The Who’s Who of Condominium
Okay, hear me out: when you read the following what comes to mind: president, committee, board of directors, managers. Well, if you’re not in a Condominium your brain might go to ‘big business,’ right? If so, you’re not wrong.
Condominiums are their own form of not-for-profit business entity, with some bringing in revenue of well over $1mil each year. We’ll chat more about what (exactly) a condo is later – but for today, let’s take a dive into the who’s who of Condominium.
Honestly, we could probably write novels about each of these roles so we’ll do our best and try to keep it high-level. If I missed something important to you, or you had a question on a specific topic, send me a note! Always happy to chat.
For now, we’re going to go ahead and break this down as follows:
Condominium: Board of Directors
The governing body of the condominium, the Board are the movers, shakers and decision makers. Policies need changing? Board. Bylaws need enforcing? Board. Signing a new contract? Board again!
The Board of Directors are the governing body of a condominium. I’ll let that sink in, because it’s super important. Every Board Member carries the weight of all decisions made for the Condominium, and the decisions of their agents (managers).
There’s no two ways about it, it’s some big shoes to fill. In sharing responsibility, each Board Member accepts a share of all the risks and liabilities that come with making such large scope decisions. You can imagine why it becomes so important each member takes care to only act in the best interest of the Condominium.
A good Board must keep their finger on the pulse of the condominium. They will separate duties and responsibilities between members, and will keep an open line of communication with their manager. This isn’t a paid position either. While it’s true some Boards may receive a stipend, that’s very rare. For everyone else, it’s entirely volunteer.
So then… who makes up the Board of Directors, exactly?
Usually, whoever wants the job; sometimes, whoever shows up.
Your standard Board of Directors is made up of elected volunteers, typically from the pool of Owners. This pool will resign every Annual General Meeting (or so, depending on your Bylaws) and a new Board will be elected at the AGM, each year. Sometimes with fresh new faces, sometimes not.
Board Members are not required to be trained professionals with decades of business experience. That helps of course, but some of the best Board Members I’ve had the pleasure of working with started not knowing the difference between a balance sheet, and a bylaw committee.
Being on the Board, for most members, will start simply: a desire to be involved in steering the direction of the community, or in the decisions being made regarding their investment. It’s not a simple task, or a small one – but it’s an incredibly rewarding and informative experience.
If you live in a Condo and have not taken a turn on the Board, consider putting your hand up at the next AGM. Even if it’s just for one year, you will learn so much more than you think.
Condominium: Sub-committee
Did you read the ‘Board of Directors’ section and think: ‘nah-uh, not for me. I’m all for some responsibility, sure. Just not all of that.’ I’ve got some good news for you! For the price of a few dozen hours of your time you too can be involved in your Condominium, with limited responsibility.
A sub committee is also made up of volunteer owners (or residents/spouses/interested persons), but does not come with all the hassle of fiduciary obligations. Why is that? Committees have no decision-making power.
A sub-committee is a group of volunteers who have chosen to dedicate time to assist the Board with various community tasks. This can take a different form for any given condo, but some of the more common examples are:
Communications: helping in preparing and distributing notices and newsletters.
Social: plan (and fundraise) for social events, such as a painting party, or community barbeque.
Landscaping: might help map-out the location of all irrigation heads, assisting with seasonal walkthroughs, and preparing planting guides.
Parking: likely masochists, unafraid of ticketing or towing questionable vehicles abusing parking stalls.
Jokes aside, being part of a committee gives you an opportunity to work alongside your Board and Manager, dipping your toes into the behind-the-scenes happenings of your Condominium.
It’s a great leap-off point for someone interested in helping, but hesitant to join the Board.
Condominium: Owner
Becoming a Condo an Owner is pretty simple process: just purchase a piece of property in a condominium. When you do, you are awarded a land-title, highlighting the portion of the condominium you own. In Alberta this number (unit factor) will be a portion out of 10,000, but this can vary from province to province. Once you’ve finalized your purchase you are automatically opted in to all bylaws, policies and the regs/legislation governing your Condo. Congratulations!
Okay so - what’s that mean, exactly? Well, a lifetime ago now I studied contract law. Want to know a big takeaway anyone who even glances at legal studies learns? The little phrase: ‘ignorance of the law is not excuse’.
Bear with me, this is important.
Buying into a Condominium is a unique type of purchase; it’s not just a home, it’s an investment into a business.
When an Owner signs the paperwork and takes possession, they are immediately responsible for so much more than just the walls around them. They are bound by law to uphold and act in accordance with all the laws and policies of the property. Whether they explicitly knew about them, or not.
Didn’t know there was a posted move policy? Better check the policies.
Running an AirBnB, and got a nasty letter from your Board? Should have checked the Bylaws.
Paying condo fees and feel like you shouldn’t have to pay for documents? It’s in the legislation.
It is of the utmost importance an Owner takes time to understand and familiarize themselves with their investment.
Paying the monthly contributions is just the tip of the iceberg.
Condominium: Managers
The curse of the condo manager is to be misunderstood. Sadly, this is sort of by design as the title ‘manager’ is bit of mislabeling. While yes, nearly every email, phone call, insurance claim, pet request, etc. filters through the manager – outside of specific situations the manager has no actual decision-making power.
You might be thinking: wait, if they don’t make decisions what good are they?
Turns out quite a lot, actually.
We’ll talk about why every condo is unique in the future, but for now just trust us that no two condominiums are the same. A condo manager is expected to know the ins-and-outs of every condo in their portfolio and to keep on top of rules and laws governing the industry at large.
This isn’t just limited to changes to condo laws either. A good manager will keep themselves informed in insurance, real estate, finance, human rights, landlord/tenant rights, and the like. They will also have working knowledge of project management, as well as plumbing, electrical, structural and roofing systems – not to mention being experts in time management, communication, and customer service.
Condominiums are a complex business, and the manager’s role is to keep things moving. they work directly with the board, committees, owners and all trades/professionals engaged in the Condominium. That’s a lot to keep track of.
So, while a condo manager does not make decisions: they do inform all parties making the decisions, coordinate and communicate those decisions, and assist with acting on them.
The manager is an integral part of the success (or failure) of a condominium.
Not sure if the condominium you are looking at is right for you? We’re happy to help review the documents and any special requests you have, to offer you detailed insight into the ins-and-outs of your particular property. Already living there, but struggling to understand what it all means? Drop us a line and let us know how we can help!
Thanks for reading!
Shaun J. Coles | Owner
SJC Document Reviews
Serving Canadians | In Condos
