Condominium Blog

Lack of Bylaw Enforcement

2006-12-08T12:46:00.000-07:00

Dear Betty

I live in a bare land condominium. It's a residential community with 55 lots. The reason for my email is that the board of directors appear to be ineffective in ensuring that the bylaws are adhered to. The comment we get when inquiring about obvious bylaw infractions and why nothing has been addressed is that they do not want to incur legal costs in order to make the unit holder adhere to the bylaws as that will only incur more condo fees for the residents down the road if they have to pay legal fees.

The board has eliminated pretty much all costs in an effort to reduce condo fees (we have may retirees and they want fees to go down rather than up). We currently pay a small monthly amount to the condominium.

We unfortunately missed the last General Meeting because we had not received the information package. At this meeting the board asked unit owners to do more in the community but now we wonder what we are paying condo fees for. We understand the reserve fund requirement, but we should be receiving general landscaping etc. For our fees, should we not?.

What are my rights as a unit holder to ensure that the board is in fact carrying out their duties and not taking a passive stance? Is there anything we can do to ensure that the bylaws are adhered to if the board won't?
Help!

Concerned Owner

Dear Concerned Owner
You have touched on a number of issues here. First, if the bylaws are worded correctly they will include a section on "Sanctions for Breach of Bylaws" It is this section that will give the board of directors the power to fine an owner, or tenant who is in breach of a bylaw. Some bylaws actually include fine amount or ranges for various infractions. In any case, even if your bylaws do not have such wording and the board fines someone for breach of the bylaws, that matter is dealt with in the Provincial Court, provided the fine is less than $25,000. In Provincial Court no lawyer is required. Most people represent themselves at Provincial Court. The filing charges are minimal, and there have been times where a court will require the offending owner to pay the Condominium Corporations filing costs.

Your board of directors may not be aware that this is an option. Also, in a condominium, when it becomes common practice to ignore bylaws, this becomes the precedent and when you really need your bylaws to deal with a serious matter, a court may view this a favoritism and not support the corporation in that matter. It is important that bylaws are enforced or amended to meet the need of the individual condominium.

With regards to your condominium fees. Without seeing your condominium plan, the bylaws and the operating information I can not give comment on your specific situation. I can however inform you that it is the bylaws in a bare land condominium that determine what the owners are responsible for and what the board of directors are responsible for.

In all condominium low fees means little or no services. The services provided are paid for by the owners, in accordance with the operating budget prepared by the board of directors, and provided to each owner, along with the notice of payment due.

It is a great investment to include in the operating budget of a condominium an amount for education. The Canadian Condominium Institute, South Alberta and North Alberta Chapters offer a series of seminars that are ideal for condominium boards. Each board should send a minimum of two directors each year, to keep current with the appropriate operations of a condominium.

Our suggestion to you is that you request, in writing, that the board enforce the bylaws until such time as they are amended, and also request a copy of the budget for common expenses.

It is important to make these request respectfully and to put a not- later- than date, in which you would like to receive the copy of the budget. Keep in mind that the board, by law, has 10 days to provide the document from when the request is made, in writing.

I hope these suggestions will help you get the answers you were looking for.

Cheers!
Betty's Condo Owners Club
for membership information visit
www.condo-check.com

Dining Rooms and Condominium Fees

2006-11-26T20:36:00.000-07:00

Dear Betty,
I bought a condo 3 years ago with a dining room in an age 60 plus building. Am supposed to spend money every month in the dining room, which I did for a a good length of time. The food was awful. They have had several caterers since. Also, the meals were very small so I ordered two at a time. With my failing health I started having them delivered to my suite. They balked at that despite knowing that I have arthritis in my leg and am unable to walk sometimes for two or three days. I am on a special diet now and have not used the dining room for over a year. The Board Director are billing me for about $?/?@@ in back fees. I have ignored letters from the condo Board of Directors as I am living on small pension. I would never be able to pay this bill. I don't believe the law can make me pay for food I can't eat. What would be your advice? I cannot afford a lawyer and have no living family.

AP

Answer

Dear AP
Thank you for submitting your question. You are not the first to find themselves in this dilemma. Unfortunately there are a few issues here that need to be considered. In cases like these it is always best to hire legal council.

First, if you knew about the benefit of the dining room and agreed to this arrangement of having food prepared by the kitchen during the purchase of the condominium, then you are bound to pay the fees for the meals, despite your enjoying them. It is prudent that you inform the Board of Directors of your dissatisfaction with the portions and that you did not care for the food, but this does not mean you are exempt from keeping your agreement. It would be a good idea to look over the information you were provided when you purchased. If this relationship with the dining room is part of the commitment you made as an owner, then you are obligated to pay your share of the costs, as set by the Board of Directors. In a condominium in Alberta, and owner cannot withhold paying their contributions and a Board of Directors cannot withhold services. Ultimately, when and owner does not pay their share of the contributions in a timely manner, the Board of Directors has the authority to foreclose on the unit and collect the outstanding contributions.

I realize that this is not easy when you are living on a pension. This is why these issues need to be clearly understood when selecting if the condominium home is the right one for you. In this case I suggest you revisit the documents you received when you purchased your unit or ask the Board prove that they have the right to charge for the meals as a part of the condominium operation.

Once the proof that they have the right to charge for these meals has been obtained, I suggest you make payment arrangements to catch up your arrears and keep them current in the future. If you feel the charges are unreasonable, you have the option of filing a claim in Small Claims Court. Be sure to understand that if the Court rules in favour of the condominium you could end up paying their costs to defend the claim.

I hope this is helpful and suggest you seek legal council before withholding your contributions.

Sincerely,
Betty's Condo Owners Club

Restricting Tenants in Alberta Condominiums

2006-10-19T18:24:00.000-07:00

Dear Betty,

We have had a few problems with tenants in the past months. If we want to go 100% owner occupied for our 31 unit building, this would require the 75% vote of unit factors to effect this change? We are considering a 1 year time frame to allow owners to sell, move back in, etc. As far as I can tell this is legal, and I think its a great selling feature as well, due to the general problems of tenants in condos. Any advice? Thank you. M L, President.

Dear ML

Thank you for sending us your question. Many condominium Board Members and Owners in Alberta think that they can restrict tenants from occupying the units by passing a Special Resolution of the Owners to amend the bylaws. In Alberta, it is quite the contrary as the Condominium Property Act prohibits the restriction of tenants in condominium bylaws. In fact the Condominium Property Act clearly states that bylaws are NOT to RESTRICT an owner from leasing their condominium unit. In support of the Owners, the Alberta Condominium Property Act gives power to the Board of Directors of a condominium, that specifically allows them to protect the owners investments when units are occupied by tenants. For example, if a unit is occupied by a tenant, the tenant is equally governed by the bylaws and therefore, if the bylaws provide for fining, the tenants and owners can be fined for breach of a bylaws, equally, or, should a tenant continue to breach the bylaws, after being notified of the breach and being provided time for a reasonable remedy, the corporation may order the owner of that unit to evict that tenant, under the protection of this ACT. (Check the Act and follow the conditions that apply).

The bottom line is that although our legislation does not allow the restriction of tenants, or the ability to limit the number of tenants, the legislation gives a lot of remedy to the board of directors of a condominium, that enables them to deal with a difficult or irresponsible tenant.

Our suggestion is to treat the tenants with respect, include them in the community activities, including inviting them to meetings (as non-voting guests), be sure in their welcome package you include a copy of the bylaws and a notice that informs them they are governed by these to the same extent as the unit owner. You will discover that many tenants have pride in their homes, just as the owners do. When tenants are treated like second class citizens, that is how they will behave.

Thank you,
Betty
Check out the services available to Betty's Owners Club Members on our web site www.condo-check.com . A copy of the Condominium Property Act of Alberta and the Regulations can be purchased at the Queens Printer. Follow the link on our website.

Late Condo Fees - What to Do?

2006-10-03T08:31:00.000-07:00

Dear Betty
As treasurer of a Condominium Corporation I do the deposit of fees within the first couple of days of the new month. We consistently have a few people who are late payers, they are from days to months behind. I find this very frustrating when it comes to doing the books. These same people inform me that I am out of line asking for the fees to be available by the first day of the month (our condo bylaws state that fees are due the first of the month and that 12 postdated cheques are requested). I have also been asked to invoice for the condo fees. I feel is out of the question as for one thing I am a volunteer and I feel when someone buys a condominium unit they should know the obligation they have committed themselves to. Can we charge a penalty on these late fees? If they continue to go unpaid can we recover the late fees and penalties through the Estoppel certificate when these people sell their units? Do you have any other suggestions on how to deal with this problem? If I phone these people they are very nasty and say I am going over the top on this issue, in the meantime we are hundreds of dollars behind in fees.

Thank-you , Concerned Treasusrer and Board member.

Dear Concerned Board Member,

You are not the first to be experiencing the resistance of owners paying fees on time and the lack of respect for fellow owners when the need for the condominium fees to be paid in a timely manner is ignored. The bylaws for your condominium will state the process for unpaid fees and can include charging interest after the "specified number of days" are achieved, with the fees unpaid. Interest is to be charged in accordance with the bylaws and is not to exceed 18% annually.

Bylaws also may have a "Fining for Breach of Bylaws" provision which enables the Board of Directors to impose a monitory fine for not paying the fees withing the time period specified in the bylaws. (this action can only be implemented if the bylaws have this wording, in compliance with the Condominium Property Act of Alberta)

Should an owner choose to sell their unit and the fees are unpaid, yes, the Estoppel certificate would show that there are outstanding fees and interest charges. These outstanding amounts would then be required to be paid either by the seller of the unit or the new buyer, dependent on the working in the Purchase Contract. (all Purchase contracts should have a condition that the Seller pay any and all outstanding condominium fees, special assessments and interest charges).

The bylaws typically state a period in which, if the fees remain unpaid, the action that the Board of Directors is to take, is to register a Caveat for Unpaid Fees and Special Assessments, including Interest, against the Unit title. This period is typically 90 days. If the bylaws do not have such a clause, the Board of Directors can adopt a policy stating the period of time that will result in a Caveat being registered. Once the Board had decided to act on this bylaw or to adopt a policy it is important to send a notice to all owners informing them of this intent or policy. A notice should be sent to all late fee payers informing them of the policy and requesting that they pay the outstanding fees and that they keep them current. Be sure to establish a date that late fees are to be paid and clearly state the action(s) that will be taken should they continue to be late or remain unpaid.

Another action that can be taken is to inform the Mortgage company, found on the title to the unit, that this owner is in arrears on their condominium fees. Lender will often pay the arrears and deal with the owner.

Once a Caveat has been registered on the title you are required to send a notice to the owner(s) and the lender shown on that title, informing them of the registration and the reasons. Once the caveat is registered the Board of Directors can begin proceedings to Foreclose on that unit to collect the late fees owing.

If the unit is occupied by a tenant and not the owner, the Board may send a letter to the Tenant & the Owner directing the tenant to pay the rent to the Condominium Corporation until such time as all arrears are paid. Any surplus, after arrears are paid, is to be paid to the Owner.

Often owners in a condominium forget or don't really understand that when the fees are late or remain unpaid for any period of time, the result is a shortage in funds to operate and maintain the building and provide the services. The Board of Directors have many solution as there are many consequences when fees remain unpaid: (a few examples)

when a building goes without repair, services, or has evidence in the minutes, that owners do not care enough about their investment to pay their share of the costs (the fee), when a buyer is examining the operations of the corporation (having a professional Condo-Check Document Review) completed, they may offer a lower price or not buy in this condominium project due to the stress of needing to manage short of funds due to this problem,
no-one wants to volunteer to be on the Board of Directors as it is stessfull to be constantly chasing fellow owners for money,
when there is a cash shortage the only option left for the Board of Directors is to call for a Special Assessment (a cash call) at which time the owners who do pay on time are now required to pay again to cover the shortfall which is due to other owner not paying their fees, and
Professional mangers and trades and services will not provide services or offer preferred pricing to Corporations who are stressed financially.

I hope this brief response will give you the options and information required to get the attention of these late payers. If your bylaws do not allow your Board of Directors to charge for late fees or to fine owners for breach of bylaws please hire a condominium lawyer to have them updated.

Thank you for your question....Cheers!

Special Assessments and the Power of the Board

2006-07-26T17:32:00.000-07:00

The answers and comments to this concern is in Red , embedded in the comments.

Hello,

I am a condo owner in downtown Calgary . I purchased my unit 5 years ago. Recently, our board decided to have our lobby repaired. Apparently, the floor tiles were falling apart, so they have all been removed and are being replaced. Also, there was a waterfall that leaked and so, not only was it dismantled, but a new one is being built because the board decided to do so. The owners are being charged $100,000 for these repairs; my share comes to $850. I was under the impression that any major changes in a condominium should be decided by a majority vote by the owners, and not by a few board members. Is this correct? The Board is responsible for making these decisions and is not required to bring these to the owners for a vote. If the owners do not agree with the decisions of the Board they should state so in writing and bring this to the attention of the other owners at the Annual General Meeting of the Owners. Elect those Board members who you are confident will make decisions that are in the best interest of all owners and the property as a whole.

This is not the first time we that we have been forced to pay "Special Assessments." Every year since 2001, there have been financial shortfalls and some major construction defect that needed repairs. The condo Developer, has not only refused to correct these defects, but they are suing the owners over petty issues. We have tried, with little success, to have the Developer take responsibility for their actions - or INactions. They seem to be "untouchable." I don't know why.

Every year, the burden falls upon the owners to deal with the building's deficiencies. My unit, for instance, has a patio door that blows open in the wind, a glass pane that rattles and flecks of dried paint on the patio door. Also, my entrance door (hallway) was never properly painted. If that wasn't enough, my living-room windows were leaking during the heavy rains, last summer.

I had some other deficiencies but they were corrected, only after much persistence on my part. Other owners have unit defects, as well.

Am I legally obliged to pay this $850 Special Assessment? It seems more like a ransom demand. How do I know the money is not going to be pocketed by individual board members / managers? How do we know that the lobby repairs are being done properly? I find it hard to trust anyone, vis-a-vis this building. If you are concerned over the handling of the money you can suggest that the board put a Fidelity Bond in place in an amount that will cover the amount in the Reserve Fund Account and the Operating Account. As an owner, you have the right to request information under Section 44 of the Condominium Property Act. You would be required to make the request in writing and the board would then be obligated to provide the documents to you within 10 days. You could ask for copies of the Board meeting minutes and the financial Statements showing the months the money was collected and spent. The Act also allows that a board may charge a reasonable fee for providing the documents.

I have paid for my condo in full, I have never missed a monthly condo fee and I have always paid the demanded Special Assessments. But enough is enough. Is there not some limitation as to how much condo owners must pay for the irresponsibility of the vendors / condo board? The Board has the responsibility of maintaining the buildings and with it the power to collect the money it requires to fulfill this responsibility. The board is to act reasonably and in the best interest of all owners and the property as a whole. You may find it benefitial to sit down and talk to the board members. Ask them why they have not pursued the Developer for recovery of deficiencies, ask when the maintenance and repairs will be completed and when the demand for money is expected to end. Assume the Board members are doing their best to get the building repaired in a timely manner and as reasonably as is possible. Expect them to answer your questions in a reasonable amount of time and to respect your frustrations. You may want to consider getting on the board as this would give you the ability to be involved in the decision making process. Remember, the board members are volunteer owners who are also responsible for paying their share of the assessment. Over the past 30 years I have not come across boards that charge these assessments without there being good cause as they impact them personally as well.

Your feedback would be greatly appreciated.

Thank you.

JS

Pet Policy

2006-07-26T16:48:00.000-07:00

When we moved into this condo two years ago the bylaws stated that this was a pet friendly condo, with certain restrictions such as only 1 pet per unit and size of dog etc. Over the last two years there has been a determined effort among some of the owners to get rid of pets entirely. A pet committee was formed a couple of times in an effort to come up with a bylaw which would be fair to both pet owners and non-pet owners alike, without any success.

As pet owners we are willing to walk our dogs inside but we have a problem in that one of our buildings has only one elevator in the centre of two long wings and we have many elderly, single people for whom this is a problem and yet the Board will not allow them to use the stairwells at either end to exit the building unless the pet is carried. This seems like a very dangerous situation to us as it is difficult to go up and down stairs carrying a dog and holding on at the same time. We have asked for a Special meeting to try and iron this out once and for all and this has been called. Our two points in the resolution are that Owners should be allowed to sell their units to a pet owner and secondly that pet owners should be allowed to walk their dogs using the stairwells, safety being our No. 1 concern.

Our questions are:

Can the Condominium Board change the bylaws so that no pets will be allowed? If a vote were to be taken, pet owners, being in the minority,would be at a distinct disadvantage. We also feel this will affect resale value., and also don't believe they have the right to change the rules
when the building was designated "pet friendly" in the first place.

If the Condo Board insists that pets be carried down stairwells , will they be liable for damages in the case of a person falling while doing so?
.
FID

Thank you FID for your comments and question. These are common concerns brough forward by condominium owners.

First, I would like to address the Special meeting for the purpose of passing a Special Resolution on this matter. The pet bylaw is what you will need to amend by way of Special Resolution. A Special Resolution requires 75% of "all registered owners" and 75% of all the "unit factors" to vote in favor of the resolution. The change must then be registered against the condominium plan at the Land Titles Office, in order to be enforceable. The current bylaws often require a specific number of days allowance for owners to consider the Resolution before voting. Be sure to comply with this bylaws when proceeding to change or amend the clauses.

Your question regarding weather the board can or cannot change the bylaws to say NO PETS. The Board does not have the power to change , replace or amend bylaws without a Special Resolution of the Owners being properly passed. Once the 75% criteria has been met the Board then must proceed to register the change, replacement or amendment with the local Land Titles Office.

The argument for pets impacting property values has been going on for over 30 years and never has been proven to be a factor. There are always an abundance of people who love pets and those who do not. This is one of the toughest issues in condominium and for those condo's that are trying to find a happy medium in this matter it is often best to bring in a professional mediator who has experience in condominium matters.

With regards to the concern over carrying pets when on the common property (the stairwells in your complex). This is a typical bylaws in south Alberta. The idea behind this is that people do not or cannot carry big dogs. This bylaws is a polite way of regulating the size of dogs without getting into weight and height restriction criteria. With regard to your concern over liability if an owner is injured while carrying their pet; if this is a breach of the bylaws the condominium is not liable. In fact the condominium may have the power to fine the owner for being in breach of this bylaw.

The bottom line is that the bylaws of a condominium regulate the ability to have or not have pets within the property boundaries. The variances in the wording for pet bylaws is as vast as the number of condominiums that exist. I would suggest first identifying the concerns of those owners who do not want pets and then look at ways to solve these concerns. It is know that buildings with dogs have fewer break-ins and it is also know that for people with allergies dogs can create real health issues as their dander circulates in the air system. It is a two sided argument that bears no simple answer. Compromise is all that can resolve such a matter. Unfortunately if the majority are of the conviction that they prefer a no-pet condominium, then a property passed Special Resolution could result in a No Pet bylaw. Be sure that any amendment to the existing bylaws includes wording that clearly allows those with approved pets before the bylaw was amended to continue to keep their pet. It is important that qualified professionals are hired to assist in the amendment of bylaws process.

Wishing you success with this matter. Thank you for contacting Betty's Condo Owners Club.

Cheers!

Spending from the Reserve Fund

2005-11-30T07:17:00.000-07:00

Dear Betty

As the treasurer for a Condominium Corporation in Calgary, I am writing for some assistance on the clarification of reserve fund expenses/common property. This past summer we had to remove and replace a number of trees on the common property of our complex because they were becoming a hazard. The current board, along with myself believe that this is a reserve fund expense because the trees are on common property, coming under landscaping of the complex. The former treasurer says it is against the law to take these funds from the reserve fund because trees are not depreciating assets. Do you have any advice or know where we can obtain further clarification?I would appreciate any information you can provide me. Thanks in advance, J.

J.,

first, on our web site, www.condo-check.com, we have a Trades and Service Directory that contains the contact information for companies in the Condominium industry that can assist with a variety of condominium matters.

Regarding your question regarding the use of the reserve fund money. A condominium corporation can use the money in the reserve fund for repairs, maintenance or replacement of any items that are listed in the reserve fund plan. In the case of the tree removal, if landscaping is a line item, then yes, funds can be taken from the reserve. Reporting of this activity is to be done in the annual report that is to be provided to the owners at the Annual General Meeting of the owners.

The Condominium Property Act of Alberta, and the Condominium Property Regulation is what governs the condominium reserve fund.

Cheers!

Control by Two Majority Unit Owners

2005-11-15T08:11:00.000-07:00

Dear Betty

Thank you for a very informative site. We have recently purchased a condo in southern Alberta (Lethbridge). Within this complex of 60 units, two persons (related) own 14 of these units. In the annual general meetings, due to poor attendance from other owners, we have noted that whatever these two gentlemen feel is in the best interest of the project, will get voted through due to their control of the vote. In reality, these two gentlemen rule the roost. I am uncomfortable with this, other than hunting down the other owners to ensure their attendance, is there any other way we can ensure that these "majority vote" owners cannot control the decision making? Any advice would be greatly appreciated.
M.H.
Lethbridge

Answer

Your problem is not a simple to resolve if owners don't get involved. Yes these gentleman can control who is elected to the board with having such a large vote. Your bylaws will state the number of people required to be on the board. My advice to you is to fill the board positions allowable in the bylaws. At the board level each member has one equal vote. This means if there are only 2 of them and they are elected to the board, and you need a board of 5 or 7 members, that they will be outnumbered when it comes to the voting at the board meetings (which is where all the decisions are made). The AGM is the only time the number of units one owns counts during the voting process.

Best Wishes
Betty's Condo Owners Club
www.condo-check.com

Unit Factors and the Owners Responsibility for Costs

2005-10-27T09:46:00.000-07:00

Dear Betty
I am currently in a condo complex with a bare land condo but bylaws for a conventional condo complex. We are concerned as to the payments are covered as by Unite factor but all calculations are done by unite factor including the land. Is there any where that would really explain what "unite Factor" means. I believe it should be based on Living unite factor. Our monthly and yearly payments are very different from unite to unite and has caused quite a problem in our community. Any advise would be greatly appreciated

w.

Answer

Dear W.
For condominiums in Alberta each condominium is allotted 10,000 unit factors. Each title to a unit in a condominium includes a share of the 10,000 total unit factors that are allotted to that indiviual unit. For example, a title may read "Unit 33 and 120/10,000 undivided interests in the common property. This would mean that Unit 33 has a unit factor of 120. The unit factor represent the owners' interest in the common property of that condominium.

Unit Factors represent both an owners' voting share and is the default basis for calculating the contributions owners pay toward the maintenance of the property and the services provided. The registered bylaws may state a different method of determining the sharing of the costs, in this case the formula in the bylaws would prevail.

This applies to all condominiums, bare land condominium is not exempted.

The option available to any condominium in Alberta who does not agree with using the unit factor as the basis for allotting costs is to amend the bylaws so that the bylaws include a formula for how costs are to be shared between the owners.

As you have bylaws that are for a conventional condominium it would be a good opportunity to replace your bylaws with a customized and proper set for bare land condominium. For a list of lawyers who can assist with this process visit www.condo-check.com and link to the Trades and Services Directory.

To amend or replace bylaws you will be required to pass a Special Resolution of the owners. This requires that 75% of the unit factors vote in favor, plus 75% of the total owners registered on title must vote in favor. Once this is Resolution is passed favorably the board then passes a resolution to register the amended bylaw. Once this is registered, the condominium can charge for costs based on the formula in the bylaws instead of using the unit factors. Until that time the only alternative is to use the unit factors.

I hope this helps ... Cheers! Betty

Opting out of the Condominium Property Act

2005-08-12T17:11:00.000-07:00

Dear Betty

We are a fairly upscale duplex-style 16 unit bare land condominium development in Edmonton built between 2001 and 2004. There is a committee in place to discuss the pros and cons of opting out of the Condominium Act and registering under the Societies Act, primarily to avoid the cost of a reserve fund study. It appears that we would still have a reserve fund. Can you comment on the advisability of such a decision?

S.H.
Edmonton

Response

Dear S.H.

When looking to dissolve a condominium corporation there are many things to consider. You need 100% of the owners to agree, you need to have the properties re-surveyed, and you will incur legal costs to dissolve and register the Societies Act Articles and any required Restrictive Covenants to be registered on each title. In our experience the cost of preparing a Reserve Fund Study is usually a lot less than the cost to dissolve the Corporation. In addition to this you still have buildings that are and will continue to age and require repairs. A Reserve Fund Study simply provides the owners with a financial guideline to prepare for these costs, today and for a future 25 year period, which will occur whether planned for or not.

In addition to this the Societies Act does not give the Board of Directors the power to control, manage, maintain or repair the common area's which means that the Board has no control over if a repair is completed or not. Should a neighboring owner choose to allow the building or landscaping to deteriorate, the loss of value impacts the neighboring properties as well as itself. This is one of the key benefits to the condominium structure. Property values are protected as the Board has the responsibility and power to ensure that maintenance of the property is completed timely and properly.

As part of your research, take the time to drive by projects that are not condominiumized, and are not regulated by the Condominium Property Act. You will often see clutter, different colors of trim, roof shingles, styles of screen doors, fences, different landscaping ideas, and more. The curb appeal can be severely impacted as the majority of buyers in Alberta prefer uniformity and clean, well manicured and maintained properties. I believe that the cost to dissolve added to the potential loss in property value far outweighs the cost of having a Reserve Study Prepared once every five years. Be sure to do the math.

Thank you for submitting your question to Betty's Condo Owners Club. For information on becoming a member of the Club visit our website at www.condoownersclub.com.

Betty

Apathy from Owners for Election to the Board

2005-07-10T08:09:00.000-07:00

Question:

Hi Betty
We are having great difficulty find persons willing to be on the Board. What can be done if at the AGM there are no volunteers to be on the Board. Do the persons attending the AGM form a new Board?
thank you for your reply
I. T.

Answer:

Dear I.T.

This is not a unique concern for condominium corporations. Often only a few of the owners are willing to stand for election to the board. Before I respond to what your options are I would like to look at what can cause such apathy. There are generally a variety things that can cause apathy to result. The most common is that owners don't feel they have anything of real value to offer, in other words they are not needed, and that the existing board is doing just fine so why change things. When apathy results it is usually because the current board did not make the owners feel important and included in the operation of the corporation property.

The vast majority of owners in a condominium do not realize that the investment they have in the condominium property is impacted by the management style and that for this reason they need to be involved in the management, whether directly as a board member or indirectly as an interested owner. This also adds to the apathy factor. Providing information to owners is part of the solution.

The best way to resolve this issue is to be creative in the management of the property. Include the owners, that are not in the board, in as many ways as are possible without loosing sight of the fact the board is to make the decisions. When the board needs to make a decision the owners can provide input, research, etc. For example, if you're planning a landscaping project- form a committee of owners to determine the scope of the landscaping project and to identify the things needed to complete the project. Or for example, form a social committee of owners who become responible for finding ways for owners to get to know one another. Condominiums that have a community lifestyle have fewer problems all around; from security to election to the board. Be creative and budget for professional assistance in strategic planning if necessary. The most important component to condominium management is the relationships between owners and board members.

Now, in response to your question. If no-one is willing to be on the board, the retiring board will need to hire a company to act as the Board. This is costly and difficult to find as the liability that that company takes on is huge, especially in a condominium where owners are not interested in the business of the condominium to such a great degree. Often informing the owners of the increase in cost that will result motivates them to get involved.

I hope this answers your question. Be sure to read "10 Secrets to Surviving Life in a Condominium (live the dream-not the nightmare)". This book has great information on living in community in the condominium setting. It is available on the web site www.condo-check.com

Betty

Responsibility / confidentiality Agreement

2005-06-24T10:33:00.000-07:00

Question

Hi Betty,

I'm a board member for a townhouse condo and am wondering if you could give some advice. Our Board is considering having our Board members sign a "Responsibility/Confidentiality Agreement". Some Board members are questioning the need for such an agreement and tend to think it's more trouble then it's worth and it sends out the wrong message to the other owners.

I was just wondering whether you know of Condos that asks their Board members to sign such an agreement. And if so do you provide templates of such an agreement. Also, if you know, whether there are any legal requirements (or as a precautionary measure) that Boards sign one (especially now with the new Privacy Act.)

Yours sincerely,

H M

Answer

Dear HM

I believe this is a timely and excellent question with the new Privacy Legislation that is now in effect. I think there is a real need for board members to understand that they must not pass on information that pertains to individual owners such as financial information or personal information. The other concern for the Board of Directors is with regards to the cost and coverage of Directors and Officers Insurance coverage, when the Board of Directors does not respect the Privacy Legislation.

I think having a confidentiality agreement, in writing between board members would be a wise and prudent solution to minimizing any risk for the board should someone not understand the parameters of what is confidential, and what is public information for a condominium. There is nothing in the Act or Regulation that makes this mandatory, although the Condominium Property Act does give the Board of Directors the responsibility of acting in the best interest of the condominium as a whole.

At this point in time we do not have a template available. We will take the lead with your suggestion and look to having one available on the Condo-Check web site (www.condo-check.com) in the near future. Thank you for the suggestion.

An other program that would be of great benefit to all condominiums is the Risk Management Protocol system. To learn more about this program refer to our May issue of the condo e-magazine at www.condo-check.com (follow the link to free e-magazine). Details on how to contact the protocol Centre is in the e-magazine as well.

Thank you for this timely question.

Betty!

Special Assessments

2005-06-23T10:14:00.000-07:00

Question

Is there any part of the Condo Act or Regulations that addresses a Special Assessment timeline? By this I mean, is there a minimum amount of time between the notification of an assessment and the date it is due? I receive copies of Board Minutes and the possibility of an assessment was never mentioned.

Thanks for any help you can give me. I've searched the Act and Regulations and cannot find anything related to timelines.

Thanks BJE

Answer

Dear BJE

Thank you for your question. This information is found in the bylaws of the condominium corporation. Be sure to check the registered bylaws. Registered bylaws can be obtained from any Registry office in Alberta.

Typically bylaws give the Board the power to Special Assess (cash call) the owners when there is a shortfall. Bylaws typically give the Board the power to set up the flexibility or a plan for the assessment to be implemented. Many bylaws allow an assessment to be levied with as little as 10 days notice to the owners. We recommend reasonableness prevail and that the balance be respected between the need for the funds and the ability of the owners to pay quickly.

You will need to obtain a copy of the CAD which will provide the information you need to obtain these bylaws.

To get a copy of the CAD you will need the legal condo plan number. The condo plan number will be a 7 digit number located on the title to your unit. Once you have that 7 digit plan number you add ";cs" to the number - "xxxxxxx;cs" give this description to the Registry office. They will be able to help you from there.

You can access the CAD and Condo Plan through the web site at Condo-Check. Go to www.condo-check.com and follow the links to the Condo-Plans(SPIN) . You will require a credit card to access the government account (SPIN). Costs are minimal.

I hope this helps

Betty

Mold Under the Floor - Who is Responsible for the damages?

2005-03-22T15:09:00.000-07:00

Note: To submit your questions, or ask for more information on the following question, please go to the View Profile link to the right of this article and email the question. To make a comment click on the comment link a the end of the article. Please use first names or initials only, and do not name the condominium project. Thank You!

Hello

I really hope that you can help me. I am begging for your help, please. I have concerns about the mold that has developed under my hardwood floors because of a leak that my neighbor had from his washer last year. I live in an apartment style condo and the Board has insisted that I get this fixed because of the health hazard. Now I am looking at remediation (removal of mold) by professionals at my expense have been told by the Board that I then need to sue my neighbor to recoup my loses. The condo board is saying that it is my fault that mold is growing because I did not get my floor fixed by my neighbor yet and thus mold has developed in that time. I had no idea about mold issues and no one on the board or the management company made me aware of these dangers, if they did I would never of let this happen. I have since been told that the board was responsible per the Act and the Bylaws, unfortunately no one will look these documents over to prove this and I cannot clearly understand the technical jargon. Please I desperately need someone's help and you are the only place I know and trust to turn. I will pay a fee if someone could just take a few moments to confirm were the responsibility lies. I don't know where else to go. I know that the board is very inexperienced and our condo manager just moved here from another country and has already been chastised for giving me erroneous information and it is this same person that is advising the board. I very much need assistance

S.

Dear S.

This is a situation that could happen to anyone, unsuspectedly. There is not enough information in the hands of owners and board members regarding molds and toxins in the home, and how quick molds can form (in as little as 72 hours). This happens to be an area of great interest to me. Here is the address to a blog that provides information on wellness , which includes some information on toxins in the home, www.advocatesfromwellness.com, and read the February 2005 issue of the Condo E-magazine at www.condo-check.com .

With regards to who is responsible. The wording in your condominium bylaws is going to have an impact on determining who is responsible as well as the Insurance provisions in condominium Property Act and Regulations of Alberta, and the record kept by the board of directors in attending to the original water damage repair.

The Condominium Property Act of Alberta and the condominium Property Regulations, in particular, Part 6 which specifically states that the Corporation must place and maintain insurance against the following perils: fire; leakage from fire protective equipment; lightning;smoke;windstorm;hail;explosion of natural, coal or manufactured gas; water damage caused by flood; water damage caused by sewer back-up or the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system or a domestic appliance that is located within an insured building,.... And any other perils as required by bylaws.

I believe what this wording is saying is that the Corporation is to insure for the accidental escape of water from a domestic appliance, as in this case. The question remaining is was the escape accidental or negligence on the part of your neighbor? In the case of negligence the neigbour may be responsible for the damages that resulted.

We are not insurance specialists, which is where this problem falls. From our years of experience I would suggest the following: Ask the Board of Directors for the information that was obtained when the leak happened and for a copy of the reasoning for their conclusion that this was an owners problem. Inquire as to if the corporation insurance company was notified or not? Insurance companies typically notify the board and the owners of the potential hazard of mold occurring when there are water leaks and provide assistance in preventing the damage from expanding.

Worse case, if the board did inform you, when the leak occurred, that you were responsible for negotiating the repair of the damage with your neigbour, and you did nothing, even if they did not mention future damage risks, they may argue that you would at miniumum be responsible for the added damage that occurred when the problem was left unremedied.

I suggest you get the mold removed as quick as is possible as your health may be at risk. Contact the insurance company that carries your personal policy. They will most likely assist you in assessing who is responsible for the damages and may cover the remedy. You won't know until you speak with them.

In the interim, obtain the information from the board. Allow them a reasonable time to get this to you, 10 days should be sufficient. You may choose to have a conversation with your neighbor about what he did to remedy the problem and explore the options regarding his willingness to assisting you in the cost of the repairs, and have a talk with your personal insurance carrier.

Once you have acquired the above information, give Louise a call at Condo-Check and she will be able to assist you in choosing the best plan of action to resolve this matter.

When is a financial Audit Required?

2005-03-21T06:33:00.000-07:00

Note: To submit your questions please go to the "View Profile" link and email the question. To make a comment click on the comment link a the end of the article. Please use first names or initials only, and do not name the condominium project. Thank you!

Hi folks:

Does the condo corporation have to have an annual audited statement or simply a financial statement? There is quite a difference in price between both.

Hear from you soon.
R. G.

Answer

Dear R. G.

The answer to the question of whether a condominium corporation requires the financial records to be audited annually or not is found in the bylaws of the corporation. You will typically find this information in the bylaw section "Duties of the Corporation" or "Powers of the Corporation".

In the case where the bylaws do not require an annual audit it is advisable that the corporation have an independent financial review and report completed by a professional accounting service at their fiscal year end.

Should your corporation require an annual audit, be sure to follow the bylaws regarding selection of the Auditor.

Thank you for submitting your question to Betty's Condo Owners Club.

Bare Land Condominium

2005-03-16T20:33:00.002-07:00

Note: To submit your questions please go to the View Profile link and email the question. To make a comment click on the comment link a the end of the article. Please use first names or initials only, and do not name the condominium project. Thank You!

In a Saturday issue of the Calgary Herald earlier this Month, a number of "Buying Terms" were defined and the definition of a Bare land Condominium included the statement that "only the land is condominium". What does that mean?

In your article in the Calgary Herald on March 12th, 2005 you state that "In a bare land condo, it is possible for owners to be responsible for building repairs and replacement...". I assumed you meant that these owners could be totally responsible for building repairs and replacement for the building on their own unit if this is what the Bylaws provided for. Does this mean that a Condominium Corporation could walk away from its present obligations to maintain buildings on owner's units by changing their Bylaws to exclude this responsibility?

Regards,

J. E.

Great Questions J. E.

There is a lot of confusion out there about what bare land condominium is and who is responsible for what and this is not an easy concept to write about. I will try and answer these a clearly as I can.

Your first question - What does the statement mean "only the land is a condominium"?

The boundaries that determine the area of a unit in a bare land condominium are based on pins (stakes) in the ground, marking out the area of land that forms the condominium units, therefore the condominium is technically "land only".
these land areas become the units of condominium which are owned by way of a title,
all areas inside the land unit, including any buildings, are owned by the owner of the condominium unit of land and are the responsibility of the owner, subject to any restrictions registered against that title, or the condominium unit by way of a bylaw.

Question 2

...In a bare land condo, it is possible for owners to be responsible for building repairs and replacement. I assumed you meant that these owners could be totally responsible for building repairs and replacement for the building on their own unit if this is what the Bylaws provided for. Does this mean that a Condominium Corporation could walk away from its present obligations to maintain buildings on owner's units by changing their Bylaws to exclude this responsibility?

in all forms of condominium, including bare land, the Unit of ownership comes with a bundle of rights that is the same as any real estate that is owned in Alberta,
this bundle of rights gives an owner the right to rent their unit, to transfer it in their will and to do with it whatever they choose, subject to any restrictions registered on the title, or by way of a condominium bylaw, or a municipal bylaw.
in a bare land condominium anything contained inside the unit is the sole responsibility of the owner, provided there are no restrictions registered on the titles to the unit. By amending the bylaws the Corporation can transfer the responsibility for maintenance from the owners to the Corporation. They would require a 75% majority of the owners registered on title and representation of 7500 unit factors to do this. The corporation must maintain and continue to provide insurance for Directors and Officers and any property it owns, as well as the common property.

Although in a bare land condominium this flexability is available, I suggest the issue be investigated thoroughly, as the marketability of a condominium where there are no services can be impeded. This is not always the case, as in acreage condominiums, however, the vast majority of condominium buyers choose condominium living for the lifestyle and that means services. The other factor is in keeping the property clean, tidy and the buildings maintained. In a condominium the economies of scale factor can result in great savings to an owner. With the savings plan for capital repairs and replacement being a mandatory requirement this ensures the funds are available when major repairs are required. These are a few of the reasons that the majority of bare land condominiums have bylaws that give the corporation the responsibility to repair and replace the building exteriors. All these factors need to be considered when making such a big decision.

In short the key thing to remember is that in a bare land condominium the Act applies to the area inside the "lot of land" when it refers to a "Unit" and the building inside the "Unit" is part of that "Unit". The bylaws can transfer the responsibility for repairs, maintenance, control, and management of areas inside a Unit to the Condominium Corporation.

Should amending the bylaws be something your condominium corporation should like to pursue please contact us as we can provide consulting and bylaw amendment assistance. Contact us through the email address condocheck@shawbiz.ca.

Thank you for submitting your questions. I hope this makes things a little clearer.

BCOC

Is a PIG a PET?

2005-03-10T20:14:00.000-07:00

Note: To submit your questions please go to the View Profile link and email the question. To make a comment click on the comment link a the end of the article. Please use first names or initials only, and do not name the condominium project. Thank You!

Dear Betty:

We are managing a beautiful building which we took over last year. We had been hearing comments that someone had a pet pig and the pig was seen in the courtyard on several occasions.

Finally, the Board was able to track down the “home unit” where the pig resides.

Of course, the Bylaws are clear on what type of pets… pigs are not included.

The Corporation served notice on the owner to have the pig removed permanently from the premises as it is not an approved pet and quite a few people are appalled at this. The other day I received a call from an elderly lady who lives in the building and she said she was getting on the elevator and was sure she heard a “pig” snorting.

If the owner does not remove the pig, I guess we have no alternative but to take to legal action. Is this correct?

The last email I received was from a gentleman who lives next door to the pig and he basically said, “ If I wanted to live next door to a pig, I would have bought a Barn”.

And they wonder why property managers are stressed!

CM

Dear CM

In most bylaws "Livestock" are not permitted, whether purchased in a pet store or from a farmer. It would seem this is a clear bylaw infraction.

Remedies would range from the ability to fine the owner (if bylaws allow this) to filing an injunction with the Court of Queens Bench. I would suggest the Board request this "pig" be removed within 5 days (or whatever is reasonable) and follow with a fine and legal action if the owner insists on ignoring the pet bylaw.

You may want to check with the City bylaws as a PIG may fall under their rules of where livestock can be housed.

In any case I think the Pig will need to go. Be sure this owner is clear on what qualifies as a "pet" in future!

Thanks for sharing your adventure!

Titled Parking and Restrictions on Owners

2005-03-07T10:15:00.000-07:00

Note: To submit your questions please go to the View Profile link and email the question. To make a comment click on the comment link at the end of the article. Please use first names or initials only, and do not name the condominium project. Thank you!

Dear Betty:

A quick question regarding parking and our condominium bylaws. I am part of a condo board for a building in the Calgary downtown core. We have within our bylaws, under the Exclusive Use of Property section, the following section:

Article 8 - Exclusive Use Common Property section

8.5 Parking Stalls "Notwithstanding anything to the contrary hereinbefore contained the Board shall be at liberty to either allocate or approve and generally regulate the usage of any vehicular parking stalls which are common property, and generally regulate the use of the vehicular parking facilities in the Project to enable safe and orderly use of such parking facilities. Only Occupants may use parking stalls and storage lockers. Further, guests shall only use parking stalls and storage lockers in accordance with policies as established by the Corporation."

We currently have a number of unit owners who are of the opinion that it is within their right as owners of their titled parking stalls, that they allow non-residents to use their parking stalls, and remain within compliance of the bylaw. As each unit owner requires the use of a security pass to enter our building as well as the underground parkade, we the Board are concerned with:

a) non-compliance with the bylaw
b) security concerns due to strangers having access to our building and whatever floors the security passes allow them to access.
c) from a legal perspective, how much control does the owner of each titled parking stall to do what they want with the stall? For example, leasing or lending it out to non-residents.

As a Board, we are attempting to provide a consistent approach to this issue and are planning on taking the approach that the owner is:

a) in contravention of the bylaw
b) poses a security concern for the rest of the building

We are unsure of the legal side of things. Can you provide us with some thoughts on this for use in a discussion at our next board meeting?

D & T

Answer/Response

We are not lawyers so we can not give you a legal opinion or legal advice. The comments made here are from experience only and are in no way to be interpreted as legal opinion. Please seek the opinion of a condominium lawyer in this regard.

First we are assuming the parking areas are owned by way of a separate title, and are not exclusive use areas that are leased or assigned to the owners.

The bylaw section that you inserted in your question is with reference to common property that is exclusive use to specific owners.

Technically, titled parking stalls are "Unit" property and are not part of the common property. It is therefore reasonable for owners to interpret this as a section of the bylaws as it does not apply to their titled parking units.

Typically bylaws have wording that is specific to the rules regarding the titled parking spaces, and in many cases restrictions such as those you desire are also found as a restrictive covenant, registered on the title to the parking stall unit.

It has been our experience that in a situation where there are separate titles for the parking units and there is no restrictions in the bylaws or registered on the title itself, that the owners of these titles have the same rights as those that come with the residential units. In other words, the Condominium Property Act states that an owner can not be restricted from leasing out a unit in a condominium. This would include a parking unit or storage unit.

At best bylaws or a restrictive covenant can restrict these rights to lease the unit to someone who lives in the condominium property. Without this restriction being evident in the bylaws or restrictive covenant the Act would prevail.

If there is no restriction registered on the titles to these parking units then, it would be a suggestion to amend the bylaws to restrict the leasing of these parking stalls to owners in the condominium itself.

Regarding the application of the bylaw you quoted, we recommend that you seek a legal opinion to determine if the bylaw you quoted would govern the titled parking areas as well.

Thank you for submitting your question to Betty's Condo Owners Club.

Unit Factor Allocation & Mixed Operating Costs

2005-03-06T14:15:00.000-07:00

Question:

We are working with a developer to prepare preliminary budgets. One condominium plan; 94 townhouse units; 92 coach home units. The townhouse unit owners pay all utilities, except common area lighting (parking lot). The coach homes are 8 to 12 units per building with common heating. Surface parking is common to both types, as is grounds maintenance.
We have two budgets; one each for the two styles of buildings.

The question posed to us is how to weight the utilities components when the surveyor calculates the unit factors.

Have you encountered something similar? And, can you share any information?

Thanks for your help.

L. H. Property Administrator

Answer:

Here are two suggestions on how to handle this difference in the utility usage.

1. calculate the unit factors by using the total expense budget for the separate types of units instead of using the area.

i.e. determine the cost per unit per building type (total budget for townhomes / number of townhouses/12) and do the same for the coach homes. This number becomes the unit factor for the different types. Using this method the unit factors are the same for each unit in the townhouses or coach homes so this only works when the units are comparable in the amount of utilities each would use.

2. Use the approximate area as the basis for the unit factor allocation. To deal with the inequity in condominium fees put a formula in the bylaws stating how the operating costs will be allocated. (i.e. based on separate budgets for the different types of buildings)

The proposed bylaws will require this wording or a bylaw amendment would be required.

Just For Laughs !

2005-02-17T13:39:00.000-07:00

And we thought Condo Living had the corner on Rules!

Submitted thanks to BL

A sad fable.

In the year 2005, the Lord came unto Noah, who was now living in the United States, and said, "Once again, the earth has become wicked and over-populated and I see the end of all flesh before me. Build another Ark and save two of every living thing along with a few good humans." He gave Noah the blueprints, saying, "You have six months to build the Ark before I will start the unending rain for 40 days and 40 nights". Six months later, the Lord looked down and saw Noah weeping in his yard....But no ark. "Noah", He roared, "I'm about to start the rain! Where is the Ark?"

"Forgive me, Lord," begged Noah. "But things have changed. I needed a building permit. I've been arguing with the inspector about the need for a sprinkler system. My neighbor's claim that I've violated the neighborhood zoning laws by building the Ark in my yard and exceeding the height limitations. We had to go to the Development Appeal Board for a decision. Then the Department of Transportation demanded a bond be posted for the future costs of moving power lines and other overhead obstructions, to clear the passage for the Ark's move to the sea. I argued that the sea would be coming to us, but they would hear nothing of it.

Getting the wood was another problem. There's a ban on cutting local trees in order to save the spotted owl. I tried to convince the environmentalists that I needed the wood to save the owls. But no go! When I started gathering the animals, I got sued by an animal rights group. They insisted that I was confining wild animals against their will. As well, they argued the accommodation was too restrictive and it was cruel and inhumane to put so many animals in a confined space. Then the EPA ruled that I couldn't build the Ark until they'd conducted an environmental impact study on your proposed flood. I'm still trying to resolve a complaint with the Human Rights Commission on how many minorities I'm supposed to hire for my building crew. Also, the trades unions say I can't use my sons. They insist I have to hire only Union workers with Ark building experience.

To make matters worse, the IRS seized all my assets, claiming I'm trying to leave the country illegally with endangered species. So, forgive me, Lord, but it would take at least ten years for me to finish this Ark."

Suddenly the skies cleared, the sun began to shine, and a rainbow stretched across the sky. Noah looked up in wonder and asked, "You mean you're not going to destroy the world?" "No," said the Lord. "The government beat me to it."

anonymous

Buying a Unit

2005-02-15T15:34:00.000-07:00

Question:

One of my board members has a friend who is buying a unit which is managed by Gateway Management. Cannot find much on them for info and would like to know if you know how many buildings they manage and how long they have been around.

Thanks
C.M.

Answer:

Dear C.M.

Great question. Unfortunately, with privacy legislation this is not information that could be easily available. I would suggest you recommend to your friend that they have a document review done by Condo-Check, www.condo-check.com, once they have selected the unit they want to purchase. Contact Louise at (403)509-2462 in South Alberta and Brenda at 1-888-309-0377, or (403) 309-0378. A review of the condominium documents will provide your friend with the information they require to make an informed buying decision, including information on how the site is being managed.

An Owner's Concerns About a Conversion Condominium

2005-02-15T08:15:00.001-07:00

Hello,

Our building was turned back into condos after being a rental for over 20 years. The developer was the previous owner. He still has 3 units to sell out of 16. He turned the building over to a condo management company in November. Since then maintenance and other items have been becoming large issues with many of the owners.

My questions are as follow (and are in no particular order)

1. After a condo management company takes over, is it not suppose to call a meeting of the owners?

2.Whose responsibility is it to call a meeting of the owners and to elect a board of directors?

3. How and who is the condo management company being accountable to if there is no board?

4. What steps should we as owners be taking?

Thank you for your time on these questions.

Yours truly, S. S.

Answers:

Dear S.S.

1. After a condo management company takes over, is it not suppose to call a meeting of the owners?

The management company takes it's direction from the board of directors, who in this case is the Developer. The developer board is responsible for managing and maintaining the condominium property until such time as a board of owners is elected and the responsibilities are transferred to the owner board.

2. Whose responsibility is it to call a meeting of the owners and to elect a board of directors?

In the case of a conversion or for a new construction condominium the Developer, in compliance with the Condominium Property Act of Alberta, is to elect a board within a) 90 days from the day that 50% of the units are sold, or b) 180 days from the day that the first unit is sold, whichever is sooner.

The developer will either elect a developer board (this usually occurs before any units are sold) or call a meeting of the owners within the 90 to 180 day period and elect a board of owners. You will need to request a copy of the minutes of the meeting at which the developer board was appointed, or ask the developer when he plans to call the General Meeting to elect the owners board.

Once the developer elects a developer board, they are in compliance with this section of the legislation. This board, whether a developer board or owner board, is governed by the ACT, and the bylaws of the condominium corporation and is required to call a General Meeting and elect a board of owners within 15 months of the date the first board was elected.

3. How and who is the condo management company being accountable to if there is no board?

There is no point where "no board" exists, as technically the developer is the board until such time as he elects a board, and is responsible for the operation and management of the site to the same extent as if a board of owners were elected.

The management company is accountable to the board, whether a developer board or an owner board. Any concerns or questions you have as an owner should be taken to the developer.

The Management Contract is between the condominium corporation and the Management Company. If the contract is signed by the developer on behalf of the corporation the condominium legislation requires the contract to have a term of one year, allowing for renegotiation by the board of owners. This prevents the developer from binding the board to a long term management contract.

4. What steps should we as owners be taking?

Be in communication with the developer. Offer to stand for election to the board. Ask the developer to call the General Meeting as early as is possible, based on there being enough owners living on site to form a board. Inform the developer of your concerns over maintenance and ask for his plan to resolve this.

Keep in mind that it is best to be respectful as you express your concerns about the condominium. Remember, the developer wants to sell, and having happy owners and a clean and well maintained property is a great sales feature. I find most developers want happy owners and a property they can be proud of. Work with the developer to achieve that goal and the developer and all the owners will win in the end.

Thanks for your questions.

Betty

Distribution of Parking Stalls

2005-02-11T14:10:00.000-07:00

Dear Betty:

Question:

I live in condominium building and as a member of board of directors, president of the board turned to me with question regarding visitor parking stalls. There is 119 units in the building and I am wondering is there any legislation in place which determines what is the minimum of allocated visitor parking stalls and how I can find out about that, since we plan to rent some stalls to the residents because of violation and abuse of that property. Could you please find few moments to me help me out with this one (I know that you are extremely busy). Greatly appreciated for your time.

Answer:
There is no specific legislation regarding the distribution of visitor parking stalls. The Condominium Property Act required distribution of the common property to be fair and reasonable to all owners and occupants.

The Board of Directors would make this decision based on the need to be fair to all owners in distribution of these common property stalls. It is not uncommon for condominiums to charge for use of the 2nd parking stalls when there is a surplus of parking stalls or to create visitor stalls or a combination of both.

Faulty Fountain Causes Damage

2005-02-09T17:43:00.000-07:00

Dear Betty

Question:
I am having a situation with a condominium that I manage and I would like your perspective.
1.Homeowner A, installed a fountain in his unit, which was faulty.
2 . The fountain leaked and damaged the unit below, Homeowner B. had damage to her hardwood floor and drywall. Her policy covered her own personal contents.
3. The adjustor for the corporation has given opinion that the damage is less than $5000; so it is to be covered by the corporation.
4. The Bylaws were amended by a 75% of the ownership agreeing that the corporation did not have to cover betterments and improvements. Homeowner B bought her unit with the improvement of hardwood floors. These floors are common property according to the adjustor and the bylaws. The Board states that they should not have to cover this cost because the bylaws were amended. The point is that prior to the amendment they were covered by the corporation, how does this amendment apply to her unit?

5. If Owner A is part of the corporation can the corporation sue him for the damages? Is the corporation technically suing themselves by suing Owner A?

Answer:
The catch here is that the Condominium Property Act and Regulation in Alberta states that the corporation is responsible for insuring the unit, and the common property (under the condo insurance policy) which includes the floor, cabinets, ceilings etc. The difference to the corporation with improvements and betterments being the owners responsibility would mean that the cost difference between the upgrade to hardwood from the original floor material would be the responsibility of the Owner. The corporation would be responsible for the basic floor covering (before the improvement).

Having said all this, if your bylaws are drafted correctly the owner who caused the problem should be liable for all damage.

Regarding the question if a condominium corporations can sue themselves.

First, owners can sue the board but they need to realize the cost for the board to defend itself is paid from common expenses, this is why the statement "that they are technically suing themselves" is an important consideration before filing a suit.

Second, the Corporation can sue an Owner, but be aware that there have been cases where the court has ordered that the cost to the owner to defend himself and the costs for the corporation to prosecute can not be paid from the common funds, meaning the filing board members had to pay these costs personally when the suit filed was unreasonable.

In this case (the leaky fountain) the board (Corporation) would file a suit against the Owner who caused the damage. This is a reasonable course of action if this owner refuses to take responsibility after he has been notified. Possibly file in small claims court and have a board member represent the Corporation to keep costs manageable. The important thing here is to have the bylaw that supports that the owner is responsible for damage to the common property or unit property and the evidence that as a board you have been reasonable in dealing with this problem.

I hope this helps

Betty's Condo Owners Club

2005-02-02T18:30:00.000-07:00

Welcome to Betty's Condo Owners Club.

Betty's Condo Owners Club was created in February 2005 as a response to the experiences of Betty and her family; Bob her husband, Bruce her son, and Charlie the family dog. The whole story begins when Betty and Bob purchased their first condominium home in Southern Alberta, without investigating the details of the corporation.

"They were barely unpacked when they received a notice from the Board demanding that they part with Charlie, their dog of 12 years;their 21-year-old son, who, with only a few months of university remaining, could no longer live with them; their beloved flag, not allowed to be displayed on the patio; and the window-mounted satellite dish Bob loved so much. All had to go! The note went on to say that ignoring these demands would result in fines and a notice in the condominium newsletter informing their fellow owners that bob and Betty were troublemakers! It was signed, "Welcome to your new home - THE BOARD!"

The book 10 Secrets to Survivng Life in a Condominium (live the dream - not the nightmare) will be available in June 2005. This book was written by Bernie Winter, FCCI and Louise Challes of Calgary, Alberta. Bernie Winter has a 30 year history in condominium and is a recognized condominium specialist and a regular columnist for the Calgary Herald. Bernie & Louise are co-owners of Condo-Check - The Original Document Review Company, www.condo-check.com

We were motivated to write this book and create Betty's Condo Owners Club as a response to witnessing, as consultants, the many nightmares that arise when condominium Boards and Owners struggle with condominium living.

Our goal is to provide information, education and a forum for condominium owners, board members, industry professionals and anyone interested in the condominium industry to communicate with each other, ask questions and express their concerns.

We will provide suggestions and solutions to as many situations as we can. We invite stories, opinions and comment to this web log. We will restrict the live content to information that helps solve a problem, creates a new perspective or that provides constructive comment and will not allow this web log to be used as a place to use improper language, to vent anger, or to attack people or problems. There are many benefits when owners connect with owners and share their expereinces and this is the purpose of this Web Log. To support those who want to live the dream - not the nightmare.