Condominiums
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Condominium ownership is a hybrid form of ownership. Ownership includes a residential unit and a portion of the common property of a condominium project. In addition, condominium ownership combines “communal living”, as there are rules regarding how owners relate to each other and to the group, and “traditional” home ownership. Additionally, purchase of a condominium unit may, or may not, include the ownership of land, depending on the type of condominium project.
Purchasers
The purchase of condominium property is one of the most complex legal transactions the majority of people will ever undertake. In addition to the normal issues involved in purchasing a traditional home, condominiums are governed by internal rules and have additional financial disclosure requirements, that prospective purchasers must be aware of.
Purchasing a condominium unit means that you are buying not only living space in the condominium complex, but you are also acquiring a share in what is referred to as the “common property” of the project. The common property is, simply stated, that part of a condominium complex which is not part of a living unit. The common property is the part of the entire project that is owned by all of the unit owners, as a group.
The maintenance and upkeep of the common property is managed and directed by the Board of Directors of the condominium corporation. This maintenance is funded by the collection of condominium fees from all of the owners, in proportion to their shares in the common property. The Board of Directors is mandated to manage the common property for the common benefit of all of the owners, and in accordance with a budget which is prepared annually.
The Board of Directors also administers the condominium’s Capital Replacement Reserve Fund (the “Reserve Fund”), which is a fund set aside to replace major capital items, such as roofs, elevators, and exterior siding, to name only a few, in the project. The amount required to be held in the Reserve Fund is based on an engineering report (the “Reserve Study”), repeated every five years, which examines the building and predicts when major items will need to be replaced. The engineering study will also include a projected budget, which is the Board of Directors guide to set funds aside toward these capital replacement expenses.
All condominium owners must comply with the bylaws of the condominium corporation, as registered at the Land Titles Office, and which are the rules that govern the relationship between all of the owners in the project. In addition, the bylaws set out how the common property is to be used by all of the owners and any rights, or restrictions, on that use. Further, if the unit is rented, the tenants are also bound by the bylaws and the owner of the unit is ultimately responsible to ensure that the tenants comply with those bylaws.
The day-to-day operation of the condominium complex is often done by professional condominium management company, who is hired the by Board of Directors. The management company carries out the Board’s instructions and reports to, and advises, the Board of Directors from time to time.
Condominium corporations are required, by law, to keep records of their owner’s annual meetings, the Board of Directors meetings and their financial reports. Those minutes and financial records must be made available to any owner in the project who requests copies.
When purchasing a condominium unit, it is imperative that all of the relevant reports and supporting materials, including the bylaws, be reviewed by a prospective owner. These documents will provide an insight into the operations of the project, and any problems with specific units in the complex. In addition, condominium documents include the rules and regulations by which the project is governed, and present a picture of the financial status of the condominium. A prospective owner should have these documents reviewed by a professional with expertise in these matters, such as the lawyers at Cameron Horne Law Office, as a condition of purchasing a unit.
A standard real estate purchase contract provides for a list of condominium documents which must be provided to a potential purchaser. These documents include, amongst other things: a copy of the registered condominium plan; the current registered bylaws; copies of the minutes of the most recent owner’s meeting and copies of the minutes of Board meetings for at least the past year; the most recent financial statement; the most recent Reserve Study; and a copy of the current condominium budget. It is important to have these documents reviewed to ensure that all of the required documents have been provided, and that they provide a picture of the state of the project which is satisfactory to the buyer, prior to committing to purchase the unit.
Our office assists prospective condominium purchasers with the review and assessment of the condominium project, and provides a concise and comprehensive assessment of the status of the project. We work with you, to address your concerns and to discuss the issues surrounding condominium ownership. In particular, we address issues which may be of specific concern to potential owners, such as permission for pets or satellite dishes, age restrictions, and other permitted use of the common property. We also assist our clients to complete the purchase by providing real estate conveyancing services to close the transaction. Real Estate Transactions page
We would be pleased to provide you with a fee quotation to complete a review of condominium documents and to complete the purchase of your condominium.
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Condominium Boards
Condominium corporations, through their respective volunteer Boards of Directors, operate under the authority given to them by the Condominium Property Act, the Condominium Property Regulation, and the bylaws of the particular condominium corporation.
Members of the condominium’s Board of Directors are elected from amongst the owners in the project at the annual owner’s meeting. The Board of Directors is required to manage the property for the benefit of all of the owners of units in the project. This can be a very complex task, and one which should not be undertaken lightly.
The bylaws and the Condominium Property Act provide procedures that a Board of Directors can use to enforce bylaws, and to impose penalties on those owners in the project who will not comply with the Board’s requests. The most common issue Boards have to deal with is the non-payment of monthly condominium fees, or of special assessments.
Cameron Horne Law Office has considerable experience assisting Boards of Directors with enforcement of condominium bylaws, in particular assisting with the collection of condominium arrears. We have experience with proceedings before the Court of Queen’s Bench to obtain the necessary Court Orders to require owners to abide by the condominium’s bylaws, or to carry on foreclosure actions based on failure to pay condominium fees, fines, or special assessments.
We also assist Boards of Directors to update and amend their condominium bylaws to better reflect the current requirements of the corporation. Bylaw revision can be a complex task, and our office assists Boards to ensure that the bylaws are in compliance with the Condominium Property Act and Regulations, and that they meet the needs of the owners in the project. We provide draft bylaws, based on instructions we receive from the Board, and can attend regular Board meetings to answer questions, and take further instructions, directly.
In addition, Cameron Horne Law Office has developed an education program for Boards of Directors to assist the directors in the execution of their duties and to provide advice as to the roles and responsibilities of the directors, both individually and as part of the Board. We offer a one-half day seminar to Boards of Directors, and will meet with the members of the Board, at a location of the Board’s choice, to deliver the seminar to the directors. Please call our office to inquire as to our fees for our seminar, and to ask any other questions about this program.
Cameron Horne Law Office is pleased to discuss any condominium governance issues and to provide our advice and suggestions. Please call our office to receive a fee quotation, or to set up an appointment to discuss any particular issues facing your Board of Directors.
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