Unit 8 - Condominiums Flashcards
Condominium means…
ownership with others or shared ownership
What are the 2 parts of condo ownership?
- unit and common property
What is a unit?
a fee simple ownership with a title in the owner’s name
What is common property?
areas with ownership shared by all unit members who are collectively referred to as the condo corp
Which ‘shared housing’ is not considered a condo? (3)
- Homeowner’s Association
- Housing Co-ops
- Timeshares
What are the 4 residential condo types?
- Apartments
- Townhouses
- Semi-attached (aka bungalow villas)
- Detached (aka single-family)
What are the 5 recreational condo types?
1) Hotel condos
2) Mobile home / RV Park
3) Marina
4) Hangar
5) Equestrian
What are the 3 types of commercial condos?
1) Industrial
2) Retail
3) Mixed Use
A condominium is created by registering a ________ with the ___________ office
condo plan, Alberta Land Titles
__________ is cancelled once the condo plan is registered and a separate title is issued for each unit in the Plan.
Title for the property
Condos have 4 components:
1) Unit owners
2) Condo corporation
3) Board of Directors
4) Common Property
___________ is a legal entity and consists of all unit owners for the property.
Condo Corporation
The 7 digits of a Plan number for condos are:
First 2 #s are _________
Third # is __________
Last 4 #s are _________
1-2: Year Plan was registered
#3: Land Title Office (1 for Calgary 2 for Edmonton)
#4-7: ID numbers based on order received that year
Condo Corp Duties:
- Duty to comply with _________
- Duty to Enforce _______
- Duty to manage _______
- Duty to Record and Report to ______
- Legislation, bylaws and governing policies
- Bylaws and governing policies of condo
- Common property
- Board of Directors
Officers of the Condo Corp include (4)
- President
- Vice President
- Secretary
- Treasurer
What are the 5 types of meetings of Condo Corps?
1) Board Meetings
2) Committee Meetings
3) General Meetings
4) Extraordinary Meetings
5) Annual General Meetings (AGM)
A new AGM must be scheduled within _______ months of the date that the previous one was held
15 months
Decision making process of the Condo Corp (5 steps)
- Agenda
- Discussion
- Motion
- Vote
- Decision
A _________ refers to the minimum number of individuals eligible to vote that must be present at a condo corp meeting.
Quorum
Decisions agreed upon by the corporation through a vote are called __________. What are the 2 types?
Resolutions: Ordinary and Special
For Ordinary Resolutions, how many eligible votes makes a majority?
> 50%
For Special Resolutions, how many eligible votes makes a majority?
75%
Special Resolutions are required for (6)
1) Changing bylaws of corp
2) Changing Condo Plan
3) Using Reserve Fund money
4) Purchasing, leasing or selling common property
5) Terminating condo status
6) Granting an easement or restrictive covenant
The portion of financial responsibility assigned to each unit owner for their share of the common property is called a ___________
Unit Factor
Unit Factor = _______ / _________
Unit floor space / total floor space
3 purposes for establishing unit factors
1) Determine proportion of expenses
2) Define voting rights per each unit
3) Determine fund allocation if condo status terminated
A review of the _________ will show if a condo is professionally managed.
Condo Additional Plan Sheet (CADS)
6 Benefits of Professional Condo Management
1) Qualifications
2) Experience
3) Compliance
4) Administration
5) Cost-savings
6) Continuity
Condo Manager Abbreviations
- CPM
- RPA
- ACCI
- Certified Property Manger
- Real Property Administrator
- Associate of the Canadian Condo Institute
Condo Manager Duties (9)
- Communicate with Board
- Maintain records
- Care for common property
- Prepare annual budget / finances
- Negotiate, prepare, administer legal contracts
- Enforce bylaws and policies
- Attend Board meetings
- Get quotes and bids from service providers
- Deal with owner concerns
Authorization from RECA is required for condo managers that get compensation for (2)
1) Advertising, offering, negotiating, or performing activities of renting / leasing properties
2) Holding trust funds for rentals/leases
_________ are assigned by the court when a condo is being extremely mismanaged.
Condo Administrator
If unit owners want to rent their condo they must (9)
1) Notify corp of intent
2) Provide address for service of notices
3) Notify corp of tenants names (20 days before)
4) Let corp how much rent is
5) Provide deposit to corp
6) Satisfy financial obligations of unit
7) abide by bylaws and policies
8) Notify corp in writing within 20 days of rental termination
9) Not cause damage to common property
Unit rentals in a condo are governed by the ___________ and the ________
Residential Tenancies Act, Condo Property Act
If the total amount of monthly contributions is insufficient to cover expenses, the condo Board of Directors may decide to issue a __________
special assessment
Total unit factors for each condo in Alberta is _________
10,000
_________ contains info about the number of monthly condo contributions, the manner of payment, interested owed.
The Estoppel Certificate
Condo corps have 2 separate trust funds
- Operating Fund
- Reserve Fund
Reserve Fund Process (3 parts)
1) Reserve Fund Study
2) Reserve Fund Report
3) Reserve Fund Plan
A Reserve Fund study must be conducted and the reserve fund approved within the first _____ years after a condo is created, and repeated every ___ years
2 years, 5 years
2 Main components of annual condo budget
1) Revenue
2) Expenses
The condo ___________ shows each unit’s monthly contribution amount for the upcoming year
Fee Schedule
3 Financial Statements for condo corps
1) Balance Sheet (2 - reserve and operating)
2) Income Statement
3) Cash Flow Statement
3 Components of a Balance Sheet
1) Assets (what they are owed or own)
2) Liabilities (what they owe to others)
3) Equity (leftover result of the above)
Balance Sheet formula
_____ = ________ + __________
Assets = Liabilities + Equity
Cash Flow statement divided into 3 parts
1) Operating Activities (used)
2) Investing Activities (invested)
3) Financing Activities (borrowed)
Condo Plans are survey plans prepared by __________ to partition a property into units and common areas
Alberta Land Surveyors
Up to 3 certificates accompany a condo plan
1) Certificate from surveyor saying it was made according to legislation
2) Certificate of compliance from municipality
3) Certificate from surveyor stating location of post-tension cables
Condo plans can be obtained from (3 sources)
- Board of Directors
- Condo Manager
- SPIN
4 Types of condo plans
1) Conventional condo plan
2) Bare Land condo plan
3) Bare-Land Buildout condo plan
4) Barely Blended condo plan
CADS stands for
Condo Additional Plan Sheet
CADS include (10)
- Legal description
- Registered name of condo corp
- Address of condo corp (or condo manager)
- Number of units
- bylaws
- Board of Directors
- Encumbrances
- Financial obligations
- Pending litigation
- Number of instruments registered
Titled parking stalls and Titled storage areas are illustrated using ____ on the condo plan
solid, bolded lines
Exclusive use parking stalls and exclusive use storage areas are illustrated using ______ on the condo plan
Dashed lines
Assigned parking stalls and assigned storage areas are illustrated using _______ on the condo plan
NOT INDIVIDUALLY ILLUSTRATED
Agents can find out what an individual owns in a condo through 4 actions
1) Ask the seller
2) Look at the Condo Plan
3) Review property tax bills / municipal tax roll
4) Search in SPIN
_________ are a set of directives that guide and govern the affairs and behaviour of the condo corp.
Condo bylaws
The condo manager / Board of Directors must provide current bylaws within __ days of receiving a written request (same timeline for meeting minutes)
10
Condo Property Act requires 2 types of insurance
1) Liability Insurance
2) Insurance Against Perils
Upon written request, condo corp must provide copy of current insurance policy within ____ days and a copy of the certificate of insurance within ____ days
30 days, 10 days
Management agreements in condos should include:
- Names of parties
- Property Description
- Term of Contract
- Duties and authorities
- Employees
- Banking
- Trust Funds
- Insurance
- Compensation
- Disclaimer
- Termination Provision
__________ is a signed statement from the condo corp confirming financial info regarding a unit.
Estoppel Certificate
Condo sales are split in 3 categories
- New
- Conversion
- Resale
New Home Buyer Protection Act requires that condo developers provide buyers with mandatory _________
extended warranty coverage
Do buyers have to pay GST on resale condos?
No, just new and conversions may be subject to GST
According to the Condo Property Act, buyers who purchase units created by condo developers have the right of ________
recission. (can cancel or rescind purchase contract under certain terms) Must do so within 10 days
Which types of condos require an RPR?
Bare Land and Bare Land Built-Out
To check which parking / storage is included with a condo, consult the…
Condo Plan
