Condo Glossary

Who’s in Charge? Meet the Condo Board 👥

Every condo corporation is run by a board of directors made up of fellow unit owners, elected by you and your neighbours. There must be at least three directors (sometimes more, depending on the building’s rules or bylaws). The board handles the big-picture stuff, like maintaining the building and managing day-to-day business, often by working closely with a property manager. Think of them as your condo’s decision-makers, keeping everything running smoothly behind the scenes.

Condo Bylaws: The Rules of the Road 📘

Bylaws are the rulebook for your condo community. They outline how the property is managed, how common spaces are used, and how everything stays in good shape. These rules aren’t set in stone, though. Owners who collectively hold 60% of the common elements have the power to make changes or create new ones. It’s all about keeping things fair, functional, and enjoyable for everyone.

What Are Common Elements? 🏡

Common elements are the shared spaces everyone in the condo community uses and enjoys. They’re everything outside your individual unit, like hallways, elevators, the lawn, pool, or building systems. All unit owners share ownership of these areas, and they’re maintained for everyone’s benefit. Think of them as the perks of condo living that come with your front door key.

Common Element Fees & Rules: What You Need to Know 💰📋

Each month, unit owners contribute what's called common element fees. These go toward the condo corporation’s operating costs, such as things like maintenance, repairs, and saving for future upgrades (via the reserve fund). The amount each owner pays is based on a percentage outlined in the condo’s declaration.

Along with paying for shared spaces, there are also common element rules. These are simple guidelines that help everyone enjoy those spaces respectfully. For example, they might cover how many guests you can bring to the pool, what hours it’s open, or how shared amenities are used.

What’s a “Unit”? 🏠

A unit is the part of the condo you own, i.e. your personal living space. Its exact boundaries (walls, floors, ceilings, etc.) are clearly defined in the condo’s declaration and description. Before buying a condo, it’s important to review those documents carefully with your lawyer to know exactly what you're purchasing and where your ownership begins and ends.

What Is the Declaration? 📜

The declaration is the backbone of any condominium. It’s the legal document that brings the condo to life, defining what belongs to individual unit owners and what’s shared by everyone. It also outlines each owner’s share in the common elements, how monthly fees are calculated, and how decisions about maintenance, repairs, and governance are made. If you’re buying a condo, this is one of the key documents you’ll want to understand.

What’s in the Description? 🏗️

The description is the blueprint of the entire condo development. It shows exactly how the buildings and land are laid out, including surveys of the property and detailed architectural drawings of both the overall structure and each individual unit. It’s like the condo’s floor plan on a legal level, helping define what’s where and how it all fits together.n

What Is an Estoppel Certificate? 📄

An estoppel certificate is an official document prepared by the condo corporation when requested by a unit owner or buyer. It gives a clear snapshot of the unit’s financial standing, including whether common fees and reserve fund contributions are current, prepaid, or overdue.

This certificate also includes key information like the names of the property manager and board members, the corporation’s financial health, the balance in the reserve fund, any planned fee increases or major repairs, and whether there are any ongoing legal issues.

It comes with a copy of the most recent declaration and bylaws so buyers know exactly what they are stepping into. This document is essential when buying or selling a condo.

What Are Limited Common Elements? 🔒

Limited common elements, sometimes called "exclusive use" areas, are shared parts of the condo property that are reserved for the private use of specific unit owners. These can include things like balconies, patios, parking spaces, or storage lockers. While they are technically part of the common property, only the designated owner gets to use them. It is one of the perks that adds extra space and privacy to your condo living experience.

Who Is the Property Manager? 🧑‍💼

The property manager is the person who handles the daily operations of the condo. From coordinating maintenance to managing the collection and spending of common fees, they help keep everything running smoothly. Their responsibilities are outlined in a formal contract with the condo corporation.

Not every condo has a property manager though. Some smaller or more hands-on communities are self-managed by the board of directors, who take care of these tasks themselves.

What Is the Reserve Fund? 💰

The reserve fund is one of the most important parts of a condominium’s long-term financial health. It is a savings account set aside to cover major future repairs and replacements such as roofs, roads, landscaping, building exteriors, parking areas, and hallway carpets.

To keep the fund on track, the Condominium Act requires every condo with ten or more units to complete a reserve fund study. This study looks at the condition and lifespan of shared components and creates a financial plan to ensure there will be enough money available when big repairs are needed. A well-funded reserve means fewer surprises and more peace of mind for everyone who lives there.

What Is a Restrictive Covenant? 📑

A restrictive covenant is a legal rule that applies to a piece of land and sets out specific do's and don'ts for how that property can be used. It might limit the type of buildings that can be constructed, restrict certain activities like hanging clothes outside, or control what kind of businesses can operate there.

In phased condominium developments, these covenants can help shape the future of the community by ensuring that any new phase stays consistent with the original vision. They are all about protecting the look, feel, and purpose of the property over time.

What Is a Special Assessment? 💸

A special assessment is an extra fee that can be charged to unit owners when a major, unexpected expense comes up and the reserve fund does not have enough to cover it. For this to happen, owners who represent at least two-thirds of the common elements must vote in favour.

It is not common, but it is an important tool to ensure the condo corporation can handle urgent repairs or emergencies when they arise.