Decide on Type of Homeownership

Best advice we always layout for our clients is to think Long Term and consider in the future buyer for this home in your search. We will do a deeper dive of needs vs wants in the Initial Home Buyer’s Meeting.  Before doing so, an understanding of what you’re buying into is vital part of knowing what you want.

The types of Homeownership will potentially improve or limit your future re-saleability!  Here’s a simple introduction of a few common technical terms you may run into:

Fee Simple

Absolute/most complete and common form of ownership. Buyer is given title (ownership) which includes Land and any improvements to the land in perpetuity. Rights include using it, exclusively possess it, control it legally, provide access (exclusion) to it, dispose of it by deed or will and take its fruits (enjoyment).

Leasehold Interest

Temporary right to occupy land or property. You are buying access to the property for a pre-determined length of time. 

Title

Legal document identifying a person’s right to property.  Registered with Land Titles department within Service Alberta. Pulling the title before the offer is made helps identifies the latest updates registered and help prevent any future surprises. More on this in Understanding Title. 

Joint Tenancy

Holding of an estate or property jointly by 2 or more parties. Shares of each passing to the others upon death. Interest doesn’t have to be equal. 

Tenancy in Common

Similar to joint tenancy but without the rights of survivorship. They are co-owners of the property and shares/interest are equal.

Condominium


A condominium is a large property complex divided into individual units and sold. In Alberta, condominium property is divided in to 10,000 shares known as Unit Factors. Based on the size of your unit and additional titled parking or storage exclusive use areas, your ownership out of 10,000 shares is assigned. 

Say you own 155 shares out of 10,000. this is share responsibility used for determination of condo fees or future additional expenses responsibility. This determines that owners with larger properties ownership is responsible for greater portion of the expense.

Ownership usually includes a nonexclusive interest in certain "community property" controlled by the condominium management. Condominium management is usually made up of a board of unit owners who sees to the day-to-day operation of the complex, such as lawn maintenance and snow removal.


Co-operative

Buyer receives shares of stock in the building corporation and a lease or assignment of the seller’s lease of the apartment being sold. More challenging to finance as you are buying shares rather than real property.

Dower Rights

Dower rights protect the spouse of a registered owner of real property. Dower Act requires the spouse who is not on title to consent to any disposition of land. A disposition of land usually comes up as the sale or mortgaging of the property.

Bank / Court Ordered Foreclosure

Process lenders use to take property from borrowers when a homeowner fails to pay the mortgage. By taking legal action against a borrower who has stopped making payments, lenders try to get their money back. Simply put, ownership is taken back, bank will sell it and use the sales proceeds to pay off your home loan.

Estate Sale

An estate sale or estate liquidation is a sale or auction to dispose of a substantial portion of the materials owned by a person who is recently deceased. Often managed by an executor (someone named in a will) or appointed by the court, who is given the legal responsibility to take care of a deceased person's remaining financial obligations. This means taking care of everything from disposing of property to paying bills and taxes.

Get In Touch

JAKIE NG, REALTOR® | Your Edmonton Downtown Condo Specialist

Mobile: (780) 224-5566

Phone: (780) 224-5566

Email

Office Info

TRIBE Real Estate Company

205, 12227 107 Ave,   Edmonton,  AB  T5M 1Y9 

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