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Fundamentals of real estate > Unit 8: Condos > Flashcards

Unit 8: Condos Flashcards

(75 cards)

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1
Q

Condo

A

“shared ownership”
form of property ownership with specific rights and responsibilities
Unit and common property

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2
Q

Unit

A

Physical space, fee simple, cert of title

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3
Q

Common property

A

shared by all unit owners (condo corporation)

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4
Q

Home owners association

A

HOA
Association with mandatory membership based on living in a specific area or community
Area sign, gates, landscaping etc
Formed under Companies Act
Each property has a separate title w/ caveat to pay a fee to HOA

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5
Q

Housing coops

A

NPO legal entity, managed by members via BOD
Coop owns buildings and titles
Continuing: members purchase shares and occupy under tenancy agreement; monthly fee
Home ownership: conveyed to member owner and can get financing

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6
Q

Timeshare

A

Multiple parties hold rights to property with allotted time period to exclusive use

Fee simple: possess interest in property for certain period of time

Right-to-use: leases an interest in property for certain period of time (2 weeks every year for 50 years)
Time is from 15-50 years

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7
Q

Fractional ownership

A

+1 person owns property
1/4 to 1/13
person gets certain number of weeks per year to use property
can be fixed, variable or both

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8
Q

Residential condos

A

units lived in f/t
apartments, townhouses, semi-attached (e.g. bungalow villa), detached

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9
Q

Recreational

A

2nd homes; visit occasionally
Hotel condos; condotels
Mobile home/RV parks
Marina/dockominiums
Hangars/hangar-homes
Equestrian

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10
Q

Commercial

A

like office towers, business ctrs, prof offices

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11
Q

Industrial

A

workshops, warehouses, storage facilities

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12
Q

Retail condos

A

stores, strip malls, shopping ctrs

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13
Q

Mixed-use

A

Retail-commercial-residential
apartment style
retail on ground, commercial next, then apartments above

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14
Q

Benefits of condos

A

diff prices
styles and strux differ
sense of community
sense of security
no maintenance/landscaping

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15
Q

Realities

A

Acquire responsibility for condo’s financial state
Community: live in too close proximity
Governance: guides operations, forms bylaws, policies
Participation: can participate in administration of condo; meetings, decisions etc. volunteering
Diligence: regular communications

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16
Q

First condo in AB

A

Brentwood village in EDM Dec 1967
Then Calgary Oakhampton Court Sept 1970

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17
Q

Condo structure

A

Four components:
Unit owners
Condo corps
BOD
Common property

Unit owners make up condo corp; corp run by BOD; BOD cares for common prop.; common prop. owned by unit owners

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18
Q

Naming condo plans

A

Before 1975: called a specific name or numbers and letters

Before 2000: The Owners: Condo Plan No. ___

Now: Condo Corp. No. ___

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19
Q

Registration number for condo

A

Land surveyor creates a plan
Condo plan submitted to land titles
Assigns number
Conferred to condo corp.

Is 7 digits:
first 2 - year registered
third - land titles office where registered
last 4 - unique ID #

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20
Q

Condo corp duties

A

Comply w/ all the rules
Enforce bylaws and rules
Manage common property
Record and report

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21
Q

Privacy of info

A

individuals consent not required
falls under PIPA

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22
Q

BOD

A

Carries out duties of condo corp
Elected and volunteer
File names and addresses w/ land titles in 30 days

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23
Q

Board positions

A

Officers of Condo Corp:
President
VP
Secretary
Treasurer

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24
Q

Meetings of condo corp

A

Board meetings
Committee meetings
General
Extraordinary
AGM every 15 mths

minutes must be taken at all meetings

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25
Decision making
Agenda Discussion Motion Vote Decision: called resolutions - ordinary (show of hands, 50%) - special (75%) includes changing bylaws, condo plan, selling common property etc
26
Unit factor
Portion of $ assigned to each unit owner to pay for their share of common property Total for all units must equal 10000 Unit floor space m2 / total floor space m2 x 10,000
27
Condo management
Self-managed: carries out duties under BOD; smaller units and limited common areas Professional: BOD delegates duties to condo mgr
28
Self-management success
Role clarity Strategic planning Communication Transparency/trust Integrity Respectfulness Accountability
29
Condo structure
Condo corp BOD Condo mgr Common property Unit owners
30
Condo mgr
Can find this on the condo additional plant sheet (CADS); is also address for service for condo corp
31
Benefits of condo mgmt
Consistency, better skills, save time, professional training, experience, compliances
32
Ed for mgng condos
post-secondary with condo mgmt, property mgmt, real esetate mgmt, accounting, business admin, PD courses, certificates, designations
33
Prof designations
Certified property mgr (CPM): real estate institute of canada (reic) Real property administrator (RPA): building owners and managers association (BOMA) Associate of Canadian condo institute (ACCI): get through same (CCI)
34
Mgmt duties
Can assign all or some of duties to them Mgr can also delegate, like grass cutting to a company
35
RECA authorization
if mgr conducts trades in real estate or advertises or holds monies then needs authorization as a property manager etc Real estate sales cannot act as prop mgr
36
Condo administrator
Condo prop act allows for appointment of administrator - usually a prof condo mgr; appointed by court Only court may remove them Red flag to condo corps affairs
37
Renting/leasing condos
transfer right to occupy for a fee short term less than 12 leases >3 years registered against title has to tell tenant name in 20 days condo property act prevails
38
Monthly contributions
fees paid by unit owners "monthly contributions" per the ACT set yearly by BOD Formula for $ per unit: total anticipated annual expenses / 10000 unit factors = unit cost x # units = annual contribution / 12 for monthly unit contribution
39
Estoppel certificate
details the monthly contribution, how it's paid, interest owing, and any unpaid balances on condo
40
Two separate trust funds needed
Operating fund: Day-to-day operations Reserve fund: Major capital repairs/common property
41
Operating fund
Utilities, maintenance, repairs, administration
42
Reserve fund
Non-recurring repairs and maintenance (new roof etc) Process to access funds: reserve fund study - support - plan Must be completed within first 2 years of condo establishment
43
Financial statements
formal accounting records to summarize business activities over a specific time period balance sheet income statement cash flow statement
44
Balance sheet
Assets = liabilities + equity
45
Income statements
evaluates financial performance of condo corp by matching revenue w/ expenses statement of operations and statement of reserve fund (aka annual report)
46
Cash flow statement
in and out money and sources for specific time period operating activities investing " " financing " "
47
Notes to financial statements
written narrative detailing data, info, events e.g. special assessment
48
Condo plans
Legend, schedule of unit factors and areas, certificates (land surveyor, compliance, post-tension cables) obtain plan from condo BOD or mgr or SPIN 2
49
3 condo plans can be registered
Conventional: defined spaces w/in a structure; boundaries distinguished by floor finish, walls, ceilings (before 1979, centre was boundary) Bare land: width and depth of each parcel is boundary; pins or stakes used - managed property: individually owned by unit owners but condo corp required to repair replace stuff - can be re-divided Barely blended condo plans: When bare land condo is divided further; common property called common property unit (CPU) aka remainder unit; condo corp responsible for care/maintenance
50
Amendments
Condo plans can be amended by special resolution - usually for combining units
51
Condo additional plan sheet (CADS)
Encumbrances, finances, pending litigation (instruments) for or against condo plan and corp are officially registered
52
Parking types
Titled: solid, bold lines; go with unit; included in purchase contract Exclusive use: dashed lines; go with unit; included in purchase contract Assigned: not illustrated; go with unit; included in purchase contract
53
Titled parking stalls
title stalls have own cert of title; a unit by itself as fee simple on title usually not the same number as on the stall must add legal description for titled stall on purchase contract; has own property tax bill
54
Exclusive use stalls
owned collectively by condo corp; common property; perm leased to the unit owners; maintenance to unit owners Given unique designations (P-1 etc)
55
Assigned parking stalls
Common property, owned collectively by condo corp get to borrow stall; maintenance by BOD; can reallocate at will
56
Rented stalls
private arrangement; not in writing
57
Visitor parking
part of common property; special tag; restricted time; no owners can park there
58
Storage
same as parking should be in contract titled: own cert of title fee simple; bold lines; might be diff # from condo plan; must have legal description and has property tax bill exclusive use: owned collectively; leased; owners responsible for maintenance; dashed lines; unique designation assigned: owned collectively; not differentiated on condo plans; must be included in purchase contract
59
Governing policies
clarify or address minor issues with bylaws; regulate affairs of condo corp BOD decides; not filed with land titles so might not be legally enforceable
60
Meeting minutes
technical and factual account of discussion at meetings done by secretary; submit to attendees for approval legal documents, public record; provide w/in 10 days of getting a written request; used in litigation Record proceedings, draft, review, approval at meeting
61
Certificate of insurance
needed for condo corp, BOD, common property; two types required: liability and perils liability: protects condo corp and BOD against failing to fulfill obligations but must act in best interest of corp otherwise no coverage perils: fire, hail, smoke etc; 30 days to provide policy when written request; certificate w/in 10 days
62
Management agreement
duties for condo mgr Requirements: - property description - name of parties - term - duties and authorities - employees - banking - trust funds - insurance - compensation -disclaimer - termination
63
Estoppel certificate
signed statement from condo corp saying financial info on a unit is correct and monthly unit contribution; provide 10 days after requested
64
Other condo docs
Exclusive use / lease agreement: written contract w/ unit owner for sole possession of common property; 10 days if requested Recreational agreement: owner can use recreational facilities not on common property or non-owners to use recreational facilities on common property Disclosure and particulars statement: letter that certifies any catch-all info (about $; legal action; court judgment; $5000 demands; cables; structural deficiencies Owners-to-renters statement: lenders to decide risk of lending Real property report
65
Sources of condo docs
responsibility of seller; land titles; BOD; condo mgr; alberta land surveyor
66
Types of condo buyers
Target markets: First time buyers Young professionals Mature adults Recreational buyers Investors Business owners
67
Types of condo sales
New condos/phased developments Conversions: must be allowed under current land use bylaw or may change (commercial to residential) Resale: not first time unit is sold
68
Types of condo sellers
Developers: person who offers for sale a unit not previously sold; create new and conversion condos Resellers: resale units
69
Buying from developers
Warranty programs - new purchase and extended
70
New Home Buyer Protection Act
Feb 1 2014 for developers of new properties (warranty; 1-10 years depending) GST rebate program for brand new single family housing
71
Required condo docs
New condos Phased condos: needs disclosure statement registered on CADS; can't be changed w/out 66% owners votes unless for land use bylaws conversion condos: deficiencies list
72
Right of rescission
right of buyers to cancel or rescind under time frame buyers have 10 days to review condo docs; can rescind purchase in writing
73
Post-tension cables
concrete cannot resist tension (pull apart); reinforce concrete with steel bands; changes force to compression; find this info on condo plans can break due to corrosion; erupt from concrete (especially 1970-80s)
74
Condo doc reviewer
specializes in interpreting info w/in docs; accounting, admin, insurance, mgmt, knows Acts and Regulations
75
"Redivision"
On condo plan, this means barely blended condo

Fundamentals of real estate (30 decks)

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