Tag Archives: condo bylaws
Little owners can do to increase size of condo board
Gerry Hyman – Toronto Star
Q: Many owners favour increasing our board from three to five directors and it was discussed at a recent owners’ information meeting. Two of the three directors voted against the increase at their next board meeting. What can owners do to have the owners vote on a bylaw amendment to increase the size of the board?
A: Bylaws, including those amending previous bylaws, are passed by resolution of the board and must then be approved by an affirmative vote of owners of a majority of the units. Owners cannot initiate a bylaw or requisition an owners’ meeting to have a vote for the purpose of requiring the board to pass a bylaw.
If a large number of owners are in favour of increasing the size of the board, directors rejecting that change may have difficulty getting re-elected when their terms expire.
Q: The end-suite windows in our 35-year-old high-rise building are so weather beaten that both drafts and insects are getting into the suites. A contractor advised that the window frames should be replaced immediately. The board has taken the position that the amount specified in the reserve fund study for window replacement has been reached and no further replacements will be carried out. Our declaration provides that windows are common elements and that window maintenance and repairs are the responsibility of the corporation. There is plenty of money in our reserve fund. Can the board refuse to carry out the work?
A: The corporation is required under the Condominium Act to carry out common element repairs. Repairs must be done whenever they are required. A board cannot refuse to carry out necessary repairs because the reserve fund study suggests that the repairs will not be required until a later date or because the study estimates a cost that turns out to be too low. The work must be done even if there is not enough money in the reserve fund and a special assessment of owners is required.
Q: I am about to buy a resale condominium unit. What is included in the condo fees? What “gotchas” should I be aware of?
A: Condo fees are each owner’s share of the common expenses of a condominium corporation. The Condominium Act defines common expenses as “the expenses related to the performance of the objects and duties of a corporation and all expenses specified as common expenses in this Act or in a declaration.” In other words, all expenses properly incurred by the corporation are common expenses.
The board prepares a budget for each fiscal year of the corporation setting out the amount of the estimated common expenses. Each owner’s monthly contribution will be determined by multiplying that amount by the owner’s common expense percentage as set out in a schedule to the declaration and dividing by twelve.
The status certificate for the unit you are purchasing will specify the amount of the monthly common expense contribution for the unit and whether the owner is in default. It will also specify whether since the last budget the board has declared any common expense increase or any assessments to increase the reserve fund and whether the board is aware of circumstances that will necessitate an increase in the common expenses or will require a special assessment.
The corporation will be bound by the information in the status certificate that you receive.
Lawyer Gerry Hyman is an expert in condominium law and appears Saturdays in New in Homes & Condos.
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Contact the Jeffrey Team for more information - 416-388-1960
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Are Toronto condos a wise investment?
They can be, but you must know the lay of the land
Excerpt from an article by Ellen Roseman – Toronto Star
Is it a good time to invest in a condo in Toronto? And if so, what are smart buying tips for a condo investor?
Rents for condos in Toronto have been relatively flat since 2003, says Jason Mercer, a senior market analyst with Canada Mortgage and Housing Corporation.
“On average, the income-generating ability of condominiums has declined, making other asset classes more appealing for investors,” says a CMHC condominium survey last fall.
There are warning signs for the Toronto real estate market, which had its best year ever in sales of existing homes last year.
Meanwhile, there’s a surge of new condos in Toronto. About 38,000 rental apartments are coming on stream and will be registered this year and in 2007.
Still, Toronto is not seeing the same speculative activity as it did a decade ago. Investor-held rental condos are now 18 to 19% of the total market, compared to more than 30% in the mid-1990s.
The vacancy rate for rental condo apartments was just 0.9% last year – compared to an overall 3.7% vacancy rate for all rental units in Toronto.
Given what could be a difficult time for condo investors, what should you be looking to buy?
Investors should buy the smallest units in the building, anywhere from 350 to 600 square feet. Tenants aren’t rich and powerful. They can afford to rent the lowest common denominator.
You have to hook up with the right real estate agent. If you’re a loyal client, they’ll get you into properties before the public do. It’s much like getting into a hot night club.Put enough into the down payment to cover mortgage principal, interest, taxes and condo fees, including potential increases in condo fees.
Invest in mid-priced condos. Don’t buy more expensive units, which won’t cover their costs in rent.
Anything under 700 square feet performs best. Remember you’ll always be competing against the lowest-priced condos, with units for sale or lease.
Do your research on rents in the neighbourhood, vacancy rates and the time it takes to find a tenant for similar units. There’s nothing worse than buying a place that will sit vacant for months.
Be prepared to do your own property management or consider the costs incurred to hire someone. It may be worthwhile to hire a real estate agent to rent out your condo unit since realtors not only bring expertise in preparing the lease documents to best protect the owner, but also bring a higher quality of tenants.
Donald Bentley, president-elect of the Toronto Real Estate Board, works with Royal LePage in the Leaside area of Toronto.
“Look for condos that appeal to the widest group of people possible,” he says. This means easy access to public transit, shopping, parks and other amenities.
And if you’re looking at an existing building, check the percentage of units that are owner-occupied. More owner-occupied units means more care, maintenance, decorum and pride of ownership, Bentley says.He advises buying in buildings that have a higher percentage of larger units, such as two bedrooms or one bedroom with den.
Does the condo have a parking spot with a separate deed? This means you can sell it if you don’t need it. “Liquidity is an important factor,” Bentley says. “Being able to divide and sell separately does have some merit.”
Rules change from one condo corporation to another. Do the condo bylaws allow rentals in the building? If so, how many are allowed and how many are currently in the building?
Some rules are quirky. Tenants may not be allowed to park their bicycles on the balcony or set up a home-based business. Read the bylaws so you know what you’re responsible for and what you can and can’t do as an owner.
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Contact the Jeffrey Team for more information – 416-388-1960
Incoming search terms
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