Bare land Condominiums

The quirks and tricks of this form of condominium ownership.

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 is understanding bare land condos important?

• Fundamentally a different type of ownership interest than a ‘regular’ condo.

• Alberta - Maciejko v. Condominium Plan No. 9821495, 2012 ABQB 607

• However, there has not been a lot of case law on these developments – largely focused on tax assessments and their unique nature.

Definitions

• Bare land unit – as defined in 2(bb)(ii)• Which states:

(ii) in any other case, land that is situated within a parcel and described as a unit in a condominium plan by reference to boundaries governed by monuments placed pursuant to the provisions of The Land Surveys Act, 2000 and the regulations made pursuant to that Act respecting subdivision surveys;

On Development Side

• Need an endorsed declaration, regardless of use.

• Historically, used to be the only development that required this endorsed declaration

• Security amount has been enhanced to ensure that Developers are finishing up their projects.

Development (cont’d)

• Need to provide purchasers with reasonably specific description of buildings to be placed on property

• Plan needs to show: – (a) show the boundaries of each unit by reference

to boundaries governed by monuments placed pursuant to the provisions of The Land Surveys Act, 2000 respecting subdivision surveys; and

– (b) show the approximate area of each unit

Role of board vs. Ownership interest

• 35(1) A corporation is responsible for the enforcement of its bylaws and the

• control, management and administration of the units, and of the common property and common facilities.

• HOWEVER – Remember that it is the unit is much broader in scope. Especially in contentious issues – remember that exterior is part of unit. Follow notification provisions before entering unit.

Management advice

• Look for analogies to other forms of condominium ownership to create effective bylaws.

• Example – exterior appearance bylaws as a means by which to manage conduct on bylaw

• Example: “Unit owners shall not have debris, garbage or refuse accumulate on the exterior of their unit. Unsightly materials, as determined by the board in their sole discretion, shall be removed within 48 hours of notification.”

Bylaws

• Look to create community design and construction standards in your bylaws.

• As the unit is responsible for the maintenance of the condominium, the exterior changes could be quite dramatic.

• If you are looking for a consistent design, you should require it.

Reserve Funds

• Many reserve funds in bare land complexes are focused on true common elements; Others have not distinguished based on unique ownership type.

• If you are collecting reserve amounts for elements ON UNITS – prepare the appropriate bylaw.

• Section 47 - (i.1) governing the assessment and collection of contributions towards the common expense fund and reserve fund for the maintenance of units or portions of units that the corporation is required to maintain;

Insurance

• Section 65(1) of the Act – “Developed bare land units”– Multi unit buildings, or shared load bearing walls

and roofs– Need to insure buildings– Major perils, and anything else required in bylaws

• Otherwise, up to individual corporation, and more of the focus in the next presentation.

Questions?