OREA Real Estate College

Are you prepared?

man holding business card

Are you prepared to represent condo buyers and sellers? Here are the answers to last week’s quiz.

1.  Condominium monthly maintenance fees always include expenses such as building insurance, heat, and hydro. – FALSE

The condominium declaration sets out the expenses that are included in the monthly maintenance fees. These expenses will vary, depending on the condominium.

Building insurance is included in the maintenance fees because the condominium corporation is required to have insurance on the units and common elements (excluding any upgrades to the unit).

2.  A status certificate is a document that can be provided by the property manager of a condominium, and the document only confirms that the seller is a resident owner in the condominium. – FALSE

A status certificate contains information about the operational, legal, and financial dimensions of the condominium corporation. Either the property manager or the condominium’s board of directors provides this document to buyers upon request.

3.  Rules cannot be made, amended, or repealed by the board of directors without holding a general meeting of owners. – FALSE

The board of directors must provide owners with a copy of the condominium rules, the effective date, and notice that the owners may request a meeting. If no meeting is requisitioned within 30 days, the rules become effective.

4.  The floor level and exposure of a condominium unit can have a major impact on the monthly maintenance fee paid by the unit. – FALSE

The floor level and exposure has an impact on the value of a condominium, but not the maintenance fee. Owners contribute common expenses (i.e., maintenance fees) in proportions outlined in the declaration.

5.  The balcony of a condominium unit is described as a common element. – TRUE

Common elements are typically all property within the condominium corporation except the units. Some common elements, such as balconies, storage lockers, and parking space, are exclusive use. This means that only a particular unit owner can use that specific common element.

6.  The money in a reserve fund can be used to pay for major repairs and replacement of common elements. – TRUE

The reserve fund is used solely for major repair and replacement of common elements and corporation assets.

7.  Condominium unit owners need the approval from the board of directors for a major renovation to their units. – TRUE

Typically, the condominium declaration bylaws or rules contain restrictions regarding major renovations. When selling a condominium, registrants could ask for a warranty from the seller that the seller obtained the necessary approval.

8.  A phased condominium is a condominium corporation that allows the declarant to create additional units within the corporation. – TRUE

A phased condominium allows the declarant to create additional units or common elements at a later date within the same condominium corporation rather than creating a new corporation.

9.  Bylaws can be amended by a vote of at least 33 per cent of the unit holders in a condominium. – FALSE

Bylaws are not effective unless the owners of the majority of units vote in favour.

10. The Board of Directors usually carries out the day-to-day duties of a condominium corporation, such as collecting the maintenance fees and paying the condominium expenses. – FALSE

Most condominium corporations hire a property management company to carry out the day-to-day duties of a condominium. In some instances, a small condominium corporation may have these duties handled by the board of directors.

 

Reference:

Ontario Real Estate Association and Acronamic Learning Systems Inc. (2014). Real estate as a professional career. Don Mills, ON: MediaLinx Printing Group.

 


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