I’ve just been elected to my condo board. How do I know which responsibilities fall under the condo corporation, the condo board, and the condo manager?
Making sense of the different bodies responsible for overseeing a condominium complex’s day-to-day operations can be a bit overwhelming at first. Hopefully, I can help clear up some of the confusion.
The condominium corporation is made up of, and represents, all unit owners of that condo complex. So, if you own a unit in the condo complex, you are a part of the condo corporation. It is a legal entity that has all the rights and responsibilities of any other legal entity (i.e., individual or business).
In Alberta, the Condominium Property Act governs the operations of condo corporations and sets out responsibilities related to managing the common property, preparing the annual budget, collecting fees, holding insurance, and enforcing the corporation’s bylaws and rules. The Condominium Property Act also sets out the requirement that all duties of the condo corporation be carried out by an elected board of directors (i.e., the condo board).
As with other elected entities, the condo board represents and acts on behalf of the individuals that elected it. In this case, the individuals that make up the condo corporation.
So, the condo corporation is synonymous with all unit owners in the complex and is responsible for the business of the corporation. And the condo board is elected by the condo corporation to carry out the business on its behalf.
Still with me? Okay, so this is where a condo manager may come into the equation.
It takes a lot of work to manage a condo complex and many volunteers on the condo board, understandably, don’t have the time. While the condo board can choose to self-manage the complex, they also have the choice to hire a condominium manager to oversee the day-to-day tasks.
The tasks that the condo manager are ultimately responsible for will be determined by the contract or written service agreement between the condo corporation and the condo management brokerage. These agreements usually expire annually, to be renewed and renegotiated and voted on by the corporation at the Annual General Meeting (AGM). As a new director on your condo board, it’s important to review and understand the current written service agreement.
Your condo board should also be aware that as of December 1st, 2021, condo management companies (brokerages) and individual condo managers must hold a licence with RECA. Check to see if your condo manager is licensed using the Find a Licensee tool on reca.ca