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Definition of words used in relation to Condominiums

Condominium Terms & Definitions

Glossary of Common Condominium Terms

Annual Budget:
Prepared by the condominium board, the budget is the basis for calculating fees you will pay for things like maintenance, repair and administrative costs.

Annual Meeting (AGM):
The board is required to once a year convene (hold) an annual general meeting of the owners. This meeting must be held within 15 months of the last meeting. During the meeting financial statements are presented and also the next budget.

Bareland Condominium:
This is different from the traditional condominium type. Typically in a bareland condo it is only the land that is a condominium and the unit owners own everything built on the land.

Board of Directors:
The board is responsible for administration and bylaws. From the act, a corporation shall have a board of directors.... at least 2/3 of the membership of the board ... shall be unit owners or mortgagees.... shall consist of not less than 3 and not more than 7 inidviduals....

Bylaws:
From the Act.. means the bylaws of  a corporation as amended from time to time and includes any bylaws passed in substitution for them...Developers will often provide the initial set of bylaws to ensure the project maintains their particular focus.

Caveat:
If you don't pay your fees, you may find one of these registered against your title. This ensures the corporation gets its money before you dispose of the asset and may be the basis for collection procedures.

Corporation ( Condominium):
The condominium plan is registered with the Alberta Land Titles office and this results in an administrative body being created. Membership  is made up from the owners.

Common Property:
As the words imply the land and buildings etc that are not individually owned.

Contributions:
Commonly called condo fees. These are typically set from the annual budget.

Disclosure:
Developers must provide to the purchaser
- the purchase agreement
- bylaws or proposed bylaws
- management agreement or proposed
- recreational agreement o proposed
- lease of parcel if leased
- mortgages affecting the title
- condominium plan or proposed
The developer has ten days to deliver these documents.

Estoppel Certificate:
Statment of a unit holder's financial and legal status. A "clear" certificate means no arrears.

Exclusive Use:
From the Act....corporation may
grant a lease to an owner of a unit permitting that owner to exercise exclusive
possession in respect of an area or areas of the common property... for example, balconies, parking stalls, storage etc.

Reserve Fund:
Typically an amount of money held in a separate fund to deal with repair or replacement of common property. Can be termed, Capital Replacement Reserve Fund.

Special Assessment:
If the reserve fund cannot cover an urgent repair, then the board may levy a special assessment to cover the expense. An example may be a common roof that needs replacing.

Tenancy in Common:
A tenancy in which two or more parties share ownership of property but have no right to each other's interest. ( source answers.com )