Thursday, October 27, 2005

Unit Factors and the Owners Responsibility for Costs

Dear Betty
I am currently in a condo complex with a bare land condo but bylaws for a conventional condo complex. We are concerned as to the payments are covered as by Unite factor but all calculations are done by unite factor including the land. Is there any where that would really explain what "unite Factor" means. I believe it should be based on Living unite factor. Our monthly and yearly payments are very different from unite to unite and has caused quite a problem in our community. Any advise would be greatly appreciated

w.


Answer

Dear W.
For condominiums in Alberta each condominium is allotted 10,000 unit factors. Each title to a unit in a condominium includes a share of the 10,000 total unit factors that are allotted to that indiviual unit. For example, a title may read "Unit 33 and 120/10,000 undivided interests in the common property. This would mean that Unit 33 has a unit factor of 120. The unit factor represent the owners' interest in the common property of that condominium.

Unit Factors represent both an owners' voting share and is the default basis for calculating the contributions owners pay toward the maintenance of the property and the services provided. The registered bylaws may state a different method of determining the sharing of the costs, in this case the formula in the bylaws would prevail.

This applies to all condominiums, bare land condominium is not exempted.

The option available to any condominium in Alberta who does not agree with using the unit factor as the basis for allotting costs is to amend the bylaws so that the bylaws include a formula for how costs are to be shared between the owners.

As you have bylaws that are for a conventional condominium it would be a good opportunity to replace your bylaws with a customized and proper set for bare land condominium. For a list of lawyers who can assist with this process visit www.condo-check.com and link to the Trades and Services Directory.

To amend or replace bylaws you will be required to pass a Special Resolution of the owners. This requires that 75% of the unit factors vote in favor, plus 75% of the total owners registered on title must vote in favor. Once this is Resolution is passed favorably the board then passes a resolution to register the amended bylaw. Once this is registered, the condominium can charge for costs based on the formula in the bylaws instead of using the unit factors. Until that time the only alternative is to use the unit factors.

I hope this helps ... Cheers! Betty

5 Comments:

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