Overview of Condominium Management Agreements
A condominium management agreement defines the relationship between the condominium corporation and the licensed condominium manager. It specifies:
Scope of Services: Property maintenance, financial management, record-keeping, and bylaw enforcement.
Compensation & Fees: Payment structure and service costs.
Contract Duration: Fixed-term vs. month-to-month agreements.
Termination Clause: Conditions under which the contract can be ended.
CPA Requirements for Management Agreements
Mandatory Elements in a Management Agreement
Under Alberta’s Condominium Property Act and Real Estate Act Rules, a valid condominium management agreement must include:
Names & Contact Information: Of both the condominium corporation and the licensed management company.
Service Scope: Clear descriptions of the manager’s responsibilities, such as budgeting, maintenance coordination, and enforcing bylaws.
Fee Structure & Payment Terms: Transparency regarding how the manager is compensated.
Record-Keeping Obligations: Managers must maintain accurate financial records and meeting minutes.
Termination & Renewal Provisions: How either party can terminate or extend the contract.
Reviewing an Interim Board’s Contract with a Condominium Manager
When an interim board is in place, its management contract should be reviewed before the elected board assumes control. This process ensures:
The terms of the agreement protect the condominium corporation.
The fees and services align with market standards.
The contract does not unfairly favor the developer or management company.
Key Steps to Apply CPA Regulations to Review Contracts
Step 1: Check whether the contract includes all mandatory provisions as per CPA and Real Estate Act Rules.
Step 2: Identify any clauses that limit the condominium corporation’s ability to change managers.
Step 3: Confirm that financial arrangements are transparent and reasonable.
Step 4: Ensure that termination rights allow flexibility for the elected board to make changes.
Analyzing a Condominium Management Agreement for Compliance
A condominium manager must analyze whether an agreement meets CPA and Condominium Property Regulation standards by evaluating the following:
Contract Element | Potential Issues |
Scope of Services | Vague or missing responsibilities |
Fee Structure | Hidden or excessive fees |
Termination Clause | Unreasonably long contract periods |
Record-Keeping | Lack of access to financial records |
Contract Element | Compliance Check |
Scope of Services | Clearly outlines duties such as financial reporting, maintenance, and bylaw enforcement |
Fee Structure | Transparent breakdown of costs and payment schedule |
Termination Clause | Provides fair exit options for the condominium board |
Record-Keeping | Manager must keep and provide financial records to the board |
If an agreement does not align with CPA requirements, the condominium manager should recommend amendments or renegotiate terms with the new board.
