Share |

Condominium Terminology Explained

BOARD OF DIRECTORS
A board, elected in accordance with the Condominium Corporation Act and By-laws, that consists of 3 persons or a greater number for a period of 3 years or less as specified by the by-laws.
BY-LAWS
Standard rules regarding a condominium corporation's internal operations that involve governing, establishing procedures, borrowing, remuneration for directors and other regulatory matters.
COMMON AREA
The area used by two or more tenants, and/or third parties, which is not under the control of any one tenant, ie, lobbies, corridors, stairways, elevators, washrooms in lobby area.
COMMON ELEMENTS
The boundary of a unit described as the outer edge. The exterior brick or door identifies the commencement of common elements which are regulated by the Board of Directors of the Condominium Corporation or authorized manager. One or more owners may have exclusive use of selected common elements, such as parking spaces or lockers.
COMMON EXPENSES
A term used with the cost of operating, managing, maintaining and repairing the common elements including administration. ie., bulk measured utilities, maintenance and capital expenditures
**Note: Payment of these expenses can be enforced by a lien registered against the defaulting owner's unit.
CONDO FEES
Each unit owner is responsible for a proportionate share of common expenses relating to common area and common elements and reserve fund. As a guideline, the allocation of ownership and responsibility for common expenses are in direct proportion to the unit size in relation to the total size of all units.
CONDOMINIUM
Each owner holds title to a specific unit as well as owning a share of the common property. A condominium may be an apartment, a row of townhouses, a detached or semi-detached unit or a vacant lot.
DECLARATION
The constitution of the condominium that effectively creates the condominium and sets out the responsibilities of the owners and the corporation.
PROPERTY MANAGER
The property manager handles the day-to-day running of the condominium, such as hiring of staff, maintenance and repairs. The property manager is under contract to the condominium corporation. A representative from the property management company usually attends board meetings. Some condominiums may not have a property manager. These are sometimes referred to as self-managed condominiums. The Board of Directors, with the help of volunteers, will assume responsibility for the day-to-day management in these cases.
RESERVE FUND
A fund set up by the condominium corporation as a special account, in trust, for major repair and replacement of common elements and assets of the corporation. i.e., roofs, exterior finishes, sidewalks, electrical, heating and plumbing systems, and recreational/parking facilities
RESERVE FUND STUDY
A study to determine whether the amount of money in the fund and the amount of contributions collected, to date, are adequate.
RULES
Directions and regulations developed by a condominium corporation that promote the safety, security, and welfare of owners, property, and assets of the corporation, and prevent unreasonable interferences with the use and enjoyment of common elements.
SPECIAL ASSESSMENT
When a condominium incurs expenses for projects or repairs that have not been budgeted for, the individual homeowners are assessed for the cost of the repair or the intended project.
A well run and maintained condominium rarely has the need for special assessments.
STATUS CERTIFICATE
A document containing information regarding the operational, legal and financial dimensions of the condominium corporation.
The information contained within this document is vital from a buyer's perspective.