Condominiums

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At a Glance - Owners

General

  1. A Director of Condominiums will be appointed to administer the new Act.
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Declaration and Description

  1. The new Act has a more detailed list of items that must be included in the declaration and description documents.
  2. For new development, minimum voting percentages have been lowered.  Existing Corporations may amend their documents to lower their voting percentages.
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Approval

  1. Any amendments to the declaration, description and by-laws must now be signed by the Director.
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The Corporation

  1. Corporate records must be kept, including financial records and meeting minutes.
  2. When the Declarant (developer) no longer owns a majority of the units, they must provide documents to the Corporation.
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Board of Directors and Officers

  1. The Board of Directors must consist of at least 3 people for 4+ units or at least 2 people for 2-3 units.
  2. The Declarant (developer) shall appoint a certain number of directors if he owns at least one unit.
  3. The President, Secretary and Treasurer are chosen by the Board of Directors.
  4. Except for the transition time where the Declarant can appoint Directors, all Directors shall be owners and must be at least 19.
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By-Laws and Rules

  1. By-laws may be changed with at least 60% minimum vote by owners. Check your declaration.
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Financial Statements

  1. Condominium Corporations must produce financial statements yearly and file them with the Director.
  2. Corporations with 11+ units must have the statements reviewed by a professional, as outlined in the regulations.
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Funds Held by a Corporation

  1. Corporations must set up an operating fund and a reserve fund. A contingency fund is optional.
  2. Large corporations with 11+ units must have a reserve fund study done every 10 years and update it every 3 years. The reserve fund must always have at least the minimum amount recommended in the study. Reserve fund studies are required for new approvals of large Corporations.
  3. Small Corporations (less than 11 units) do not have to do a reserve fund study, but they must have a reserve fund account that is equal to one year of their operating budget.
  4. Existing Condominium Corporations have 5 years to complete their reserve studies and/or to get their reserve fund accounts up to the minimum required amounts.
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Operation

  1. Two or more Condominium Corporations can amalgamate if they are on neighbouring properties.
  2. Two or more adjacent units may be consolidated if at least 60% of the owners agree.
  3. The Corporation must submit proof of insurance for the common elements to the Director every year.
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Sale, Re-sale, and Lease of Units

  1. The first time a unit is sold by the Declarant (developer), a 10-day cooling-off period applies.
  2. For any re-sale of a unit, the purchaser can request an Estoppel Certificate, which must contain a list of pertinent information.
  3. For tenancy agreements, the Standard Form of Lease under the Residential Tenancies Act must be used, with the Condominium by-laws and rules attached.
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Arbitration

  1. Referral to arbitration is now an option in the case of a dispute.
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Enforcement

  1. A Corporation may have to pay an administrative penalty of between $1,000 and $10,000 if it does not submit a financial statement, reserve fund study or proof of insurance.
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Transition

  1. Developments currently under construction, with a valid building permit before January 1, 2010, do not need to complete a reserve fund study or pay fees to be approved
  2. A lien under the old Act remains a lien.
  3. Corporations existing before January 1, 2010, have 5 years to build a reserve fund and those with more than 10 units have 5 years to produce a reserve fund study.
  4. Section 52 does not apply to agreements of purchase and sale for a Condominium unit, signed before January 1, 2010.
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