Humber/Ontario Real Estate Course 3 Exam Practice

Which type of ownership is described as a fee simple ownership of a specific unit within a multiple unit dwelling, with shared ownership of common areas?

1. Co-operative ownership

2. Co-ownership

3. Condominium ownership

4. Joint tenancy

5. Real property ownership

6. Time-share ownership

The correct answer is: Condominium ownership

Condominium ownership is characterized by fee simple ownership of an individual unit within a multi-unit dwelling, combined with shared ownership of common areas. In a condominium arrangement, each unit owner has a legal title to their specific unit, which gives them the right to sell or mortgage their unit independently. At the same time, all unit owners collectively own and maintain the common elements, such as hallways, swimming pools, and recreational facilities, through a condominium corporation. This structure allows residents to enjoy both private and communal living aspects. The other ownership types present alternative arrangements. Co-operative ownership, for example, involves ownership of shares in a corporation that owns the entire property rather than individual units. Co-ownership refers to a situation where two or more parties hold an interest in property. Joint tenancy emphasizes a form of co-ownership with rights of survivorship, which can complicate the definition of ownership within a complex. Real property ownership is a broad term that can include various forms ownership but does not specify the structure of shared spaces. Time-share ownership typically involves shared use of properties for specified periods rather than ownership of a distinct unit.