Rules and regulations of condominium living

New disclosure requirements in the Condominium Act provide owners with more information than ever, but all of this information can quickly become overwhelming. What are all these documents and why are they necessary? The following is an overview of the rules and regulations governing condo living.

CONDOMINIUM DECLARATION

The declaration is like the constitution of a condo. It provides information regarding each suite’s boundaries and its share of common expenses expressed as a percentage of the total budget. The declaration also describes any recreational facilities and how they will be used. It can also contain restrictions on the use or occupation of the units and common elements. A review of the declaration will tell you exactly what you are buying into.

A declaration can only be changed if more than 80 per cent of the owners agree to the change. This makes subsequent changes to the declaration not only difficult, but rare.

BY-LAWS

By-laws control how condominium corporations are run. They outline the qualifications of condominium directors, their remuneration (if any), and the quorum necessary for a meeting. The by-laws can also outline when and how the condominium can borrow money. This is important if there is ever a special assessment levied. As an alternative to a special assessment, the condo may be able to borrow funds if allowed in the by-laws, rather than make up any shortfalls from the unit owners.

By-laws can be passed, appealed or amended by the board of directors. Before becoming effective, by-laws must be approved by a majority of the units of the corporation and registered with the land registry office.

CONDOMINIUM RULES

The board of directors can also make, amend or repeal rules. The rules govern the safety, security and welfare of the owners and the property or assets of the corporation. They typically prevent unreasonable interference with the use and enjoyment of the common elements or units.

It’s common for the rules to prevent owners from renting out their units for short periods of time (i.e. Airbnb) or restrict visitors’ use of the common elements. It is also increasingly common for the rules to limit the number and/or size of pets allowed in the building.

The rules can vary greatly in each condominium, so even if you are familiar with condo living, it’s important to review the rules in each building you consider. The rules impact lifestyle choices, which while not legal issues, should be considered carefully as they can have a large impact on your day-to-day life.

STATUS CERTIFICATE

Perhaps the most important document you’ll receive is the status certificate. This document gives buyers specific details around the financial and legal circumstances of the condominium building. A status certificate will include information regarding increases in common expenses, law suits against the condominium corporation and any upcoming large expenditures for repairs.

A status certificate will also have information about the individual condo unit. It indicates if the current owner is in default of paying common expenses, and if any increase in common expenses has been declared by the condominium board.

While sifting through these documents may seem overwhelming, careful review of the rules and regulations governing your condo could save you a lot of time and unexpected cost down the road. You should also seek the advice of a real estate lawyer and accountant who can point out abnormalities or possible red flags.

Perhaps the most difficult part of writing these articles relates not to the actual writing, but thinking of a topic to address. So help us! Mail, deliver or email letters to the magazine or to us via www.schwarzlaw.ca or by email to info@schwarzlaw.ca and give us your questions, concerns, critiques and quandaries. We will try to deal with them in print or electronic form.

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