Communal Living Properties
Communal living properties in Alberta fall into several categories, including condominiums, cooperatives, and community associations. These property types differ significantly in their ownership structures, governance models, and legislative requirements.
WHAT YOU'LL LEARN
Types of Communal Living Properties
Choosing the Right Property Type
Governance Structures
Key Distinctions
Understanding the Types of Communal Living Properties
Condominiums
Condominiums are regulated under the Condominium Property Act. Ownership in a condominium is divided into units owned by individuals and common property owned collectively by the unit owners as tenants in common. According to the Condominium Property Act, the corporation is responsible for managing and maintaining the common property.
Key Features:
Units are privately owned, while common property (e.g., hallways, parking lots, and recreational areas) is collectively owned.
A condominium corporation is automatically created upon registration of the condominium plan.
Governance: The condominium corporation is governed by an elected board of directors who manage the property in accordance with the Condominium Property Act, bylaws, and regulations.
Cooperatives
Cooperatives are governed by the Cooperatives Act. In a cooperative, members own shares in the cooperative rather than owning individual units. Members collectively make decisions and share responsibilities for
the property.
Key Features:
Ownership is share-based rather than deed-based.
Members lease their units from the cooperative, which collectively owns the property.
Governance: A cooperative board of directors oversees operations and is directly accountable to the members. Decision-making often involves greater member participation compared to condominiums.
Community Associations
Community associations are voluntary organizations that manage shared amenities, such as parks or recreation centers, in a specific geographic area. These organizations are typically not governed by specific legislation like the Condominium Property Act but are structured as non-profits.
Key Features:
Membership is often voluntary but may be mandatory if covenants are registered on title.
Primary focus is on maintaining community assets and organizing events.
Governance: A board of directors manages operations and funding, usually through member contributions or fees.
Applying Knowledge: Choosing the Right Property Type
To determine the most suitable communal living property type, consider the client’s needs and preferences. For example:
Scenario 1: A family wants to own their home but prefers shared amenities such as a gym or pool. A condominium is likely the best option because it offers individual ownership combined with shared facilities.
Scenario 2: A group of like-minded individuals wants to collectively own and manage their living space with equal decision-making power. A cooperative may be the ideal choice.
Scenario 3: Residents of a neighborhood want to manage and maintain a local park and host community events. A community association would fulfill this purpose.
Applying Knowledge: Governance Structures
Governance structures vary significantly between condominiums and cooperatives.
Condominiums
Under the Condominium Property Act, condominium corporations are required to adopt bylaws to govern the property. Bylaws must address:
The duties of the board and the owners.
Procedures for voting and decision-making.
Rules for using and maintaining common property.
Bylaws are enforceable, which allows corporations to impose sanctions, including fines, for bylaw violations.
Cooperatives
Governance in cooperatives is more democratic, with members often having equal voting rights. Bylaws are established under the Cooperatives Act and outline:
Membership rights and responsibilities.
Procedures for meetings and voting.
Rules for managing the cooperative’s assets.
Bylaw enforcement is typically less formal than in condominiums and relies on member consensus and internal resolution processes.
Comparison
Bylaw Creation: Condominium bylaws must comply with the Condominium Property Act, while cooperative bylaws are guided by the Cooperatives Act.
Enforcement: Condominium corporations have stronger enforcement mechanisms, including the ability to impose fines, whereas cooperatives rely on member participation and consensus.
Example Activity: Students will compare sample bylaws from a condominium and a cooperative, identifying differences in enforcement and decision-making processes.
Key Distinctions
Ownership structure: Condominiums combine individual and collective ownership, cooperatives use a share-based model, and community associations focus on voluntary membership.
Governance: Condominium corporations operate under the Condominium Property Act, while cooperatives follow the Cooperatives Act.
Decision-making: Condominiums rely on boards with formal enforcement powers, while cooperatives emphasize collective decision-making.
