Understanding Key Definitions in Condominium Management
Understanding these key definitions is essential for property managers, board members, and residents to ensure clear communication and informed decision-making.
WHAT YOU'LL LEARN
Key Definitions from the Condominium Property Act
Structure and Responsibilities of a Condominium Corporation
Responsibilities Related to Common Property Management
Scenario Application
Key Definitions from the Condominium Property Act
Condominium Corporation: A condominium corporation is created upon the registration of a condominium plan at the Land Titles Office under the Condominium Property Act. The corporation consists of all owners of the units included in the plan. The purpose of the corporation is to manage and maintain the common property and enforce the condominium bylaws.
Condominium Unit: A condominium unit refers to a specific portion of the condominium property that is individually owned and described in the condominium plan. Each unit owner has a proportional share of ownership in the common property based on their unit factor.
Common Property: Common property is defined as all parts of the parcel, except the units, that are shared by all unit owners. This includes elements such as hallways, elevators, lobbies, and mechanical systems, which are maintained by the condominium corporation.
Structure and Responsibilities of a Condominium Corporation
A condominium corporation is structured as a legal entity governed by a board of directors elected by the unit owners. The board’s role is to manage and oversee the corporation’s operations, including maintaining common property, enforcing bylaws, and preparing financial statements.
Structure of the Condominium Corporation:
The condominium corporation is governed by its bylaws, which are filed as part of the condominium plan.
The board of directors is responsible for the day-to-day management of the corporation, as described in the Condominium Property Act.
“The powers and duties of the corporation must, subject to the bylaws, be exercised and performed by the board of the corporation.”
Responsibilities of the Board of Directors: The board is responsible for:
Administering common property.
Preparing an annual budget and financial statements.
Levying and collecting contributions (condo fees).
Hiring contractors for maintenance and repairs.
Ensuring compliance with bylaws.
“The corporation has a duty to control, manage and administer the real and personal property of the corporation, including the common property, for the benefit of the owners.”
Responsibilities Related to Common Property Management
The intersection of a condominium corporation’s responsibilities and common property management is critical for maintaining the shared spaces and ensuring compliance with the Condominium Property Act.
Corporation’s Responsibilities:The condominium corporation is responsible for repairing, replacing, and maintaining the common property unless the bylaws specify otherwise.
Unit Owner’s Responsibilities:Unit owners must comply with the bylaws and ensure they do not damage or misuse the common property.
Scenario Application
Scenario 1: An owner accidentally damages the elevator in the building.
The corporation is responsible for repairing the elevator as it is part of the common property. However, the owner may be held liable for the cost of repairs if it is proven they caused the damage intentionally or through negligence.
Scenario 2: The condominium board identifies that the HVAC system requires repair.
The board must arrange for repairs and collect the associated costs through the condominium budget.
