Terminology Tuesday: Common Elements Condominium

As mentioned last week, you may come across properties that are called "freehold" but also have a condominium element to them, because the house and land are owned but there are also common elements involved. But what does it really mean, and why is it important for buyers, owners, and investors?

In Ontario, common elements refer to the parts of a condominium property that aren’t part of an individual unit and are shared collectively by all owners. This includes spaces like lobbies, hallways, elevators, fitness centres, parking areas, gardens, roofs, and exterior grounds. These shared spaces are owned jointly and managed by the condominium corporation, with all owners contributing through monthly common expense fees for maintenance and repairs.

A Common Elements Condominium (often abbreviated CECC) takes this concept in a slightly different direction. Instead of having individual units, the condominium consists only of common elements that are shared among the owners of parcels of land tied to the condominium ("parcel of tied land"). In these arrangements, owners don’t own a unit inside a building; rather, they own a parcel of land plus a common interest in shared property such as roads, recreation facilities, or landscaped areas.

This type of ownership structure can be especially useful in planned communities where amenities and services—like private roads, parks, and clubhouses—are shared by residents but not physically divided into individual condo units. Regardless of the setup, the basic principle is the same: owners share responsibility for the upkeep and governance of the property through a condominium corporation. This means a monthly condo fee, even though the home itself is freehold.

Understanding common elements and the unique nature of a Common Elements Condominium can help prospective buyers make informed decisions when considering property ownership in one of these neighbourhoods.