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Glossary

A

Amortization period

The length of time required to pay off a mortgage. It will impact how much interest you pay over the lifetime of the mortgage.

Annual general meeting (AGM)

This is an annual convention for all unit owners to come together and discuss major decisions affecting the condominium corporation. This is also where the next board is elected. An AGM must be held once every year, within 15 months of the last AGM.

Annual report

This is a report that condominium corporations must complete every fiscal year. Condominium corporations must distribute the report to owners and mortgagees at least 14 days before the AGM. The report must include reserve fund information.

Arbitration

An objective third party makes a decision on how to resolve the situation after all parties present their cases.

As built drawing

Document showing all substantial changes made in specifications and working drawings during construction and the location of various delivery and distribution systems (e.g., electrical, plumbing, wires and cables). Developers must provide as built drawings at a meeting to elect the first board.

As built drawing

Document showing all substantial changes made in specifications and working drawings during construction and the location of various delivery and distribution systems (e.g., electrical, plumbing, wires and cables). Developers must provide as built drawings at a meeting to elect the first board. Related Articles:

B

Balance sheet

A statement of the corporation’s assets (items that are owned and have value) and liabilities (debts). Related Articles:

Bare land condominium

A bare land condominium is a parcel of land that may or may not have a structure on it. The boundaries of the units (e.g. townhouse, duplex, detached home) are described by reference to survey markers. The owner of the bare land unit is usually responsible for landscaping and exterior repairs, unless the corporation’s bylaws state otherwise. Related Articles:

Board of directors

Also known as the board. Board members are elected by condo owners  at each Annual General Meeting in accordance with the Condominium Property Act and the corporation’s bylaws. At least 2/3 of board members must be unit owners or mortgagees (mortgage lenders). The board is responsible for the operation of the condominium. Under the Condominium Property Act, the definition of board also includes an interim board. Related Articles:

Broker

Responsible for the operation of the brokerage and supervision of all its employees. A broker must be registered with the brokerage that he or she manages. There can only be one broker for each brokerage.

Brokerage

The company, partnership or sole proprietorship licensed by the Real Estate Council of Alberta as a real estate brokerage.  A brokerage must have a broker responsible for its operation.

Builders’ lien

A builder’s lien is a right to retain possession of a property until debt is paid– when registered against a property, it can secure payment for a builder’s work (e.g., construction, repairs, renovations).

Building assessment report

A report that outlines any deficiencies with a building, including deficiencies in delivery/distribution systems (e.g., plumbing), mechanical systems and building envelope (e.g., roofing installation). Related Articles:

Building assessment report (BAR)

A report that outlines any deficiencies with a building, including deficiencies in delivery/distribution systems (e.g., plumbing), mechanical systems and building envelope (e.g., roofing, cladding).

C

Capital improvements

Usually changes, enhancements, alterations or additions to the condo corporation’s property not listed in the reserve fund study report.  For a reserve fund and special levy, capital improvements do not include:
  • replacement of the condominium corporation’s existing real/personal property, common property or managed property (with the contemporary equivalent of an obsolete property or lower cost equivalent of the existing property)
  • any other replacement under the Condominium Property Regulation.

Capital property

This is the real, personal and common property owned by the corporation.

Cash flow statement

Shows the flow of cash into and out of the corporation’s accounts broken down by operating, investing, and financing activities.

Caveat

Legal notice of a claim of interest in land. Under the Condominium Property Act, a condo corporation could file a caveat against the certificate of title to an owner’s condominium unit if the owner has unpaid condominium contributions (fees). Related Articles:

Class of residential units

Residential units on the parcel with: a comparable design or comparable original fixtures and finishing For multiple buildings on a condominium plan, it can also mean resident units on the parcel in similar types of buildings.

Common property

Anything in a condominium complex not contained within the boundaries of a condominium unit. Owned jointly by all owners. Condo corporation is responsible for maintenance and repairs.

Condominium Additional Plan Sheets (CAD)

Additional information filed with a condominium plan including changes to a condo corporation’s bylaws, board members, legal burdens, address for service and exclusive use agreements.
Related Articles:

Condominium board

Responsible for running the condo corporation. Consists of the volunteer board of directors who are elected by the condo’s owners every year.

Conflict of interest

This is when a board member has a substantial interest in an agreement, arrangement or transaction in which the condominium corporation is or will become a party to. For example, a conflict of interest would occur if a board member owns a property management company and the condominium corporation is thinking of hiring the company.

Contemplated litigation

A matter that may become a legal action involving a condominium corporation based on information within its knowledge or control.

Conventional condominium

A conventional unit is often an apartment-style unit located in a building. Boundaries are identified by referring to the floors, walls, and ceilings.

Converted property study (CPR)

Means a building assessment report (for conversions), which outlines any deficiencies with a building. The developer must provide this document to the purchaser of a conversion unit. The converted property study replaces the building assessment report after July 1, 2021.

D

Deficiencies

For conversion developments, a deficiency includes damage and defect. Deficiencies are identified in the building assessment report.

E

Easements

Agreement that allows another party to access a landowner’s property. For example, allows a person or vehicle to enter the property via access roads. Related Articles:

Encumbrance

Claim for payment of a debt such as a mortgage or builders’ lien. Mortgagees like banks can register an encumbrance on a property title to record their interest in a property.

Exclusive possession areas

Common property or a condo corporation’s real property that an owner has a right to occupy without any interference by another person. For example, a parking stall, storage unit, or balcony. The condo corporation may grant exclusive possession to an owner via bylaw, lease, licence or other instrument. Related Articles:

Extraordinary general meetings

Special meetings outside of an annual general meeting (AGM) where unit owners or the condo board may want to discuss important issues that arise with the condominium corporation. They are held as needed by the owners or the board. The bylaws will usually specify the procedure for when and how extraordinary meetings can be called.

F

Freehold interest

Complete ownership (also known as fee simple) of a property, including the right to use, sell, lease, or rent the property. Condo owners have complete ownership of their condominium units but not common property.

G

Group of owners

Two or more people who own one or more units together. The name of each person in the group is on the certificate of title of each of the units. No other person’s name is on the certificate of title.

I

Income Statement

A financial statement that shows the condo corporation’s income and expenses. Related Articles:

Interest rate

The amount the mortgagee (money lender) charges for loaning the principal amount (the money borrowed to pay for a property).

Interested party

An owner, corporation, member of the board, registered mortgagee or any other person who has a registered interest in a condo unit.

Interim board

An interim board is a board of directors appointed by a developer within 30 days after registration of a condominium plan. Related Articles:

M

Managed property

Managed property is any unit or part of a unit that a corporation is required by bylaw to maintain, repair or replace. This is property other than the real, personal and common property of the corporation. Related Articles:

Management agreement

An agreement entered into by a corporation setting out the general control, management and administration of its property. Related Articles:

Material change

A change in the developer’s information or documents that would have an negative effect on the value/use of the unit or the corporation’s common or real property. Some changes are not considered material (e.g., a difference between the amount of estimated condo fees and the actual condo fees). Related Articles:

Mediation

An objective third party helps dispute parties negotiate their own resolution to the problem.

Minutes

This is a formal record of a meeting.  The minutes include a summary of matters reported on, discussions, decisions made or tabled.  Also, condo corporations must make minutes available to owners, mortgagees and purchasers of a condo unit in certain situations. For example, after an AGM and upon request.

Mortgage term

The length of the current mortgage agreement – typically, 3 to 5 years.

Mortgagee

The lender in a mortgage, typically a bank.

N

Notice of Change of Directors

This is a document that the condominium corporation must register at the  Land Titles Office after a condo board membership change.  The condominium corporation must register it within 30 days after the AGM. Also,  if a change occurs between elections (for example, a board member vacancy or removal), the condominium corporation must promptly file it at the Land Titles Office.

O

Occupancy date statement

Statement of a fixed date range or range of dates by which a buyer can start occupying a unit.

Occupancy date statement

Statement of a fixed date range or range of dates by which a buyer can start occupying a unit. Related Articles:

Occupancy fees

In a new development, money paid to the developer to live in the unit from the time the occupancy permit is issued to the time the certificate of title is received.

Occupancy permit

In a new development, a permit showing the unit has passed all safety checks and complies with municipal bylaws. Related Articles:

Officers

Members of the board of directors who are elected to fill the executive positions (for example, president, vice-president, secretary, or treasurer). A condo corporation’s bylaws outline the procedures and qualifications for electing officers.

Operating account

An account that the condominium corporation must establish and maintain, using funds from contributions or special levies. The account also covers the control, management and administrative expenses for the corporation’s property, common property and managed property.

Operating budget

Outlines where the condominium corporation will get its money and the estimated expenses to maintain and operate the corporation for each fiscal year. Related Articles:

Ordinary resolution

A motion passed at a properly convened meeting of the corporation (e.g., annual general meeting or special general meeting). It requires a majority vote from people present at the meeting, or represented by proxy. The resolution can also be passed if signed by a majority of people who are entitled to vote and representing more than 50% of the total unit factors. An ordinary resolution is usually related to the day-to-day operations of the condominium. Related Articles:

P

Poll

A form of voting that is directed by the chair of an annual general meeting (AGM) or extraordinary general meeting. With poll voting, the number of votes that each person has will correspond to their unit factors.

Prepayment privileges

The ability to make extra payments on a mortgage without a financial penalty.

Principal

The amount of money a buyer borrows to purchase a property.

Proxy

A written authorization that an individual can vote on behalf of an owner or mortgagee.

Purchaser

A person who enters into an  agreement to buy a condominium unit. It can also be a person who enters into an agreement to buy a leasehold interest (temporary right to occupy) in a condominium unit.

Q

Quorum

The minimum number of people required to attend a meeting so that the decisions made are valid.

R

Replacement value

The current market price of a new capital component, such as a roof or furnace.

Reserve fund plan

Based on the reserve fund report, the plan is created by the condominium board to outline how much money is needed to top up and maintain the reserve fund.

Reserve fund study

A physical inspection of the condominium’s depreciating property (e.g., roof, heating system, entrance doors, etc.) that must be completed every five years. Related Articles:

Reserve fund study provider

Someone allowed to act as a reserve fund provider under the Condominium Property Regulation. For example, a professional engineer or registered architect. The provider must also be knowledgeable about depreciating (declining) property. This includes knowledge about its operation, maintenance, and the costs with replacing or repairing it.

Resolution

A motion passed at a condo board meeting, annual general meeting or special general meeting. A resolution may be passed in writing instead of at a meeting. There are ordinary and special resolutions. Related Articles:

Restrictive covenant

Agreement that restricts how land can be used or developed. For example, architectural controls to ensure renovations are consistent with other owners.

Right of way

Agreement that allows another party to access a landowner’s property. Similar to an easement.

S

Special levy

A financial contribution imposed by resolution of the condominium board on condo owners in addition to their regular condo contributions (fees) in certain situations. For example, to cover unexpected shortfalls in the operating account or increase the balance of the reserve fund to meet reserve fund plan requirements.

Standard insurable unit description (SIUD)

A description given to purchasers by the developer or as adopted by the condominium corporation, consisting of typical standard fixtures and finishing in a residential unit or class of residential units. The description must include a description of the typical features in the unit(s). For example, internal doors and windows, closets, flooring, wall coverings and fixtures.

T

Tenants in common

A form of shared ownership that does not include the right of survival (if one owner passes away, property becomes part of their estate and does not pass to other co-owners). Condo owners share ownership of common property.

W

Writ of enforcement

A document filed with the Court of Queen’s Bench and then registered with the Personal Property Registry that entitles a party enforce a court judgment.