Welcome to Condo’s Corner

by Daulton Read, OLCM

Issue #004

Get ready for a weekly dive into condo living like never before with Condos Corner. Speaking from my perspective as a Condo Manager, my goal is to entertain and provide valuable management insights and stories that can help you live your condo life a bit better—all with a little bit of wit, charm, and practicality.

What’s Happening This Week?

Breaking down a condo’s governing documents

Pros & cons of a condo vs freehold property

Send those questions in!

Manager’s Memo: Navigating Your Condominium’s Governance Documents

The Framework: Condominium Act, 1998

In Ontario, the Condominium Act, 1998 lays down the groundwork for the creation and operation of condo corporations. Think of it as the constitution for your condo community. Every decision and document within the corporation must align with this Act, ensuring a fair and regulated environment for all parties.

Hierarchy of Documents

Under the Condo Act, there are three key documents at the heart of your condo corporation’s governance: 1) the Declaration, 2) the By-laws, and 3) the Rules. Picture them as the building blocks that shape your community.

The Declaration: Foundation of Your Condo

The Declaration is your condo’s blueprint, created by the developer to outline the structure and responsibilities within the corporation. It defines unit boundaries, outlines common elements, and assigns financial responsibilities. Understanding the Declaration is akin to deciphering the DNA of your condo community—it’s fundamental.

The Declaration outlines the rights of the board, corporation, and owners and includes a legal description of the units, common areas and amenities, the percentage each unit owner contributes to common fees, maintenance obligations, and other clauses that establish how the condominium will be operated.

Fun Fact: Changing the Declaration is a rigorous process, requiring a supermajority vote (80-90%) from owners. This safeguards your investment and ensures stability within the community.

The By-laws: Governance Guidelines

Next up on the governance totem pole, we have the By-laws, acting as the operational manual for your condo corporation. These rules govern everything from board qualifications to meeting procedures and borrowing limitations. While the Board of Directors can amend By-laws, owners have a say, ensuring democratic oversight.

Bylaws are the formal rule book for the administration and day-to-day management of the corporation. In the bylaws, you’ll find information about the specific powers and duties of the corporation, board, and management company. Items like meeting requirements, voting rights, and election procedures are also addressed.

The Rules: Adapting to Community Needs

Completing the trio are the Rules, providing specific guidelines for daily living within the community. From safety protocols to lifestyle regulations, these rules can be adapted more flexibly by the Board to address evolving community needs.

The rules and regulations are an internal document that spells out the community’s general rules and regulations. More flexible than the Declaration or by-laws, this is where specific details about things like parking, smoking or pets live.

Did You Know? During pivotal moments like the legalization of cannabis or the COVID-19 pandemic, condo corporations swiftly adapted Rules to ensure the safety and well-being of residents.

Balancing Act: Governance and Community

Owning a condo is more than just a financial investment; it’s joining a community. Think of your condo corporation as a mini-government, requiring sound governance and responsible leadership for the benefit of all owners.

Governing documents are legally binding, and when you purchase a condominium, you agree to abide by them. If you fail to abide by your corporation’s rules, guidelines, and expectations, it can lead to consequences for the community as a whole. Board members are tasked with upholding them, and residents are responsible for complying with them.

So next time you skim through those papers, remember, you’re not just deciphering legalese—you’re uncovering the framework that binds your condo community together.

Q&A Corner: You Asked, I Answer

This week’s question comes from Josh D., who asks, “What are the pros and cons of living in a condo vs. a freehold residence?”

Well, each has pros and cons, and everyone’s situation is unique, but here’s my two cents.

For many, condo living boils down to one word: simplicity. With condos, you’re off the hook for exterior upkeep. This perk is a lifesaver for busybodies, frequent travellers, or those just not keen on maintenance chores.

But the benefits don’t stop there. Condos offer a built-in community vibe, with shared amenities and social events that single-family homes often lack. Plus, it’s a breeze to jet off on adventures or live seasonally elsewhere (snowbirds), knowing your condo’s in good hands while you’re away.

Pros of a condo:

Low Maintenance Living: Say goodbye to shovelling snow and mowing lawns—a condo has got you covered.

Security Boost: From secure entrances to social opportunities, condos offer peace of mind and a sense of community.

Social Scene: Card nights, doggie dates, barbecues, and chance encounters with neighbours make condos a social hub. It’s a great place to meet people.

Affordability: Compact and cost-effective condos are ideal for first-time buyers looking to build equity without the hassle.

Amenities: Depending on your condo, you may have access to top-notch amenities like pools, saunas, exercise rooms, barbecue areas, lounges, dog parks, and covered parking. 

Cons of a condo:

Condo Rules: Strict guidelines on everything from the colour of your blinds to pet policies can cramp your style.

Investment Risk: Your condo’s value rides on the fortunes of others in the community—risky business.

Limited Privacy: Sharing common spaces means getting up close and personal with your neighbours.

Rising Fees: Condo fees and surprise assessments can put a strain on your wallet over time.

Rental Restrictions: Condo associations might limit rental opportunities or crack down on short-term stays, putting a damper on your investment plans.

Do you have a condo tale to tell or burning questions about condo living? Don’t be shy—share them with me! Whether it’s a funny story, a management mystery, a celebratory story, or just a nightmare, we’re all ears. Respond to this email so we can keep the content coming.

Make sure to share this newsletter with your friends, family, and, more importantly – that neighbour who could learn a few things!