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Glossary
Condo

Unit Entitlement

The ownership percentage assigned to each unit in a condominium corporation, as set out in the declaration. Unit entitlement is typically based on the unit's size relative to the total building and determines each owner's share of common expenses (condo fees), voting weight at owners' meetings, and share of the common elements. A larger unit will generally have a higher unit entitlement and pay proportionally higher condo fees.

Why It Matters

Unit entitlement determines how much you pay in condo fees and how much your vote counts at owners' meetings. A unit with a 2% entitlement pays 2% of the total common expenses and carries 2% of the voting power. When comparing condo fees between different buildings, the unit entitlement helps you understand whether fees are proportional or whether some units are subsidizing others.

Real-World Example

In a 200-unit condo building at Yonge and Bloor, a 500-square-foot one-bedroom unit has a unit entitlement of 0.8%, while a 1,200-square-foot three-bedroom penthouse has an entitlement of 2.1%. If the building's total annual common expenses are $1.5 million, the one-bedroom owner pays $12,000 per year ($1,000 per month) and the penthouse owner pays $31,500 per year ($2,625 per month). The penthouse owner also carries more voting weight at owners' meetings, giving them proportionally more influence over building decisions.

Ontario & GTA Context

In Ontario, unit entitlement percentages are set in the condo declaration when the corporation is first registered and are based on the relative size or value of each unit. Changing unit entitlements requires amending the declaration, which demands approval from owners representing at least 90% of the units -- making changes extremely rare. The Ontario Condominium Act uses unit entitlement to determine both the allocation of common expenses and voting power at owners' meetings.

How It Works in Practice

When comparing maintenance fees across different buildings, divide the monthly fee by the unit entitlement percentage to understand the building's total cost structure. A higher entitlement means you pay more but also have more voting power. If you are buying in a building with mostly small units and you are purchasing a large unit, you may bear a disproportionately high share of common expenses relative to your use of amenities.

Common Questions

Can unit entitlement percentages change?
Technically yes, but it requires amending the declaration, which in Ontario demands approval from at least 90% of unit owners. In practice, unit entitlements almost never change after the corporation is registered. They are set by the developer at the time of registration.
Does a higher unit entitlement mean higher condo fees?
Yes. Your monthly maintenance fees are directly proportional to your unit entitlement. A unit with a 2% entitlement pays twice as much in fees as a unit with a 1% entitlement. This is because maintenance fees are allocated based on each unit's share of common expenses as defined in the declaration.

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