Humber/Ontario Real Estate Course 1 Exam Practice

What is a correct statement regarding the creation of a condominium?

1. A condominium creation automatically forms a real estate trust

2. Planning Act regulations are not a part of the condominium registration process

3. The description document visually presents the condominium structure

4. The registration process is hosted by Canada Mortgage and Housing Corporation

5. The setup requires a federal government review

6. Unit owners form a management corporation by default

The correct answer is: The description document visually presents the condominium structure

The correct statement regarding the creation of a condominium is that the description document visually presents the condominium structure. This document, known as the declaration, contains essential details about the condominium corporation's structure, rules, and regulations, including information about individual units, common elements, bylaws, and voting rights. It serves as a blueprint for how the condominium will be governed and managed. Regarding the other options: A. A condominium creation does not automatically form a real estate trust. B. Planning Act regulations play a significant role in the condominium registration process. D. The registration process for a condominium is typically overseen by the local land registry office, not Canada Mortgage and Housing Corporation. E. The setup of a condominium does not require a federal government review. F. Unit owners do not automatically form a management corporation; they usually establish a condominium board or hire a professional management company for governance and operations.