12 Units or Less - What You NEED to Know
There appears to be some confusion as to what regulations small condominium corporations must follow. I recently had a call with a client who advised that because they are 12 units, they did not need to follow some rules set out in the condominium property act. This included: no board, no Reserve Fund account, no AGM, no board meetings, etc.
The only stipulation in the Condominium Property Act & Regulations in regards to a 12 unit or less corporation is in section 22 of the Regulations. This states that:
Notwithstanding section 21(2), if a condominium plan consists of not more than 12 units, the corporation may, in respect of that condominium plan, carry out the functions of a qualified person if authorized to do so by a special resolution.
All condominium corporations must have a separate account for the Reserve Fund (Capital Replacement) monies.
38(1) A corporation shall, subject to the regulations, establish and maintain a capital replacement reserve fund to be used to provide sufficient funds that can reasonably be expected to provide for major repairs and replacement of
(a) any real and personal property owned by the corporation,
(b) the common property, and
(c) any property of an owner in respect of a bare land unit that the corporation is required by bylaw to repair and replace,
Where the repair or replacement is of a nature that does not normally occur annually.
Funds in the Reserve Fund account can only be used for the above; they can not be removed from this account to pay for operating costs.
Boards must consist of not less than 3 and not more than 7 individuals. If there is only 2 units – this does not apply. All condominium boards must hold an AGM every 15 months or less.
All condominiums – regardless of size require a separate account for the Reserve funds, an annual general meeting, and a board of directors.