When purchasing a condominium in Alberta, why is it critical to review the condominium documents before waiving conditions?
Correct Answer
A) They reveal finances, upcoming special assessments, reserve fund adequacy, bylaws, restrictions and pending litigation affecting the buyer
Condominium documents in Alberta include financial statements, reserve fund study, bylaws, estoppel certificate, minutes of recent meetings, and insurance details. These reveal the corporation's financial health, any upcoming special assessments, reserve fund adequacy, use restrictions, and pending litigation — all of which can dramatically affect the buyer's financial obligations and enjoyment of the unit.
Why This Is the Correct Answer
Under Alberta's Condominium Property Act, buyers have the right to review condominium documents during the condition period. These documents disclose the corporation's financial position, reserve fund adequacy, bylaws and restrictions, insurance coverage, and pending litigation. Section 44 of the Act requires the corporation to provide these documents upon request.
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- → A buyer's lawyer requests a status certificate and pays the fee on May 1. The corporation never delivers it. After closing, the corporation claims the seller owed $3,000 in common expense arrears and demands it from the buyer, who relied on the silence. What is the effect under s. 76 of the Condominium Act, 1998?
- → A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
- → A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?
- → An investor buyer wants to know how many units in a condominium building were rented last year before making an offer. Which document must state the number of units for which the corporation received lease notices during the preceding fiscal year?
- → What is the most common type of residential property ownership in Canada?
- → A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?
- → An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?
- → A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?
- → The seller of a condominium unit got board approval and signed a registered s. 98 agreement with the corporation to install a hot tub on her exclusive-use terrace, taking on its repair and insurance costs. How does that agreement affect the buyer?
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