Property Ownership in Ontario: Explaining your options
Property tenure is the legal term for the relationship between a property owner and occupier, and the conditions under which that person or company is allowed to own and occupy the property. Property tenure determines the rights and obligations of both parties, including the rights of the property owner to the land, the obligations of the property occupier to the property owner, and any rights of the public to access the land.
In Ontario, there are several types of property tenure systems.
Freehold: The most common form of property ownership in Ontario, this refers to an owner who has exclusive right to a parcel of land and anything attached to it.
Leasehold: A form of tenure where a tenant is granted exclusive right to occupy the land for a specified period of time, usually with the payment of a sum of money or rent. The tenant will usually be liable for any damages sustained to the property during their tenancy.
Tenancy in Common: This refers to a form of tenure in Ontario where two or more persons have a right to occupy the land at the same time. Each person owns a ‘share’ of the property, so the entire property cannot be willed to only one tenant upon death.
Condominium: A type of property ownership that combines the best of both boom and bust, so to speak. A Condominium owner will own a unit or apartment but shares the common areas and other amenities with the other owners.
Cooperative: Also known as a ‘co- op’ or housing co-op, this is an arrangement whereby a group of individuals forms a non-profit organization to purchase and manage a residential property. All members of the cooperative must own at least one share of the property.
Time Sharing: A form of ownership in which a group of individuals buy a property in order to use it at different points in time. Commonly used for vacation properties, time shares can be an efficient and cost-effective means of owning a property.
Additionally, Ontario also recognizes a handful of other property types, such as mobile and floating homes, subsidiaries, recreational vehicles, boats, and manufactured homes.
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