Understanding Owned vs. Exclusive Use Parking in Ontario Real Estate

Three months after closing in what should have been a routine condo sale in downtown Toronto, a seller made a call to their Realtor that no agent wants to get. The client recently closed on a unit that was listed with "parking included," and the buyer had paid a premium for it.

There was just one problem: the parking spot wasn't actually owned by the seller. It was exclusive use only.

This distinction—which seemed minor to the buyer and agent—was now the center of a $50,000 dispute. The buyer had specifically wanted a spot they could rent out when traveling for work. But with exclusive use parking, the condo board's rules prohibited third-party rentals.

"But the agent told us it was owned parking," the buyer insisted, sliding the listing printout across the table.

All because of these words: "owned parking" versus "exclusive use parking."

As real estate professionals, understanding this distinction isn't just about technical accuracy—it's about protecting your client's and your own reputations. Owned parking appears on the title deed and can often be sold separately or rented at will. Exclusive use parking belongs to the condo corporation, with the unit owner merely granted usage rights.

The difference can mean thousands in property value and dramatically different owner privileges. Yet how many of us verify the Status Certificate before listing parking features?

Here’s what you need to know.

Owned Parking: What It Means

Definition:
An owned parking space is part of the property’s legal title. The owner holds full ownership rights, just like the unit itself.

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Key Implications:

• Resale Flexibility: Can be sold separately from the unit (if allowed by the condominium’s bylaws).
• Taxes & Fees: Subject to property taxes and may incur separate maintenance costs.
• Control: Owners can modify or license the space (e.g., rent it out), subject to condo rules.

Example:
A condo unit with a titled parking space listed as “Unit 101 + Parking Spot P5” on the deed/title of the property.

Exclusive Use Parking: What It Means

Definition:
An exclusive use parking space is a common element of the condominium. The owner has the right to use the space, but the condo corporation retains ownership.

Key Implications:

• No Separate Ownership: The space cannot be sold separately from the unit.
• Rules & Restrictions: Use is governed by the condo corporation (e.g., no renting without approval).
• No Modifications: Owners cannot alter the space without permission.

Example:
A condo assigns “Spot P5” to Unit 101 in its bylaws, but the space remains part of the building’s common areas.

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Legal Considerations behind owned and exclusive use parking

Condo Agreements:

Owned Parking: Check the declaration/description for titled parking details.‍

Exclusive Use: Review the bylaws/rules for how spaces are assigned and managed.

Resale Challenges:

Exclusive use parking may not transfer automatically to new buyers unless specified in the agreement.

Disputes:

Condo boards can reassign exclusive use spaces (rare, but possible). Owned spaces are protected under property law.

Due Diligence:

Always review the Status Certificate to confirm parking type and rights.

Practical Tips for Realtors buying or selling condos

1. Ask the Right Questions:
   
   • “Is the parking space titled (owned) or assigned (exclusive use)?”
   • “Are there restrictions on renting or selling the space separately?”
2. Review the Status Certificate:
   
   • This document details parking rights. Share it with the buyer’s lawyer.
3. Educate Your Clients:
   
   • Explain how parking type affects resale value, flexibility, and fees.
4. List Accurately:
   
   • Clearly state “owned” or “exclusive use” parking in listings to avoid disputes.
5. Use a Parking Addendum:
   
   • Include specifics about the parking space in the purchase agreement (e.g., spot number, type).

‍Final Advice

Parking rights can make or break a deal. Always:

1. Verify the parking type with the Status Certificate.
2. Clarify restrictions with the condo board or seller.
3. Document everything in writing.

Disclaimer: This article is for informational purposes. Always advise clients to consult a real estate lawyer.