What is a Condominium?

November 20, 2008 · Filed Under Condos 101 · Comment 

What is a Condominium?

Simply put: A condominium is a type of real property ownership where the owner holds a private ownership in his or her specific unit, and shares ownership with the other unit holders in all the common areas of the property.

Although “condominium” technically refers to this type of property ownership, it has become common over the years for people to use the terms “condominium” or “condo” to refer to a condominium complex as a whole, or an individual unit in a complex.

Condominium Ownership

The most complete and highest form of private ownership of real property in Alberta is fee simple ownership. Fee simple ownership is based on the English common law system, and therefor this type of ownership is found in every jurisdiction in Canada, the UK, and the United States except for Quebec.

Fee simple ownership gives the property title holder a bundle of rights which include the right to possess, control, use, lease, sell, give away, or the right not to carry out any of these things in relation to the property. This bundle of rights is no less complete for condominium ownership than it is for non-condominiums (such as single-family homes in most cases), but certain rights may be limited and regulated by the condominium bylaws; which can vary greatly from one condo complex to another. For the purpose of mortgage, tax, sale, or inheritance, each unit owners fee simple ownership is separate from all others.

Intro to Common Areas

Every condominium consists of the private dwellings (called units), and the common areas of the building or property. Each dwelling unit is owned by, and registered in the name of, the owner of the unit, while the ownership and responsibility of the common areas are shared amongst all the unit owners. In future posts I’ll discuss in more detail what buyers and owners should know about common areas, and how to play an active role in the management of your condominium.

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