Are You Labeling Condos Correctly?

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If you look at enough MLS listings, you’ll eventually see a regular condo unit described as a Common Element Condominium (CEC).

Despite the name, just because a condominium has common elements doesn’t make it a CEC.

Earlier this week, a sharp-eyed Realtor emailed me about this problem, pointing out how often the term is misused.

And of course, literally the next day, I got the same question from a client.

So, let’s explain the difference as simply as possible.

What Is a Standard Condominium?

You’re purchasing a defined unit (like a suite in a high-rise or townhouse complex) within a condo corporation plus a shared interest in the common elements (hallways, elevators, amenities, etc.).

What Is a Common Element Condominium?

There’s no individual unit being purchased inside the condo corporation.

Instead, the buyer purchases a freehold home or lot (like a detached house or townhouse) sitting on a Parcel of Tied Land (POTL).

That ownership is tied to a shared interest in the condo corporation, which governs only the common property — like private roads, laneways, or shared parking.

In other words, the buyer owns their home outright and also holds a fraction of the corporation that maintains the shared features.

It’s best thought of as freehold ownership with shared obligations over limited common areas.

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Why It Matters

Mislabeling can mislead buyers, confuse lenders and lawyers, and create unnecessary deal friction.

It can also leave your clients frustrated if they didn’t fully understand what they were buying.

When in doubt, always have the legal description and title checked by your real estate lawyer.

Knowing the difference between these ownership types protects your clients, your deals, and your professional reputation.