Changes to the Condominium Property Regulations

And….well….changes to the Act as well.

Waiver

• This presentation is not intended to be legal advice to any specific corporation or individual. Attending or receipt of this presentation does not constitute or create a solicitor client relationship.

• It is intended for general information purposes. Contact a lawyer for information and advice specific to your situation.

Why?

• Changes to Regulations were put into effect on June 16th, 2014

• Changes to Act were done much earlier than that, but not proclaimed until Regulations were ready.

• Living now with changes to both.

Agenda

• Quick Discussion on how this affects Developers

• Insurance• Board Responsibilities• AGM• Financial Reporting• Using a Lawyer• Engaging Your Community

Developers

• New security (bond) requirements (Reg 16-20)• New disclosure package requirements (Section

28) • Prescribed conversion limits (section 10 (5)) – 2.5% Vacancy rate (Reg. 8.1(2)

• Turnover documents (section 12)

Special Resolutions• Special Resolutions - Two third majority (2(z))

– (i) a resolution that is approved by a majority of not less than two-thirds of the persons entitled to exercise the powers of voting conferred by this Act or the bylaws of the corporation:

– (A) at a properly convened meeting of a corporation by persons who:• (I) are present personally or who cast their votes by proxy; and• (II) vote with respect to that resolution; and

– (B) by the signature on the resolution of persons who are not present personally or who do not cast their votes by proxy at the meeting; or

– (ii) a resolution that is approved by the signature on the resolution of a majority of not less than two-thirds of the persons entitled to exercise the powers of voting conferred by this Act or the bylaws of the corporation;

• Not to be confused with other ultra majorities listed in Act (like financial Statement requirement)

Insurance

• Bare land condominiums - with either multiple buildings on a lot, or with shared walls, needs to insure by the corporation.

• Other bare land condos may insure, but it is up to them.

• Directors’ Errors and Omissions insurance is required

Board Responsibilities

• File prescribed Returns - Section 35(1), Regulation 40, April 1, 2015

• Maintenance of Proxies (41.1(5/6))– it is valid for 6 months.– Needs to be maintained for longer of 90 days follow expiry– 90 days from when it was used– Must be made available for inspection with 90 days after use.

• Reserve fund study– insurance requirements ($1,000,000 Professional)– not “connected” to condominium if developer, can be if condo, but

need to declare relationship– Every 5 years

“Other” Parties• OwnersYou have to pay the fees - NO MATTER WHAT - (Section 54(3))• Direction to board fulfill duties under section 35 and 39 (Section

99.1)• Oppression Remedy (section 99.3)“An owner, a corporation, a developer, a tenant, a mortgagee of a

unit or other interested person may apply to the court for an order if the applicant alleges that the conduct of an owner, a tenant, a corporation, a developer or a mortgagee of a unit is or threatens to be oppressive or unfairly prejudicial to the applicant or unfairly disregards the interests of the applicant” -Can have order prohibiting conduct or monetary relief

Annual General Meetings

• Change in Address for Service for Directors (Regulation 46)

• Written insurance report for AGM (Section 65 and Regulation 62.2)

Financial Reporting

• Audited financials for AGM (39(3)) and Regulation 53.2– Fewer than 12 units - No requirement for audit,

financial review unless approved per Regs– Between 12 and 50 units - Requirement for audit,

unless approved per Regs, then financial review or none.

– More than 50 - Must have audit• Approval must be obtained annually

Bylaw Amendments

• Standard Unit Description (2 (z.01)) of the Act• Read in context of section 8(1) of the Act - Boundaries of

the Unit and Regulation 11.1• Intention is to identify, for insurance purposes, who is

responsible for what, and what the base installation included. (What kinds of doors, countertops, etc). Not to change responsibility of maintaining common property to the unit owner.

• -Collect fees to maintain any or all of unit (section f.1 of the Act), including a reserve fund (section 55(3))

**** BARE LAND UNITS ****

Bylaw Amendments (Cont’d)

• Fees related to use of certain common property or admin charges, not exceeding prescribed amounts (sections g.1 and g.2 of the Act)

• Regulation 66 and 66.1- $200 max for estoppel certificate, “reasonable fees” otherwise, cost of producing fee for documents required to be provided.

• Fees related to damage caused by tenant in excess of deposit maintained (section 79.1)

• Max Interest - 23% per annum (Regulation 63.2)• Can convert parking spaces into parking Units under

prescribed process (section 11(7) and (Regulation 15.2))

Estoppel Form

• Most of it is changes to the form, not substance, of the estoppel.

• It clarifies some of the answers to ensure that the corporation is complying with the Act

• http://www.publications.gov.sk.ca/redirect.cfm?p=1005&i=1647

Using a Lawyer

• My ask – get a lawyer to assist you with those areas that require some technical knowledge.

• I am beginning a trial program to act as a “general counsel” for some condominiums for a fixed fee.

• Contact me for more details.

Engaging Your Community

• Community Events• Regular Communication• Social Media• Look to the Condo Community for ideas and

suggestions (Property Manager, CCI)

Resources

• Canadian Condominium Institute• My blog:– Ktrealestate.blogspot.ca

• Facebook Page: www.facebook.com/skrealestate

Questions?