A-C | D-G | H-N | O-Z

A

Administrator
If a situation occurs that prevents the proper management and administration of a condominium
in accord with the Condominium Property Act and Regulations and in the best interests of all parties, any interested party such as an owner, a group of owners or a financial institution may apply to the Court to have an Administrator appointed. The Administrator would have all the powers and duties that the Court deems necessary.

Alberta Building Code
Based on the National Building Code, this provincial code regulates construction techniques
and materials as well as equipment necessary to protect the health and safety of building occupants.

Amortization
The period of time, most often 15, 20 or 25 years,required to reduce a debt such as a mortgage to zero.

Annual Budget
The Condominium Property Act requires that a Condominium Corporation’s Board of Directors use its best efforts to develop an Annual Budget. Such a budget is the basis for establishing and collecting Condominium Fees from Unit Owners. Those funds are used for the management and the administration of the Condominium Corporation, the maintenance and repair of the common
property, and for Reserve Fund requirements.

Annual General Meeting
Required by law, the AGM must be held annually and within 15 months of the last such meeting.
This meeting of all Unit Owners is called by the Condominium Corporation’s Board of Directors. At the meeting, the outgoing Board of Directors provides Unit Owners with reports on the
operations and finances of the Condominium Corporation over the past year. Unit Owners elect a
new Board and deal with any unfinished or new business. Such business might include the
appointment of auditors to review, prepare or verify the Condominium Corporation’s accounting
and financial statements.

Appraisal
A process for estimating the market value or the mortgage lending value of a particular property.
Mortgage lending value seldom matches the actual price asked or paid for a property.

Approved Lender
A lending institution authorized by the Government of Canada through the Canada
Mortgage and Housing Corporation to make loans under the National Housing Act. Only approved lenders can negotiate loans that require mortgage loan insurance.

Arbitration
The final process used (after Mediation and Conciliation) to resolve a warranty dispute
between a Developer and an owner and the only process used to resolve Purchase Agreement
contractual issues. Arbitration is a formal hearing process to resolve disputes. It enables you or your legal representative to present your position with supporting evidence to an independent third party (the Arbitrator) for a binding decision that is rendered in the form of an Award. At the
conclusion of the process, the Arbitrator decides on how much of the Arbitration costs each party
must pay.

Architectural Controls/ Guidelines
The regulations or guidelines created by a Developer to manage the exterior appearance of homes constructed in a development as well as the grading of the lands and the maintenance of fences and other features, all the while adhering to local development bylaws. Generally such controls or guidelines are used to establish uniformity in the standards of architectural design and exterior finishing by specifying architectural themes, design elements, materials and colours to be used.

B

Builders’ Lien Holdback
Depending on who holds Title to a property or whose name is on a mortgage registered on the property’s Title during construction, a Purchaser may wish to retain a Builders‘ Lien Holdback on deposits or payments made to the Developer during construction. Such holdbacks, designed to
help safeguard the Purchaser, are usually 10% of any amounts paid to the builder. Holdbacks are
held in trust by the builder’s lawyer until the Builders’ Lien Holdback period expires. The funds are then released to the builder provided that no liens have been registered on Title by that time.

Building Permit
After a municipal development permit is issued to a Developer, the Developer must provide the
municipality with detailed plans concerning the exact construction to be undertaken on the lands. Once those plans are approved and once the municipality is satisfied that all applicable building codes are being adhered to, it will issue a building permit that permits construction to start.

Barely Blended Condominium
A condominium where the boundaries of the units are defined in relation to the land on which each home is constructed rather than as a volume of space defined by the interior walls of a structure. Since the home sits on the unit (the land), the owner would normally be responsible for all maintenance of the home and land (as in the case of a Bare Land Condominium). However, in a Barely Blended Condominium, the exterior maintenance of each structure and possibly the grounds are done by the Condominium Corporation. Details of such maintenance are in the bylaws.

Bare Land Condominium
A condominium in which the units are defined in relation to the land rather than in relation to a
structure. A Bare Land condominium could be a duplex or a freestanding home with its own yard. A Bare Land condominium shares all the other features of a conventional condominium except for the definition of the boundaries.

Blended Payment
A mortgage payment that includes principal and interest. It is paid regularly during the term of the
mortgage. At the beginning of the mortgage, most of each payment is interest. This situation changes over time as the interest portion declines and the principal is paid out.

Board of Directors
Every condominium must have an elected Board of Directors that is responsible for the proper
administration of the condominium and the enforcement of the bylaws adopted for that condominium. The number of Directors to be elected and their qualifications are set out in the
bylaws of the Condominium Corporation.

Builders’ Lien
A claim against real property for money owing. A lien may be filed by a supplier or subcontractor
who has provided materials or labour in the construction of a home but who has not been paid. A lien must be properly filed by a claimant within 45 days of when the work or materials were

C

No more than one unit may be included in one Certificate of Title and no less than one share of
the common property may be attributed to the Certificate of Title.

After a Certificate of Title is issued for a unit, that unit can then be leased, sold, mortgaged or have its Title transferred in exactly the same way as for any real estate property.

Closing Costs
Costs such as GST, legal fees and disbursements, Title transfer and mortgage registration fees, Land Titles Office charges, mortgage application fees, interest adjustments, and property taxes that increase or decrease the balance of the purchase price due and payable on the Closing date of a Purchase Agreement.

Closing Date
The contractual date on which possession of a property is supposed to be turned over to the
Purchaser subject to completion of the home, payment of the purchase price and actual registration of Title.

Commitment Letter/ Mortgage Approval
Written notification from a mortgage lender to a borrower that gives approval for and commits the
lender to provide a specified amount of funds under specified terms and conditions.

Common Property
Every part of a condominium, as described in a Condominium Plan, that is not an Owner’s Unit is
Common Property that services and supports the individual Units. Ownership of the Common
Property is proportionately distributed among the Unit Owners in accordance with their Unit Factors. Maintenance and repair costs for the Common Property are similarly shared by the Unit Owners, subject to special rules in the bylaws that relate to Exclusive Use areas.

Bylaws
Upon registration of a Condominium Plan with the Land Titles office, a Condominium Corporation is created. At that time, a standard set of bylaws applies to the operation and management of the
condominium and its Condominium Corporation. These are commonly called “Schedule A” bylaws because they comprise Schedule A of the Condominium Property Act.

Shortly after the Condominium Corporation comes into existence, condominium Developers will typically replace Schedule A bylaws with customized bylaws to better reflect the nature of a particular development before it goes on sale. Unit Owners can agree to add, amend or replace bylaws by a 75% majority vote in favour of adopting a Special Resolution to that effect.

Caveat
A notice placed on the Title to a unit that states that a party has interest in the Title to the unit by reason of entitlement to a legal interest in the property. Copies of all Caveats should be obtained and reviewed with legal counsel to determine how they will affect the use and occupancy of a unit.

Certificate of Possession
A certificate, signed by the Purchaser at the end of the Occupancy Inspection, which indicates approval of the overall finish of the home while noting any defects or deficiencies requiring correction or completion. A copy is filed with The Alberta New Home Warranty Program by the Developer/Builder.

Certificate of Title (Condominium)
A record of ownership in real property issued by the Land Titles Office for the Province of Alberta.
When a condominium Developer registers a Condominium Plan with the Alberta Land Titles Office, the Registrar cancels the existing Certificate of Title to the overall parcel of land described in the Condominium Plan and issues a separate Certificate of Title for each unit. Any conditions or caveats noted on the canceled Certificate of Title for the entire land parcel are transferred by the Registrar to the Certificates of Title for each of the new units.

A portion of the fees should be directed to a mandatory Reserve Fund set aside to pay for major repair or replacement costs in the future that are anticipated in a Reserve Fund Plan. A Special
Assessment may be necessary to obtain the needed amount of fees for a Reserve Fund or to pay for unexpected costs when there are insufficient monies in the Reserve Fund or the operating
account. In the event of non-payment of Condo Fees, a Condominium Corporation has the right to file a Caveat on the Title of a unit. Such a Caveat is enforced in the same way as with a mortgage registered on Title. A Caveat for unpaid Condo Fees takes priority over any other financial charges on a unit such as a mortgage.

Condominium Plan
Every condominium development has a plan, registered at the Land Titles Office, that defines the
perimeter of the condominium, the boundaries of each owner’s Unit, and the Unit Factors that represent each unit’s ownership share of the Common Property.

Condominium Property Act of Alberta
The Alberta legislation governing condominium ownership in the Province.

Condominium Property Regulation
The legislated set of rules by which the scope and intent of the Condominium Property Act are implemented.

Condominium Unit
Units are the parts of a condominium project that are for the private and exclusive use of individual owners. A unit can be comprised of the volume of space contained within the walls, floor and ceiling of a condominium home, as in the case of an apartment. Or a unit can be a volume of space that includes the exterior walls and roof of a condominium home, as in the case of a Bare Land condominium. A unit can also be a parking space or storage area. Details will be set out in the Condominium Plan filed at the Land Titles Office.

Conciliation
A formalized resolution process conducted by The Alberta New Home Warranty Program to settle a warranty issue dispute between a Homeowner and a Developer. The process is initiated by a written request from the Homeowner or Developer and requires the payment of a non-refundable fee by both parties. An Inspector conducts a thorough investigation and issues a report. Where necessary, the report defines required actions and establishes deadlines for completing work. Should the Condominium Developer fail to fully comply, the Program will complete the work under the terms of its Warranty coverage.

Conditional Offer/Conditions of Sale
A Purchase Agreement that is subject to specific conditions such as arranging mortgage financing. If there is a condition, then the Purchase Agreement should contain a stipulated time limit for the conditions to be met. If the conditions are not satisfied or if they’re waived, then the Agreement ends and the deposit must be returned.

Condominium
A form of ownership of real property as described in The Condominium Property Act of Alberta.

Condominium Corporation
A condominium Developer is required to file a Condominium Plan with the Alberta Land Titles
office for registration. When that plan is registered, a Condominium Corporation is automatically created to manage the affairs of the condominium in the best interests of all owners. As units are sold, each new owner becomes a member of the Condominium Corporation. The Condominium Corporation is owned by all the unit owners in proportion to their specific Unit Factor interests.

Condominium Fees
Condominium unit owners contribute to a fund for the payment of common property expenses
including regular maintenance and services such as landscape care. Assessments for fees are levied against each unit by the Condominium Corporation on behalf of all unit owners. Assessments are based on Unit Factors that are in proportion to each unit’s ownership share of
the common property.

Construction Allowance/ Builder’s Allowance
A portion of a new home’s purchase price designated by the Developer/Builder for specific components; for example, kitchen appliances. Should the Purchaser wish to upgrade from the
quality of items that are “standard” in the home, the extra cost, over and above the allowance, is payable by the Purchaser either to the Developer or to the Developer’s supplier depending on how the Developer wants to handle these “extras” or upgrades. All changes or extras should be
documented in writing. In the event that the full allowance is not used, the surplus will be allowed as a credit against the purchase price at the Closing Date.

Construction Schedule
A timetable of construction activities that guides trades people and suppliers in planning and coordinating their activities towards a completion date for all work.

Conventional Mortgage Loan
A mortgage loan for up to a maximum of 75% of the lending value ascribed to a property. Note that the lending value is determined by a property appraisal for mortgage purposes. As such, the lending value may be less or in rare cases more than the purchase price.

Covenant
A clause in a legal document that, in the case of a mortgage, gives the parties to the mortgage a right or obligation. For example, a covenant can impose the obligation on a borrower to make mortgage payments in certain amounts on certain dates. A mortgage document consists of covenants agreed to by the borrower and the lender.