Specialists in Asset Management

Condominium Terminology Part I

Condominium Terminology

Part I

Annual Budget:

Although it is not legislated, conscientious development of an annual budget is an important duty (normally required by bylaw) of a condominium board. It’s the basis upon which contributions are levied and funds are collected for the control, maintenance and repair of the common property and the administration of the condominium corporation.

Annual General Meeting (AGM):

Once a year, a condominium board is required to convene an Annual General Meeting of unit owners. At the meeting, the retiring board provides owners with operational financial reports for the year past. Owners then elect a new board and deal with any unfinished new business, including (if required) appointment of auditors.

Bare Land Condominium:

In an ordinary condominium, both the master lot and the walls and roof of buildings are common property. Today many townhouse and villa projects are developed as bare land condominiums in which structures are entirely privately owned, and only the land is held as a condominium.

Board of Managers (directors):

In Alberta, a corporation’s executive is called a board of managers (with proposed revisions, directors). The Condominium Property Act’s initial Appendix I bylaws, although replaceable, stipulate a board of no fewer than three people (except where there are only one or two owners), and not more than seven managers.

Bylaws:

These are a set of rules and procedures for the administration of the condominium corporation and the management and conservation of the common property. An initial set is provided by statute. However, conscientious developers will provide an appropriate site-specific set. Considered a contract between unit owners, bylaws may be amended by a special (75 percent) majority.  

Caveat:

If a unit owner fails to pay regular condo fees or special assessments, the condo corporation can file a caveat against the title to the unit. The charge gives the condominium corporation the same foreclosure enforcement rights as a mortgage.

Condominium Corporation:

When a plan is deposited with a land titles office, and administrative body is automatically created. Membership in the condominium corporation is made up the owners of the individual units. Its purpose is the management of the affairs of the condominium in the best interests of all owners.

Condominium Property:

Every part of a condominium plan that is not a unit is common property. The condominium common property supports and services the individual units and its ownership is proportionately distributed amongst unit owners in accordance with unit factors.

Condominium Property Act:

This is the name of the Alberta statute that defines directs and regulates condominium ownership. Since provinces have jurisdiction over land titles each jurisdiction has its own condominium legislation. Fundamental concepts are essentially identical. From one province to the next, however, administrative technicalities may vary significantly.

Condominium Unit:

Units are those parts of a condominium master lot that are designated for the private, and exclusive use of individual owners. These “volumetric spaces” whether structure-defined compartments of air (as in the case of apartments and traditional townhouses), or columns of air (as in bare-land projects) are defined by boundaries shown on the condominium plan.