Co-Operative (No Shared Liability)
Co-Operative Corporation is a registered owner of a property (Registered on Title): Purchaser does not own unit
Purchaser has a long term, exclusive use of individual unit through a Lease ,Or occupancy agreement ,not a deed.
Purchaser acquires shares in the Co-Operative and is a share holder in the Corporation.
Purchaser becomes a member of the Co-Operative Corporation which:
(a) owns and manages the entire building and land on behalf of the shareholders and more particularly the By-laws and the Co-Operative agreement,
(b) (b) grants exclusive occupation rights to shareholders of a specific unit
Purchaser can finance unit, using Corporation shares and leasehold interest in unit ,if building does not have a blanket mortgage registered on it and if there is no prohibition on pledging shares as security
Purchaser is assessed for percentage share (based on the size of unit in comparison to the whole building) of common expenses.
No Legislation requiring a reserve monetary fund for maintenance but most Co-Operative agreements require a reserve monetary fund for maintenance.
Purchaser can participate in management decisions by sitting on the Board of Directors as a voting member of Co-Operative Corporation.
Purchaser is subject to the Rules and By Laws of the Co-Operative Agreement.
Purchaser needs consent of the Board Of Directors of the C0-Operative Corporation to sell shares , assign lease for the unit ,or rent unit ,which is not unreasonably withheld.
Sale of the unit is subject to a receipt of an Estoppel Certificate which identifies any outstanding or pending payments ,assessments ,or legal actions, re: the unit or Corporation.
Co-Operative Corporations have yearly audited Financial Reports issued to all shareholders and are self-Managed or managed by a professional management Company
Information Supplied by:
"Martin Rumack" Barrister & Solicitor 416 961 3441
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