Unit owners in condos own a share of the condo’s common areas. As such, condos need a way for owners to make decisions about matters regarding the common areas. To do this, unit owners form together in a condo corporation and make decisions at meetings. They also elect a board to deal with the day-to-day running of the condo.
The Condominium Property Act is the main law that regulates condos in Saskatchewan. You can find information on a condo corporation through the corporate registry.
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.
Bare land condo corporations are not required to carry insurance if each unit is a stand-alone dwelling. In these types of condos, owners typically buy property from a developer to build their own house. The only common property is often roads and utility lines outside the boundaries of each unit. You can look at the condo plan to determine if your condo is a bare land condo.
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:
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:
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:
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:
Remember, a condo corporation can create its own bylaws to replace the default bylaws. Bylaws created this way cannot do things that the law does not allow, however.
Under the default bylaws, board members must:
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:
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:
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:
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.
If matters cannot be resolved, there are a number of options for dispute resolution. This includes mediation, arbitration (having a third party decide) and court applications.
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