The condo lifestyle is a very sought-after residential option among younger generations. Condos are also ideal for small and young families. They're similar to a private residence placed within a large building or a community present in vibrant downtown areas. Condos come with several benefits. They're secure, affordable, and it's quite easy to find a decent property. Most condos also have skillful maintenance staff and other amenities, such as a pool or fitness centers. But there's more to owning a condo than just ease or comfort. Buying a condo can be demanding when it comes to ownership due to the overwhelming amount of options. It's best to be familiar with every aspect before diving into the process. Discussed below are the two main types of condo ownership that will help find you the ultimate match.
Legal Ownership in Land
Legal ownership in land comprises two types: freehold simple interest and leasehold interest. In the former, a contractor or developer owns the land on which the units are built. The ownership is transferred to the potential buyer once they purchase the property. Until the units are sold, the developer has all authority. The owner is bound to subject the property to different laws and contractual legislation. They also need to clear any charges that are filed in the provincial land registry office, so no restrictions are associated with the property. On the other hand, leasehold condos give owners more freedom in land utilization and monetization. It is mainly applicable to large institutions that are unable to sell their land. The owner leases out the property to the developer for a fixed period. A formal contract regarding the condominiums is set with proper conditions. This ownership can be bought or sold as a whole.
Joint Ownership Property
Joint ownerships have two types: tenancy-in-common and joint tenancy. It's a type of shared ownership where tenants hold unequal shares in the property. All owners are entitled to possession of the whole property. If a shareholder wants to mortgage or sell his interest, a legal process called partition is followed. Before purchasing this type of condo, several written agreements are signed mentioning all clauses. It follows a complex structure but is suitable for investors and people with small budgets. In a joint tenancy, all owners have equal and undivided shares in the property. It means that the whole property collectively belongs to each owner, and no part is separately owned. All tenants are present at the time of purchasing this property. The title will clearly state that several owners share the property. The owner can sell their undivided share to anyone without any legal procedures.
Picking the Best Ownership
There are many different types of condos to keep in mind and few things that can navigate you to choose ownership options are legal requirements, proprietorship, right of survivorship, and time. Considering these factors can help you make the right decision. If you’re looking to own all your property rightfully, you can opt for freehold interest, but if you want a place to invest in for a limited period, you'll benefit most from leasehold interest. Simultaneously, someone who wants to own their property after death should prefer tenancy-in-common over the joint tenancy. All in all, the road to buying your dream condo isn't as easy as you think. The different types of ownership come with their own set of advantages and disadvantages. It makes analyzing every aspect of your property extremely crucial to reach a decision that is best suited for you.