module 4

Question 1

define bylaws for governing a condo corporation

Answer 1

govern the affairs of condo corporation

Question 2

define rules and regulations for governing a condo corporation

Answer 2

governs the unit holders use of the common elements

Question 3

define management agreements

Answer 3

agreement with a third party property management company
- this company will oversee day to day operations

Question 4

define insurance trust agreement

Answer 4

agreement with third-party trustee
- upon damage to common elements, any insurance proceeds paid to the condo corporation will be held in trust by the trustee, until the condo board decides what to do

Question 5

responsibilities of condo board

Answer 5

• required to prepare an annual budget (includes costs associated with operation, maintenance and repair of building)
• costs include: snow removal, lawn care, house keeping, water, hydro/power, insurance premiums on common elements, reserve fund

Question 6

define reserve fund

Answer 6

contains funds that the condo board has set aside for any future expenses that may arise with the condo building or complex

Question 7

how are condo fees calculated

Answer 7

square footage of owners unit/total square footage of all units x the annual common elements budget/12

Question 8

define 7 day cooling off period clause

Answer 8

after receipt of all corporation documents, the purchaser has the right to cancel the agreement within 7 days

Question 9

define material change clause

Answer 9

purchaser has the right to cancel the agreement if a material change occurs in relation to the agreement

Question 10

after condo otp is accepted what search needs to be performed

Answer 10

master title and unit title with the lto