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Buy/Sell a Condominium FAQs

(Frequently Asked Questions)
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  1. What is limited common property?
  2. What does "unit entitlement" mean?
  3. What is the "interest upon destruction"?
  4. Why are there restrictions on rentals?

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1. What is limited common property?


Limited common property is property that is owned by the strata corporation (ie all of the owners), but is for a specific owner's use. Balconies and parking stalls are often limited common property, because the strata council wants to be able to regulate the use of them (for example, not having dirty laundry hanging outside), even though they are for the use of specific owners.

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2. What does "unit entitlement" mean?

Unit entitlement is the figure on which the strata unit's monthly maintenance fees are assessed. This usually takes into consideration the size of the strata unit, as well as the limited common property that the strata unit has use of. If the strata council needs to raise $100,000 per year, and your unit entitlement is 18/1000, you would be assessed $1,800 per year, or about $150 per month.

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3. What is the "interest upon destruction"?

This is the proportional interest that the strata unit owner would get if the building is destroyed, and is usually based upon the relative value of the strata unit, as compared to the whole building. This calculation usually excludes any value from the limited common property, which is owned by the strata corporation. If your interest upon destruction is 15/200, the building burns down, and there is $2 million from insurance and the sale of the land, you would be entitled to 15/200 of that, or $150,000.

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4. Why are there restrictions on rentals?

Some strata owners feel that renters are transient, and don't take care of property as well as owner occupiers, so they would rather not have any strata units rented out. On the other hand, other strata owners buy the unit for investment, or at some point, may need to rent out the unit for a temporary period. As a compromise, many strata corporations limit the number of units that can be rented out at any given time.

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This page last updated: November 25, 1999
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