Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following best describes an equity housing co-operative in Ontario?

1. It has no share capital.

2. It has share capital.

3. It is governed by the Condominium Act.

4. It can receive partial funding from the provincial government.

The correct answer is: It has share capital.

An equity housing co-operative in Ontario best represents a model in which members collectively own the property. This structure involves share capital, meaning that members buy into the co-op by purchasing shares, which gives them an ownership stake in the cooperative and the right to occupy a housing unit. This share capital is crucial as it helps fund the operations and maintenance of the property. Members benefit from the equity they build up in the co-op as property values increase, making share capital a significant element of equity co-operatives. The other options, while they touch on aspects related to housing arrangements, do not capture the essence of how equity housing co-operatives function in Ontario. For instance, the absence of share capital does not apply since these co-operatives are characterized by their share-based ownership structure.