The Condo Docs: Bylaws, Ins., Man. Agr., Rules, Status Certif.

What follows is a quick overview of the balance of the condominium documents contained in the disclosure material. I hope it gives you enough guidance to help you plough through it all!!By-laws – The By-Laws are best described as the operating manual for the condominium corporation (“cc”). The cc has to run pretty much like any other company and the By-Laws provide for the way that happens. The easy way to demonstrate is to provide a list of some of the multitude of things the By-Laws cover – govern directors, regulate meetings, set quorums, regulate officers, authorize borrowing, authorize tax objections, govern contribution and collection common expenses, maintenance all mall matters concerning common elements, management of property, restrictions on use, dispute resolution, generally govern affairs cc, etc. So read your By-Laws and you will have a pretty good idea on the mechanics of how your cc works.

Insurance Trust Agreement – What is this all about?  In the event of the destruction of the common elements, ie. parking, pool, elevators, playgrounds, etc. any monies paid by your cc’s insurance company will be paid to a pre-selected Trustee who will either pay to have the damage fixed using the insurance proceeds or if the damage is so severe that 80% of the condominium units vote to terminate the cc and such notice of termination is registered, subject to some statutory priorities the insurance proceeds can be paid out to the unit owners in their proportionate interests. The Insurance Trust Agreement is the agreement with the Trustee that sets it all up. Under s114 of the Condominium Act “(CA”) it may be terminated by 60 days notice in writing.

Management Agreement – This is the agreement with the property management group to look after the day to day operations of the condominium and may include maintenance, repairs, security, etc.

Rules – What you see is what you get. There is nothing magic here and generally concern things like security, safety, visitors, parking, parties, elevators, garbage handling etc.

Status Certificate – What is this thing and why do I need one? A Status Certificate is issued to bind the cc as against the person requesting the Status Certificate in respect of any default or otherwise shown in the Status Certificate. The Status Certificate enables us to determine among other things financial stability and potential liabilities.