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RECA > UNIT 8 - Condominiums > Flashcards

UNIT 8 - Condominiums Flashcards

1
Q

Which of the following best describes the term Condo?

A) A types of property ownership where many different parties jointly own the common property
B) A type of real property ownership where the owners jointly won’t he units
C) An apartment complex that has a board of directors
D) A row-house or townhouse

A

A) A types of property ownership where many different parties jointly own the common property

The definition of a condo is shares ownership or ownership in common with others. The units are individually owned by the common property is jointly owned by all the unit owners

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2
Q

What type of organization is described by the following statement?

“Membership is mandatory. The organization maintains items not covered by the. municipality. However, each property has a separate title”

A) HOA - Home owners association
B) Housing cooperatives
C) Fractional Ownership
D) Condos

A

A) HOA - Home owners association

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3
Q

Which of the following statements is true for timeshares?

A) Involves the purchase of property in which multiple parties hold similar rights
B) Each party is allotted a time period for exclusive use of the property
C) The ownership can be fee simple or right to use
D) Each party must pay an annual maintenance fee for administration and upkeep of the property

A

All of the above

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4
Q

Which of the following statements is true for Factional ownership?

  1. More than one individual possesses fee simple ownership to a property
  2. The owners can have different shares in the property
  3. The unit title is individually owned whereas the common property is jointly held
  4. The maintain expenses for the property are shared among the owners
A

Statements 1, 2 & 4

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5
Q

Which of the following are the benefits of Condo?

  1. They are available in different price ranges
  2. The are available in different styles
  3. Owners have a greater sense of security
  4. Owners typically are not responsible for properties maintenance
A

All of the above are true

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6
Q

Which of the following are the 4 components of a Condo?

1) Unit Owners
2) Condo Corporation
3) Condo Bylaws
4) Board of Directors
5) Common Property

A

Statements 1,2,4 & 5

NOT the bylaws

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7
Q

Who creates the Condo Plan?

A) The developer
B) Land titles office
C) An Alberta Land Surveyor
D) The Unit owner

A

C) An Alberta Land Surveyor

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8
Q

What do the first 2 digits in a Condo Plan Number represent?

A) The Year the Condo plans registered with the Alberta Land of titles office
B) Numbers assigned. by Alberta land titles office
C) The land titles office where the condo plan was registered
D) The month the condo plan was registered with the Alberta land titles office

A

A) The Year the Condo plans registered with the Alberta Land of titles office

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9
Q

Sonia Smith is a unit owner in High Rise Condos. She is relocating to a different city for work and has decided to rent out her unit. How many days does she have to provide the condo corporation the names of the tenants after the rental starts?

A) 10 Days
B) 20 Days
C) 30 Days
D) 45 Days

A

B) 20 Days

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10
Q

Who is responsible for carrying out the responsibilities of the Condo Corporation?

A) The professional Condo Manager
B) The board of directors
D) The condo Corporation
C) The unit owners

A

B) The board of directors

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11
Q

What is required to pass an ordinary resolution?

A) 50% majority votes or 5000 unit factors
B) 60% majority votes or 6000 unit factors
C) 75% majority votes or 7500 unit factors
D) 20% majority votes or 2000 unit factors

A

A) 50% majority votes or 5000 unit factors

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12
Q

What is required to pass an extraordinary or special resolution?

A) 50% majority votes or 5000 unit factors
B) 60% majority votes or 6000 unit factors
C) 75% majority votes or 7500 unit factors
D) 20% majority votes or 2000 unit factors

A

C) 75% majority votes or 7500 unit factors

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13
Q

Which of the following is true about Common property ownership?

A) Common Property is owned by all unit owners as tenants in common
B) Common property is owned by all unit owners in joint tenancy
C) Common property is owned by the board of directors
D) Common property is owned by all unit owners based on unit factors

A

A) Common Property is owned by all unit owners as tenants in common

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14
Q

What are the total number of unit factors in condo in Alberta?

A) 1,000
B) 10,000
C) 100,000
D) 20,000

A

B) 10,000

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15
Q

The condo unit factors are base on which of the following?

A) The size of each unit
B) By dividing the number of units equally
C) By dividing the number of units by 10,000
D) Assigned by the board of directors

A

A) The size of each unit

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16
Q

Sam is a unit owner in Peak condominiums. The size of his unit is 1,500 sq. ft. and the total size of all 150 units in Peak Condominiums is 75,000 sq ft.
What are the unit factors for Sam’s unit?

A) 275
B) 225
C) 200
D) 250

A

C) 200

Formula for calculating unit factors:

Unit factors = (unit floor space / total floor space) x 10,000
Unit factors = (1,500/75,000)x10,000
UF = 200

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17
Q

What is the purpose of unit factors in a condo?

  1. To establish the proportion. of common area expenses for each unit
  2. To define the voting rights for each unit
  3. To determine fund allocation should the property status as a condo be determined
  4. To determine who can be elected to the board of directors
A
  1. To establish the proportion. of common area expenses for each unit
  2. To define the voting rights for each unit
  3. To determine fund allocation should the property status as a condo be determined
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18
Q

Which of the following would require a special resolution to be passed?

  1. Changing the bylaws of the Condo Corp
  2. Changing the condo plan
  3. Using reserve fund money for improvements to the common property
  4. Terminating the property status as a condo
A

All of the above

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19
Q

What are the benefits of hiring a professional condo management company?

  1. Qualifications
  2. Experience
  3. Cost savings
  4. Continuity
A

All of the above

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20
Q

What does the CPM designation from the Real Estate institute of Canada stand for?

A) Condo Property Manager
B) Certified Property Manager
C) Compliance Property Management
D) Competent Property Manager

A

B) Certified Property Manager

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21
Q

Which of the following activities require the Condo Manager to be licensed with RECA ?

  1. Advertising, offering, negotiating or performing any activities related to rent/lease of real estate
  2. Collecting monies due to the condo corp
  3. Holding trust funds on behalf of the condo corp
  4. Hold trust funds related to the rental / lease or real estate
A

Statements 1, 3 & 4

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22
Q

What are the duties of the Condo Managers?

  1. Prepare annual Budget and financial statements
  2. To negotiate, prepare and administer contracts and other legal agreements for the corporation
  3. Enforce bylaws and governing policies
  4. Deal with unit owner concerns
A

All of the above

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23
Q

When a lease is _____ year(s) or more, it can. be registered against the total of the property

A) 1
B) 2
C) 3
D) 5

A

C) 3

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24
Q

Nina Johnson is a real estate professional with Royal Oak Reality. She is helping a client, Susan Evens, buy a condo unit. Which document would she look at to check whether the condo. is professionally managed?

A) Condo Plan
B) The Condo Additional plan sheet
C) Estoppel Certificate
D) The Condo Bylaws

A

B) The Condo Additional plan sheet

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25
Q

Which of the following is NOT an obligation owed by unit owners renting units to the Condo Corp

A) Notify the condo corporation the amount of the rent the tenant is paying

B) Notify the condo corporation their new address for address for service for any notices

C) Notify the condo corporation the length of the rental agreement/lease

D) Satisfy all financial obligations in relation to the unit

A

C) Notify the condo corporation the length of the rental agreement/lease

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26
Q

Which of the following is an obligation owed by unit owners renting units to the Condo Corp?

  1. Notify condo corp of tenants name within 20 days of the unit being rented
  2. Notify the condo corp of the monthly rent
  3. Provide a deposit to the condo corp equal to one months rent as set out in the residential tenancies act
  4. Abide by the bylaws and governing policies of the condo corp.
A

Statements 1 , 2 & 4 are correct

3 is not because the condo corp may require the unit owners to provide one months rent as a deposit but this is not the same as the deposit required under the Residential Tenancies Act/

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27
Q

Why would the condo corp want to know the amount of rent the owner is charging the tenant?

A) To develop a database of the market rents being charged by unit owners

B) To calculate the amount of the deposit the owner may be required to provide to the condo corp

C) To determine if the rental amount meets the min. rental requirements for the units

D) To maintain rent fairness for tenants renting units

A

B) To calculate the amount of the deposit the owner may be required to provide to the condo corp

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28
Q

The unit rental in a condo is governed under which legislation ?

A) The condominium Act
B) The residential tenancies Act
C) The Real Property Act
D) The Real Estate Act

A

B) The residential tenancies Act

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29
Q

Cameron is a unit owner in High Tower Condos. She’d like to rent out her unit as she’s moving to Europe for hew new job. The condo Corp has a professional licensed manager, Tom. Should she hire Tom to manager her unit.

A) Yes, as Tom has experience managing the condo complex
B) Yes, in case of any issues with the unit the tenant will be able to contact the manager quickly
C) No, as this would be a conflict of interest for the manager
D) No, as the condo manager is not allowed to manage units for the unit owners

A

C) No, as this would be a conflict of interest for the manager

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30
Q

What are the obligations of tenants renting units in a condo?

  1. Abide by the bylaws and governing policies of the condo corp
  2. Satisfy all financial obligations related to the unit
  3. Not cause damage to common property
  4. Notify the condo corp of their intent to rent the unit
A

statements 1 & 3

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31
Q

According to the budget prepared by the board of directors of Sun Peaks Condos, They need to raise $500,000 for the repairs in the up coming year.
Which of the following are ways they can use to raise the money>

A) Monthly Condo Fees
B) Special Assessment levied on all the units
C) Lender Financing
D) All of the above

A

D) all of the above

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32
Q

The total annual budget for Ridgeview condos is 250,000. According to the Certificate of Title, Jens unit has 150 unit facts. What would Jens monthly condo feeds be?

A) $312.50
B) $150.00
C) $3750.00
D) $325

A

A) $312.50

Formula for calculating monthly contributions per unit

  1. Determine the total anticipated annual. expenses for the condo
  2. Divide the total by 10,000 unit factors to arrive @ the cost per unit factor
  3. Multiple unit factor cost by number of unit factors per unit to get annual contribution
  4. Divide the annual unit contribution by 12 to arrive at the monthly contribution for the unit

$250,000/10,000=$25 x 150 = $3750/12 = $312.50/month

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33
Q

Can a condo corporation prevent an owner from renting their unit

YES or NO?

A

Yes - the condo bylaws can limit the number of units that can be rented at any given time

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34
Q

As per the condo property Act the condo corp can’t take which of the following actions if the unit owner docent pay the condo fees?

  1. Charge interest on the outstanding amount
  2. File a caveat against the unit title at the owners expense
  3. Sue the unit owner for the outstanding amount, interest and associated legal fees
  4. Foreclose on the unit
A

All statements are correct

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35
Q

Which of the following can be found in the estoppel certificate?

  1. the amount of monthly contributions
  2. amount the unit is in arrears with the condo corp
  3. any interest owing on an amount in arrears
  4. any pending or ongoing litigation against the condo corp
A

All of the above

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36
Q

Which of the following statements is true about the condo corp trust funds?

  1. The condo corp must maintain. 2 trust accounts
  2. The operating fund account is for the day-today operating of the condo.
  3. The reserve fund account is to pay for major capital repairs and replacements for the common property
  4. The reserve fund account is only required for older buildings
A

Statements 1 2 & 3

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37
Q

How often must the reserve fund study and reserve fund plan be repeated

A) 2 years
B) 5 years
C) 7 years
D) 10 Years

A

B - 5 years

The reserve fund study needs to be done WITHIN 2 years of the condo formation - and then repeated every 5 years

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38
Q

What legislation governs the creation and operation of condominiums in Alberta?

A) Cooperatives Act and Regulation
B) Real Estate Act and Regulation
C) Companies Act and Regulation
D) Condominium Property Act and Regulation

A

D) Condominium Property Act and Regulation

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39
Q

Which member of the Board of Directors is responsible for the day-to-day affairs of the condominium corporation?

A) President
B) Vice-President
C) Secretary
D) Treasurer

A

A) President

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40
Q

What 4 components make up the structure of a condominium?

A) Unit owners, condominium corporation, Board of Directors and common property
B) Condominium corporation, condominium manager, Condominium Plan and tenants
C) Condominium corporation, Board of Directors, Condominium Plan and common property
D) Unit owners, tenants, condominium corporation and Board of Directors

A

A) Unit owners, condominium corporation, Board of Directors and common property

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41
Q

Which of the following is a legal entity consisting of all unit owners that is created upon registration of a Condominium Plan with a Land Titles Office?

A) Condominium corporation
B) Condominium manager
C) Board of Directors
D) Homeowners Association

A

A) Condominium corporation

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42
Q

Upon registration of a Condominium Plan, a condominium corporation is given the name ‘Condominium Corporation No. 0625998’. In what year was the condominium created?

A) 1998
B) 2006
C) 1999
D) 2002

A

B) 2006

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43
Q

What is the total sum of all unit factors for a condominium in Alberta?

A) 100
B) 1,000
C) 10,000
D) 50,000

A

C) 10,000

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44
Q

Which of the following condominium documents contains financial information regarding a unit and is produced just before the closing date of a real estate transaction?

A) Estoppel Certificate
B) Cash Flow Statement
C) Certificate of Insurance
D) Real Property Report

A

A) Estoppel Certificate

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45
Q

Which of the following information can be found in a Reserve Fund Study?

  1. Assessment of the current condition of the common property
  2. A list of common property that may have to be replaced in the next 25 years
  3. Qualifications of the Board of Directors undertaking the Reserve Fund Study
  4. The amount currently in the reserve fund
A

C) Statements 1, 2 and 4

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46
Q

Condominium means “ownership with others” or shared ownership

True or False

A

True

47
Q

What are the 2 parts of condo ownership?

  1. Unit and HOA
  2. Unit and Common Property
  3. Common Property and HOA
  4. Buildings and Common Property
A
  1. Unit and Common Property

Unit - ownership is a Fee simple with Certified Title registered to the unit owners name
Common Property - ownership shared by all unit members who are collectivey referred to as condo corporation

48
Q

Select all that describe the HOA - Home Owners Association

  1. Has a mandatory membership based on residents of a specific area
  2. Created at the start of a real estate development to fund maintenance features (eg. landscaping, private entrance, pond)
  3. Formed under the companies Act
  4. Has an Optional membership
A
  1. Has a mandatory membership based on residents of a specific area
  2. Created at the start of a real estate development to fund maintenance features (eg. landscaping, private entrance, pond)
  3. Formed under the companies Act
  4. is wrong - membership is mandatory
49
Q

Form of property ownership. Ownership has 2 components:

  1. Unit ownership: typically fee simple and includes a Certificate of Title
  2. Common Property: shared by all unit owners who are collectively known as condo corporation.
A

CONDOMINIUM

50
Q

Association with mandatory membership based on residence in a specific area or community. Created to fund the maintenance of features or amenities that will not be maintained or funded by municipality (entrance gate, ponds, etc.) Formed under Companies Act.

NOT CONDOS

A

Home Owners Association

51
Q

Non-profit, legal entities incorporated and managed by their members through a Board of Directors.

(2 types)

  1. Non-profit community housing co-ops: co-op holds title to property and members purchase shares which grant them occupancy rights under a tenancy agreement. There is a typical monthly fee for each member.
  2. Non-profit home ownership co-ops: co-op holds title to land and common property but each unit is titled separately and conveyed to member owner. Members can only purchase 1 unit within the building.

Cooperatives Act and Regulation governs all housing co-ops, sections of the Land Titles Act also apply to non-profit home co-ops.

NOT CONDOMINIUMS.

A

Housing Cooperatives

52
Q

Many parties have similar rights to use the property and each party is allotted a time period for exclusive use of property

Can be fee simple ownership or right or right to use ownership

Fractional ownership

A

TIME SHARES

53
Q

Types of Residential Condos include (select all that apply)

  1. Apartment
  2. Townhouse
  3. Semi-attached
  4. Dethatched
A

All of the above

54
Q

John Young is a real estate professional with Prime Brokerage, helping his clients Jason and Melissa purchase a two bedroom condominium. John and Melissa are concerned about the condominium fees going up. Where would John look to check if a unit’s monthly fees will change in the next fiscal year?

Choose only ONE best answer.

A) The Income Statement
B) The Balance Sheet
C) The Fee Schedule
D) The Condominium Plan

A

The correct answer is ‘C’
To determine if a unit’s monthly contribution will change in the next fiscal year, real estate professionals should check the fee schedule on the annual budget.

55
Q

What are the components to the Balance Sheet?

Assets
Liabilities
Equity
Debt

A

Assets
Liabilities
Equity

56
Q

Ryan Shaw is a real estate professional with A1 Realty. He is helping his buyer client Shannon Cole purchase a condominium. Where would Ryan go to get the Condominium Plan?

1.Seller
2.Alberta Land Titles
3.Board of Directors
4.Condominium Manger

Choose only ONE best answer.

A) Statements 1, 2 and 3
B) Statements 2, 3 and 4
C) Statements 1, 2 and 4
D) All of the above

A

D) All of the above

Condominium documents can be obtained from the following sources:

• Seller
• Alberta Land Titles (Condominium Plan, CADS, Unit Title and Bylaws)
• Board of Directors
• Condominium Manger
• Alberta Land Surveyor

57
Q

Apartment Condos, Townhouse Condos, Semi Attached Condos , Detached Condos

are all WHICH type of Condominium?

A) Residential
B) Recreational
C) Commercial

A

A) Residential

58
Q

Hotel Condos, Mobile Home / RV Park Condos, Marina Condos, Hangar Condos (for aircrafts) , and Equestrian Condos (horses)

are all WHICH type of Condominium?

A) Residential
B) Recreational
C) Commercial

A

B) Recreational

59
Q

Industrial, Retail, Mixed Use Condos

are all WHICH type of Condominium?

A) Residential
B) Recreational
C) Commercial

A

C) Commercial

60
Q

What are the benefits of Commerical Condos ?

A) Different price points - affordable option to enter RE market
B) Different styles
C) Sense of community
D) Greater Security
E) Landscape taken care of
F) All of the above

A

F) All of the above

61
Q

True or False?

Condominiums fall under the Condominium property act under the Minister of Service Alberta

A

TRUE

62
Q

Condos have 4 components. What are they?

1) Unit Owners
2) Landscape
3) Condo Corporation
4) Board of Directors
5) Common Property

A

NOT 2.

1,3,4,5 are correct

63
Q

What year was this condo plan registerd at Land Titles with the registration #

9810716

A

1998

  • first two numbers = the year 98=1998
  • third number = the office where condo plan was registered (1)
  • last 4 numbers = identification numbers based on order in which condo plan was received by land titles that year= 716th plan to register that year
64
Q

IS RESPONSIBLE FOR CARRYING OUT THE DUTIES OF A CONDOMINIUM CORPORATION?

A) RECA
B) UNITE OWNERS
C) BOARD OF DIRECTORS
D) ALBERTA CONDO OFFICERS

A

C) BOARD OF DIRECTORS

Which includes
- president
- vise president
- secretary
- treasurer

65
Q

What is the process if decision making within the Condo Corporation?

A) Discussion - Agenda - Motion - Vote - Decision
B) Agenda - Discussion - Motion - Vote - Decision
C) Motion - Decision - Vote - Order

A

B) Agenda (outline) - Discussion - Motion - Vote - Decision

66
Q

What types of meetings are conducted by the Condo Corporation?

Choose all that apply

A) Board Meetings
B) Committee meetings
C) General Meetings
D) Extraordinary Meetings
E) AGM (Annual General Meetings)

A

All of the above

A) Board Meetings - address affairs of condo corp (monthly or quarterly)
B) Committee meetings - some of Board of directors and volunteers to consider a specific issue
C) General Meetings - Include all BOD and all members of condo corp - held to convey information to unit owners and make decision about specific issues
D) Extraordinary Meetings - BOD and Condo Corp - specific issues that require immediate attention
E) AGM (Annual General Meetings) - Must be booked within 15 MONTHS of the date that is was previously held (finances, current issues and future plans)

67
Q

How many months out must a AGM (Annual General Meeting) within the Condo Corp be scheduled?

A) 10 months since last meeting
B) 15 months since last meeting
C) 12 months since last meeting

A

B) 15 months since last meeting

68
Q

What is a Quorum?

A) A minimum number of individuals that must be present in a meeting
B) Form that all members must fill out before attending a meeting
C) A form of punishment for not showing up to a meeting

A

A) A minimum number of individuals that must be present in a meeting

69
Q

The decisions agreed upon by the corporation through a vote are called….

1) Quorumns
2) Resolutions
3) Settlements
4) Majority Rule

A

2) Resolutions

There are two types:
1. Ordinary resolutions - show of hands majority = over 50% of voters
2. Special resolutions - special issues = over 75% of voters and 7500 unit factors to pass

70
Q

What % of voters is needed for a Special Resolution to pass within the Condo Corporation?

A) 50%
B) 20%
C) 75%
D) 90%

A

C) 75%

and 7500 unit factors

71
Q

What % of voters is needed for a Ordinary Resolution to pass within the Condo Corporation?

A) 50%
B) 20%
C) 75%
D) 90%

A

A) 50%

72
Q

Which of the following require SPECIAL RESOLUTIONS ?

Choose all that apply

A) Changing bylaws of the condo corp
B) Changing the condo plan
C) Using reserve fund $ for improvements to common property
D) Purchasing, leasing or selling common property
E) Terminating property status as a condo

A

ALL OF THE ABOVE

73
Q

Consists of all areas within a Condo that are not part of the unit - eg. parking stalls, storage units, balconies, backyards, party rooms, driveways, sidewalks, lobbies, elevators ect.

A

COMMON PROPERTY

All unit owners have the right to access common property

74
Q

Each unit owner is financially responsible for a portion of the overall expenses for the maintenance, repair and replacement of the common property within a condo - This portion of financial responsibility is called…………

A) Fee Simple
B) Rent
C) Unit Factors

A

C) Unit Factors

Unit factors = unit floor space / total floor space

75
Q

Rita Sharma is a real estate professional helping her clients Raj and Sheila Shaw purchase a condominium unit in Oxford Condominiums. Raj and Sheila both need parking as they drive to work separately. Which document can Rita review to see the type of parking that is included with the unit Raj and Sheila are interested in purchasing?

Choose only ONE best answer.

A) The Condominium Plan
B) The Estoppel Certificate
C) The Fee Schedule
D) The Condominium Additional Plan Sheet

A

A) The Condominium Plan

76
Q

how do you calculate unit factors

A) unit floor space / total floor space
B) total floor space / unit floor space
C) Units - Individual rent

A

A) unit floor space / total floor space

Sum of all unit factors must = 10,000

77
Q

Which of the following apply to the purpose of Unit Factors

Choose all that apply

A) Establish the proportion of common area expenses for which each unit is responsible
B) Define voting rights
C) Determine fund allocation
D) Reduces overall rent

A

A) Establish the proportion of common area expenses for which each unit is responsible
B) Define voting rights
C) Determine fund allocation

78
Q

Sum of all unit factors must =

A) 10,000
B) 50
C) 1,000
D) 100,000

A

A) 10,000

79
Q

Which of the following information is correct for Titled parking stalls?

Choose all that apply

A) Titled parking stalls have their own Certificate of Title
B) Titled parking stalls are units unto themselves and have their own property taxes
C) Titled parking stalls are held in fee simple ownership by the individual registered on the title
D) Titled parking stall are illustrated on the Condominium Plan using solid, bolded lines

A

All of the above

80
Q

Which of the following statements is correct for Exclusive Use parking stalls?

A) Exclusive use parking stalls have their own Certificate of Title
B) Exclusive use parking stalls are part of the common property and owned collectively by the condominium corporation.
C) Exclusive use parking stalls are illustrated on the Condominium Plan using dashed lines
D) Titled parking stalls are held in fee simple ownership by the individual registered on the title

A

B) Exclusive use parking stalls are part of the common property and owned collectively by the condominium corporation.
C) Exclusive use parking stalls are illustrated on the Condominium Plan using dashed lines

81
Q

Which of the following types of parking stalls must be included in the purchase contract in order for it to be transferred to the buyer as part of the real estate transaction?

Titled parking stall
Exclusive Use parking stall
Assigned parking stall
Rented parking stall

A

Titled parking stall
Exclusive Use parking stall
Assigned parking stall

82
Q

Which of the following types of condominiums would require a Real Property Report (RPR)?

1) Conventional Condominium
2) Bare Land Condominium
3) Bare Land built-out Condominium
4) Blended Condominium

A

2) Bare Land Condominium
3) Bare Land built-out Condominium

83
Q

What does CADS stands for?

Choose only ONE best answer.

A) Condominium Amended Plan Sheet
B) Condominium Additional Data Set
C) Condominium Additional Plan Sheet
D) Condominium Additional Document Set

A

C) Condominium Additional Plan Sheet

84
Q

The legal description for a condominium unit is represented by which of the following on the Certificate of Title?

Choose only ONE best answer.

A) Plan, Block and Unit number
B) Quarter Section, Section, Township and Meridian
C) Condominium Plan number and unit number
D) Condominium Plan and block number

A

C) Condominium Plan number and unit number

85
Q

What is required to pass an extraordinary or special resolution?

Choose only ONE best answer.

A) 50% majority votes or 5000 unit factors
B) 60% majority votes or 6000 unit factors
C) 75% majority votes or 7500 unit factors
D) 20% majority votes or 2000 unit factors

A

C) 75% majority votes or 7500 unit factors

86
Q

Which on the following are the financial statements that a condominium corporation is required to prepare?

  1. The Balance Sheet
    2, The Income Statement
  2. The Cash Flow Statement
  3. Assets and Liabilities Statement

Choose only ONE best answer.

A) Statements 1, 2 and 3
B) Statements 2, 3 and 4
C) Statements 1, 3 and 4
D) All of the above

A

A) Statements 1, 2 and 3

87
Q

Boundaries for a Bare Land Condominium can be determined by which of the following?

Choose only ONE best answer.

A) The interior finish on the floors, walls and ceilings.
B) The center of the interior walls, floors and ceilings
C) The width and depth of each unit of land
D) The length, width and height of the property

A

C) The width and depth of each unit of land

intended for mobile homes & trailer parks originally

88
Q

Boundaries for a Conventional Condo Plan can be determined by which of the following?

Choose only ONE best answer.

A) The interior finish on the floors, walls and ceilings.
B) The center of the interior walls, floors and ceilings
C) The width and depth of each unit of land
D) The length, width and height of the property

A

A) The interior finish on the floors, walls and ceilings.

89
Q

Jen and Brian Johnson are looking to purchase their first home. They contact Shane Bileu from Top Realty to help them find a suitable 2 bedroom unit. They are expecting their first child so they believe extra storage will be very important for them. Which document can Shane check to see what type of storage comes with the unit?

Choose only ONE best answer.

A) The Condominium Additional Plan sheet
B) The Condominium Plan
C) The Real Property Report
D) All of the above

A

B) The Condominium Plan

90
Q

What are the different types of storage units that can typically be found on the Condominium Plan?

Choose all that apply

Titled parking stall
Exclusive Use parking stall
Assigned parking stall
Rented parking stall

A

Titled parking stall
Exclusive Use parking stall

91
Q

In some cases where a condo is being mismanaged, the Condo corporation can apply to the court for the application of a ….?

A) Inspector
B) Condo Administrator
C) Supervisor

A

B) Condo Administrator

only court can remove

92
Q

Unit owners are to notify the condo corporation of a new tenants name ______ days of rental commencing?

A) 10
B) 20
C) 30
D) 5

A

B) 20

93
Q

Which of the following information can be found in the Notes to the Financial Statements?
Choose all that apply

A) Name of the condominium corporation and number of units in the condominium
B) Accounting policies and practices
C) Ratio of owner-occupied units to tenant occupied units
D) Any special assessments levied on the units

A

All of the above

Notes to the Financial Statements:
These are a written narrative attached to the financial statements which provide details regarding the data contained within the financial statements.
Examples of types of information that may be contained in the Notes to the Financial Statements:
• Overview of the condominium corporation (e.g. number of units, name of the condominium)
• Significant accounting policies and practices used
• Ratio of owner-occupied units to tenant occupied units
• Potential and ongoing concerns affecting the condominium corporation
• Breakdowns for certain items included in the financial statements
• Extra-ordinary events (e.g. special assessments)

94
Q

Which of the following statements is true for Audited financial statements?

  1. Audited Statements have been reviewed by an independent third party
  2. Audited Statements do not possess third-party assurances regarding the accuracy of the data they contain
  3. Typically, monthly or quarterly financial statements are audited
  4. Audited Statements are reasonably accurate representation of the condominium corporations’ financial position

A) Statements 1 and 2
B) Statements 1 and 3
C) Statements 2 and 3
D) Statements 1 and 4

A

D) Statements 1 and 4

95
Q

Which information can be found in the Condominium Plan?

Choose all that apply

An illustration of individual units, including their boundaries, designation and size
An illustration of any common property
An illustration of any exclusive use areas of the common property
The unit factors and floor space for each unit

A

All of the above

Condominium plans are survey plans that are prepared by Alberta Land Surveyors in order to partition a property into units and common areas

They must include the following
- a statement in the heading that the surveying plan is a condo plan
- illustrations of : perimeter of property, any buildings road, public utilities location on property, individual units and their boundaries, common property
- unit factors
- floor space for each unit
- signature of owner of property
- address for the condo corporation

96
Q

Survey plans that are prepared by Alberta Land Surveyors in order to partition a property into units and common areas are called?

A) blueprints
B) Condominium plans
C) Bylaws

A

B) Condominium plans

97
Q

Which of the following is NOT found in the Condominium Additional Plan Sheet?

A) Any financial obligations registered against the Condominium Corporation
B) Any pending litigation registered against the Condominium Corporation
C) Size of each unit in the condominium
D) Name of the Condominium Corporation and the Board of Directors

A

C) Size of each unit in the condominium

98
Q

A document on which instruments for or against the Condominium plan and Condo Corporation are officially registered with Land Titles (is added to call Condo Plans)

A) Condo Plan Sheet
B) Condominium Additional Plan Sheet (CADS)
B) Financial Statement

A

B) Condominium Additional Plan Sheet (CADS)

99
Q

Which of the following are the lenders’ requirements for condominium mortgages?

Choose only ONE best answer.

A) The borrower must comply with the bylaws and governing policies of the condominium
B) The borrower must pay the monthly contributions for the unit
C) The lender has the right to use the borrower’s vote as proxy at meetings of the condominium corporation.
D) All of the above

A

D) All of the above

Special provisions for the condominium mortgages include:
• The lender requires the borrower to comply with the bylaws and governing policies of the condominium
• The lender requires the borrower to pay the monthly contributions for the unit. If the borrower fails to do so, the lender must pay these fees on behalf of the borrower and is entitled to add the amount, including interest, to the mortgage. As monthly contributions have priority over mortgage, lenders must ensure they are paid
• The lender has the right to use the borrower’s vote as proxy at meetings of the condominium corporation.

100
Q

Which of the following can be separately titled in a Condominium?

Choose only ONE best answer.

A) Condominium unit
B) Parking stall
C) Storage unit
D) All of the above

A

D) All of the above

The numbers for associated units, (unit, parking stall and storage unit) are sequential (linked titles). Linked titles can be searched using SPIN.
For example: The unit title may be 072142201, the title number of the associated parking may be 072142202 and the title number of the associated storage unit may be 072142203

101
Q

Carrie Smith is a real estate professional registered with Premiere Brokerage. She is helping her client Jen buy a one bedroom condominium in Edmonton. The condominium is 30 years old and Jen is concerned about age related issues with the building like corroded post tension cables. Which document should Carrie review to confirm that there are no such issues with the building?

Choose only ONE best answer.

A) The Estoppel Certificate
B) The Condominium Plan
C) The Certificate of Insurance
D) The Condominium Additional Plan Sheet

A

B) The Condominium Plan

102
Q

Brian Chase, a real estate professional with Elite Realty is helping his buyer clients, Amar and Karen, purchase a new condominium. Which of the following documents must Brian ensure Amar and Karen receive from the developer?

Choose ALL That apply

A) Purchase contract between the developer and buyer
B) Condominium Plan or proposed Condominium Plan
C) Condominium Bylaws or proposed Condominium Bylaws
D) Developer warranty program and Extended Warranty Certificate

A

All of the above

Important documents that developers must provide buyers are:
• Purchase contract between the developer and buyer
• Condominium Plan or proposed Condominium Plan
• Condominium Bylaws or proposed Condominium Bylaws
• Management agreement or proposed management agreement
• Recreational agreements or proposed recreational agreements
• Mortgage agreement or proposed mortgage agreement
• Developer warranty program and Extended Warranty Certificate
• Mortgage or financial encumbrance registered against real property owned by the corporation
• Home warranty insurance contract under the New Home Buyer Protection Act under which the corporation is named as the insured
• Statement prepared in accordance with the regulations setting out a fixed date or range of dates by which the purchaser may commence occupancy of the unit

103
Q

A signed document from the Condo Corporation that confirms the financial information provided regarding a unit is corrected as of the date on the statement and can be relied upon by a third party is called?

A) The Estoppel Certificate
B) The Condominium Plan
C) The Certificate of Insurance
D) The Condominium Additional Plan Sheet

A

A) The Estoppel Certificate

104
Q

Which of the following is a document that developers must provide to the buyers for phased condominiums?

Choose only ONE best answer.

A) Phased Development Disclosure Statement
B) Phased Condominium Disclosure Statement
C) Condominium Phases Disclosure Statement
D) Development Phases Disclosure statement

A

B) Phased Condominium Disclosure Statement

105
Q

Which of the following information can be found in the Phased Development Disclosure Statement?
Choose all that apply

A) The maximum and minimum number of units in the entire project
B) A description of the units and common property in the initial and subsequent phases
C) The basis for allocating unit factors within the condominium corporation
D) The extent to which the developer will contribute to the common expenses during the development phase of each phase

A

All of the above

Phased Development Disclosure Statement includes the following information:
• A statement indicating that the building or land is to be developed in phases
• The maximum and minimum number of units in the entire project
• A description of the units and common property in the initial and subsequent phases
• The basis for allocating unit factors within the condominium corporation
• The extent to which the developer will contribute to the common expenses during the development phase of each phase
• The effect on the owners’ monthly contributions for administrative expenses and the condominium corporation’s budget if future phases were not completed
• Details of the proposed appearance for each phase and its compatibility with other phases

106
Q

What is right of Rescission?

Choose only ONE best answer.

A) Rescission refers to the right of buyers to cancel a purchase contract under certain terms
B) Rescission refers to the right of buyers to change a purchase contract under certain terms
C) Rescission refers to the right of buyers to switch to a different unit within certain time period
D) Rescission refers to the right of buyers to cancel their unit title under certain terms

A

A) Rescission refers to the right of buyers to cancel a purchase contract under certain terms

According to the Condominium Property Act, buyers who purchase units in new condominiums from developers have the right of rescission. Rescission refers to the right of buyers to cancel or rescind a purchase contract under certain terms. For new and conversion condominiums, the buyers have the right to rescind a purchase contract if they find the condominium documents unsatisfactory.

107
Q

Shannon is helping her client, Blaine, purchase a new condominium unit from a developer. According to the Condominium Property Act, how many days does Blaine have to review the documents under the right of rescission?

A) 5 days
B) 10 days
C) 20 days
D) 30 days

A

B) 10 days

108
Q

Carmela and Joseph Simpson are first time home buyers. They have engaged David Lee, a real estate professional with Prestige Brokerage to purchase a condominium unit downtown. What are some of the conditions David should suggest the Simpsons include in the purchase contract?

Choose 3

  1. Financing condition
  2. Property Inspection condition
  3. Condominium Document Review condition
  4. Real Property Report Review condition
A
  1. Financing condition
  2. Property Inspection condition
  3. Condominium Document Review condition
109
Q

Which of the following are not condominiums?

Homeowners Association
Housing Cooperatives
Time shares
Fractional ownership

A

All of the above

110
Q

True or False

Condos fall under the Condominium Property Act - which falls under the Minister of Service Alberta

A

True

111
Q

How is a condo created

A
  1. Register a condo plan with the AB land titles office
  2. Condo plan = 2 or.3 dimensional plan of subdivisions that outlines the size, location, and boundaries of the land any any buildings
  3. Certificate of title is manacled once unit owners buy into condo
112
Q

when a lease is ______ year(s) or more, it can be resisted against the title of the property?

A) 1
B) 2
C) 5
D) 3

A

D) 3

113
Q

What is right of Rescission ?

A) Rescission refers to the right of buyers to cancel a purchase contract under certain terms
B) refers to the right of buyers to change a purchase contact under certain terms

A

A

114
Q

How many days do people have to review documents under right of rescission?

A

10

RECA (12 decks)

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