“Equity Co-ops” or “Co-ownership buildings” are similar to each other but they are different from condominiums. In an equity co-op building, instead of legally owning a specific unit (as is the case with a condominium), a purchaser buys a share in the building which promises the right to occupy a unit. Individual units are never registered and they cannot be individually bought.

There is an “occupancy agreement” or “tenancy agreement” among the various that allows each owner to occupy “their” unit.

Conversion of rental buildings to equity co-ops is allowed under the TPA.

However, the Tribunal cannot evict a tenant of one of these buildings because another purchaser wants to move in. The exception to this rule is if the building has less than five units or if the landlord’s family lived in the unit before.

The former City of Toronto had a by-law which did not allow the conversion of buildings to equity co-ops. The rules regarding the conversion of rental buildings equity co-ops in the new City of Toronto are unclear at the time of writing. Check the FMTA or your community legal clinic for updates on this issue.

It is important that tenants contact their City Councillors and their MPPs in order to alert them to the serious consequences for tenants to conversion of rental buildings to equity co-ops.