What type of home
ownership is right for me?
There are three broad categories of home ownership:
1. Freehold
The owner owns the house and the grounds.
Freehold homes offer the most privacy and freedom of choice
of any type of home. Homeowners are free to decorate and
renovate as they please. They are also responsible for all
the maintenance both indoors and out.
Freehold is the most common type of home ownership.
2. Condominium
The homeowner owns the unit and shares in ownership of
common elements. Condominiums are usually apartment
buildings, but also include townhouse developments and
developments of detached buildings on private roads.
The homeowner is responsible for the interior area of
the unit (everything from the plaster in). The condominium
association is responsible for the up-keep of the exterior
of the building, common interior elements (halls, elevators
and parking garages, for example) and the grounds. All
condominium owners pay a monthly fee to the condominium
association to cover maintenance costs and common utility
fees and taxes.
Condominiums often have strict rules regarding noise, use of
common areas, and renovations to units. Condominium
residents often enjoy less privacy than residents of
detached homes.
Condominiums are usually less expensive than freehold
houses.
3. Co-operative
Co-operatives (or co-ops) are similar to condominiums but
instead of owning your unit, you own a share in the entire
building or complex.
Co-op residents pay for maintenance and repairs through
monthly fees and are subject to the rules and regulations of
the co-op board.
If you decide to sell your shares and move out, the co-op
board has the right to reject your prospective buyer. |
