Condo Document Glossary
Key terms and definitions for Canadian condo document reviews — from Status Certificates to Reserve Funds.
Assessment
A charge levied against individual unit owners by the condo corporation to cover shared expenses such as maintenance, insurance, and reserve fund contributions. Assessments can be regular (monthly fees) or special (one-time charges for unexpected costs).
Board of Directors
The elected group of unit owners who oversee the management and operations of a condominium corporation. The board makes decisions about finances, maintenance, rules, and hiring of property managers.
By-laws
The rules adopted by a condominium corporation that govern its internal operations, including how meetings are conducted, how the board is elected, and how common elements are managed.
Common Elements
The parts of a condominium property that are shared by all unit owners, such as hallways, lobbies, parking structures, elevators, roofs, and exterior walls. Maintenance costs for these areas are covered by condo fees.
Common Expenses
The shared costs associated with maintaining and operating a condominium property, including utilities for common areas, insurance, property management fees, and reserve fund contributions. These are funded by monthly condo fees.
Condominium Act, 1998
Ontario's primary legislation governing the creation, management, and governance of condominiums. It establishes requirements for status certificates, reserve fund studies, and the rights and obligations of unit owners and condo corporations.
Condo Corporation
The legal entity created when a condominium is registered. The corporation is responsible for managing common elements, enforcing by-laws, maintaining insurance, and collecting condo fees from unit owners.
Contingency Reserve Fund (CRF)
The British Columbia term for the reserve fund held by a strata corporation to pay for common property repairs and replacements. The Strata Property Act requires CRFs to be maintained at adequate levels based on depreciation reports.
Depreciation Report
A comprehensive assessment required in British Columbia that evaluates the condition of a strata property's common components, estimates their remaining useful life, and projects future repair and replacement costs over 30 years.
Estoppel Certificate
A legal document used in Alberta, Saskatchewan, Manitoba, and Atlantic provinces that provides a snapshot of a condo unit's financial standing, including outstanding fees, special assessments, and the overall health of the condo corporation.
Exclusive-Use Common Elements
Parts of the common elements that are designated for the exclusive use of a particular unit owner, such as balconies, patios, parking spaces, or storage lockers. The unit owner may be responsible for maintenance costs.
Form B Information Certificate
The British Columbia equivalent of Ontario's Status Certificate. A Form B provides essential information about a strata lot and the strata corporation, including financial statements, contingency reserve fund balance, and any outstanding litigation.
GST (Goods and Services Tax)
A federal value-added tax of 5% applied to most goods and services in Canada, including professional condo document review services. GST is added to the base price of document review packages.
Insurance Certificate
A document included in condo disclosure packages that details the insurance coverage held by the condo corporation, including property damage, liability, and director and officer coverage. Buyers should verify adequate coverage levels.
Lien
A legal claim registered against a condo unit, typically for unpaid condo fees or special assessments. Liens must be cleared before a property can be sold, and their presence may indicate financial issues with the unit or corporation.
Minutes of Meetings
Official records of discussions and decisions made at board of directors meetings and annual general meetings (AGMs). Reviewing minutes can reveal planned repairs, disputes, and management issues within a condo corporation.
Operating Budget
The annual financial plan that outlines expected income (primarily from condo fees) and expenses for maintaining and operating the condominium property. A well-managed budget helps prevent special assessments.
Reserve Fund
A savings account maintained by a condo corporation to cover major repair and replacement costs for common elements over time. A healthy reserve fund reduces the risk of special assessments for unit owners.
Reserve Fund Study
A professional assessment that evaluates the physical condition of a condominium's common elements and projects repair and replacement costs over a 30-year period. Required by legislation in most Canadian provinces to ensure adequate reserve fund levels.
Rules and Regulations
Specific guidelines set by a condo corporation that govern day-to-day living, such as noise restrictions, pet policies, rental restrictions, and use of common areas. These are distinct from by-laws and can typically be changed by the board without a vote.
Special Assessment
A one-time charge levied on unit owners to cover unexpected or major expenses not covered by the operating budget or reserve fund. Special assessments can be significant and are a key risk factor for condo buyers.
Status Certificate
An Ontario-specific legal document that provides a comprehensive overview of a condo corporation's financial health, governance, legal issues, and the specific unit being purchased. Required under the Condominium Act, 1998 and typically requested during a real estate transaction.
Strata Corporation
The British Columbia equivalent of a condo corporation. A strata corporation is the legal entity created under the Strata Property Act to manage the common property and assets of a strata development.
Strata Property Act
British Columbia's legislation governing strata (condominium) properties. It establishes requirements for strata corporations, depreciation reports, contingency reserve funds, and the rights of strata lot owners.
Turn-Over Audit
An independent financial review conducted when a developer transfers control of a condo corporation to the unit owners. The audit verifies that finances, warranties, and common elements are in proper order.
Unit Factor
A number assigned to each condo unit that determines the owner's proportionate share of common expenses and voting rights. Larger or more valuable units typically have higher unit factors.