Welcome to our Condo & Strata Management Glossary—your comprehensive resource for understanding key terms and concepts in condo and strata management. Whether you're part of a condo board, a property manager, or just getting started with property governance, this glossary will help you navigate the essential terms related to managing condo properties and strata communities.
The Annual General Meeting (AGM) is a yearly gathering where condo or strata owners discuss important matters about the property, including financial reports, major repairs, and electing new board or council members. The AGM provides a platform for owners to voice concerns and vote on key issues.
An AGM proxy allows an owner who cannot attend the Annual General Meeting (AGM) to designate another individual, such as a fellow owner or board member, to vote on their behalf. This ensures that all owners have a say in key property decisions.
AGM proxy voting allows condo owners who cannot attend the Annual General Meeting (AGM) to appoint someone else to vote on their behalf. This ensures that all owners can participate in decision-making.
The AGM quorum refers to the minimum number of condo owners who must be present for the Annual General Meeting (AGM) to be valid. If quorum isn’t met, the meeting may need to be rescheduled.
An assessment is a fee charged to condo owners by the condo corporation to cover ongoing property management costs. These fees typically fund maintenance, insurance, repairs, and upgrades to shared areas. Condo assessments are typically billed monthly or quarterly and are an essential part of property governance.
Budget approval is the process in which the condo board presents a financial plan for the upcoming year to the owners, who then vote on its adoption. It helps plan for maintenance, improvements, and unforeseen costs.
The building code refers to a set of regulations governing the construction, design, and maintenance of buildings, including condos. It ensures that the property meets safety standards and adheres to legal requirements.
Building code compliance ensures that a condo building adheres to the national and provincial construction regulations. This includes structural integrity, fire safety measures, and accessibility standards.
The building envelope refers to the exterior parts of a condo or strata building, such as the roof, walls, windows, and doors, that separate the interior of the building from the outside elements.
Building envelope repair refers to work done to fix or maintain the exterior shell of the building, including the roof, windows, and exterior walls, to ensure that the structure remains waterproof and energy-efficient.
A building inspection is a formal assessment of a condo or strata property’s condition, including structural elements, systems, and common areas. This helps the condo board plan for future repairs and maintenance.
A building manager is a person or company hired to oversee the daily operations of a condo or strata property. This role involves handling maintenance issues, coordinating repairs, and managing contractors.
A building permit is a legal requirement for construction or renovation projects in a condo or strata property. It ensures the work complies with municipal building codes.
Bulk purchasing involves the condo corporation buying items or services, such as utilities or maintenance supplies, in large quantities for all residents, often at discounted rates.
Bylaws are the rules and regulations established by the condo board or strata council to govern the behavior of residents and ensure the smooth operation of the property. These rules can cover a wide range of issues, such as noise restrictions, pet policies, and the use of common areas.
A bylaw amendment is a change made to the condo corporation’s existing bylaws. This could involve adjusting rules around noise, pets, or property use and requires the approval of the condo owners in a formal meeting.
Bylaw enforcement involves the condo board or strata council ensuring that residents follow the rules and regulations. Non-compliance may result in fines or other penalties.
The common area refers to spaces within a condominium or strata property that are shared by all owners, including lobbies, hallways, parking areas, and recreational facilities. These areas are collectively owned by the condo or strata owners, and it is their responsibility to maintain them.
A common expense refers to any shared cost or fee that is paid by all condo or strata owners, including maintenance, repairs, and utility services for common areas. These expenses are typically divided among owners based on the size of their units or other governing formulas.
Common element insurance is a type of coverage that protects the shared areas of the condo, such as hallways, roofs, and recreational facilities, in the event of damage, fire, or other incidents. The condo corporation typically holds this insurance.
Common property insurance is the insurance held by the condo corporation to cover damages to shared spaces and structural elements. Individual owners should also have their own policies for unit-specific coverage.
A condo, short for condominium, is a type of real estate ownership where individuals own their private unit within a larger building or community, while sharing ownership and responsibility for common areas such as lobbies, hallways, and amenities. Condo owners typically pay monthly fees to a condo corporation that manages the maintenance and operations of the shared property.
The condo board is a group of elected unit owners responsible for overseeing the governance of the condo property. They enforce rules, manage budgets, and make decisions on behalf of all owners regarding maintenance, repairs, and general property management.
Condo fees are regular payments made by condo owners to fund the management and maintenance of the building’s shared areas. These fees help cover expenses like utilities, cleaning, insurance, and building repairs. The amount of the fee typically depends on the size and amenities of the property.
While condo fees are paid by owners to cover maintenance and operations, rent is paid by tenants to the unit owner. It’s important to distinguish between these financial obligations when budgeting for a condo property.
Condo governance refers to the system of rules, roles, and processes that manage the operations of a condo corporation. This includes the duties of the condo board and the rights of the unit owners.
The Condominium Property Act (CPA) is the legislation that governs condo living in Alberta. It outlines the rights and responsibilities of condo corporations, boards, and owners, including rules on governance, finances, and dispute resolution.
A condominium declaration is a legal document that formally establishes the condo corporation and outlines the fundamental rules governing ownership, rights, and obligations of condo owners.
Contractor management refers to the oversight and management of contractors hired for maintenance, repairs, or improvements in the condo. This includes selecting vendors, reviewing contracts, and ensuring quality work.
A contingency fund is a portion of the reserve fund set aside specifically for unforeseen circumstances or emergency situations. This fund helps condo corporations respond to unexpected financial challenges without requiring immediate special assessments.
Converge Condo is a Canadian property management company specializing in condominium and strata management. Their services encompass financial management, legal compliance, maintenance coordination, and transparent communication. Notably, Converge has developed proprietary technology solutions, such as the Converge Connect resident app, to enhance administrative efficiency and resident engagement. The company is recognized for its commitment to ethical practices, including a strict no-kickback policy and independence from related trade companies.
A depreciation report is an assessment conducted by a qualified professional that evaluates the condition of a strata or condo property’s common areas and assets. It outlines the anticipated lifespan and estimated costs of repairs or replacements. The report helps strata councils or condo boards plan and budget for future maintenance.
A developer’s warranty is a guarantee provided by the developer to ensure that the condo’s construction meets certain standards. It typically covers defects in construction or materials within a specific period after the building’s completion.
A development permit is required before any major construction, renovation, or changes to a condo or strata property. This ensures the project complies with zoning laws and building regulations.
An easement is a legal right that allows a third party (often a utility company or neighboring property owner) to use a portion of the condo or strata property for a specific purpose, such as installing power lines or accessing infrastructure.
An emergency preparedness plan outlines procedures for condo or strata residents in case of emergency situations, such as fires, natural disasters, or power outages.
Energy efficiency refers to the use of technologies and strategies that reduce energy consumption in condo or strata properties, such as insulation, energy-efficient appliances, and lighting systems.
Exterior maintenance includes repairs and upkeep of the exterior parts of a condo or strata property, such as the roof, walls, and windows. It’s essential for preserving the building’s integrity and value.
Fiduciary duty refers to the legal obligation of condo board members to act in the best interests of the condo corporation and its owners. This includes making decisions based on transparency, fairness, and due diligence.
Financial statements are reports detailing the financial health of the condo corporation or strata. These include balance sheets, income statements, and budgets, helping owners and boards monitor expenses and income.
Green building standards refer to sustainable practices applied to condo or strata properties, focusing on energy efficiency, waste reduction, and eco-friendly building materials.
Insurance coverage is a key component in condo and strata management. The condo corporation or strata council typically maintains insurance for common property and liability risks. Unit owners are responsible for insuring their own property and the interiors of their units, including contents and personal belongings.
The insurance deductible is the out-of-pocket amount a condo owner or corporation must pay before the insurance company covers the remaining damage costs. If damage is caused by negligence, the deductible can sometimes be charged to the responsible party.
Leasehold interest refers to a tenant’s right to occupy a condo unit under a lease agreement, typically involving a specified period. The owner of the unit retains the underlying land and property interest.
A legal encumbrance is a claim or liability attached to the condo property, such as a lien due to unpaid fees, taxes, or other debts. It can affect the transfer of property and the sale of units within the building.
Liability insurance protects the condo corporation from financial loss in the event of accidents or injuries that occur in common areas or due to the corporation’s actions.
A limited common element is a part of the condo property that is shared by some but not all owners, such as a parking stall or storage locker. While it’s technically a common element, it’s designated for use by specific unit owners.
Maintenance fees are ongoing charges paid by condo or strata owners to cover the upkeep of the common areas and other shared property services, such as landscaping, cleaning, and utilities. These fees are a crucial part of property management and are typically paid on a monthly or quarterly basis.
A maintenance log is a record kept by the condo board or property manager documenting all maintenance and repair activities, including dates, costs, and contractor details.
A noise ordinance sets limits on the amount of noise that can be produced within the condo. This is crucial in preventing disturbances between residents, especially in high-density buildings.
Non-resident owners are condo or strata owners who do not live in their unit but instead rent or lease it out. These owners are still responsible for condo fees, maintenance, and following the rules.
Owner’s insurance protects individual condo owners from damage to their unit, including contents and personal liability, typically in situations not covered by the condo’s insurance.
An owner’s manual is a guide provided to condo owners with important information regarding the property, such as the condo’s rules, maintenance schedules, and emergency contacts.
A parking policy governs the use of parking spaces within a condo or strata property. This may include regulations on the allocation of spaces, visitor parking, and rules around large vehicles or RVs.
A pet policy is a rule governing the presence of pets within a condo or strata property. These policies may limit the number, size, and type of pets allowed in the building to ensure the comfort of all residents.
A power of attorney allows a condo owner to delegate their decision-making authority to another individual, such as for voting at condo meetings or handling legal matters on their behalf.
Property management refers to the professional service that oversees the daily operations of a condo or strata property. Property managers handle everything from coordinating repairs to managing finances and ensuring compliance with local regulations, ensuring smooth operations for both residents and owners.
A property management agreement is a contract between the condo corporation and a property management company that outlines the services, responsibilities, and terms of the relationship. It defines roles such as maintenance, financial reporting, and decision-making authority.
Property management fees are the payments made to property management companies to handle the operational aspects of a condo or strata property. This includes services such as maintenance, administration, and resident communication.
Property tax is a tax levied by local government authorities on real estate properties. In condominium or strata properties, owners pay property taxes on their individual units, but the condo or strata corporation is responsible for taxes on common areas.
In both condo and strata settings, property tax liability refers to the portion of taxes that the condo corporation or individual owners are responsible for paying, based on the assessed value of the property.
Quorum refers to the minimum number of condo or strata owners who must be present at a meeting for the meeting to be valid and for decisions to be made. The quorum requirement is typically outlined in the condo or strata by-laws.
Renovation approval is the process in which the condo board must approve alterations to a unit that may affect the building's structure, safety, or common areas.
Rent control refers to regulations that limit the amount of rent that can be charged for rental units within a condo or strata property. This is particularly relevant in areas with high demand for rental properties.
A rental restriction is a rule within the condo or strata bylaws that limits the ability of owners to rent out their units. It may be implemented to maintain the community feel or reduce the number of transient renters.
A reserve fund is a savings account managed by the condo or strata corporation. This fund is used to cover large, unforeseen repairs and replacements of common property, such as roofing or elevator systems. The reserve fund is essential for maintaining the long-term sustainability of the property.
Reserve fund contributions are regular payments made by condo owners to ensure the reserve fund remains adequately funded for future major repairs and replacements of common property. These contributions are typically included in the monthly condo fees.
A reserve fund study is a detailed analysis conducted by a professional, like Converge Condo, that evaluates the condo’s reserve fund to determine if it's sufficient to cover expected major repairs and replacements over time. It includes a timeline and cost estimates for future work.
Rules & regulations are the specific policies set by the condo board or strata council to maintain order and safety within the property. These rules can cover everything from noise levels to parking regulations and can vary depending on the needs and preferences of the community.
Section 19 of the Condominium Property Act of Alberta defines the condo corporation’s powers and responsibilities regarding its operations. It’s a crucial legal section outlining the rights of the corporation, the board, and individual unit owners.
Security measures include systems and practices to ensure the safety of condo residents, such as surveillance cameras, access control systems, and on-site security personnel.
A sinking fund is a special fund established by the condo or strata corporation to save money for large future expenses, such as rebuilding or upgrading major building systems.
A site inspection refers to regular inspections of the property to assess its condition, identify any maintenance issues, and ensure compliance with health and safety standards.
A site plan is a detailed architectural layout of the condo property, showing the location of buildings, amenities, parking, and other key features.
Site plan approval is the process in which the condo corporation and local authorities review and approve the design and layout of the condo building, including landscaping, parking, and utility connections. This ensures the development complies with zoning and building codes.
A smoke-free policy prohibits smoking within certain areas of a condo or strata property, including inside individual units, common areas, and balconies. This policy helps reduce fire hazards and improve air quality for all residents.
Soundproofing is the process of insulating a condo unit to minimize noise transfer between units, improving the quality of life for residents and ensuring compliance with noise regulations.
A special assessment is an additional fee levied on condo or strata owners to cover unexpected expenses or major repairs not covered by the regular assessments or the reserve fund. Special assessments are typically one-time charges but can be significant depending on the issue at hand.
A special resolution is a decision that requires a higher level of approval than regular motions, often needing a supermajority of condo owners (e.g., 75%) to pass. This may be needed for significant changes like altering bylaws or approving large expenditures.
Strata refers to a system of property ownership where individuals own their units but share ownership of common areas with other unit owners. The term is commonly used in regions like British Columbia and is similar to the concept of condominium ownership but governed by specific legal frameworks.
A strata council functions similarly to a condo board. It is an elected group of owners within a strata community responsible for managing the day-to-day affairs of the property, including enforcing by-laws, approving budgets, and making decisions about property maintenance and upgrades.
Strata fees are regular payments made by strata owners to fund the management and maintenance of the shared areas of a strata property. These fees cover ongoing expenses such as insurance, repairs, and staff salaries. The amount can vary based on the size and location of the property.
Strata management refers to the professional management of a strata property. It includes overseeing financial management, maintenance, rule enforcement, and communication with owners. A strata manager ensures the property runs smoothly and complies with the Strata Property Act.
A strata property is a type of multi-unit housing, common in BC, where individual owners own their units and share ownership of common areas. It is governed by the Strata Property Act, which sets out the responsibilities of owners and the strata council.
A tenant is an individual who rents or leases a unit in a condo or strata building. While tenants are not owners, they are subject to the rules and regulations established by the condo board or strata council.
Tenant improvements refer to modifications made to a condo unit by the tenant to customize the space. In a condo, tenants must seek approval from the condo board before making substantial changes.
Tenant’s insurance is a policy that provides protection for renters (tenants) within a condo unit. It covers personal belongings, liability, and other personal risks within the rented space.
A unit refers to an individual, privately owned space within a condominium or strata building. Units can be residential, commercial, or mixed-use, and owners are responsible for maintaining the interior of their units, while the condo or strata corporation manages the common areas.
A unit boundary defines the physical limits of a condo unit. While owners are responsible for maintaining the interior, the condo corporation manages the building's exterior and common areas. Understanding unit boundaries is key for determining maintenance responsibilities.
Unit entitlement refers to the percentage of ownership that a unit has in relation to the entire condo or strata property. This is often used to calculate the amount of common expenses each owner is responsible for.
A unit owner is an individual who owns a specific unit within a condo or strata building. They are responsible for maintaining their unit and paying maintenance fees and assessments and have rights, like voting on bylaw changes.
Utility fees are charges for the use of water, electricity, heating, and other services. In condo and strata properties, these fees may be included in the monthly assessments or billed separately.
The vacancy rate refers to the percentage of unoccupied units in a condo or strata property. High vacancy rates can impact property values and rental income.
Waste diversion refers to efforts made by the condo board to reduce the amount of waste sent to landfills by increasing recycling, composting, and other environmentally friendly practices.
This glossary of condo and strata management terms provides essential information for anyone involved in managing or overseeing condo properties and strata communities. Understanding these key terms will help you navigate the responsibilities of a condo board or strata council and ensure the long-term success of your property. For further information or assistance, feel free to reach out to us.
