Humber/Ontario Real Estate Course 1 Exam Practice

What distinguishes a condominium unit owner from an equity co-operative member?

1. Condominium unit owner can sell his or her ownership of a specific unit, unlike equity co-operative members

2. Equity co-operatives include shared ownership of common elements

3. Members of equity co-operatives have ownership rights to their units, whereas condominium owners do not

4. The condominium owner has no ownership but can lease the property

5. The equity co-operative does not allow for lease arrangements

6. Equity co-operatives have individual ownership of land parcels

The correct answer is: Condominium unit owner can sell his or her ownership of a specific unit, unlike equity co-operative members

The distinction between a condominium unit owner and an equity co-operative member primarily revolves around ownership structure and rights. A condominium unit owner holds a title to a specific unit in the building and has the right to sell that unit independently. This ability to sell one's ownership is a significant characteristic of condominium ownership. In contrast, equity co-operative members do not own individual units but rather hold shares in the cooperative, which entitles them to occupy a particular unit. This ownership model inherently limits the ability to sell an individual unit directly, as ownership is tied to shares in the cooperative entity rather than a title to real property. The other options offer various insights about the structures, but do not accurately reflect the primary difference in the ownership rights that set apart condominium unit owners from equity co-operative members. While shared ownership of common elements is a feature of many properties, it is not the fundamental distinguishing factor. Additionally, the statement regarding ownership rights in equity co-operatives misrepresents the nature of ownership therein, as members do not have title to units in the same way as condominium owners do. Leasing arrangements are not universally restricted in equity cooperatives, which also differs from the rights associated with condominiums. Overall, the ability of condominium owners to sell their specific unit clearly