Just For Laughs !

And we thought Condo Living had the corner on Rules!

Submitted thanks to BL


A sad fable.

In the year 2005, the Lord came unto Noah, who was now living in the United States, and said, "Once again, the earth has become wicked and over-populated and I see the end of all flesh before me. Build another Ark and save two of every living thing along with a few good humans." He gave Noah the blueprints, saying, "You have six months to build the Ark before I will start the unending rain for 40 days and 40 nights". Six months later, the Lord looked down and saw Noah weeping in his yard....But no ark. "Noah", He roared, "I'm about to start the rain! Where is the Ark?"

"Forgive me, Lord," begged Noah. "But things have changed. I needed a building permit. I've been arguing with the inspector about the need for a sprinkler system. My neighbor's claim that I've violated the neighborhood zoning laws by building the Ark in my yard and exceeding the height limitations. We had to go to the Development Appeal Board for a decision. Then the Department of Transportation demanded a bond be posted for the future costs of moving power lines and other overhead obstructions, to clear the passage for the Ark's move to the sea. I argued that the sea would be coming to us, but they would hear nothing of it.

Getting the wood was another problem. There's a ban on cutting local trees in order to save the spotted owl. I tried to convince the environmentalists that I needed the wood to save the owls. But no go! When I started gathering the animals, I got sued by an animal rights group. They insisted that I was confining wild animals against their will. As well, they argued the accommodation was too restrictive and it was cruel and inhumane to put so many animals in a confined space. Then the EPA ruled that I couldn't build the Ark until they'd conducted an environmental impact study on your proposed flood. I'm still trying to resolve a complaint with the Human Rights Commission on how many minorities I'm supposed to hire for my building crew. Also, the trades unions say I can't use my sons. They insist I have to hire only Union workers with Ark building experience.

To make matters worse, the IRS seized all my assets, claiming I'm trying to leave the country illegally with endangered species. So, forgive me, Lord, but it would take at least ten years for me to finish this Ark."

Suddenly the skies cleared, the sun began to shine, and a rainbow stretched across the sky. Noah looked up in wonder and asked, "You mean you're not going to destroy the world?" "No," said the Lord. "The government beat me to it."

anonymous

Buying a Unit

Question:

One of my board members has a friend who is buying a unit which is managed by Gateway Management. Cannot find much on them for info and would like to know if you know how many buildings they manage and how long they have been around.

Thanks
C.M.


Answer:

Dear C.M.

Great question. Unfortunately, with privacy legislation this is not information that could be easily available. I would suggest you recommend to your friend that they have a document review done by Condo-Check, www.condo-check.com, once they have selected the unit they want to purchase. Contact Louise at (403)509-2462 in South Alberta and Brenda at 1-888-309-0377, or (403) 309-0378. A review of the condominium documents will provide your friend with the information they require to make an informed buying decision, including information on how the site is being managed.

An Owner's Concerns About a Conversion Condominium

Hello,

Our building was turned back into condos after being a rental for over 20 years. The developer was the previous owner. He still has 3 units to sell out of 16. He turned the building over to a condo management company in November. Since then maintenance and other items have been becoming large issues with many of the owners.

My questions are as follow (and are in no particular order)

1. After a condo management company takes over, is it not suppose to call a meeting of the owners?

2.Whose responsibility is it to call a meeting of the owners and to elect a board of directors?

3. How and who is the condo management company being accountable to if there is no board?

4. What steps should we as owners be taking?

Thank you for your time on these questions.

Yours truly, S. S.



Answers:

Dear S.S.

1. After a condo management company takes over, is it not suppose to call a meeting of the owners?

The management company takes it's direction from the board of directors, who in this case is the Developer. The developer board is responsible for managing and maintaining the condominium property until such time as a board of owners is elected and the responsibilities are transferred to the owner board.

2. Whose responsibility is it to call a meeting of the owners and to elect a board of directors?

In the case of a conversion or for a new construction condominium the Developer, in compliance with the Condominium Property Act of Alberta, is to elect a board within a) 90 days from the day that 50% of the units are sold, or b) 180 days from the day that the first unit is sold, whichever is sooner.

The developer will either elect a developer board (this usually occurs before any units are sold) or call a meeting of the owners within the 90 to 180 day period and elect a board of owners. You will need to request a copy of the minutes of the meeting at which the developer board was appointed, or ask the developer when he plans to call the General Meeting to elect the owners board.

Once the developer elects a developer board, they are in compliance with this section of the legislation. This board, whether a developer board or owner board, is governed by the ACT, and the bylaws of the condominium corporation and is required to call a General Meeting and elect a board of owners within 15 months of the date the first board was elected.

3. How and who is the condo management company being accountable to if there is no board?

There is no point where "no board" exists, as technically the developer is the board until such time as he elects a board, and is responsible for the operation and management of the site to the same extent as if a board of owners were elected.

The management company is accountable to the board, whether a developer board or an owner board. Any concerns or questions you have as an owner should be taken to the developer.

The Management Contract is between the condominium corporation and the Management Company. If the contract is signed by the developer on behalf of the corporation the condominium legislation requires the contract to have a term of one year, allowing for renegotiation by the board of owners. This prevents the developer from binding the board to a long term management contract.

4. What steps should we as owners be taking?

Be in communication with the developer. Offer to stand for election to the board. Ask the developer to call the General Meeting as early as is possible, based on there being enough owners living on site to form a board. Inform the developer of your concerns over maintenance and ask for his plan to resolve this.

Keep in mind that it is best to be respectful as you express your concerns about the condominium. Remember, the developer wants to sell, and having happy owners and a clean and well maintained property is a great sales feature. I find most developers want happy owners and a property they can be proud of. Work with the developer to achieve that goal and the developer and all the owners will win in the end.

Thanks for your questions.

Betty

Distribution of Parking Stalls

Dear Betty:

Question:

I live in condominium building and as a member of board of directors, president of the board turned to me with question regarding visitor parking stalls. There is 119 units in the building and I am wondering is there any legislation in place which determines what is the minimum of allocated visitor parking stalls and how I can find out about that, since we plan to rent some stalls to the residents because of violation and abuse of that property. Could you please find few moments to me help me out with this one (I know that you are extremely busy). Greatly appreciated for your time.

Answer:
There is no specific legislation regarding the distribution of visitor parking stalls. The Condominium Property Act required distribution of the common property to be fair and reasonable to all owners and occupants.

The Board of Directors would make this decision based on the need to be fair to all owners in distribution of these common property stalls. It is not uncommon for condominiums to charge for use of the 2nd parking stalls when there is a surplus of parking stalls or to create visitor stalls or a combination of both.

Faulty Fountain Causes Damage

Dear Betty

Question:
I am having a situation with a condominium that I manage and I would like your perspective.
1.Homeowner A, installed a fountain in his unit, which was faulty.
2 . The fountain leaked and damaged the unit below, Homeowner B. had damage to her hardwood floor and drywall. Her policy covered her own personal contents.
3. The adjustor for the corporation has given opinion that the damage is less than $5000; so it is to be covered by the corporation.
4. The Bylaws were amended by a 75% of the ownership agreeing that the corporation did not have to cover betterments and improvements. Homeowner B bought her unit with the improvement of hardwood floors. These floors are common property according to the adjustor and the bylaws. The Board states that they should not have to cover this cost because the bylaws were amended. The point is that prior to the amendment they were covered by the corporation, how does this amendment apply to her unit?

5. If Owner A is part of the corporation can the corporation sue him for the damages? Is the corporation technically suing themselves by suing Owner A?

Answer:
The catch here is that the Condominium Property Act and Regulation in Alberta states that the corporation is responsible for insuring the unit, and the common property (under the condo insurance policy) which includes the floor, cabinets, ceilings etc. The difference to the corporation with improvements and betterments being the owners responsibility would mean that the cost difference between the upgrade to hardwood from the original floor material would be the responsibility of the Owner. The corporation would be responsible for the basic floor covering (before the improvement).

Having said all this, if your bylaws are drafted correctly the owner who caused the problem should be liable for all damage.

Regarding the question if a condominium corporations can sue themselves.

First, owners can sue the board but they need to realize the cost for the board to defend itself is paid from common expenses, this is why the statement "that they are technically suing themselves" is an important consideration before filing a suit.

Second, the Corporation can sue an Owner, but be aware that there have been cases where the court has ordered that the cost to the owner to defend himself and the costs for the corporation to prosecute can not be paid from the common funds, meaning the filing board members had to pay these costs personally when the suit filed was unreasonable.

In this case (the leaky fountain) the board (Corporation) would file a suit against the Owner who caused the damage. This is a reasonable course of action if this owner refuses to take responsibility after he has been notified. Possibly file in small claims court and have a board member represent the Corporation to keep costs manageable. The important thing here is to have the bylaw that supports that the owner is responsible for damage to the common property or unit property and the evidence that as a board you have been reasonable in dealing with this problem.

I hope this helps

Betty's Condo Owners Club

Welcome to Betty's Condo Owners Club.

Betty's Condo Owners Club was created in February 2005 as a response to the experiences of Betty and her family; Bob her husband, Bruce her son, and Charlie the family dog. The whole story begins when Betty and Bob purchased their first condominium home in Southern Alberta, without investigating the details of the corporation.

"They were barely unpacked when they received a notice from the Board demanding that they part with Charlie, their dog of 12 years;their 21-year-old son, who, with only a few months of university remaining, could no longer live with them; their beloved flag, not allowed to be displayed on the patio; and the window-mounted satellite dish Bob loved so much. All had to go! The note went on to say that ignoring these demands would result in fines and a notice in the condominium newsletter informing their fellow owners that bob and Betty were troublemakers! It was signed, "Welcome to your new home - THE BOARD!"

The book 10 Secrets to Survivng Life in a Condominium (live the dream - not the nightmare) will be available in June 2005. This book was written by Bernie Winter, FCCI and Louise Challes of Calgary, Alberta. Bernie Winter has a 30 year history in condominium and is a recognized condominium specialist and a regular columnist for the Calgary Herald. Bernie & Louise are co-owners of Condo-Check - The Original Document Review Company, www.condo-check.com

We were motivated to write this book and create Betty's Condo Owners Club as a response to witnessing, as consultants, the many nightmares that arise when condominium Boards and Owners struggle with condominium living.

Our goal is to provide information, education and a forum for condominium owners, board members, industry professionals and anyone interested in the condominium industry to communicate with each other, ask questions and express their concerns.

We will provide suggestions and solutions to as many situations as we can. We invite stories, opinions and comment to this web log. We will restrict the live content to information that helps solve a problem, creates a new perspective or that provides constructive comment and will not allow this web log to be used as a place to use improper language, to vent anger, or to attack people or problems. There are many benefits when owners connect with owners and share their expereinces and this is the purpose of this Web Log. To support those who want to live the dream - not the nightmare.