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