How does a condo purchase differ from the sale of a home?

By LegalMatters Staff • If you ask people what is the difference between a home and a condominium, some people might say the latter are units in high-rise buildings

But in reality, “condominium” refers to a form of legal ownership as opposed to a style of construction. Condos can be found in low-rise residential buildings, townhouse complexes, stacked townhouses, duplexes, triplexes, single-detached houses or vacant land upon which owners may build.

“What makes land or a development a condo development is that it is registered with Alberta Land Titles as a condominium corporation,” says Edmonton real estate lawyer Mark Demas. “That is usually done by the developer during the building, renovation, or development of the property.”

He says there are several differences between owning a condominium compared to a traditional single-family home.

“With a freehold home, you own the home outright after the mortgage is paid off,” says Demas. “With a condo, residents must pay a monthly fee to cover the upkeep and replacement of the common elements, and that fee can be raised at the discretion of the condo board.”

Freehold ownership means that you own the land and house outright and can make any changes you desire, he says, as long as they abide by municipal zoning bylaws.

“With a condo, any improvements or work to be done in common areas has to be approved by the condo board,” says Demas. “A condo owner may need the board’s permission to remodel their unit if the changes affect the common property or the publicly exposed space of your unit.”