Operational Authority Pyramid
for
Statutory Condominium

Condominium, strata property, and divided co-ownership (copropriété divise) are labels used in Canada for regimes that authorize and regulate separately-mortgageable and separately-taxed unit titles in a multi-unit property.  The term horizontal property is sometimes encountered in the USA.

This multiplicity in approach and vocabulary derives from the two countries' respective constitutions. Provinces, states, and territories have jurisdiction over property matters. As a result, each has its own separate statutory-condominium legislation and, often, terminology.

Nevertheless all jurisdictions share a common logic, sometimes parallel documentation procedures, and an important socio-economic goal: namely,

To establish an effective system for dividing, repackaging, and distributing ownership in a single multi-unit property (the master lot), such that the title parcels (or fractions) provide three critical benefits:

1) Exclusive Rights over a Private Space

2) Minimal Financial Interdependence

3) Effective Administrative Provisions

But, the variety and dissimilarity in  legislative approach, scope, and official (and colloquial) terminology that exist across the continent often causes a great deal of confusion among owners, purchasers, and even professionals.

Nevertheless, in this new century, statutory condominium (and its near-condominium counterparts such as life-lease and other homes associations) will become the dominant residential-title form on the continent.

Master-Lot Concept

Every condominium plan is essentially a private subdivision of land and air-space that a developer packages and sells to unit-owners. That's not to say a group of potential unit owners cannot undertake the design and creation (presumably with appropriate professional input) of their own condominium. Regardless of source, however, common to all condominium-title regimes is the land-titles registration of survey documentation clearly delineating the parts of the land and air-space that are private and those that are shared. 

This applies whether what's built on the master lot is apartment-style, traditional condominium-townhouse (with the building envelope and foundations as common property), or bare-land condominium with or without buildings. And, it applies regardless of application. Most familiar applications are residential. But, condominium can be also commercial, industrial, or recreational.

The sum of the ownership interests in the sub-divided private units and their attached shares in the remaining common property equals total ownership of the master lot. If the condominium regime is ever terminated by agreement, destruction, or eminent domain, the units cease to exist and the owners become ordinary co-owners (tenants-in-common is the term outside Quebec) in the whole master lot (and not just the original common property), and will be entitled to receive sale proceeds according to their proportionate interests.

The operational-authority pyramid to the left is a hierarchic model, applicable across Canada, of condominium's traditional concepts, legislative foundations, and administrative/co-operative framework. Jurisdiction-specific versions with accompanying commentary will be available soon through the links above.

For now, let's walk up the generic model.

Traditional Foundations
(to be continued)