Understanding Condominiums

Question 1

Condominium ownership has two parts:

Answer 1

Fee simple ownership and a tenancy in common with all other unit owners in the common property

Question 2

A condominium corporation must prepare a reserve fund study every:

Answer 2

5 years

Question 3

What is the purpose of a condominium corporation’s capital replacement reserve fund?

Answer 3

To provide money for the repair or replacement of property owned by the corporation and the common property when this repair or replacement does not occur annually

Question 4

What are the record-keeping duties of the condominium corporation:

Answer 4

Minutes of annual meetings and special general meetings

List of the Board of Directors Members

List of condominium owners

Books of account showing money received and spent

Question 5

Mr. Black owns Unit 804 in Cypriana Tower Condominium. He replaces the carpeting throughout his unit with hardwood flooring. Two months later, the condominium corporations’ hot water supply system leaks, causing severe damage to Mr. Black’s new floor. Mr. Black forgot to renew his insurance for the contents of his suite and therefore has no coverage. Should the condominium corporation’s insurance pay for the replacement of Mr. Black’s floor?

Answer 5

Yes, the condominium corporation’s insurance should pay for the replacement and all other damage to his unit caused by the broken pipe because the pipe is common property of the corporation; however, the condominium corporation will only cover the cost of the carpeting and not any additional cost that may have been

Question 6

What is an estoppel certificate

Answer 6

A signed statement from the condominium corporation that includes information about the financial situation of a unit and certified that the information provided is correct

Question 7

A special resolution is:

Answer 7

Required to change a bylaw and other specific business of the corporation

Question 8

Condominium Bylaws are intended to protect the interests of all owners, while also often restricting rules around certain items. Common ones include:

Answer 8

Pets

Vehicles

Placement of for sale signs

Resident ages

Question 9

How many unit factors must a condominium project have?

Answer 9

10,000

Question 10

True or false: Condominium are a type of ownership and not property

Answer 10

True