What is a Freehold Common Element Condo?
When it comes to the co-ownership of land, or interests in land, it is possible to structure ownership other than by title ownership (tenants-in-common vs. joint tenants). A Real Estate Co-ownership Law Firm common element condominium is an example of this type of ownership structure.
A common element condominium has no units and consists solely of interest held by the owners in specified common elements – think: golf course, ski skill, community centre or local access roads.
All owners in the community share ownership and jointly fund the maintenance, repair and any modifications made to the common elements. A common element condo corporation must be a freehold and not a vacant land or phased condo.
The owners of a common element corporation must own a freehold parcel of land located within the same Land Registry Office areas as where the corporation is registered. The registration of the condo declaration and description will indicate that each owner owns a piece of land and the building on it, and also has a part ownership in the common elements of the condo, referred to as a Parcel of Tied Land (POTL).
Like a traditional condo, owning a POTL means that you are responsible for your share of the expenses related to the operation and maintenance of the common elements. The use of the common elements or amenities is also shared with other owners.
A key aspect of a common element condo is that your ownership of the property is permanently linked to the land of the common elements condo. This means that your property cannot be sold separately from the interest in the condo corporation.
Aura LLP is Ontario’s leading law firm in the co-ownership of residential and commercial properties. We have helped hundreds of clients purchase, finance and structure their co-owned properties.
