A developer creates a condominium with 100 units. Unit 45 is assigned a unit factor of 1,200 while the total unit factors for all units equal 120,000. What percentage of the common expenses will the owner of Unit 45 be responsible for?

Q: What is the correct answer to: A developer creates a condominium with 100 units. Unit 45 is assigned a unit factor of 1,200 while the total unit factors for all units equal 120,000. What percentage of the common expenses will the owner of Unit 45 be responsible for?

The correct answer is 1.0%. Option A is correct because the calculation follows the standard formula for determining proportionate share in condominium ownership. Unit 45's factor (1,200) divided by total factors (120,000) equals 0.01 or 1.0%. This mathematical relationship is mandated by provincial condominium legislation across Canada, which requires that each unit's share of common expenses be proportionate to its unit factor. The unit factor system ensures equitable distribution of shared costs among all owners based on predetermined criteria established in the condominium declaration.

Q: What background knowledge is needed for this Real Property Law question?

Unit factors in Canadian condominium law determine each owner's proportionate share of common expenses, reserve fund contributions, and voting rights. Provincial condominium acts require that these factors be established in the declaration and remain fixed unless amended through proper legal procedures. The factors typically reflect unit size, value, or other relevant characteristics. Common expenses include maintenance, utilities, insurance, and management fees for shared areas. The proportionate share calculation (unit factor ÷ total factors) ensures equitable cost distribution and is fundamental to condominium financial management and governance across all Canadian provinces.

Q: What is a good way to remember the answer to this Real Property Law question?

Think of unit factors like pizza slices. If you have 1,200 slices out of 120,000 total slices, you get 1,200/120,000 = 1% of the pizza. Your unit factor is your slice count, total factors are all slices combined, and your percentage is your fair share of the whole pizza (common expenses). When you see unit factor questions, visualize dividing pizza slices. Your unit factor goes on top (numerator), total factors go on bottom (denominator), and the result is your percentage share. This prevents calculation errors and helps remember that it's always a fraction of the whole.

Q: What exam tip applies to this Real Property Law question?

Always divide the individual unit factor by the total unit factors to get the percentage. Double-check your decimal placement - 1,200 ÷ 120,000 = 0.01 = 1.0%. Watch for answer choices that represent common calculation errors like using the wrong denominator.

Q: How does this Real Property Law concept apply in real world practice?

A property manager preparing the annual budget for a 100-unit condominium must allocate $240,000 in common expenses among owners. Using unit factors, the owner of Unit 45 (factor 1,200 out of 120,000 total) pays 1.0% or $2,400 annually. This calculation determines monthly maintenance fees, special assessments, and reserve fund contributions. Real estate agents use this information to advise buyers about ongoing ownership costs, while property managers rely on accurate calculations for budgeting and billing compliance with provincial condominium legislation.

Question

Real Property LawCondominiumsHARD

A developer creates a condominium with 100 units. Unit 45 is assigned a unit factor of 1,200 while the total unit factors for all units equal 120,000. What percentage of the common expenses will the owner of Unit 45 be responsible for?

Answer Options

A

1.0%

B

1.2%

C

10.0%

D

12.0%