What is a condominium corporation and how does it affect condo owners in Ontario?
A condominium corporation is the legal entity created automatically when a condominium development is registered under Ontario's Condominium Act, 1998. Every unit owner automatically becomes a member of the corporation upon closing. The corporation owns and maintains the common elements — hallways, parking garages, amenity spaces, building envelopes — on behalf of all owners collectively.
The corporation is governed by a board of directors elected from among the unit owners. The board hires management, sets the operating budget, levies monthly common expenses (often called "condo fees"), and enforces the condominium's declaration, by-laws, and rules.
As a unit owner, you have a vote at owners' meetings proportional to your unit's ownership interest. You're bound by the corporation's governing documents even if you never received or read them, so reviewing those documents before buying is essential.
Key takeaways
- Every Ontario condo development creates a corporation automatically at registration.
- Owners share responsibility for common elements through monthly common expense contributions.
- The board of directors manages the corporation and enforces the governing documents.
- Reviewing the declaration, by-laws, and rules before purchase is critical.