Condominium Property and Residential Tenancies Acts

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Condominium Property and Residential Tenancies
Acts

• Barbara Grodaes

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Condominium Ownership

• Each owner holds a private ownership (fee simple
  title or leasehold) in his or her own unit and
  group ownership (an undivided interest) in all
  non-unit or common property managed by the board
  of managers of the condominium corporation

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Ad/Disadvantages

• Economical form of property owner-ship
  (residential and commercial)
• Private ownership in areas where land values or
  construction costs would make this prohibitive
• Lifestyle alternatives (amenities)
• Recreational amenities

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Target Market

• Single people, childless and/or professional
  couples and retired people
• First time buyers
• Investors

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Types of Development

• New (completely planned and offered for sale as a
  condominium)
• Converted (existing apartment block or townhouse
  development converted to a condominium note
  even though building may be old, is treated as
  new sales)

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Possible Legal Registration

• Conventional (no subdivision of land)
• Bare Land (units are the building lots)
• Re-divided Bare Land (e.g. existing apartment
  allowing re-division of a unit to include common
  areas
• Strata Lot (3 dimension air)
• Phased (developer registers in phases)

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Types of Structures

• Townhouse, stacked townhouses, duplex, midrise
  apartment, highrise apartment, single-family,
  bare land, leasehold, mixed use condominiums
• Commercial condominiums
• Industrial condominiums
• Time Share Ownership

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Condominium Property Act

• Requirements for the creation and registration of
  a condominium plan are specified in the Act and
  further described in the Regulation

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Creation of the Plan

• Developer buys land
• Developer prepares drawings and obtains all
  permits
• At completion of framing surveyor prepares plan
  outlining particulars and required documentation
  included
• Plan registered at Land Titles Office

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Unit Factors

• Every condominium in Alberta has 10,000 unit
  factors
• Developer assigns unit factors according to
  proportional size of unit
• Used to determine unit share of common expenses,
  units voting rights and distribution of funds on
  termination

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Condominium Corporation

• Two main purposes) mini-government
• Allows people to live harmoniously in close
  proximity sharing common property minimum
  inconvenience
• Provides maintenance of the common property which
  protects investments and enhances property value.

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Bylaws

• In conjunction with the Act, bylaws state how the
  business of the corporation shall be carried out
  and give the corporation the necessary power to
  do the business required.
• Detail the owners obligations as well as the
  Board of Directors

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Voting Rights

• At a general meeting, most voting is done by a
  show of hands with each unit owner having one
  vote
• A poll may be demanded, each owners vote is
  weighted according to unit factor
• Lender for unit may have voting priority

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Special Resolutions

• Anything that involves changing the bylaws or
  purchasing property re-quires a Special
  Resolution
• Passed at properly convened meeting or agreed to
  in writing by a majority of not less than 75 of
  persons entitled AND not less than 75 of total
  unit factors for all units

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Board of Directors

• Board elected to administer the business of the
  corporation
• Bylaws outline how the board is elected and how
  it functions
• First meeting of owners must be held within 90
  days after 50 of the units are sold or within
  180 days of when first unit is sold

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Duties of the Board

• Annual general meetings once per year and within
  15 months of previous
• Collect owners contributions, administer
  affairs, repair and maintain common property,
  obtain insurance, set budget and issue financial
  statements
• Issue estoppel certificates and supply information

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Estoppel Certificate

• Legal document that certifies
• Current monthly condominium fees
• Date fee is payable each month
• Whether or not there are any arrears
• A specific bylaw (described fully) is in default

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Condominium Fees

• Condominium corporation sets budget and
  calculates monthly fees
• Budget amount/12 months x unit factors per
  unit/10,000 monthly condominium fees for unit
• Maintain Capital Replacement Reserve Fund and
  Condominium Insurance

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Formulas to KNOW!

• Unit factor sq.ft (m2) total sq. ft.
• Monthly annualcondo fees
  uf budget 10,000 12

X 10,000
X
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Capital Replacement Reserve

• Reserve fund is to provide money for the repair,
  replacement or improvement of property owned by
  the corporation and common property when this is
  not a yearly occurrence
• Reserve Fund Study (study for 25 years, plan is
  only good for 5 years)

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Condominium Management

• Self or Professional management
• Financial
• Supervision and maintenance
• Administrative and communications
• Board chooses to handle none, some or all of
  these duties

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Rental of Units

• Unit owner may rent unit, and
• must give notice to the corporation of intention
• must indicate amount of rent charged
• must provide address for service
• must give occupancy/vacate notice (20)
• Security deposit may be required

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Use and Occupancy Bylaws

• Most bylaws contain these restrictions (living
  together rules)
• Such as pets being allowed, balcony furniture,
  visitor parking, rules about parties, etc.
• Exclusive Use Areas granting owner to right of
  certain common property

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Real Estate Transaction

• Realtor must be careful as there are more
  intangible and legal implications to a
  condominium transaction
• Extensive documentation must be gathered and
  examined
• Resales differ from new sales
• Complexity increases for disclosure

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Residential Tenancies Act

• This Act applies to the rental of residences such
  as houses, apartments, duplexes and rooms or
  suites in a house or rooming house
• Both parties must conduct them-selves in
  accordance to the Act and both have
  responsibilities to one another

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Tenancy Agreement

• Agreement between a landlord and a tenant for the
  renting of residential premises
• Referred to as a Lease, Rental Agreement or a
  Tenancy Agreement
• Either periodic tenancy or a fixed term tenancy

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Breach of Tenancy Agreement

• Substantial breach occurs if a tenant does not
  fulfill any one of the tenants covenants or if a
  tenant commits a series of breaches of the
  agreement

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Remedies of a Breach

• Apply to Court to terminate the tenancy and/or
• Give the tenant 14 days notice of termination of
  the tenancy
• Notice must be in writing, with reason, time and
  date tenancy ends stated and be signed
• To object, tenant must explain in writing within
  14 days

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Termination of Tenancy

• Acceptable reasons to terminate
• Landlord or relative wants to move in
• Selling premises and Buyer notifies
• Intends to demolish building
• Intends to re-rent for non-residential
• Intends to do major renovations

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Amount of Notice Required

• Proper legal notice by either landlord or tenant
• Week to week one tenancy week
• Month to month 3 full tenancy months (1 for
  tenant)
• Year to year 90 full days prior to last day of
  year (60 for tenant)

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Accommodation Inspection

• Accommodation Inspection Report is a written
  document of the condition of the premises at the
  beginning and at the end of the tenancy
• This ensures tenant not be charged for damage
  present on move-in

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Security Deposit

• Money paid as security for the performance of
  obligation
• Tenant not held liable for normal wear and tear
• May not exceed one months rent
• Deposited in interest-bearing trust account and
  normally paid annually

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How to treat Security Deposit

• lt one month rent
• Initial inspection (Report)
• Deposit in trust within 2 days
• Return within 10 working days
• Verify deductions (damages)

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Increases in Rent

• Landlord must give tenant written notice of an
  increase in rent at least 90 days prior
• Increases may not occur more than twice a year

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Entry

• Landlord may enter
• If there are reasonable grounds to think there is
  an emergency, or
• Reasonable grounds that the premises have been
  abandoned
• After giving proper notice (24 hours prior to
  entry (8am-8pm)

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Locks

• Neither landlord nor tenant may change the locks
  on any premises without mutual agreement. If
  changed, a key must be immediately provided
• Tenant may add security device capable of being
  used while inside

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General Information

• Tenant is entitled to assign a sublet of rented
  premises unless tenancy agreement prohibits or
  limits
• Usually specified that the landlord must provide
  written consent not reasonably withheld
• Refer to Landlord and Tenant Advisory Board for
  advice

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Real Estate Transaction

• Listing contract includes a section in the
  Appendix to deal with rentals
• Realtor to get all relevant details at the time
  of listing
• Understanding this Act will help Realtor smoothly
  and better serve the client and manage
  transaction effectively