FAQ’s – Condo Living

Apartment residential condo building in Florida suburban area.

Let’s talk condo living! Condo living offers various benefits, including lower costs, reduced maintenance responsibilities, and often convenient locations with amenities. These factors make condos attractive for first-time buyers, those seeking to minimize upkeep, and individuals who prioritize access to urban amenities. Condos can also provide a higher sense of security and community engagement. Below you will find some of the more common Frequently Asked Questions when looking at purchasing a condo.

  • What is a Condominium Plan? *A Condominium Plan is a registered, legal requirement for all Condos. It will cover several important details, including Drawings and boundaries of each unit
  • What is a Condominium Additional Plan Sheet (CAD)? Essentially an amendment to the Condominium Plan. Any additional information filed with a Condominium Plan which includes changes to a Condo Corporation’s Bylaws, Board members, legal burdens, address for service and exclusive use agreements.
  • What is an Estoppel certificate? The Estoppel Certificate is a statement that certifies the information provided by the Condominium Corporation is correct. In addition, it also shares crucial information about the financial health of the unit. This information will include Payment schedule/frequency of contributions The current contributions of the unit, and if there are currently any outstanding.
  • What if we are buying from a developer? More responsibility is placed on the developer, due to provisions in the Condominium Property Act, but it is still up to the buyer to ensure that the required documents are received, and that the agreement is negated if they are not. A developer must always provide the following official or proposed documents: The Purchase Agreement Condominium Plan, Bylaws, Phased development disclosure statement, Management agreements, Recreational agreements, Location of leased land and any mortgage that may affect the unit’s title Reserve Fund information (if the building is a conversion).
  • What is a Certificate of Title? All certificates of title in Alberta are held by the Alberta Land Titles Office and contain standard information and registered interests, which might include the current owner, mortgages, caveats, easements, liens, and more.
  • What is a Caveat and a Lien? A caveat suggests, “Pay attention, there’s something you need to know before this property changes hands,” whereas a lien declares, “This property is held against a debt, and action will be taken if the debt isn’t settled.”
  • What is Standard Insurable Unit Description (SIUD)? The SIUD is a description of what the Corporation’s insurance will cover, including standard fixtures and finishings without considering any upgrades that have been made by the owner (such as upgrading kitchen counters from laminate to granite). This is important because the care, maintenance, and insurance coverage for all other parts of a typical unit is the responsibility of each owner.
  • What is the purpose of the Reserve Fund? *The purpose of a Condominium Reserve Fund is to ensure that there are sufficient financial resources set aside for the maintenance, repair, and replacement of common elements and facilities in the Condominium. Key objectives include Long-term Maintenance Financial Stability, Capital Improvements, Emergency Expenses, and Property Value Protection.
  • How often must Reserve Fund Studies be conducted? *In Alberta, the Condominium property regulation requires that the Condo Board must carry out a Reserve Fund study every five years.
  • What is an adequate Reserve Fund? Properties with 70% (or higher) funding are generally regarded in a strong position.
  • How much should Corporations contribute towards Reserve Funds annually? On average, Condominium Corporations should be striving to set aside 15% to 40% of their total assessments toward Reserves.
  • What is Exclusive-use Common Property? Exclusive-use Common Property in Condominiums refers to specific areas or facilities that are designated for the use of one or more individual unit owners, while still being part of the Common Property shared by all residents. These areas are not accessible to all unit owners and are typically outlined in the Condominium’s governing documents. Common examples include: Balconies Parking Spaces and more.
  • What is an Easement on Title? An easement or right-of-way is an agreement that confers on an individual, company or municipality the right to use a landowner’s property in some way. While these agreements grant rights, they also have the effect of partially restricting an owner’s use of the affected portions of land.
  • What does Condo home insurance cover? Condo insurance provides coverage for the inside of your unit, including your personal belongings. Common Property is usually your Condo association’s responsibility and should be covered under their insurance policy. Condo insurance includes coverage for Personal property (including designated locker or storage in your building).
  • What is Condo deductible protection? Prior to January 2020, when a Condominium Corporation suffered a loss, they paid the insurance deductible and then sought to recover it from the owner responsible for the loss. However, under section 62.4 of the Condominium Property Regulation, this is no longer the case.
  • What is the formula for Condo fees? To calculate your individual Condo fee, the total contribution of your community is multiplied by the Unit Factors of your specific Condo unit and then divided by the total Unit Factors of all the units in the community. This resulting amount is what you are required to pay each month for the next 12 months.
  • What is a Quantity Surveyor? A QS, or Quantity Surveyor, is a construction professional specializing in cost management for building and infrastructure projects. Think of them as the financial controllers of construction, ensuring projects stay on budget and deliver value.”
  • Can Reserve Funds be Used for Regular Operating Expenses? No, reserve funds cannot be used towards regular condo operating expenses. The Condominium Property Act and related regulations establish that reserve funds are to be used for Major repairs.

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