REFERENCE GUIDE FOR:
PURCHASE AGREEMENT DETAILS &
PRE AND POST COMPLETION PROCESSES
If you have purchased a new home at Mark on Tenth from Qualex-Landmark™, we would like to thank you for choosing us.
Throughout our history, we've earned a reputation as visionary and customer service oriented, residential developers. It's a
reputation given to us by you, our customers, and we work hard to be deserving of your positive regard.
The purpose of this document is to provide those with purchase agreements in place, with information and rough time
frames of important dates leading up to, and after possession.
While very exciting, the completion process can be daunting, especially for first time homebuyers, this is mostly due to
uncertainty of firm dates. In this guide, we have outlined the process involved and have addressed common questions that we get
asked during the closing process for our projects.
Closing, Orientation, Possession and Move-in Dates are all separate matters but are often confused as the same day. A
description of important dates, terminology, FAQ's and "Condo Speak" are available below.
It is very important you take the time to read through this document, as it does provide you with useful information, policies
and features answers to the most common questions that arise during the pre and post completion period. If you don't find
an answer to a particular query, please don't hesitate to contact us by visiting qualex.ca/homeowners/
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Section 1
9 Important Stages
Section 2
How The Closing Date Is Determined
Section 3
Nearing Your Closing Date
Section 4
Statement of Adjustments
Section 5
Frequently Asked Questions
Section 6
Glossary
Section 7
Warranty Coverage
MAY 2015 EDITION - SUBJECT TO CHANGES
Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
SECTION ONE: 9 IMPORTANT STAGES
1.
2.
3.
4.
5.
6.
7.
8.
9.
MORTGAGE LOCK IN/APPROVAL
LAWYER REPRESENTATION SELECTION
CONTRACT CHANGES DEADLINE(S)
PRE DELIVERY ORIENTATION
NOTICE OF CLOSING/POSSESSION
POSSESSION
MOVE-IN
SERVICE REQUESTS
FIRST ANNUAL AGM
1. MORTGAGE LOCK IN/APPROVAL
When: Approximately within 3 months or so prior to the anticipated building completion date ( as noted in the
addendum A of your purchase contract)
What to do: You will be responsible for organizing mortgage approval (if required) for the purchase of your home.
Contact your mortgage broker for more details.
The lender will typically need a copy of your Purchase Agreement including receipts for your deposits paid as well as
other private information. Often they will also require proof that the development and your home will be covered by
warranty. Visit qualex.ca/homeowners/ to obtain your Warranty Coverage Information details.
The lender will more often than not want to send in an appraiser, which is detailed later in this document.
It is also important to clarify with your lender if any additional parties will be required to be added to the purchase agreement in order to
meet your financing terms. See below - Contract Changes Deadline
2. LAWYER REPRESENTATION SELECTION
When: Approximately 2 months or so prior to the anticipated building completion date (addendum A)
What to do: provide Qualex-Landmark™ with the name and details of your legal representation or Lawyer (which is
mandatory in order to close). This can be sent via email to the appropriate project customer service email address
(qualex.ca/homeowners/)
Qualex-Landmark™ will offer one or two preferred lawyers with pre-set pricing packages however; you may choose
whichever legal representation you wish.
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Management Inc.
3. CONTRACT CHANGES DEADLINE
When: up to 45 days prior to the anticipated building completion date (addendum A)
What to do: Clarify with your lender, any need to add, remove or change any individual within the Purchase
Agreement. Qualex-Landmark™ will only accept changes up to 45 days prior to the anticipated building completion
date (addendum A)
Note that the purchase price excludes GST. Qualex-Landmark™ will not modify executed purchase agreements to include GST as
explained later in this document.
4. PRE DELIVERY ORIENTATION
When: Typically within a month or so of the anticipated building completion date (addendum A)
What to do: Apart from the opportunity for a sneak peak and orientation of your new home, the main purpose of the
PDO is to become familiarized with your in-home systems and maintenance in advance of your possession date.
When the time comes that your unit is ready for a PDO, Qualex-Landmark™ will contact you to schedule an
appointment. You will meet with a Qualex-Landmark™ Representative on-site for the purpose of conducting the
PDO.
Qualex-Landmark™ will attempt to rectify any deficiencies or outstanding items prior to your possession date.
However we may need to schedule repair for certain items post possession.
5. NOTICE OF CLOSING/POSSESSION
When: Minimum 15 days in advance of the possession date (determined by the Vendor)
What to do: Once you receive your Notice of Closing Date, you will know a) The Closing Date -what day the legal
transaction occurs, and what date you’re actually picking up your keys and have access to your home - The Possession
Date (always the day after closing, if transaction is successful). The Closing Date is not a move-in date.
You should send a copy of the closing notice to your lender and legal representation.
6. POSSESSION
When: Your possession date is the date following a successful closing, and is noted in your Closing Notice, along
with the time at which you will meet a customer service representative to receive your keys and package. Keys can
only be released once our lawyers confirm your closing transaction was successful.
What to do: Meet with a Qualex-Landmark™ Customer Service Representative at the allotted time to receive your
package, and to gain access to your new home.
Possession Inspection (PI): Our Customer Service Representative will accompany you take a final review of your
home prior to your moving in of furniture. Make note of any counter/drywall/cabinet/bath or flooring damage. This
will be reported on your Possession Certificate (start of warranty) for repair, which you will receive a copy of.
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MAY 2015 EDITION - SUBJECT TO CHANGES
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Management Inc.
Note: Your possession date/time is NOT a move-in time.
7. MOVE-IN
When: A pre-booked time after your possession when you will have the elevator to move in your items
What to do: In your Notice of Closing letter, will be the contact information of the Property Manager liaison that will
be scheduling move-in (elevator booking) times. It is the property manager, not Qualex-Landmark™ who will be
handling and scheduling move-in requirements. We strongly recommend scheduling your move for the day(s) after
your possession date. This gives you time to review your home and to accommodate for closing complication delays,
which can occur.
8. FIRST YEAR SERVICE REQUESTS:
After you have taken possession, you have a full year to note deficiencies via Service Request. For instance, should
cupboard door become loose, fancoil stops working, or a section carpet becomes un-tucked the developer will arrange
for the General Contractor to repair. Please note that cosmetic damage not noted during the Possession Inspection
cannot be claimed (such as scratches, gauges or marks on surfaces - counters, cabinets, flooring, drywall etc.)
For more information on Service Requests, visit qualex.ca/homeowners/
9. FIRST ANNUAL GENERAL MEETING:
When: typically either: 90 days after the day that 50% of the unit sales are closed, or 180 days from the day that the
first unit sale is closed
What to do: You will receive notice of the AGM from your property manager. We encourage all to attend. A primary
purpose of this AGM is to elect the Condominium Corporation’s first Board of Directors comprised of unit owner
residents.
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MAY 2015 EDITION - SUBJECT TO CHANGES
Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
SECTION TWO: HOW THE CLOSING DATE IS DETERMINED
There is an extensive "checklist" that must occur which will ultimately determine the closing date for each unit. Each
of these items has sub variables. Some are under the control of the developer, but many are under the control and
ultimately determined by the City.
1. Building Construction Completion (Developer/General Contractor)
2. Building Occupancy Permit Received from the City of Calgary (City/Developer)
3. Land Titles Filed and Registered (City)
4. 15-30 days notice to homeowners (Developer)
Once the developer has received the full occupancy permit from the City, typically within 3 months of the estimated
completion date (addendum A), it may file the condominium plan with the land title office.
Before a Condominium Plan can be registered, the local municipality must evaluate the Plan, inspect the property and
approve the Plan. This step is beyond the control of the Developer and can take some time depending on City office
wait times, and time of year.
Assuming that the municipality has approved the Condominium Plan without requiring changes to it and
that all the municipal requirements are met, the Developer can then proceed to submit the approved Plan to the Land
Titles Office for registration. Regardless of any informal discussions about possession dates between you and your
Developer, the Notice of Closing will officially and formally specify the date when you can move in.
It is understandable that as a homeowner, you need to plan many things around taking possession of your new home,
and you would ideally want concrete days and as much advance notice as possible. Due to the reasons noted above,
and like all new construction developments, the only official (for planning purposes) date you will receive is via your
Closing Notice, approximately 15-30 days in advance of your closing date. Any other such dates or updates given will
be estimated.
SECTION THREE: NEARING YOUR CLOSING DATE
To complete or “close” the purchase, a number of steps need to be accomplished after your unit is registered with
Land Titles.
Assuming you have a mortgage, the lawyer you selected to handle the purchase must see to it that the mortgage is
registered on Title so that the lender has a legal claim on the property (until such time as the mortgage
is paid back). After the mortgage is registered on Title, the mortgage funds can be advanced by the
lender and placed into the lawyer’s trust account. From there, the lawyer is responsible for dispersing the appropriate
funds to the Developer's lawyer.
The Interest Adjustment Date (I.A.D.) is another financial matter of note at Closing. For the purpose of
calculating mortgage interest charges, the I.A.D. is the date that your lender anticipates your mortgage
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Management Inc.
funds will be advanced.
The I.A.D. is usually set one month before your first mortgage payment is due. This allows time for
paperwork to be processed, mortgage funds to go from the lender to your lawyer to the Developer, and
adjustments to be made in how much interest you have to pay on the mortgage funds — depending on
when they are actually advanced. If your mortgage funds are advanced before the Interest Adjustment
Date, then you’ll have to pay a bit more interest to the lender for the extra days when you have use of
the money. Your lawyer will have this information from the lender and will handle the processing of
your payment for the extra interest at Closing time. If your mortgage funds are advanced after the
Interest Adjustment Date, the lender will calculate how much in interest charges are owed back to you
for the days that you didn’t have use of the money.
Mortgage:
It is solely the buyer's responsibility to arrange mortgage financing. Please note that some finance
companies and banks often require extended periods of time to complete your financing for closing.
Please update your mortgage rep to prevent complications and penalties at closing. The Developer is obviously not
responsible for owner qualification, mortgage related expenses, or for mortgage rates.
Appraisals:
Your bank may require an appraisal on your home. Appraisers need to contact [email protected] to
schedule an appointment. Please also ensure that you provide them with a copy of your floorplan and purchase
agreement, as we will not provide personal information to 3rd parties.
Parking & Storage:
• Parking and Storage are assigned to the owners on or just prior to the Closing Date by and at the sole
discretion of the developer . The parking unit is typically designated a legal unit number and a unit factor on
the Condo Plan.
• Storage Lockers are assigned and are leased common property. Sizes vary.
• It is not possible to switch or change assigned parking and storage locations once they are assigned, and
unfortunately allocation requests cannot be accepted.
Lawyer & Legal Fees
The purpose of your lawyer, in simple terms, is essentially to work with the developer's lawyer to make sure that the
unit is successfully and properly handed over from the Vendor to the Buyer. There are many legal details involved,
such as title transfer, parking and storage assignments, and mortgage registrations to name a few. Your legal
representation will walk you through the whole process. Legal fees can usually range from $800 - $1300.
The Developers Solicitor is Dentons Canada LLP. The Vendor and Purchaser's lawyer cannot be the same.
Utilities:
Homeowners are solely responsible for setting up utilities for power/electricity, phone, cable and internet.
Power/electricity is perhaps the most important and you should notify your provider once you receive your closing
notice. Typically heat, cooling, gas and hot/cold water is included in your monthly condo fees.
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MAY 2015 EDITION - SUBJECT TO CHANGES
Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
SECTION FOUR: STATEMENT OF ADJUSTMENTS (SOA) - HOW MUCH DO I OWE ON CLOSING?
A statement of adjustments is drawn up by the Vendor/Vendor's lawyer and is provided to the Buyer's lawyer a
couple days before the closing date, but not earlier.
The statement of adjustments lists any amounts that need to be adjusted for and paid to the buyer. If you are the
buyer, your statement of adjustments will list:
• purchase price
• upgrade costs
• your deposit,
• guest suite amount and
• any prepaid property taxes, utilities, condo fees etc.
Since the statement of adjustments is not provided to you well in advance of closing, you may be wondering what the
estimated amount of funds required are. This is very easy to determine as it’s laid out in your purchase agreement.
Purchase Price Excluding GST
+ upgrades excluding GST
+ 5% GST (see GST details)
+ two months maintenance fee's
+ guest suite fee
+ legal fee's ($1000 - $1400)
- deposits paid
= est. balance owing
Additional fees would be property tax adjustment and legal fees. The Developer cannot estimate property taxes for a
new development in advance.
GST
As per your Purchase Agreement, GST (5%) is not included in the Purchase Price. GST must be paid at closing. The
developer will not amend the purchase agreement to include GST, as we cannot verify an owner’s usage intent
(primary residence vs. income residence) and thereby cannot be asked to claim a rebate on behalf of eligible owners.
GST Rebate
Once you have successfully closed on your home, and if eligible, you may apply for the GST rebate. It is your
responsibility to complete the Application.
Here is how the process typically works:
1. You will be able to download the rebate application from qualex.ca/homeowners/
2. We will have already pre-filled section D for you.
3. Complete the form
4. Send to CRA (after you have closed). That’s it!
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MAY 2015 EDITION - SUBJECT TO CHANGES
Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
SECTION FIVE: FREQUENTLY ASKED QUESTIONS AND ANSWERS
Q. I would like a copy of my contract. How do I get it? Can you send it to my bank for me?
By the time of your final deposit, the sales team will have provided you with all copies of your Purchase Agreement,
deposits paid, floorplan and Condo Documents (including budget). You have also acknowledged having received an
executed copy of your agreement and condo documents.
Please note we will not provide a copy of your contract to anyone other than the owner of the unit. It will be your
responsibility to provide your documents to other parties (lawyers,banks, appraisers, or brokers).
Q. I may be out of town on my Closing date, can I change it? Can I select my closing date?
Unfortunately, once the occupancy permit is received, condo fee charges and taxes on the units
commence, and as such, there is an actual cost associated with the delay of closing. Further, orchestrating many
closings in a short period of time, means that one request to delay a unit was approved, another unit's date would have
to change - putting the burden on other owners and causing a domino effect on other homeowners.
Secondly, there is much involved in orchestrating the closings, possessions and move-ins in a residential tower. In
fairness to all homeowners, the developer absolutely cannot accept requests for specific dates, or to change
the assigned closing of a residential unit.
If you expect to be out of town, speak to your lawyer/notary about allowing for a power of attorney to complete the
conveyance of your home. While we would love the ability to customize PDO and Closing/Possession dates to make
it simpler for the homeowner adhering to a pre-set schedule will allow us to get everyone into their homes as soon as
possible.
Q. I need a copy of my statement of adjustments
Statement of Adjustments will come be sent from the Developer’s Lawyer to the Purchaser's Legal Representative,
please check with your lawyer for a copy of your Statement of Adjustments.
Q. I need proof of warranty/warranty certificate
Warranty certificates are provided on the day of possession and not earlier. If your lawyer or lender needs this in
advance, you can provide them with the builder warranty number and your individual residential unit warranty
number which are available within your purchase agreement and on qualex.ca/homeowners/
Q. I need a copy of the measurements for my suite
You may measure room dimensions during your PDO. We do not have copies of specific measurements for each
unit. The architectural plans use a different type of measurement system, and is based on pre-construction.
Q. How do I book an Elevator for my move-in?
Elevator booking is required prior to moving in and is managed by your Property Manager. Information will be
provided to you in your Closing Notice.
Q. I'm moving from a rental unit and have to provide notice. I don't want to have to pay both my last rent
and my first mortgage payment in the same month:
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Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
While previous living arrangements and obligations of homeowners are not the Developer's responsibility, what many
people don't realize is that rarely would you have to pay both your rent and new mortgage in the same month. Unlike
a rent payment, which is paid in advance, typically your mortgage payment is paid after the fact. If you rented a home
on June 1, your rent would be due June 1 because it pays for the month of June in advance. When your buy a home
and obtain a mortgage it is different:
In most scenarios - If your closing date, for example, is September 15, you will be charged prorated daily interest from
September 15th through September 31st on your closing statement. Your first mortgage payment will be November 1
because that payment will pay the interest for October. Lender's pay structure may vary so please speak to your
mortgage lender to verify.
Q. How do I pay my maintenance fees and what do they include?
Your property manager will provide you with the paperwork for direct debit and other options. Typically,
maintenance fees include natural gas, hot/cold water and your percentage of common area costs. The first two
months of maintenance fees are collected on your statement of adjustments in order to ensure that the property
manager has the funds in place during the busy move-in period.
Q. I noted some deficiencies during my PDO, and don't want to close on my unit until they are complete.
Non life/safety deficiencies or defects (i.e. cosmetic deficiencies) do not delay closings, nor is the status of such
deficiency remediation required prior to closing. However, Qualex-Landmark™ will remediate deficiencies noted as
quickly as possible and in accordance with the warranty guidelines. Our goal is to make you pleased with your new
home.
Q. My finished floorplan and or specifications is/are slightly different than what was shown on the preconstruction drawings and or marketing plans.
Changes are not uncommon in pre-construction sales and as such, potential for change was duly noted on all
marketing materials, at the Discovery Centre and within your Purchase Agreement. The developer reserves the right
to make modifications and changes to the building design, specifications, features and floor plans should they be
necessary. Interior square footage and room sizes are based on the preliminary architectural drawings and
measurements. Sizes are approximate and actual square footage and room sizes may vary from the final survey and
architectural drawings. Spandrel locations may vary for each unit/level. Renderings, photos and sketches are reference
interpretation purposes only and were noted as such. See addendum A of your Purchase Agreement for more details.
Q. I want to rent or sell my unit , what is required?
After you take possession, you are able to rent or sell your unit should you wish to do so. However, you must provide
notify your property manager immediately, especially if renting. Please refer to the Property manager's welcome
package at closing.
Q. Will Qualex-Landmark™ rent or re-sell my home for me?
Qualex-Landmark™ does not offer these services at this time.
Q. Can I access or take quick measurements of my home prior to the PDO or Closing date?
Yes, you will have the opportunity to take measurements during your PDO. Access to your home prior to the PDO
or date of possession is strictly prohibited for Provincially imposed work safety reasons.
Q. What is the postal code for the new project?
You can obtain the postal code by visiting Canada Post. If no results are found, that means Canada Post has not yet
assigned the applicable Postal Code(s). Often, Canada Post will have this done within a month of occupancy. We will
also post this at qualex.ca/homeowners/once its released to us.
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Management Inc.
Q. Can I request or see my parking stall or storage locker location prior to possession?
Parking and storage assignments are determined at the developer's discretion and assigned at the time of closing only,
not at the time of the PDO. There are numerous considerations to make in these assignments and as such, no custom
requests are possible. Once assigned, there is no ability to change or "swap" the assigned stall. And due to the safety
reasons noted in the answer above, physical access to these locations may not be possible during the PDO.
Q. How do I order additional FOBS?
The developer will provide you with two suite keys, two mail keys and two fobs (one of which will also open the
garage). Please contact your Property Manager if you would like to purchase additional fobs
Q. Can I list my home for sale prior to the closing date?
This is not possible, as you do not own the unit (have title) prior to the closing date. Once you have taken possession,
then you have the ability to sell or rent as you wish.
Q. My personal situation has changed since I purchased. Is it possible for the developer to take back the
unit?
While we appreciate that a lot can change in a couple years both personally and professionally, as with any contract,
the Purchase Agreement is enforceable and non-negotiable for both parties. Simply put, the Developer/Vendor is
responsible to complete the building as per the purchase agreement, and the Purchaser is responsible to close as per
the purchase agreement. To keep our policy simple, to provide transparency, and most importantly to be fair to all
owners, we do not deviate from this practice under any circumstance nor do we entertain requests regarding the
termination of an agreement. For those who may be facing personal, financial or other issues, there is an option
available to our purchasers called an Assignment up to 45 days prior to the estimated closing date. Please refer to the
"assignment" section of your purchase agreement for more information.
Q. What is "Tenancy At Will"
The situation where a buyer receives possession of the property prior to payment of the full purchase price to the
seller. One example is where the buyer’s mortgage lender is late sending the mortgage funds to the buyer’s lawyer
which results in the buyer’s lawyer not having the money to pay the seller the purchase price on the day of closing.
Another example, is where the seller has not provided the buyer with a document required to close and therefore the
buyer’s lawyer wants to delay the payment of the purchase price so as to protect the buyer.
Q. What is a Title?
Gaining Title to your unit means the purchase can be concluded or “closed”. At that point, the balance of the
purchase price is due and payable and your mortgage lender can release the funds to pay the
balance. Your money and mortgage advances are protected by lawyers’ trust conditions until Title to the
unit is registered in your name
Q. What about Property Taxes?
Property taxes are among the important financial matters to be resolved at Closing through the
Statement of Adjustments. Typically, municipalities collect taxes June 30 for a calendar taxation year
that runs from January 1 to December 31. If you take possession before June 30, then on June 30 you’ll
be paying taxes for the whole calendar year including the months before you move in. In that case, the
Developer will owe you money for its share of the taxes that you’ll be paying. An adjustment that credits
these funds back to you is made in the Statement of Adjustments. If you take possession after June 30,
the Developer has paid the taxes for the entire year. You will owe money to the Developer for that part of the year in
which you are the owner of the property. This payback of money, from you to the Developer, is accounted for in the
Statement of Adjustments.
Q: Can I change the exterior of my unit?
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MAY 2015 EDITION - SUBJECT TO CHANGES
Qualex-Landmark™ is a licensed trademark, being used by Qualex-Landmark™ Western Inc. under license from Qualex-Landmark
Management Inc.
The bylaws of most condominium corporations specify that changes may not be made to the exterior of
units without prior written approval of the Board. If an owner makes changes without this approval, they could be
required to restore the unit to its original state at their expense.
Q. What Insurance Will I Need?
Both the unit owner and the condominium corporation must have insurance. Specific insurance requirements vary
from province to province. Contact an insurance provider for more details.
The corporation may be responsible for insuring:
• Common areas and units;
• The corporation’s property, such as furniture, equipment, vehicles, etc.;
• Personal liability—against claims for bodily injury and/or property damage occurring on the condominium
property or caused by some act or omission of the condominium corporation;
• Boilers and equipment (for example, elevators, HVAC systems, etc.);
• Directors and officers insurance—to respond to claims made personally against a director or officer of the
condominium;
• All perils as per the condominium governing documents.
Owner Insurance Responsibilities - Important
• Personal property contents such as appliances, furniture and jewelry, and items stored in lockers
• Improvements and betterments made to the unit by the homeowner
• personal liability
• Deductibles for loss caused by owner negligence vary. It is always a good idea to have your broker review the
building's annual policy to ensure that you are adequately protected in case of an accident in your suite (for example, a
dishwasher overflow)
Q. I want to install a satellite dish in the unit, can I do this?
Typically this is not allowed. Refer to the bylaws of the corporation or your Condominium Documents provided at
your Purchase. This is usually found in the “Use and Occupancy Restrictions” section.
Q. When can I rent the Guest Suite and or have access to the Gym/Lounge?
Once the all units in the building have taken possession, the Guest Suite is then transferred to the Condo Board and
will be managed by the Condo Board via the Property Manager. The gym and lounge will also be made available
around that time. Homeowners will decide, via general meeting, any usage details or restrictions for the Guest Suite
and other common areas. The Developer does not make reservations for, or dictate the usage of the Guest Suite
Q. I really want to buy a new couch or flat screen for my new home. Can you help?
Yes. As a past Qualex-Landmark™ Purchaser, if you refer someone who buys a home at our latest offering, you may
be entitled to a $1,000 Purchaser Referral Reward . Contact the Sales Team for more details
Q. What is the best way to contact Qualex-Landmark™?
The most efficient way to contact us is through qualex.ca/homeowners. More often than not, your questions can be
answered by reading through the resource materials. If not, we have a dedicate service email for each project.
Typically, you will receive a response within two business day. Email is preferred because it allows us to forward the
message to the correct department, and to keep track of correspondence.
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SECTION SIX: GLOSSERY
What Is a Condominium?
A “condominium” refers to a form of legal ownership, as opposed to a style of construction. Condominiums are most
often thought of as high-rise residential buildings, but this form of ownership can also apply to townhouse complexes,
individual houses and low-rise residential buildings. Condominiums are also known as strata in British Columbia or
syndicates of co-ownership in Quebec.
Condominiums consist of two parts. The first part is a collection of private dwellings called “units.” Each unit is
owned by and registered in the name of the purchaser of the unit. The second part consists of the common elements
of the building that may include lobbies, hallways, elevators, recreational facilities, walkways, gardens, etc. Common
elements may also include structural elements and mechanical and electrical services. The ownership of these common
elements is shared amongst the individual unit owners, as is the cost for their operation, maintenance and ongoing
replacement.
Each unit owner has an undivided interest in the common elements of the building. This ownership interest is often
referred to as a “unit factor.” The unit factor for any particular unit will generally be calculated in proportion to the
value that the unit has in relation to the total value of all of the units in the condominium corporation. The unit factor
will tell you what your ownership percentage is in the common elements and will be used in calculating the monthly
fees that you must pay towards their upkeep and renewal.
The creation of a condominium is regulated by provincial or territorial condominium legislation and municipal
guidelines. It can be created in many different ways. In some provinces, a developer, or other interested parties, may
register a declaration to create a condominium, while in others, an application may be made to have title issued for the
units pursuant to an “approved plan of condominium.” The operation of condominiums is also governed by
provincial or territorial legislation and the condominium corporation’s own declaration, bylaws and rules.
Once a condominium corporation has been established, a board of directors, elected by, and generally made up of, the
individual condominium owners, takes responsibility for the management of the corporation’s business affairs. There
is usually a turnover meeting where this transfer of responsibility takes place. Each unit owner has voting rights at
meetings.
Residential condominiums can be high-rise or low-rise (under four storeys), town or row houses, duplexes (one unit
over another), triplexes (stack of three units), single-detached houses, stacked townhouses or freehold plots.
What Do I Own When I Buy a Condominium?
When you buy a condominium, you own your unit, as well as a percentage of the common property elements
allocated to the unit. The boundaries of each individual unit and the percentage of common elements you own may
vary from condominium to condominium, depending on how they are specified in the condominium’s governing
documents. Sometimes, the unit boundary can be at the backside of the interior drywall of the unit’s dividing walls.
Alternatively, the unit boundary can be the centre line of the unit’s walls. The unit typically includes any equipment,
systems, finishes, etc. that are contained only in the individual unit. The right to use one or more parking spots and
storage areas may be included.
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Components of building systems that serve more than one unit, such as structural elements and mechanical and
electrical services, are often considered part of the common property elements, particularly when they are located
outside of the unit boundaries specified in the condominium’s governing documents. There may be some parts of the
condominium complex that are called “exclusive use common property elements.” They are outside the unit
boundaries, but are for the exclusive use of the owner of a particular unit. Balconies, parking spaces, storage lockers,
driveways and front or rear lawn areas are common examples of exclusive use common property elements.
While these spaces are exclusive to your use, there may be restrictions on how and when you use them. For instance,
you may not be able to park a boat, RV or commercial vehicle in your assigned parking spot. There may also be
restrictions on what you can place on your balcony.
What Rules and Restrictions Might I Encounter in a Condominium?
Every condominium is governed by its own unique rules, regulations and bylaws. These may be very strict or very
relaxed depending on the nature of the condominium corporation. These are necessary to ensure that condominiums
are properly operated and maintained and to define the rights and obligations of the individual owners. With respect
to rules regarding the individual owners, condominiums may have restrictions regarding the number of occupants per
unit, pets, noise, parking and when certain amenities may be used.
Many condominiums have strict rules concerning the alteration of the unit space or its appearance. For example, the
condominium corporation may require all the exterior doors of units to be the same colour to keep the architectural
and community aspect of the condominium intact. Additionally, you may have to get the permission from the
condominium’s board of directors before you change interior finishes and fixtures, exterior fixtures or install a satellite
dish, especially as some changes may affect the condominium structure or safety. Noise is an important consideration,
especially for people moving from a single-family dwelling to a multi-unit condominium. Many condominiums have
rules regarding what noise levels will be tolerated and at what hours. For example, if you are hosting a party in your
unit, you may be asked to turn the music down at a specific hour.
While the rules and regulations of condominiums may initially seem to be overly strict, particularly to those used to
rental housing or owning their own home, they help to ensure that condominiums are safe and enjoyable communities
to live in for all concerned.
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Privacy
Under most provincial condominium legislation, with reasonable notice, a person authorized by the condominium
corporation may enter your unit to carry out inspection and maintenance of the common elements of the
condominium (such as inspection and repair of parts of the common elements such as windows, mechanical and
electrical systems that serve your unit and others).
Security
Many condominiums offer increased security services, such as closed-circuit cameras in lobbies and parking garages
and security guards, to ensure that only unit owners and authorized personnel can access the building. Your
condominium may require that any guests to your unit sign in and out of the building.
Moving From Single-Family to Multi-Unit
Living in a detached house can be quite different from living in a multi-unit building. Here are some points to
consider if you’re thinking of making the switch from a house to an apartment-type dwelling.
Noise
In a multi-unit, your neighbours are much closer, so you may hear them more. Many condominiums have strict rules
regarding how much noise will be tolerated, and at what hours of the day.
Who Takes Care of the Building and Grounds?
Most condominium corporations contract-out the day-to-day operations of the condominium to a property
management company under the direction of the condominium’s board of directors. The cleaning of common areas,
payment of common area utility bills, operation and maintenance of the central space and domestic hot water heating
and air-conditioning systems, snow and garbage removal and the collection of monthly maintenance fees may fall
under the jurisdiction of the property manager. There are usually limits to the property manager’s authority. For
example, anything that requires a major expenditure, or an expenditure not accounted for in the annual budget, may
have to be approved by the board of directors. The property manager is not usually responsible for items or
operational problems within individual units, unless they are related to the common elements (e.g., heating systems,
roofs, windows, exterior walls).
Maintenance duties for the unit owner can include:
• Internal unit plumbing, appliances, heating, air-conditioning or electrical systems that are contained in and serve
only that unit;
• Cleaning window surfaces that are accessible from inside the unit;
• Cleaning some parts of the common elements, such as balconies and patios that are assigned to or exclusive use of,
the unit holder.
Maintenance duties for the condominium corporation can include:
• Common plumbing, electrical and heating and air-conditioning systems;
• Roof and wall repairs;
• Windows and doors—repairs and replacement;
• Grounds cutting, watering;
• Recreational amenities;
• Parking areas;
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CONDO
Sometimes the responsibility for maintenance and repair can be shared. For example, a heating and air conditioning
(HVAC) system may be part of the common elements, but the unit owner may be responsible for some tasks, such as
changing filters.
Annual budget: Now required by the Condominium Property Act, conscientious development of an annual budget
is an important duty of a condominium board. It’s the basis upon which contributions are levied and funds collected
for the control, maintenance, and repair of the common property and the administration of the condominium
corporation.
Annual general meetings (AGM): Once a year, within 15 months of the last, a condominium board is required to
convene an Annual General Meeting of unit owners. At the meeting, the retiring board provides owners with
operational and financial reports for the year past. Owners then elect a new board, and deal with any unfinished and
new business, including (if required) appointment of auditors.
Board of directors: Every condominium must have an elected executive, the Board, which is responsible for proper
administration of the condominium and bylaw enforcement. The Condominium Property Act’s initial Appendix 1
bylaws, although replaceable, stipulate a board of no fewer than three (except where there are not more than two
owners) and not more than seven individuals.
Bylaws: A set of rules and procedures, adopted by a special resolution of unit-owners, for the administration of the
condominium corporation and the management and conservation of the common property. Initial bylaws for all new
plans are provided in Appendix 1 of the Condominium Property Act, but are most times replaced by the developer
with a project-specific set.
Condominium corporation: When a plan is deposited with a land titles office, an administrative body is
automatically created. Membership in the condominium corporation is made up of the owners of the individual units.
Its purpose is the management of the affairs of the condominium in the best interests of all owners.
Condominium plan: Every condominium community has a plan, registered at a land titles office, that provides
unambiguous definition of the perimeter of the master lot, the location of buildings (if any), unit boundaries, and the
unit-factor distribution. The document replaces the original single title with unit titles.
Common property: Every part of a condominium plan that is not a unit is common property. The condominium
common property supports and services the individual units, and its ownership is proportionately distributed among
the unit owners in accordance with their unit factors.
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Condominium Property Act: The name of the Alberta statute that supports, directs, and regulates condominium
ownership. Since provinces have jurisdiction over land titles, each has its own condominium legislation. Fundamental
concepts are essentially similar. However, from one province to another, legislative scope and administrative
technicalities may vary significantly. The Act, which must be passed into law by the provincial legislature, articulates
legislative concepts and cornerstone provisions.
Condominium Property Act Regulation: The Regulation is a set of implementation rules, the scope of which is
articulated in the Condominium Property Act, and for which creation authority is vested in the Ministry responsible
for its administration. With the legislative revisions in September 2000, the role of the regulations was significantly
expanded — to the point where they comprise almost 40% of the size of the Act and Regulation combined.
Condominium unit: Units are those parts of a condominium master lot which are designated for the private,
exclusive use of individual owners. These “volumetric spaces”, whether structure-defined compartments of air (as in
the case of apartments and traditional townhouses), or columns of air (as in bareland projects), are defined by
boundaries shown on the condominium plan.
Contributions (condo fees): Condominium owners contribute to a fund for payment of common property costs
(whether normal operating, reserve, or special) via assessments levied against their units. “Contributions” is the proper
term, but “condo fee” has acquired colloquial, although incorrect, currency.
Disclosure documents: Developers of new and conversion condominium are required to provide prospective
purchasers with extensive documentation regarding investment details and due-diligence estimates of operating costs.
The Condominium Property Act legislates a 10-day rescission period for review and acceptance of these documents.
Although time delays for review may vary, member boards of the Alberta Real Estate Association follow similar
procedures for resale documentation.
Exclusive use: Although forming part of the common property, patios, balconies, parking, storage and other spaces
are normally designated as exclusive-use areas for residents of a particular unit only. However, bylaws usually provide
the board with authority to manage such assignment. Any presumed or represented tenure, permanent or long-term,
should be verified and documented.
Insurance — corporation: Every condominium corporation must place and maintain a “master policy” (for a broad
set of perils specified in the Regulation)over the common property and the units (other than improvements made by
the owners) and against corporation, board and officer liability for action or omission with respect to carrying out
their functions.
Insurance — unit owner: To protect against property loss, personal liability and disaster expenses, every
condominium owner should purchase unit-owner insurance. Such coverage usually offers all-risks protection against
an owner’s personal property loss from fire, theft and vandalism, and improvement and betterment coverage for
damage to upgrades made by the owner.
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Mortgages — unit: Buying and financing a new or used condominium residence is not much different from that of a
non-condominium home. Like any home purchase, ownership of a condominium unit plus its proportionate share in
the common property is an estate in land. Land Titles will issue a title and register mortgage documents and other
instruments associated with standard real estate investments.
Municipal taxes: Like traditional-house buyers, condominium purchasers are land owners. So, they must pay their
fair share of municipal taxes. For assessment purposes, each unit and its share in the common property constitutes a
separate parcel of land and improvements.
Proxy: Written authorization given by a unit owner to another so that person can act for the owner and exercise the
unit’s voting share at a general meeting.
Reserve fund: A fund of money set aside to provide for the repair and replacement of major parts of the common
property. Officially termed the Capital Replacement Reserve Fund, it is usually held in secure, fairly liquid
investments, and is not intended to be used to cover regular or annually recurring maintenance.
Reserve fund study: The purpose of a reserve fund study is to inventory the depreciating common and corporate
property needing to be repaired or replaced within the next 25 years, assess the present condition, estimate when each
component of the depreciating property will need to be repaired or replaced, and estimate the costs of repairs to and
replacement of the depreciating property.
Reserve fund report: Once completed, the person who carried out the Reserve Fund Study must prepare and submit
to the Board a written report setting out the qualifications and independence of that person, the findings of the study,
and any other matters that are considered relevant.
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Reserve fund plan: The condominium board must, after receiving and reviewing the reserve fund report, approve a
reserve fund plan under which a reserve fund is to be established, if one has not already been established, and set
forth the method of and amounts needed for funding and maintaining the fund. The corporation must provide the
owners with copies of the approved reserve fund plan prior to the collection of any funds.
Unit factor: Unit Factor is the term used in the Alberta Condominium Property Act to define each unit owner’s
tenancy-in-common share in the common property. Unlike other jurisdictions, where a separate factor regulates
distribution of operating costs, the unit factor also determines the proportionate contribution obligation (condo fees).
However, the September 2000 revisions now permit, through a properly passed bylaw, assessment proportions other
than by unit factor.
Unit boundaries: The Condominium Property Act determines, unless stipulated in the plan, where boundaries exist
between units, and the common property.
SECTION SEVEN: WARRANTY COVERAGE
The Alberta New Home Warranty Program backs up the Developer’s warranty with additional coverage if the
Developer defaults on its obligations to the Purchasers.
The 1-2-5-10 Warranty:
1 year Workmanship and Material (In-Suite)
Offers coverage for defects in materials and labour which include items such as flooring and fixtures for a period of
one year starting on the warranty commencement date.
1 year Settlement Cracks (In-Suite)
Drywall settlement cracks will occur throughout the first year and are to be expected with any new building. In
accordance with ANHWP and industry practice, such cracks will be filled and sanded and made "paint ready" (but not
painted) at the end of the first year. Often, either cracks are small enough; owners have repainted their walls; or
owners want to avoid dust and will opt-out of settlement repair. The choice is yours.
2 year Delivery and Distribution Systems (In-Suite)
Offers coverage for defects in materials and labour related to delivery and distribution systems including heating,
electrical and plumbing systems within the unit for a period of two years starting on the warranty commencement
date.
1 year Workmanship and Material (Common Area)
Offers coverage against defects in materials and labour in the common property for a period of one year starting on
the warranty commencement date.
2 year Delivery and Distribution Systems (Common Area)
Offers coverage for defects in materials and labour related to delivery and distribution systems including heating,
electrical and plumbing systems within the unit for a period of two years starting on the warranty commencement
date.
5 year Building Envelope Coverage
Offers coverage against defects in the building envelope for a period of five years starting on the warranty
commencement date.
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10 year Structural
Offers coverage against structural defects for a period of ten years starting on the warranty commencement date.
For additional details, please visit: www.anhwp.com
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