Living in a Condo

Groups of condo units are required to be set up as condo corporations. The corporation is responsible for running the condominium. It maintains and pays taxes on the common areas. Owners must allow the corporation access to their unit if it is needed to repair or maintain a common area. In this case, the condo corporation must give the unit owner 24 hours’ notice.

The condominium corporation is also responsible for insuring much of the condominium property. The corporation must have insurance that covers all the units and the common areas against things like damage caused by fire, wind or hail. However, owners need their own insurance for things specific to their units. Owners can ask for a copy of the corporation’s insurance policy. That way, they can ensure that their individual insurance package provides adequate coverage.

The corporation can make rules, called bylaws, setting out how the condominium operates. Bylaws deal with the management of the condo, as well as the use of common areas and individual units. Owners are entitled to see the bylaws.

When a condo corporation is first created, there are bylaws that apply automatically. These initial bylaws are set out in Part II of the Appendix of The Condominium Property Regulations. They are in place until a condo corporation decides to change them or make its own bylaws. The initial bylaws have all the basics that a condo corporation needs to operate. This includes rules on voting and condo boards, as well as requiring owners to not:

• cause a nuisance or a hazard
• make excessive noise
• do anything that could increase the insurance premiums the corporation has to pay
• block any path, driveway or parking areas
• leave things in the common area
• display anything the board considers unsightly if it can be viewed from outside the unit

The condo corporation can pass a bylaw or change a bylaw at any meeting of the owners. Two-thirds of the unit owners voting must be in favour of the bylaw for it to pass. Bylaws and any bylaw changes are not in force until they have been filed with the corporate registry. The corporate registry reviews bylaws to make sure they do not include provisions that are not allowed.

Corporations can also choose to make their own rules about things like:

• pets
• storing items on balconies
• hours of operation for a common facility, such as laundry or recreation rooms
• smoking in units
• whether a business can be operated in a unit
• size and types of vehicles that can be parked, such as whether RV parking is allowed

For example, some condos have things like pools or hot tubs that are available to owners. The condo corporation may want to pass bylaws that set out the rules around these facilities.

Corporations cannot pass bylaws that:

• change the requirement that bylaws must be passed by a two-third majority
• stop political candidates or their representatives from entering the property
• restrict election advertising in or on individual units other than reasonable restrictions on the size and type
• stop owners from renting their places out, though owners must notify the corporation that they plan to rent their place and the condo corporation can require a damage deposit covering common areas
• prevent or restrict owners from selling or mortgaging their place
• prevent children or families from living there
• place age restrictions on who can buy or rent a condo
• restrict owners’ right to vote at condo corporation meetings unless they are not up to date with their condo fees
• set the fee for an estoppel certificate at more than $200

If an owner breaks a bylaw, the corporation can take the owner to Small Claims Court. The court can issue a penalty of up to $500 as well as the actual costs of enforcing the bylaw. The court can also award compensation for damage to condo property caused by the owner up to the condo corporation’s insurance deductible limit.

When it comes to damages caused by an owner, there are also other options. If damage is caused to another unit, the condo corporation can simply add the cost of repairs up to the corporation’s insurance deductible limit to the owner’s condo fees. If the damages were caused by negligence, the owner can also be sued in a regular court action.

The unit owners in a condo choose a board of directors. Board members are elected by a majority vote unless the bylaws set a higher requirement. The default bylaws require:

• 3 to 7 people on the board
• that half of the first board elected holds office for two years and the other half holds office for one year
• that board members after the first election are elected every year by the owners to serve for two years

Under the default bylaws, board members must:

• be at least 18
• not owe money for condo fees
• not be bankrupt
• not have been convicted of a serious criminal offence

The board runs the corporation on behalf of the owners. The board also deals with day-to-day issues like collecting condo fees, hiring people to maintain common areas and paying bills. They must also keep financial records that show how condo fees have been spent. Owners can ask to see these records.

The board holds meetings to decide matters in running the condo corporation. Under the default bylaws, the board:

• decides things by majority vote
• can also make decisions by a written resolution signed by all members of the board
• requires a minimum number of board members at a meeting which depends on how many people are on the board

The board must keep minutes of their meetings. Under the default bylaws, an owner can make a request in writing for a copy of the minutes of board meetings.

Condo corporations make decisions about how the condo should be run at meetings of the owners. When a condominium is first created, there will be a meeting of all the owners where a board is elected. After that, the board must call a meeting of all the owners every year. Owners do not have to attend meetings. Under the default bylaws:

• the board can also call meetings at other times
• if at least 25% of the owners agree, they can request in writing that the board call a meeting
• owners must be notified in writing of the time and place of any meeting and what decisions will be made at the meeting at least 7 days before the meeting

At the yearly meeting, the board must present the financial records for the year to the owners. Members of the board are also elected at these meetings. The board can also suggest bylaws for the owners to vote on and approve.

The board must keep minutes of these meetings. The default bylaws allow owners to make a written request for a copy of the minutes.

At these meetings, the owners decide things by voting. In most cases, each unit will have one vote. Usually, the majority of the units voting need to be in favour for something to pass. The owners of a unit may not be allowed to vote if they are behind on their condo fees. A unit can have someone else vote for them. They do this by giving that person a proxy.

Under the default bylaws, at least 25% of the owners need to attend the meeting. If there are not enough owners present, the meeting is adjourned for one week. If there are still not 25% of the owners at the adjourned meeting, the owners who are there can make decisions.

Condo corporations must file certain information with the corporate registry and keep it up to date. After creating an account, they can use the online corporate registry application. Alternatively, the required forms can be downloaded, completed and returned to the registry.

Condo corporations must file:

• the names and addresses of board members
• any bylaws that have been passed
• the address where official documents can be sent
• an annual return

Changes to any of these things must also be reported to the registry.

Condo corporations must file an annual return with the corporate registry each year. The corporate registry will send the annual return form to the condo corporation at least a month before it is due. It will be sent by email if the corporation has registered an email address. If not, it will be mailed out. If you have a corporate registry account, you can also file your annual return online.