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Ordinary resolution
A motion passed at a properly convened meeting of the corporation (e.g., annual general meeting or special general meeting). It requires a majority vote from people present at the meeting, or represented by proxy. The resolution can also be passed if signed by a majority of people who are entitled to vote and representing more than 50% of the total unit factors. An ordinary resolution is usually related to the day-to-day operations of the condominium.
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Resolution
A motion passed at a condo board meeting, annual general meeting or special general meeting. A resolution may be passed in writing instead of at a meeting. There are ordinary and special resolutions.
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Conflict of interest
This is when a board member has a substantial interest in an agreement, arrangement or transaction in which the condominium corporation is or will become a party to. For example, a conflict of interest would occur if a board member owns a property management company and the condominium corporation is thinking of hiring the company.
Special Levy
A special levy (previously known as “special assessment”) is a type of financial contribution that the condominium board can impose (by resolution) on condominium unit owners. It may be levied as a one-time lump sum or as an extra payment, in addition to condominium contributions (fees).
When can a condo board impose a special levy?
A condo board can impose a special levy in certain situations, for example to:
- Pay for unexpected and urgent maintenance, repair or replacement of the corporation’s real and personal property, common property or managed property
- Cover unexpected shortfalls in the operating account
- Increase the balance of the reserve fund to meet the requirements in a reserve fund plan
- Pay for capital improvements (a special resolution is needed)
- Satisfy a judgment against the corporation or
- For any other purpose under the Condominium Property Regulation
What is the process of approving a special levy?
To approve a special levy, the condominium board passes a resolution, which must set out the following information:
- the purpose of the levy
- the total amount to be levied
- the method for calculating the special levy
- the date by which the levy or installments are to be paid
As soon as possible after passing the resolution, the board must inform owners of the following information:
- the purpose of the levy
- the total amount of the levy
- the method for calculating each unit’s share of the levy
- the amount of the owner’s unit’s share of the levy
- the date by which the levy or installments are to be paid
If the amount collected exceeds the amount required or is not fully used for the purpose in the resolution, then the corporation must pay the money into the reserve fund.
How is a special levy calculated?
Each owner’s portion of a special levy is calculated based on unit factor unless the Condominium Property Regulation or bylaws say otherwise. The unit factor is also used to assign condominium contributions (fees). If you’re unsure of how unit factors are assigned in your condominium, check the schedule attached to your condominium plan.
Before You Buy: What you need to know
Sellers must disclose if there is a pending special levy that is not included in the condominium documentation. The requirement to pay the special levy remains with the unit and becomes the responsibility of the new owner. Carefully consider whether you want to purchase a condominium unit with a pending special levy, as it will increase your costs significantly.
You should also consider why a special levy was levied. For example, was it levied to repair a leaky roof? Are there ongoing issues with the structural integrity of the building? Review the condo’s reserve fund documents and ask questions of the condo board, property manager, and other unit owners.
It is also important to consider if the condominium has a history of imposing special levies. Ask your lawyer and document review company to help you review the condo corporation’s documents to determine if there will be ongoing issues due to financial mismanagement.
Why did I get a special levy notice when the reserve fund seems adequate?
A condominium corporation’s operating budget and reserve fund are separate and distinct accounts with their own rules. For example, money from a reserve fund can only be used to cover the cost of repairing and replacing the corporation’s real/personal property, common property and managed property; it cannot be used to cover operating expenses. However, a special levy may be levied against condo owners to cover operating expenses.
Do I have to pay a special levy? What if I disagree with the special levy?
As an owner, it is your responsibility to pay your portion of the special levy when it is due, even if you disagree with it. If you don’t pay the special levy, the condo board could take any of the following actions:
- charge interest on the unpaid amount (up to 18% per year)
- sue you for the unpaid amount, plus any interest and legal costs
- if you have a mortgage, ask your mortgage company to pay the outstanding amount
- if you have a tenant in your unit, require the rent to be paid to the condominium corporation to cover the unpaid amount
- file a caveat against your property title
- foreclose on the title to your unit
If you want more information about why the special levy was imposed, talk to your condo board and ask questions. It is your responsibility as an owner to keep yourself informed about the finances of the corporation. Consider becoming a member of the condo board if you want to have greater input on the financial direction of the condominium corporation.
Last updated: June 2022
Standard insurable unit description (SIUD)
A description given to purchasers by the developer or as adopted by the condominium corporation, consisting of typical standard fixtures and finishing in a residential unit or class of residential units. The description must include a description of the typical features in the unit(s). For example, internal doors and windows, closets, flooring, wall coverings and fixtures.
Document and Record Management
A condominium corporation has a responsibility to keep documents and records. Usually the secretary or treasurer of the board ensures that the documents and records are in good order.
Tip for condo boards: Check the bylaws for any specific requirements for record keeping (for example, who keeps them, how, where and any guidelines for retention). Sometimes, a condo manager (if there is one) will keep the condo board’s current records. But the condo board should always have copies secured and in their possession at all times.
Why is it important to keep documents and records?
It is important for condominium corporations to keep documents and records for a variety of reasons:
- They can facilitate board decision-making and budgeting.
- They can facilitate the continuity of the condominium board and condominium corporation. For example, unit owners, board members, and condo managers change. Having documents and records in good order helps make sure new unit owners, board members, and condo managers are up to date with condominium affairs.
- In case of a dispute, well maintained proper documents and records can prove the board’s decision making processes were done properly and legally, and why they reached certain decisions.
How long do condominium corporations need to keep documents and records?
The Condominium Property Regulation specifies how long the condominium corporation must keep documents and information. Some documents and information must be kept permanently, for example:
- The corporation’s current bylaws
- Details on post tensioned cables located on/within the property as included in the condominium plan
- A statement outlining the unit factors and how unit factor allocations are determined
- Professional reports, such as engineering reports
- A statement setting out any structural deficiencies known to the corporation at the time of the request
- Structural, electrical, mechanical and architectural working drawings and specifications, and as built drawings
- Existing plans showing the location of underground utility services, sewer pipes and cable television lines
- Certificates, approvals and permits (relating to the corporation’s property) issued by:
- a municipality
- Administrator under the Safety Codes Act
- the Government or
- agent of the Government
- Any building assessment report
- Copies of all plans, documents and amended documents as required under the Safety Codes Act
The condominium corporation may keep documents and information in an electronic format. However, they must be complete, legible and reproducible.
Tips
- For a complete list of the retention period for a corporation’s documents and information, refer to schedule 3 of the Condominium Property Regulation.
- Corporations do not need to retain documents that no longer exist or that they no longer have control over/access to as of January 1, 2020.
Can condominium corporations retain information or documents in electronic format?
Yes, as long as the information or document:
- Is complete
- Is legible in its entirety and
- Can be reproduced by the corporation in an electronic format or in hard copy format
As long as the version of a document in electronic format meets the above requirements, then it is considered the original document.
Condominium corporations should consider developing a policy for the retention, review, and disposal of documents. Because some of these documents and records may contain personal information of unit owners, the corporation should be familiar with the Personal Information Protection Act.
I’m no longer a property manager or board member for a condo corporation. What do I do with a corporation’s documents?
Original copies of any documents or records prepared for a corporation by a condo manager or board member are property of the corporation. There are rules for former condo managers and board members in dealing with a corporation’s original documents and records.
For example, upon the cancellation of a management agreement, a condo manager has 30 days to return all property belonging to the corporation (including original documents and records) at no charge. When a person is no longer a board member, they have 30 days to return all property belonging to the corporation (including original documents and records) at no charge.
Last updated: June 2022
Management
In Alberta, condominiums are either self-managed or managed professionally. Whether a condominium corporation is self or professionally managed, board members must follow the Condominium Property Act in carrying out day-to-day tasks.
Self-Managed Condominiums
If a condominium is self-managed, the condominium board is responsible for managing all aspects of the property. This means the board looks after accounting, repairs, and maintenance tasks (for example, landscaping and snow removal).
The benefit of a self-managed property is that the owners do not have to pay a professional property manager. That said, some tasks may be contracted out (for example, landscaping).
The downside is that self-management can be time consuming for board members. Without a dedicated condo board, the management of the property could suffer. This could negatively impact the quality of life in the complex as well as property values.
Professionally Managed Condominiums
Many condominium corporations hire a condo manager or condo management company to look after the day-to-day affairs of the condominium corporation. The range of tasks will depend on what the condominium corporation and condo manager agreed to in the management agreement.
The condo board should review the management agreement and do its research on the condo manager. The same applies if you want to buy a condominium unit or if you’re living in a condo and want to hire a new condo manager. Consider the following questions:
- What tasks is the condo manager responsible for completing?
- How long has the condo manager been with the corporation?
- Do the condo board’s meeting minutes indicate that there have been issues with the condo manager?
If you want to learn more about what to look for in a condo management company, read Ask Maria: The Right Fit – Choosing the right condo management company.
A condo corporation can end management agreements made by the developer (also known as a “developer’s management agreement”). For more information, see our Termination of Agreements page.
Starting December 1, 2021, all brokerages, companies and individuals providing condo management services must be licensed. More information on what this means for condo boards and owners is available on the Real Estate Council of Alberta’s website.
Before You Buy: New Developments
If you are buying a new condominium, the developer may have hired a management company to look after the development until the condo board made up of the unit owners is in place. If there is a management agreement in place, developers must disclose it to potential buyers.
The owners’ condo corporation can end any management agreement entered into by the developer as long as:
- one year has passed from the date the agreement was entered into and
- the management company has 60-days written notice
Thank you to the Alberta Real Estate Association for allowing portions of their Condominium A to Z course manual to be adapted for use in this section.
Last updated: June 2022
Extraordinary general meetings
Special meetings outside of an annual general meeting (AGM) where unit owners or the condo board may want to discuss important issues that arise with the condominium corporation. They are held as needed by the owners or the board. The bylaws will usually specify the procedure for when and how extraordinary meetings can be called.
Special resolution
A motion passed at an annual or special general meeting, or by written resolution. Requires approval of at least 75% of people entitled to vote and representing at least 75% of total unit factors.
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