Tag Archives: condominium corporation
Condo board lords
Each condo has one, and you know what they say: If you can’t beat them, join them
By Daniela Andrews, National Post
Canada’s borders span thousands of kilometres from coast to coast. The country is known for its vast expanse and abundance of space. In its urban centres, however, it has experienced steady increases in population density, creating the opportunity, and necessity, for an entire industry of condominium development. I should know. In my zeal to move from the north end of the city to the downtown King West neighbourhood, I became a condo owner, finding it the most convenient (and affordable) way to live downtown. It’s a decision that hasn’t disappointed. My “commute” to work is a five-minute walk. Everything I need, from a dry cleaner to my favourite yoga studio, is just outside my door. And I no longer have to deal with summers of grass-cutting or winters of driveway-shovelling. But I do have to deal with the condo board.
Oh, the condo board. The focus of a love-hate relationship for many owners. Here’s a little background on the way a condo runs.
Where the owner of a detached freehold house may act as the king of their kingdom, the owner of a condominium is more like a citizen in a democratic land. Owners (considered the members of the official-sounding Condominium Corporation, a.k. a the condo) elect a board of directors (also known as the condo board) whose main responsibility is to make decisions about the building, its rules and its maintenance, on behalf of the owners. The board, in turn, hires a property management company, which runs the day-to-day activities of the building, including arranging for maintenance, cleaning and superintendant services.
Members of the board are typically elected on staggered one-, two-or three-year terms, so that the composition of the board is constantly changing to reflect a broad range of expertise and experience. Boards are usually made up of three to seven members (the actual number will be listed in the condo rules and regulations) who are all owners, and new members are elected at the annual general meeting as terms expire. The main responsibilities of the board are to ensure that the building runs smoothly, that owners’ best interests are represented and that the value of the condo and its units is maintained. In practical terms, that means the board makes decisions on everything from the condo bylaws, to repairs of common elements. They also set the annual budget, which may include deciding whether there should be a change in maintenance fees paid by owners. With all their power, it may sound like the condo board has the final word on all things condo-related, but board members have their own set of rules to follow; they are governed by the provincial Condominium Property Act, which outlines how they must administer condo rules, how funds are accounted for and how the corporation must save for large expenses.
With condo boards representing such a large and diverse group of owners, all with different ideas, interests and beliefs, it’s not surprising that there is often dissent among some owners and the board. While one group may agree with a board decision wholeheartedly, there will no doubt be others that oppose the decision with a vehemence rivalling Lady Gaga’s opposition to pants. In my condo, tensions between the board and some owners once rose to a level necessitating lawyers’ letters and Internet rants, creating an uncomfortably tense atmosphere that has thankfully subsided. It’s understandable how tensions can arise, however, since there seems to be a central belief that, as a homeowner, I can do whatever I want with my property. In a condo, this freedom is significantly limited. Renovations, outdoor decor, even the colour of my blinds, are all governed by the rules of my building and administered by the condo board. As we all learned in the sandboxes of our youth, when you share space with others, you have to learn to share and play nice.
One way to ensure your ideas are heard is to become a member of the board. It’s not for everyone. Sitting on the board requires a significant investment of time and effort, but board members have the power to vote on decisions that directly affect their home. On the other hand, they’re also on the receiving end of owners’ questions, comments and complaints on what can feel like a daily basis. So before volunteering to run for any board position, weigh the pros and cons, and figure out if you’re the right person for the job. Board members should have the time and energy necessary to serve their position well and become educated about the inner workings of the Condo Corp.; the condo board at my building meets monthly, but communicates informally with owners on a day-to-day basis. They need to have excellent listening skills, great teamwork skills and a sense of diplomacy that will come in handy during disagreements with owners, or even the other board members. They need to be patient, hardworking, flexible and, above all, they must keep the owners’ best interests as the central focus for every decision.
Love them or hate them, condo boards are a fact of life for condo owners. The best way to handle them is to become well-versed in the condo’s rules and regulations, to maintain a sense of humour and grace and, if you’re up for some hard work, run for a position on the board and become a key player in running your building.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Condo Culture
The proliferation of today’s renovation and design ideas has resulted in our homes increasingly becoming a reflection of our distinct tastes and lifestyles. Entire condominium developments are in fact, created to cater to specific cultures and aesthetics.
Style and ease of living are so important to busy Torontonians that a TD Canada Trust poll conducted in April 2010 found that we are mainly drawn to condo living because it involves less upkeep. Further, we’re willing to pay considerably more in maintenance fees than residents of Canada’s other large cities.
Torontonians have come to recognize the benefits of condo living to such an extent that in little more than a decade, ours has become a vertical city, one where condominiums account for one in every three homes that changes hands in the Greater Toronto Area. In central Toronto, 60% of resale transactions are condominiums.
If you’re planning on buying a resale condominium your real estate agent will ensure that your offer is conditional on receipt of a status certificate. It confirms that the seller is current on the payment of common expenses and outlines the condominium corporation’s financial details. You should also receive documents that govern the corporation and a list of other documents that affect it. A status certificate costs $100 and must be delivered within 10 days of request.
Your real estate agent can also help you evaluate a condominium’s amenities, which are now viewed by many as an adjunct to private living space. Look for significantly enhanced standard features like fitness facilities with current pools, spas and yoga studios, and indoor basketball courts. You can find lush rooftop gardens with gas barbeques and fire pits, billiard lounges, and even dog washing stations included in today’s condominium developments. With libraries, theatres, bars, and in some cases, housekeeping and room service available, you never have to leave the comfort of your building.
As a result, a strong sense of community has grown around condo developments with groups on social networking sites providing opportunities for neighbours to connect in just a click.
While many condominiums cater to well-educated young adults who value convenience and proximity to city life, they represent just one segment of the condo population. The TD Canada Trust poll also found that 36 per cent of those contemplating a condo purchase would consider raising a family in one. Seniors represent another key facet of the condo population and in fact, developments are also created to meet their specific preferences, featuring amenities like cafés, gourmet restaurants, reading rooms, greenhouses and salons. Drawn to the affordability of GTA property in comparison to other world cities, offshore buyers and new immigrants also comprise segments of the condo community. For virtually every demographic imaginable, there’s a Toronto condo designed to cater to specific tastes and lifestyles.
Providing for a good match between you and a condominium’s distinct culture, and protecting your interests by ensuring a status certificate is obtained are two of the many ways your real estate agent can help in your purchase of a condominium.
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Contact the Jeffrey Team for more information - 416-388-1960
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Condo Ownership — What to Expect
If you are considering the purchase of a condominium in the Greater Toronto Area you are one of many residents who recognize the numerous benefits of this type of property ownership. Offering affordability, proximity to desirable areas and limited maintenance, it’s no wonder that condominiums now represent one in every three resale home transactions in the GTA.
Before proceeding with your purchase though, it’s wise to gain an understanding of how condominium living differs from freehold ownership. As with any type of purchase, the golden rule when buying a condo is to get everything in writing.
If you’re buying a new unit you can expect to receive a disclosure statement. It includes a description of the project’s most important features, bylaws that govern the corporation, rules that regulate owners’ living environment and the condominium corporation’s budget for the first year after registration. Incidentally, during the first year after registration, the condo corporations must undertake reserve fund studies, performance and turnover audits, and if the cost for such common expenses is underestimated, your developer must pay the difference.
If you are planning to buy a resale condominium, you should request a status certificate, which offers similar information and confirms that the owner is current with common expenses. It costs $100 and must be delivered within 10 days of request.
While the purchase of a resale condominium includes a firm closing date, the move-in date for a new condominium can be years in the future. In this case, the developer can extend closing dates but if your unit isn’t ready by their outside closing date, you can terminate the purchase agreement. Your developer will have the option of terminating the agreement as well, if they can’t meet certain conditions including sales of units, planning approval, and financing by specific dates. In this case your deposit is refunded with interest.
It’s more likely though, that you will be able to move in, beginning with an occupancy closing, which takes place until the condominium corporation is registered. In this case, until you take ownership you’re responsible for paying common expenses, realty taxes and interest on the purchase price’s unpaid balance, which is due on closing.
Once the developer loses majority control of the project, within 42 days all new owners may elect a Board of Directors, consisting of at least three Directors. Their responsibilities are significant. The Board must ensure monies are held in trust, funds are properly invested and records are kept. They can hire personnel to maintain common elements, enter into legal contracts with a percentage of owner consent, and buy and sell property for the use and benefit of owners. The Board also enforces the condominium’s documents (bylaw, and rules and declaration) which specify the units and common elements, each unit’s share of ownership, and the types of costs included in monthly expenses.
As an owner, you have many responsibilities as well. You are responsible for your mortgage, property taxes, common expenses, and fees to cover special expenses. Like the Board of Directors, you are bound by the condominium corporation’s declaration, bylaws and rules. The rules for example, will likely prohibit you from making structural changes without prior consent. You can’t damage or neglect your unit as doing so affects all property values. Similarly, you can’t do anything that may jeopardize the project’s insurance coverage. Common area changes are also off limits without prior consent.
Whether you are buying new or resale, it’s wise to enlist the services of a real estate agent to ensure that you’re clear on all of your responsibilities with respect to condominium ownership.
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Contact the Jeffrey Team for more information - 416−388−1960
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Incoming search terms
Related posts:
- New Condo Buying Like all markets, real estate experiences fluctuations in activity. One…
- Condo Culture Torontonians have come to recognize the benefits of condo living…
- Condo living is not for everyone Whatever the reason — convenience, location or facilities — it’s…
- Little owners can do to increase size of condo board There are many issues involved in owning a condo in…
- First time in a high-rise home? Condominiums have recently become the dominant form of housing…
