the size of unit in comparison to the whole building The Condominium Act, 1998 requires a Reserve Monetary Fund tobe established for ‘maintenance of building. Must comply with the provisions ofthe Act and generally with the Reserve Fund Study. Study must be updated every 3 years, ‘Owner can paticipate in management decisions by siting on the Board of Directors, and voting as a member ofthe condominium corporation at Annual Genera Meetings, (Owner is subject to the Declaration, Rules {and regulations, and By-laws of the candominium corporation, ‘Owner does not need consent of the other ‘owners o° the condominium corporation to sel his/her unt. ‘Owner does not need consent to rent or mortgage isthe uni Purchase of a unit should be subject to receipt ofa Status Certiicate which identities ‘ny eutotanding or ponding paymante, special assessments, o legal actions, re: the unit or Corporation, amongst other items ether with al cther documents required to ‘Shareholder is assessed for a percentage share of common expenses, based on the sizeof unit in ‘comparison tothe whole building ‘Shareholder pays for hismner percentage share of propery taxes as a par of their monthiy common ‘expenses. The co-operative building is assessed {and taxed as one sttucture. Shareholder does not receive an individual tax bil No legisation requiring a Capital Reserve Fund to 'be establishad for maintenance of building. Most ‘co-operative corporations do have a Capital Fsarve Fund for maintenance of building, No legislation exists requiring or outining quirements fora Reserve Fund Study. No legislation exists requiring compliance with the recommendations of a Reserve Fund Study. ‘Owner can participate in management decisions by siting on the Board of Directors and voting as a shareholder ofthe co-operative corporation atthe ‘General Annual Meetings. ‘Oumer is subject to the co-operative/shareholder! ‘cecupancy agreements, Rules and regulation, ‘and the By-laws of the co-operative corporation and other contractual documentation. ‘Owner does need consent ofthe Board of Directors ofthe co-operative corporation to sell shares, assign Lease for unit and torent unt, Which is not to be unreasonably withheld. There is the od exception. Buyers / existing shareholders require consent ofthe Board to pledge shares as ‘secutty fora loan. Owner of a unit should be subject to receipt of an Estoppel Cortoate which identities any outstanding or pending payments, special assessmants, or lagal actions in connection with the unit oe Corporation amongst other items, togother with all other documents which are YOUR LEGAL COMPASS.MARTIN KA. RUMACK 202-2 ST. CLAIR AVENUE EAST TORONTO, ONTARIO E-MAIL: MARTING MARTINRUMACK. COM WEBSITE: WWW-MARTINRUMACK COM Cee Coen or De included, included. Condominium corporations must have, with Co-operative corporations may (but are not ‘certain limited excoptions, yearly audited required te) have yearly audited Financial Roports Financial Repos issued io all ommers and issued to all shareholders and are self-managed or are almost always managed by @ managed by a professional Management professional Management Company but may Company. be setf-manage ‘oul esr ha your Real Ean Ages anya Satt we nonieeale eae tpes of owrp The Rel Ee Bie Sof el Ease as fo py eety © Oe en fh ‘Thesb infront peminon ee see YOUR LEGAL COMPASS