Condominium concept: governance overview

Condominium refers to a type of home ownership, whereby an individual acquires ownership of a unit, together with an undivided ownership interest in the common elements of a Condominium Corporation. Condominiums are regulated under an act of the Provincial Legislature (The Condominium Act, S.O.2001). Each Condominium Corporation has a Declaration, By-laws and Rules and Regulations which govern the use of the units and the Common Elements. Every owner is obligated to comply and require all members of his family, residents, guests, visitors, tenants, invitees, and all licensees to his unit to comply with these documents and with the Condominium Act.

The Board of Directors wishes that all owners and residents have a clear understanding of what is involved in condominium ownership and lifestyle. Owners and residents should understand the rules and regulations that govern the condominium.

When you buy a unit in a condominium you are buying your own home, with one major difference: all owners share the common elements and consequently they must all pay for the maintenance and repair of these common elements. Owners, however, shall not repair or modify the common elements except where he or she is obligated to do so by the Declaration. Common elements include all the property other than the units, including the garage, lobby, recreational facilities, hallways, exterior building face, etc. The balconies, terraces, and patios are defined as common elements for the exclusive use of the adjoining residential unit and are subject to the rules and regulations governing their use.

This joint ownership also means sharing of costs. The cost of necessary services, repairs and improvements is borne by all owners in proportion to their ownership interests of the common elements, as defined in the Corporation’s declaration. For this purpose, the Board of Directors must establish an annual budget with each owner being responsible to pay on the first day of the month, that month’s portion of the annual common expense fee for his or her unit as stipulated by the budget. If fees are not paid promptly, legal steps may be taken to secure the Condominium Corporation's interests and all costs, or charges resulting, must also be paid by the owner.

The declaration is like a constitution for the governance of the Condominium. It defines the ownership of the property which is individually owned (the unit), and the property which is shared and jointly owned (the common elements).

The by-laws are regulations for the Corporation to govern its own meetings and affairs. By-laws are established by the Board of Directors of the Corporation and become effective following confirmation by at least 51% of the homeowners. By-laws must then be registered at the Land Registry Office.

Rules are developed by the Board of Directors of the Corporation. They must be reasonable and consistent with the Condominium Act, the Declaration, and the By-laws. New rules become effective thirty days after notice has been given to each owner (unless the Board is in receipt of a requisition in writing, made by owners who together own at least 15% of the units, requesting a meeting of owners to consider the changes).

The rules and regulations have been developed to:

• Promote the safety, security, and welfare of all owners, residents, and guests.

• Provide an atmosphere of quiet enjoyment for all residents and guests.

• Provide for the protection of all property.

The Condominium Act requires the Board of Directors to enforce the rules and by-laws of the Corporation. However, the obligation to report infractions is the responsibility of all residents. Infractions should be reported in writing to the Property Management or to a board member, to ensure that the appropriate action is taken. Any and all losses, costs, or damages incurred by the Corporation by reason of a breach of any provision in the declaration, by-laws, and/or rules and Regulations of the Corporation in force by any resident or guest, will be paid for by the respective unit owner and may be recovered by the Corporation against such owner in the same manner as common expenses.

Your legal counsel should provide you with your declaration, by-laws and rules when you take possession of your unit. Please contact Property Management if you do not receive a copy. Most documents are posted on the BuildingLink platform and management may charge a fee for additional document requests.