Additional information filed with a condominium plan including changes to a condo corporation’s bylaws, board members, legal burdens, address for service and exclusive use agreements.
Search Results for: bylaws
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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Deposit, occupancy fees and other issues
This section applies to the purchase of new and conversion condominium developments only
What happens to your deposit?
After signing a purchase agreement for a new or conversion condominium unit, you must give the developer a deposit. Within 3 days (excluding holidays and Saturdays) of receiving your money, the developer must deposit the money into a trust account. The trust account must be at a financial institution in Alberta. The deposit is held in a trust account maintained by a lawyer (a “prescribed trustee”) until your unit and the common property is substantially complete. Within 10 days of receiving your money, the lawyer must notify you that the deposit is held on deposit in their trust account. You must receive the title to your property before the deposit money is taken out of the trust fund.
Part 1.4 of the Condominium Property Regulation addresses trust accounts in further detail, including notification requirements, restrictions on the release of trust money and trust account records.
What happens if you change your mind?
You have the right to cancel (or “rescind”) the agreement within 10 days of signing the purchase agreement. If you do not receive all the required documents and information from the developer when signing the purchase agreement, you have 10 more days within receiving the documents to cancel your agreement. For example, you sign the purchase agreement on March 1st . But you receive all required documents and information on March 15th . You will then have until March 25th to cancel your agreement. The developer must give you a full refund within 15 days of receiving your written cancellation notice.
What happens if there are changes in construction that you did not agree to?
A developer must notify you of any material changes in the information and documents that it provides to you. The developer must provide you with a written notice within a reasonable time after the change occurs and before you take possession of the unit.
A material change is a change in the developer’s information or documents that would have a negative effect on the value/use of your unit or the corporation’s common or real property.
Seek legal advice if you have a dispute with your developer over any changes that arise during construction.
What are occupancy fees?
Before you can move into your unit, the developer must provide an occupancy permit that proves the unit has passed all safety checks and complies with local bylaws. You may receive the occupancy permit and be able to move in before you receive the certificate of title for the unit. This time period is known as interim occupancy and the developer may require you to pay occupancy fees during this time.
Talk to your lawyer or real estate agent about how the purchase agreement deals with occupancy fees. Sometimes developers will apply occupancy fees towards the final purchase price of the unit.
Occupancy fees cannot exceed the amount the developer disclosed to you when you signed the purchase agreement.
How do you know when you can move in?
When you purchase a condo, the developer must provide you with an occupancy date statement. An occupancy date statement is a statement that contains a single fixed date or range of dates in which a unit is available for move-in. The developer must ensure that you initial the occupancy date statement when you sign the purchase agreement. When a developer provides a range of dates in an occupancy date statement and has decided on a specific date for move in, they must give you at least 30 days’ written notice.
What happens if your move in date is delayed?
If your unit is not ready within 30 days of the final occupancy date on the occupancy date statement, then you have the right to cancel your purchase agreement with a written notice.
If a developer sends a notice of a revised final occupancy date, you can within 10 days of receiving it:
- give written acceptance of the revised final occupancy date or
- cancel the purchase agreement
Otherwise, the revised final occupancy date is binding.
When you cancel your purchase agreement, the developer or the developer’s lawyer must give you a full refund. They must do so within 15 days of receiving the notice.
There are some situations where a developer can delay occupancy beyond the final occupancy date. For example, you will not be able to cancel your purchase agreement in the following events:
- Fire
- Explosion
- Flood
- Events leading to a declaration of an emergency or a public emergency or disaster
- Impact by aircraft, spacecraft, watercraft or land vehicles;
- Riot, vandalism or malicious acts;
- Delays in issuing a development permit
- An outstanding appeal
Last updated: July 2022
Purchase Agreement
A purchase agreement is the contract between the developer and the condominium unit purchaser. You should always consult with a lawyer prior to signing a purchase agreement.
Purchase Agreement Requirements
Under the Condominium Property Act, a developer must include the following information in the purchase agreement:
- How to cancel the purchase agreement (in the prescribed form)
- If the condominium unit and/or common property are not substantially complete, the agreement must include a description, drawing, or photograph showing:
- the interior finishing and all major improvements to the common property in the building and to the corporation’s property (real and personal)
- the exterior finishing of the building
- recreational facilities, equipment and other amenities
- maintenance equipment for the common property, managed property and the corporation’s property (real and personal)
- landscaping
- location of roadways, walkways, fences, parking areas and recreational facilities and
- any significant utility installations, major easement areas and retaining walls
- The amount or estimated amount of monthly condo contributions (condo fees) for the unit based on the budget or proposed budget.
- The unit factor and how it was determined.
You should review the purchase agreement to ensure it outlines what work remains to be done and when the developer expects the unit will be completed.
Cancelling a Purchase Agreement
Under the Condominium Property Act, you can cancel or rescind the purchase agreement within 10 days of signing it. If you did not receive all the required documents from the developer when you signed the agreement, then you have an additional 10 days within receiving the documents to cancel your agreement. The developer must provide a full refund within 15 days of receiving your written notice to cancel the purchase agreement. To learn more about the documents that developers must provide to buyers, see our Collecting & Reviewing Documents page.
Last updated: June 2022
Recreational Agreement
A recreational agreement will allow one of the following:
- owners to use recreational facilities not located on the condominium’s common property or
- non-owners to use the recreational facilities located on the condominium’s common property
Before you buy, review any recreational agreement that exists. Consider whether it fits your needs and lifestyle.
Are there recreational facilities on the premises? Make sure to review any related bylaws or rules. For example, the fitness centre or pool may only be open certain hours. Will these hours work for your schedule?
Planning to use the recreational facilities? Consider if the complex fits you and your budget. Condominiums with recreational facilities tend to have higher condominium contributions than those without.
June 2022
Reserve Fund During Emergency
On June 1, 2020, Order in Council 169/2020 was approved to amend the Condominium Property Regulation. The amendments allow condominiums to access reserve funds in emergencies. Owners still have to pay contributions levied by the board. If you are unsure of what your board can or cannot do during an emergency, seek legal advice.
Conditions for reserve fund use during an emergency
A corporation (that is not controlled by an interim board) may transfer funds in the reserve fund into the operating fund if certain conditions are met. These conditions are:
- An emergency is declared, which means:
- An emergency declared under the Emergencies Act (Canada)
- A state of emergency or state of local emergency declared under the Emergency Management Act
- A state of public health emergency or local state of public health emergency declared under the Public Health Act
- The declaration of emergency, state of emergency, state of public health emergency remains in effect.
- The condominium corporation has received lower revenue from contributions compared to the revenue expected from contributions levied on owners because of the emergency.
- As a result of the lower revenue, a shortfall exists between received revenue and payable expenditures from the operating fund.
- The condominium corporation’s bylaws do not prohibit the use of the reserve fund in this way.
Amount that can be transferred
There is a maximum amount that the corporation can transfer from the reserve fund to operating fund. The amount must be whichever less of:
- The difference between the lower revenue received from contributions and the revenue expected from contributions levied on owners
- The actual shortfall between received revenue and payable expenditures from the operating fund or
- Any limit that may be in the corporation’s bylaws on using the reserve fund in this way
Notification requirements and board resolution
Before transferring funds, the board must take several required steps. The board must serve a notification to owners with:
- A statement of the board’s intention to transfer the reserve funds
- Notice of the date when the board intends to make a decision
- A description of any alternative considered to transferring the funds and the reason why the alternative was not adopted and
- A proposed revision to the reserve fund plan identifying the:
- Amount of reserve fund being transferred to the operating fund and
- A specific repayment plan that will be used to repay the amount transferred from the fund within 2 years of the date the declaration or state of emergency has ended
In addition, the board must pass a resolution with a 75% majority of directors eligible to vote that authorized the transfer to the operating fund and approved the proposed revision to the reserve fund.
Finally, the board must also serve notice to owners confirming that the changes to the reserve fund plan have been adopted and provide the revised reserve fund plan to owners.
July 2022
What is a Condominium?
Legally, a condominium is a type of property ownership. Condominium ownership is unique because it is shared property ownership. When you buy a condominium, you get:
- Full ownership of the condominium unit (also known as freehold interest)
- Shared ownership of the common property (also known as tenants in common co-ownership
Condominium units come in all shapes and sizes. They can be apartment-style residences in high-rise buildings, townhouses, lofts, or even detached houses. Condominium bylaws may state who must maintain, repair and renovate anything within the boundaries of a unit.
Common property can include landscaping, elevators, swimming pools, fitness centres, lobbies, plumbing, wiring, sprinkler systems, and furnaces. Common property is anything not contained within the boundaries of a condominium unit. Everyone who owns a condominium unit also owns a share of the complex’s common property and must pay condominium contributions (fees) to the condominium corporation to help maintain and repair the common property.
Owners manage a condominium
In Alberta, when a condominium development is registered with the Land Titles Office, it becomes a condominium corporation. The condominium corporation consists of everyone who owns a unit in the development. Owners then elect a board of directors to manage the condominium corporation. Anyone who owns a unit in the complex can run for a position on the board of directors. Board members are all volunteers. They are responsible for many things including preparing financial documents, enforcing bylaws, and maintaining common property.
Want to know more? Visit condominium governance and operations.
Condominiums Come in Many Styles
Condominiums come in all shapes and styles from high-rise residential towers to converted loft warehouses to luxury detached housing developments. Read more about condominium styles: Choosing a Condominium.
The Condominium Lifestyle
Many people like the high-amenity, low-maintenance lifestyle that comes with condominium living. Owners may have access to on-site amenities like fitness centres and swimming pools, and they don’t have to worry about mowing the lawn or shoveling snow. However, the condominium lifestyle may not suit everyone’s needs. Learn more about whether a condominium is the right option for you.
Further Resources: A Guide to Commonly Used Condo Terms
Last updated: June 2022
Is a Condo Right for You?
There are a number of factors to think about when deciding whether condominium ownership is the right for you. Condominium ownership is different from traditional home ownership because it involves shared ownership of common property. Shared ownership means there are more rules and restrictions in place for owners – which can be seen as a benefit or disadvantage depending on your lifestyle.
Bylaws & Rules
Every condominium complex must have a set of bylaws outlining what owners (and renters) can and cannot do in the complex. Bylaws can cover a wide variety of issues including pets, children, noise, parking, aesthetics, use of amenities, and how the condo operates.
Bylaws offer a sense of certainty to owners about who will be living in the complex, how they must behave and how they look after their unit. A complex’s condo board must enforce the bylaws and owners can face sanctions for not following the bylaws.
Rules often supplement bylaws and focus on the day-to-day concerns of condo living.
Parking
In a condominium, there may be parking restrictions or limits. For example, larger vehicles like boats or RVs may not be allowable in a condominium’s parking area due to their size. These restrictions will be in the condominium’s rules or bylaws.
Parking in a condominium is either assigned or titled. If it is assigned, it means the owner leases or rents the parking space from the condominium corporation. If it is titled, it means the owner owns the parking spot and can sell it with the unit.
Pets
A condominium’s bylaws may prohibit pets or put restrictions on the type, size, or number of pets allowed in each unit. Some bylaws require owners to get condo board approval if they want to get a pet.
Many condo owners appreciate the rules around pet ownership as it often reduces noise complaints and maintenance expenses.
Repairs and Maintenance
Condominium bylaws may state who is responsible for maintaining, repairing, and renovating anything within the boundaries of a condominium unit. Owners are generally responsible for repairing and maintaining anything within their condominium unit. For example, if your fridge or dishwasher needs repairs, you would be responsible for the cost of repairs.
The condominium corporation is responsible for repairing and maintaining the common property, which includes the complex’s heating, electrical, and plumbing systems as well as amenities like the swimming pool and fitness centre. In most condominiums, the corporation is also responsible for landscaping and snow removal. Many people find the low maintenance lifestyle of condominium living to be a significant benefit.
Condominium Contributions (Fees)
To cover the costs associated with maintaining and repairing the common property, all condominium owners have to make a contribution (also known as a “condo fee”) to the condominium corporation.
Contributions are divided amongst owners based on the unit factor assigned to their particular unit.
Condo contributions vary greatly with larger, amenity-rich buildings generally having higher fees than smaller buildings with minimal amenities.
Visit Condominium Contributions for more information.
Amenities
Condominium complexes may offer on-site amenities such as fitness centres, swimming pools, tennis courts, and games rooms. Such amenities are rarely available with traditional home ownership. Owners’ condo contributions (fees) go towards maintaining these facilities.
Security
Some condominium complexes may offer enhanced security features such a night time security guards, video monitoring, and secured parking.
Renting
Owners who want to rent their condominium unit have to inform the condominium board and may need to pay a security deposit to cover the costs of any potential damage caused to the common property. Tenants renting condo units must follow the bylaws or risk eviction by the condominium board.
Visit Renting Your Condo for more information.
Further Resources
Canada Mortgage & Housing Corporation: Pros & Cons of Condominium Ownership
Condo Insight: Condo Question Mark (Maria Bartolotti)
Last updated: August 2022
Meeting Minutes
Before purchasing a condominium unit, review your condominium board’s meeting minutes. Consider the following things when reviewing the condo’s meeting minutes:
- Is the condominium corporation facing any serious maintenance or repair issues? If so, how is the board dealing with these issues? Keep an eye out for any issues related to the building envelope and/or a roof that’s leaking. This could be a sign of major structural issues that could cost a lot of money to fix.
- What complaints or issues have owners raised? How has the condominium board dealt with these? This is will be a good indication of how owners and the board work together to address problems.
- Is the condominium corporation facing any financial issues? If so, how is the board addressing these issues? You will also want to review the budget, financial statements, annual report, and reserve fund information.
- Has the condo had any difficulty filling board positions? This is a good indication of whether owners are actively involved and engaged in the operation and management of the condominium.
- Have there been any complaints or issues about the property manager? If so, how have the board dealt with them?
- Have there been any issues or complaints about tenants who are renting units? If so, how have the board dealt with them?
The meeting minutes will give you a good idea of how the condominium is operated and managed. It is important to consider how the condominium board deals with problems that arise – whether they are maintenance, interpersonal, or financial problems.
For a complete overview of what you need to know about condo finances before you buy, download our free publication: Before You Buy: Understanding Condo Finances.
June 2022
Choosing a Condominium
Types of Unit Ownership | | Condominium Styles | Multi-Stage Developments | Conversion Condominiums | Buying New vs. Resale
There are many types of condominiums. It is important to know the differences between types so that you:
- choose the one that best suits your needs, lifestyle, and budget
- understand what you have complete ownership and control over
When you buy a condo, you get exclusive title and ownership of your unit and shared ownership of the common property. Unless the bylaws say otherwise, you are generally responsible for maintaining, repairing, and making improvements to your own unit, while the condominium corporation is responsible for the common areas.
Types of Unit Ownership
There are two types of condominium unit ownership: conventional and bare land. These refer to the boundaries of the condominium unit.
Conventional Condominiums
A conventional condominium is the most common form of condominium. It typically refers to a condominium unit that is located within a building. Unit boundaries are identified by referring to floors, walls, and ceilings, as opposed to markings on a plot of land.
Owners of conventional condominiums have full (freehold) ownership of everything inside the unit based on the boundaries set out in the condominium plan. In some cases, a unit’s exterior windows and doors are part of the unit. In other cases, they may be common property. Check the condominium plan and bylaws to determine what is part of the unit and what is common property.
Common property in conventional condominiums may include air conditioning, plumbing, sprinkler systems, elevators, fitness centres, pools, hallways, lobbies, and exterior spaces like gardens.
Bare Land Condominiums
A bare land condominium unit is a plot of land that may or may not already be developed. The boundaries of the units (e.g. townhouse, duplex, detached home) are described by reference to survey markers.
Owners of bare land condominiums have full (also called a “freehold” or “fee simple”) ownership of everything inside the unit’s land boundaries, which may include a house, garage, trees, and shrubs. If the unit has been developed, a Real Property Report will show the unit’s boundaries and the location of all structures within the boundaries.
Owners are generally responsible for maintaining everything inside the boundaries of their unit, which makes bare land condo ownership more like traditional home ownership. For example, owners are responsible for shoveling snow, landscaping, and making exterior repairs (such as replacing the roof and siding). However, in some cases, condominium corporations are responsible under the bylaws for such maintenance and repairs . “Managed property” is any unit or part of a unit that a corporation must under bylaw maintain, repair or replace . Managed property is different than common property as the owner still retains freehold ownership over the managed property.
Common property in bare land condominiums will vary depending on the type of development. It may include sidewalks, roads, parks, and/or recreational facilities like pools or golf courses.
Condominium Styles
Condominiums come in all shapes and sizes. Apartment-style units located in high or low rise buildings are generally conventional, while townhouses or detached dwellings are often bare land units.
High-rise
Most commonly associated with the term condominium, high-rise buildings offer new or resale conventional condominium units with a variety of amenities. Some high-rise buildings may be conversion properties. Some may be mixed-use developments with retail or commercial condo units on the lower levels.
Low-rise
Sometimes a more affordable option to high-rise condos, low-rise condominium buildings also offer new or resale conventional condominium units. In Alberta, many low-rise condominium buildings are converted rental properties.
Lofts
Loft-style condominiums are often converted warehouse, commercial, or industrial buildings. They are available as new or resale conventional condominium units, and the amenities available will vary significantly depending on the property.
Townhouses or Rowhouses
Townhouses or rowhouses are a great option for families or individuals looking for outdoor space. They are available as conventional or bare land condominiums.
With conventional townhouses or rowhouses, the exterior is common property that the condominium corporation usually maintains (though potential buyers should always check the bylaws to confirm).
If the townhouse or rowhouse is a bare land condominium, the owner has ownership of the land up to the property’s boundaries. This means the owner is responsible for landscaping and exterior repairs (e.g. patio or deck) unless the bylaws say otherwise. Sometimes condominium corporations are responsible under the bylaws for such maintenance and repairs.
Buyers should always confirm what type of condominium they are purchasing.
Detached Homes
Occasionally, detached homes are part of a condominium complex. A gated community may be an example of a condominium complex that includes detached homes. Common property would include the roadways, sidewalks, and any recreational facilities. Luxury developments may include golf courses or tennis courts as common property amenities.
Multi-Stage Developments
New condominium developments are sometimes built in multiple stages. A developer may complete one building, sell it, and then proceed to develop the next building. If you’re thinking of buying a new condominium, inquire as to whether it is a multi-stage project and consider whether subsequent parts of the development will benefit you or cause potential problems.
Multi-stage developments can benefit owners by adding new services and facilities, but they can also lead to obstructed views, changes in parking, and an increased number of residents accessing the common property. Potential buyers also need to consider that as additional buildings are completed, the number of owners will increase and therefore the condominium corporation will grow in size, which could impact the operating budget and reserve fund, which could in turn lead to higher condo contributions (fees) for owners. Developers may also change or cancel plans for future stages.
In Alberta, developers can create multi-stage condominium developments in two ways: phased development or barely blended development.
Phased development model
Developers using a phased development model must follow rules outlined in the Condominium Property Act and Condominium Property Act Regulation. These rules require developers to file a phased development disclosure statement with the initial condominium plan. This statement includes information about:
- the number of buildings
- the number of units for each phase and
- common property elements (for example, parking, recreation facilities, etc.)
Barely blended model
Developers using a barely blended development model do not have to follow any special rules. With a barely blended model, a developer divides a large parcel of land into multiple bare land units. These units are then developed in stages. As each bare land unit is ready for development, it is redivided and developed into a conventional condo building or smaller bare land condo units.
Conversion Condominiums
Conversion condominium buildings were once used for non-condominium purposes. They may have been warehouses, breweries, rental properties, or commercial properties. Loft-style developments are a common example of a conversion condominium. Conversion properties ar|e generally conventional condominiums and will vary greatly in style and size.
Interested buyers should always consult with a lawyer and real estate agent before purchasing to ensure all important documents are collected and reviewed.
Buying New vs. Resale
Whether you are buying a new or resale condominium, there are many pros and cons you should consider.
Pros of buying a new condo
- Developers must provide you with certain documents before you buy
- Once completed, it is move-in ready
- You may be able to customize your unit by picking out finishes, flooring, and appliances
- Reduced risk of having to undergo costly, noisy and intrusive repairs and renovations
- Modern building amenities
- New home warranty coverage
Cons of buying a new condo
- If construction isn’t complete, you must rely on drawings, floor plans, and sample materials to determine what the condo and common property will look like.
- You may wait months for construction to be compete. Your initial deposit will be tied up until construction is substantially completed.
- If construction is behind schedule, there could be a delay with your move-in date.
- You may have to pay occupancy fees (condo rent) if you move in before you receive the certificate of title from the developer.
- The condominium’s estimated budget could change drastically once the condominium is completed, which could result in increased condo contributions (fees).
Check out the Canada Mortgage & Housing Corporation’s Tips for Buying a New Condo (keep in mind this information is not Alberta-specific)
Pros of buying a resale condo
- The possession date is usually much sooner than a new development.
- You can see what the unit and complex looks like rather than relying on drawings and floor plans.
- The condominium corporation will have an established budget and reserve fund. To see if there are any problems on the horizon, you can review the corporation’s financial statements with your lawyer and document reviewer.
- Talk with other owners, members of the condominium board, and the property manager about the complex.
- Ask to review the condominium board’s meeting minutes for any ongoing problems.
Cons of buying a resale condo
- The unit may not be move-in ready and/or could need renovations.
- The amenities may be older or limited.
- The common property may require significant, costly repairs in the future.
- The seller does not have to provide any documentation. The onus is on the buyer to request important documents.
Further resources
- Ask Maria: Drippy Dilemma – how to protect yourself against leaky condos
- Canada Mortgage & Housing Corporation: Tips for Buying a Resale Condo (note: information is not Alberta-specific)
Last Updated: June 2022
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