Condominium Terminology
AGM (Annual General Meeting)
Annual General Meeting of all owners, and including any representative from any lenders who have executed their right to vote on behalf of a delinquent owner, and anyone holding “Power of Attorney” for an owner.
Audit (Notice to Reader)
Bylaws of a condominium may require the corporation to have an annual audit of their books, or a “Notice to Reader”, which is a review of the books by a qualified accountant that is not an “Audit”.
Bare Land Condominium
A condominium that is comprised of “Land”, where the boundaries of the “Units” join with the Common Property and are defined based on “Pins in the Ground”.
Board of Directors
Bylaws specify the number of owners required to be elected as the “Board of Directors” for a condominium corporation. The Board of Directors is responsible for the operation, management and control of the condominium, in accordance with the Condominium Property Act, Condominium Property Regulation and the registered Bylaws of the Corporation.
Bylaws
The Condominium Property Act of Alberta gives the Bylaws of a condominium corporation powers and responsibilities. The bylaws define the specific operation, the rights and responsibilities of the Board, and the Owners. For example, things like “Fines for breach of bylaw” is restricted to the wording of the bylaws. Bylaws are site specific and should be customized to support the requirements of the individual site. Bylaws are required to be registered on the condominium plan. This is done at the Land Titles Office, and shows up on the CAD.
To amend, repeal or replace bylaws, a special resolution is required.
“Breach of a Bylaw” is deemed to be a “Breach of Contract” as the Condominium Property Act of Alberta (ACT) provides that the bylaws are a contract between the owners and the corporation. The owners agree to live by he bylaws and the Board agrees to operate within the boundaries of the bylaws. When a breach occurs, legal action is required. Refer to the “Improper Conduct” section of the Act for information on how the courts are instructed to operate in the case of “Improper Conduct”.
(CADS) – Condominium Plan Additional Sheet
The Condominium Act Plan Additional Sheet (CADS) is created when a plan is registered and contains additional information affecting he corporation. The CADS is not a document that would typically be part of the disclosure documents. It is prudent for the listing agent to obtain a copy of the CADS through any land registry service by providing the seven-digit condominium plan number.
This document can contain information such as:
- When and if the bylaws were registered
- The address for service for the Condominium Corporation
- Any change in the Board of Directors
- Any encumbrances against the corporation such as builders’ liens, easements, redivision of units, etc, which are recognized in the Act as capable of being registered on the plan
The CADS is a tool that may identify any legal actions pending (or les pendens). Remember, when buying a condominium unit, the buyer inherits his unit factor share of the liability of the corporation, as well as any benefits flowing from membership in that corporation, i.e the potential for profit.
Cash Call
When the Corporation Operating Fund or Reserve is short for the expenses required, a cash call from the owners is one way that money is obtained to operate the property. Another term for “Cash Call” is “Special Assessment”.
Common Property
“Common Property is the area in the condominium plan that is not included in a “Unit”
Condominium Plan
The Condominium plan creates the legal units, the common property and a corporation. The owner literally owns the space created by the condominium plan. The owner owns the unit and a share in the common property (represented by the unit factor). The condominium plan shows the unit factors and area of each unit, the legal unit number, what is contained in the unit area and the responsibilities. I.E. parking, basements, storage.
Condominium Property Act & Condominium Property Regulation
The Condominium Property Act of Alberta and Regulation govern all condominiums in Alberta.
Conventional Condominium
Conventional – boundaries of the unit with the common property that are based on space within a building.
Conversion Condominium
A condominium that was created from an existing building that was owned by one personal, or a group of people that operated the property as a rental property, before the individual units were sold.
Corporation
The Corporation is created when the condominium plan is registered. The Corporation is responsible for the business of the Condominium, in compliance with the Condominium Property Act and the Condominium Property Regulation and the registered bylaws.
Deficiency
A deficiency can be a structural or maintenance item that has a problem or it can be a shortfall in the reserve or operating fund of a corporation.
Deferred Maintenance
Maintenance that the Board of Directors is aware of that is being deferred (delayed) to a future date.
Developer
Any party that is representing the sale of a condominium unit to the public for the first time.
Documents
Section 44 of the Act states:
“On the written request of an owner, purchaser or mortgagee of a unit the corporation shall, within 10 days of receiving that request, provide to the person making the request one or more of the documents listed under this section of the Act, as requested by that person.” These include the operating budget, financial information, minutes, insurance certificate, engineering reports, etc.
Engineer Reports
Engineers Reports can be for a variety of reasons – structural drainage, etc. These reports give detail to projected costs that may arise due to structural or preventative maintenance programs for items such as post tension cables, brick veneer problems, etc.
Estoppel Certificate
The Estoppel Certificate is requested by the seller’s lawyer during the final stages of the transaction. The Estoppel Certificate certifies any amounts owing to the condominium corporation on behalf of the unit being transferred. An Estoppel Certificate does not automatically have a zero ($0.00) balance. An amount outstanding, shown on this Certificate, will transfer to the buyer unless it is negotiated during the sales process.
It is suggested that when you write the contract that you give the lawyer instructions that any outstanding special assessments are to be paid by the selling owner.
Exclusive Use Areas
An exclusive use area is an area where the owner of a unit is given the exclusive right to use a part of the common property such as parking, balconies, decks, storage lockers, some back yards, etc. This is sometimes referred to as a “Privacy” area.
When an area is deemed to be exclusive to an owner, the only person(s) who can access that area is the Owner to whom it has been deemed exclusive and the Board members of the Condominium Corporation.
Exclusive use areas are often referred to as Privacy Areas and can be assigned or leased to an owner of a unit under certain conditions under the Act.
Insurance Certificate
The insurance certificate will provide the details regarding he amount of coverage, the public liability for the common areas, the directors and officers liability, the deductible scheme and the name of the policy holder. It is prudent to suggest that an owner place his policy with the same provider as the corporation policy. This simplifies the process in the case of a claim.
Lease of Common Property (also referred to as a license)
When an exclusive use common property area is leased to an owner, then that specific area is required to be delineated and notified on the condominium plan. When the plan qualifies, the lease may transfer with the sale of the unit. It is important that the lease agreement is signed and sealed by the corporation and that it states in the lease that it is transferable. This document will typically apply only to conventional and barely blended condominiums; however, there may be exceptions to this.
Legislation
The Condominium Property Act and the Condominium Property Regulation.
Managed Property
In a bare land condominium, the area contained inside the boundary of the unit such as building exteriors, driveways, walkways, decks and patios may be deemed to be Managed Property and therefore must be treated as common property that is exclusive use. Restrictions in use of these areas apply to the same extent as if these areas were shown as common property on the condominium plan.
Mediation / Arbitration
A service that enables the orderly management of a dispute. The Condominium Property Act support mediation as a choice for dispute resolution as an alternative to taking court action. Mediation is a process that often leads to a remedy or solution that is best for all parties involved in the condominium.
Minutes of Meetings
The minutes of the Annual General Meeting (AGM) gives the purchaser a snapshot of the past year and report on the financial standing of the corporation. The Board meetings, if requested for a year, will give a snapshot of the current issues at hand.
Operating Budget
The Operating Budget details the items required to provide the service and maintenance of the project. This budget is prepared on a yearly basis. The owner’s contributions are based on this budget. The owner’s typically receive a copy of this budget with the notice of their contribution amount for the upcoming year.
Owner
Person(s) recorded on the Title to the legal unit in a condominium plan.
Owner’s Contributions
The portion of the individual unit costs that are required for the corporation to operate and maintain the buildings and the services desired by the owners.
Parking Lease
Refer to Lease of Common Property above.
Policies & Procedures
Policies and Procedures are the methods in which the project is operated, managed and administered. A policy is established by the Board of Directors to provide the detail in operating in accordance with the bylaws and the Condominium Property Act and Regulation. Example: Bylaws may state that an occupant may have a pet with the approval of the Board of Directors. The policy would detail what criteria the Board then bases its decision on, when a request for permission to have a pet is received. Policies & Procedures are voted on at the Board level and can change with a simple majority vote of the Board.
Positive Cash Flow
Means that the operating and reserve accounts have a positive balance and enough money saved (in reserve) for capital expenses planned for the next three to five years.
Property Management Company
The Management Company provides a service to the Board of Directors based on a contract. The contract would provide details to the degree of professional management – full service, partial or self.
Property Manager
The person that the Property Management Company assigns to the condominium project. That person becomes the contact for the owners, and the person responsible for the administration of the project, based on he direction given by the Board of Directors.
Real Property Report (RPR)
A Real Property Report (RPR) is required in order to verify the location of the building(s) within the boundaries of he bare land unit and to deal with any encroachments that may exist. It is prudent for the developer to provide the buyer with a copy of the RPR for the unit they have purchased.
Recreation Agreement
A Recreation Agreement only exists for a corporation that utilizes recreational amenities that are located outside the boundary of the condominium plan.
Redivision Plan
Also referred to as “Barely Blended” – units that have been created by registering a plan of re-division of a bare land unit where the plan of re-division creates smaller units. The boundaries of these units are defined based on space within a building, or as pins in the ground, in the case where new bare land units are created.
Reserve Fund Study and Plan
A Reserve Fund Study and Plan provides information to a Board of Directors and the Owners on the current condition of the Capital Items on the site. i.e.: roofs, landscaping, walkways, security systems, etc. The Reserve Study and Plan provides a perspective on the long-range financial plan for the corporation. This document will provide the information on whether the corporation is budgeting for the replacement of windows and doors.
The “Study” is the report based on the visual inspection.
The “Plan” is the cash flow projections, based on the inspection report.
Restrictive Covenant
A Restrictive Covenant, registered on the Title to the unit or on the CADS will contain information specific to that unit. A restrictive covenant can contain a variety of things, from restricting the sale of a parking unit to owners of a residential unit in the corporation or to restrict age, or satellite dishes or pets, or protect the corporation’s interest when an owner is delinquent on the condominium contributions.
There is no way to know what is contained in a restrictive covenant other than to read it.
Restrictions in Use
The Condominium Property Act allows restrictions to be registered directly on the condominium plan, or by way of the bylaws. These restrictions can include things such as pet restrictions, satellite dish restrictions and age restrictions. It is important to note that any restriction registered on the condominium plan require the plan to be amended in order to change the restriction. This would require 100% of the owners to agree in order to make the amendment along with a court order. Amendment of bylaws require a Special Resolution of the owners.
Rights and Responsibilities
These are defined in the Bylaws of the Corporation and the Condominium Property Act.
Rules and Regulations
In addition to the bylaws, may corporations have “Rules & Regulations”. These are not legally enforceable in the same capacity as bylaws. They do provide for clarity on expectations. For example: no one under the age of 12 allowed in the pool without an adult in attendance. It is best to include such a rule in the bylaws.
Self Managed
Owners are managing the day-to-day operations of the condominium corporation.
Size / Area of the Unit
The registered size of the condominium unit is shown on a condominium plan. You will find the description of the basis for the boundaries in the notes on the legend and the total area in the schedule along with the legal unit number and the unit factor for the specific unit.
Special Assessment
When the Corporation Operating or Reserve Fund are short for the expenses required, a “Special Assessment” from the owners if one way that the money is obtained to operate the property. Another term for “Special Assessment” is “Cash Call”.
Special Resolution
The Condominium Property Act has specific criteria under which the Owners of a condominium unit may pass a resolution to amend, change or repeal the bylaws or change the use of common property (when applicable).
Strata Plan
Terminology for a condominium, governed by the British Columbia Strata Act. Strata plans do not exist in Alberta, in relation to a condominium.
Unit
The legal unit is the area individually owned. The title of a unit in a condominium has the same bundle of rights as any other titled property in Alberta.
The legal unit number is listed in the schedule on the front page of the condominium plan along with the unit factor and area of the unit.
Unit Factor
In Alberta, the Unit Factors are based on a total of 10,000 Unit Factors for a Condominium Corporation.
The Unit Factor assigned to the individual unit represents the owners undivided interest share (ownership) of the common property of the Condominium Corporation. The Unit Factor determines the owners voting rights as well as the portion of the operating budget or any special assessment owners are required to contribute, unless bylaws state otherwise.
Unit Title
The title can contain only one Unit, therefore a title to a parking Unit cannot be combined in the title to the residential Unit. The title to a condominium unit has the same bundle of rights hat comes with any land registered as fee simple land under the Land Titles Act of Alberta. To identify if the owner named on the title has interest in any additional titled areas in the condominium, refer to the linc number on the title.
Each unit in a condominium plan has a title. The title contains the legal description for the individual unit including the legal unit number, the unit factor (share out of 10,000) and the condominium plan number. | 
