Humber/Ontario Real Estate Course 1 Exam Practice

When buying a residential unit in a standard condominium, what does the buyer hold title to?

1. A fee simple ownership of the common elements

2. Hold a leasehold interest in the common elements

3. Own a share of the common elements as a tenant in common with other owners

4. Hold no interest in the common elements of the condominium

5. Hold a divided interest in individual elements

6. A fractional ownership interest with proportional liability

The correct answer is: Own a share of the common elements as a tenant in common with other owners

In a standard condominium, when a buyer purchases a residential unit, the buyer holds title to a share of the common elements as a tenant in common with other owners. This means that the buyer has ownership rights to the individual unit they purchased, as well as a shared interest in the common elements of the condominium development with other unit owners. Option A is incorrect because fee simple ownership usually refers to complete ownership of a property, including both the individual unit and the common elements. Option B is incorrect because a leasehold interest implies that the buyer does not own the property outright but rather has a lease agreement to use it for a specified period. Option D is incorrect as buyers in a standard condominium do hold an interest in the common elements of the condominium. Option E is incorrect because owning a divided interest in individual elements does not fully capture the buyer's ownership rights in a standard condominium. Option F is incorrect as fractional ownership typically refers to joint ownership of a property with specific usage rights, but it doesn't align with the standard ownership structure in a residential condominium.