Humber/Ontario Real Estate Course 1 Exam Practice

What best describes a condominium?

1. A limited liability company owning multiple units.

2. Corporate-owned property with members occupying specific units based on individual occupancy agreements.

3. Allows for individual ownership of a unit within a larger development complex typically involving several units.

4. Involves a cooperative housing arrangement.

5. Limits ownership to commercial entities.

6. Registered recreational property shared amongst multiple owners.

The correct answer is: Allows for individual ownership of a unit within a larger development complex typically involving several units.

Condominium ownership allows individuals to own a single unit within a larger development complex typically consisting of multiple units. Each unit owner has both individual ownership and shared ownership of the common elements of the complex, which can include areas like hallways, elevators, and recreational facilities. This model enables residents to have the benefits of property ownership while also sharing the costs and responsibilities associated with maintaining and managing the common areas. Options A, B, D, E, and F do not accurately describe a condominium. Option A refers to a limited liability company, Option B describes corporate-owned property with specific occupancy agreements, Option D involves a cooperative housing arrangement, Option E mentions limits ownership to commercial entities, and Option F talks about registered recreational property shared by multiple owners.