Humber/Ontario Real Estate Course 2 Exam Practice

What is a key difference between condominium ownership and equity co-operative ownership?

1. Monthly fees are only levied in a condominium

2. The board of a condominium manages it

3. Ownership participation is limited to the condominium

4. The condominium unit owner can sell individual ownership units

5. Management responsibilities are different in both

6. Only condominiums allow equal ownership stakes

The correct answer is: The condominium unit owner can sell individual ownership units

Condominium ownership allows individual unit owners to sell their units independently, giving them the ability to transfer ownership to others. This flexibility is a fundamental difference from equity co-operative ownership, where ownership is tied to shares in the cooperative corporation, making it more challenging to sell individual ownership stakes. This distinction sets answer choice D apart from the other options provided: A. While monthly fees are common in condominiums, they can also be present in equity co-operatives. B. While the board manages a condominium, the governance structure in an equity co-operative may differ. C. Ownership participation can also be limited in an equity co-operative, not just in a condominium. E. While management responsibilities may vary between condominiums and co-operatives, it does not differentiate them as much as the selling of individual units does. F. Equal ownership stakes are not the only factor that distinguishes between these two types of ownership.