Someone is trying to sell the second floor of their Toronto home for $600K
As Toronto real estate prices continue to be outrageous people are getting more creative with home ownership.
A perfect example is this two-bedroom, one-bathroom property listed for just $599,000.
At first glance it seems like the deal of the century – 4 Chambers Ave. is semi-detached home with a backyard and everything for just under $600K.
It boasts over $100K of renovations, including a modern kitchen with granite countertops, oak hardwood floors, and plenty of natural light.
The living, dining and kitchen spaces are all open concept.
The primary bedroom has plenty of storage.
The bathroom is modern and has a big shower.
But if you really read the listing, things get a bit weird.
For example, it casually mentions that there are "no maintenance fees, just shared utilities," and there's "access to the basement storage room and backyard." Hmm.....
And then you find out this "home" is actually just the second floor of a house, that's being listed for $599,000. The "buyer is buying [the second] floor only," reads the listing.
Now, co-ownership of a house is definitely a thing. It's really popular in large cities like London, New York, and several European cities. Toronto also has plenty of condo buildings that are co-ops.
So it is technically legal, but only if it has gone through the proper steps to turn a single family dwelling into co-ownership dwelling.
"To be a legal co-ownership corporation one would have to have their house converted from a freehold dwelling into a co-ownership complex (even if it's two units), in order for each owner to get independent financing that distinguishes each individuals portion of mortgage debt and their obligations in paying it," explains Steven Fudge, a sales representative at Bosley Real Estate Ltd. Brokerage, in a blog post.
If the legal route isn't an option, Fudge notes there's the possibility to have an informal contract under one shared mortgage, but that also can get a bit tricky financially and legally.
It's unclear if 4 Chambers Ave. is a legal co-ownership or something else.
Realtor Nelson Campos told blogTO that 4 Chambers Ave. is part of a fourplex and has a separate entrance.
"4 Chambers Ave. is one floor only. 2 and 4 [are] on one side 6 and 8 Chambers on the other side," he said, adding that gas and tax bills are shared at 40% with the owner of 2 Chambers Ave.
Nathan Dautovich, who is the listing agent for 2 Chambers Ave., which is also for sale, told blogTO that 2 and 4 Chambers do share a wall (like all semi-detached homes) but there are legal agreements in place to take care of all of the common elements such as the roof, HVAC, washer/dryer.
"Everything is perfectly legal and we have a comprehensive summary document prepared by a lawyer explaining the legal situation," he said in an email to blogTO.
"It's definitely a bit of a different scenario, [...] but a house like is something that should be celebrated."
And to be fair, we're here for any property in Toronto that doesn't break the bank.
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