As demonstrated in this Postmedia article - age restrictions are legal in the great province of Alberta (the only province where this is permitted).  As such, if your life circumstances change, be it from pregnancy or your 20 yr old deadbeat son returns - sorry, the condo board has legal standing to ask you to leave.

The CondoSensei's take?  Don't look at age restricted buildings for a whole host of reasons - most of which revolve around it limiting the value of your condo:
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• CMHC will likely deny coverage to you the buyer on age restricted buildings - limiting certain buyers from being able to buy your unit
• Age restrictions severely reduce the ability to rent your unit
• If you choose to sell your unit one day, the number of people able to buy your unit will be limited, thereby reducing the price you can get for the unit.
• In the case of 21 and over buildings - I'd happily take an infant over a 22 yr old who's discover the bass knob on his new 5,000 watt home theatre setup.

~CondoSensei

The Alberta government signaled an interesting piece of legislation they intend to push forward with.  The CBC has a couple good write ups about this (in this article and then this article)

As it stands now, when you buy a new build condo in Alberta, developers are under no obligation to complete the build by a certain time. Meaning you the purchaser, can fork over a very large deposit (often your entire savings for a down payment) that will leave you in limbo if the developer decides to "delay" construction for years at a time. Reasons for this can include legitimate construction delays, but typically it's linked to delays in selling units in the building.  Banks don't like to loan Developers money if it's a dud project for whatever reason.

The CondoSensei's quick take:

- While revolutionary for Alberta, BC and Ontario have had similar regulations for quite some time now and I suspect Alberta's legislation will look suspiciously similar...given this I'm curious as to why certain Ontario based developers are so allergic to these new regulations in Alberta....

- Rather than go through all the ins and outs of the somewhat complex regulation around mandatory occupancy dates: I'll cite a few pages from the web that do a rather good job of summarizing how these work using Ontario as an example (A good summary can be found at this link, and the pages from Tarion (Ontario New Home Warranty) is at this link)

- As with any government legislation - we'll have to see what the fine print is on the Alberta legislation.  It all *sounds* good, but the fine print always determines how effective this regulation will be in protecting buyers.

- Here's an example of what I mean about fine print: how much will the penalty be for a slow developer?  In Ontario, the maximum penalty is $7,500.  Is this a lot?  Consider the factors:

    - In a rising price environment, buyers will be reluctant to cancel their condo purchase.  If the market value of the condo has gone up $100,000 sine your pre-buy, you the buyer are sure going to be hesitant to give up that gain for a measly $7,500.  Developers would be more than happy to have you bail out in this scenario.

    - Whether you're an investor or a home buyer will have a tremendous difference on how you view these delays.  As a home buyer you may have sold your existing house already and are paying rent to live somewhere temporarily.  $7,500 sure doesn't cover multi year delays in this case. And if you've coughed up most of you're savings for a now stranded down payment, you're trapped from buying a different condo.

    - And finally you'd likely have to pay tax on the $7,500 (depending on your circumstances, it may be a gain on investment) so it's even less than you think.


Bottom line - will this really mean a difference to potential buyers and developers?  We'll see.... 

Given the sky high pricing of real estate in Toronto and Vancouver, there's been some great press lately (like this Globe article) in terms of how families are getting squeezed out of the market - typically having to move to Suburbia to find a place for their growing families.  Typically problems arise if a family wants to have more than one child, and the need grows beyond a two bedroom unit.  Three bedroom condos are rare, expensive or non existent.  Kind of a real estate unicorn....

BC cities have lead the way, trying to regulate requirements that new condo / strata projects have 35% of the building made up of two or three bedroom units, and 10% of the building in three or more bedroom units.

Yours truly sees one major flaw about this that's near and dear to families: affordability.  Sure, you can legislate a developer to have three bedroom units but you can't legislate them to be affordable enough for your average family.  Typically a three bedroom unit is larger, so it's going to command a higher price.

In Calgary, the three bedroom condo has gone the luxury approach, with the three bedroom units in this project *starting* at $900,000.  That, despite detached / attached houses going for 20-30% less a few blocks away. In Calgary, you're probably looking at a townhouse if you want that 3rd bedroom for a more reasonable price.

The article does mention one proposal to reduce this "premium" on space that I think is critical to making this legislation work.  They're asking to relax the code requirement for "bedrooms" to have an exterior window, having "interior facing" windows in lieu (ie transom windows above a door).  I had a windowless den in my 1 bedroom condo and it would have worked just fine as a bedroom.  Still, it's space, and square footage means dollars in the world of stratas and condos....

~CondoSensei

For many years, I've read complaints from condo owners alleging that their Condo Board, Property Managers, Contractors, the Illuminati, and maybe even the doorman were in some sort of grand conspiracy to defraud them all...

Turns out, some of them might have been right.  A Globe and Mail article today (click here) reveals that the Competition Bureau of Canada is looking to these allegations.  This is a pay article, so in case you can't read it, here's a short summary:

• The Competition Bureau is looking into allegations that Contractors have engaged in bid rigging and collusion to artificially inflate the cost of services and quotes provided to Condo Board and Property Managers.  These are criminal charges under the Competition Act.
• The Bureau is targeting 144 condos in the GTA only at present (listed in the Globe article)
• Details are still confidential, but legal experts seem to think the Bureau is targeting the Contractors only, *NOT* Condo Board members or Property Managers.
• Condo Boards and their Property Managers get the joy of producing 10 years of records for the Competition (in my mind this would include records of all quotes and bids received, invoices for the winning bid, cancelled cheques, and Board minutes)

The CondoSensei's take on this.

• Wow.  For those "Truthers" in condo buildings that have been accusing their Boards / Property Managers of this for years - this is going to be like finding an Obama birth certificate from Kenya...   Boards / Property Managers should expect a lot of questions on this from owners.
• While I do believe that the majority of Property Managers, and Board Members act in good faith and are not "dirty", I have a feeling that as the Bureau continues to investigate, we may see a few crooked Property Managers and Board Members implicated as well.  
• Just an Ontario and a GTA problem?  I'm guessing as the Bureau investigates, probably not.
• Property Managers are supposed to keep all of the above mentioned records on behalf of the Board.  Some Property Managers are meticulous about this but from my experience..... a lot are not.  Especially if they have switched Property Managers in those 10 years at all.  I suspect the Bureau is going to find a whole lot of nothing in terms of records they actually receive.

I have a feeling this is only the tip of the iceberg....stay tuned...

A good article (link to article) referencing some good thoughts from the excellent condo lawyer Robert Noce of Miller Thomson on VRBO and Condos / Strata and the problems they cause .  Noise, security issues, parties - all can potentially (not all VRBO / AirBNB users are bad) increase with short term rentals that leave condos more like hotels than residences.

I'll agree with the article's conclusion - effective enforcement of up to date bylaws is your solution.  To do this your bylaws will have to be constantly updated for new technologies and trends.  If your condo / strata is trundling along with some from 1967 - you will have little or not means to deal with your problem.

See our related articles on updating your bylaws (link) and what to look for in a set of bylaws when you buy a condo (here)

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~CondoSensei

Sadly, that MLS listing for a "1,200 sq ft" condo that just seemed a little too small....might have been smaller than advertised.  A great article here that talks about this issue. (link)

Real estate agents (in Alberta at least) have to pull the condominium plan registered from land titles and use the listed offical square footage - not "estimate" on their own.  Note that even the "official" square footage is subject to interpretation, as it can include other space registered on title, such as the parking space, storage locker, and even balcony space.

I'd love to see Developers adhere to these rules too.... I can personally attest to having bought my first condo (in my naive pre-Stratasense daze..) on the basis of the square footage presented in the marketing materials, and I'm pretty sure it didn't live up to it's 850 sq ft billing....

Still not sure about the square footage listed on title?  If you are in the pre-purchase phase, consider hiring a professional measurer and having them do their thing as part of the "property inspection".  If you're able to catch the seller and their agent juicing the numbers, it could be a pretty powerful negotiating chip to save you some dollars.

~CondoSensei

Typically, one does not get people knocking on your door unannounced in a condo or strata.  That front door buzzer means that generally someone has to buzz you before they get in. 

Fun fact though - Under the Canada Elections Act, building managers must allow candidates into apartment style condos and strata buildings to canvass between 9 a.m. and 9 p.m. during the writ period or risk a fine of up to $5,000, imprisonment for up to six months or both.  So yes, that happy smiley person hoping to get your vote is legally entitled to be there.

The Globe had a great article this weekend about surprises found by candidates door knocking in strata heaven- Vancouver.  Let's just say that nudity is a pretty common thing to encounter....

Interestingly enough, one of the biggest challenges faced by candidates is one of my favorite security features.  In buildings with keyless entry, it's common for the fob to only be able to "unlock" the elevator for a certain floor.  That way a sympathetic resident may let the candidate in but they will only be restricted to one floor of the building.

Whatever your affiliation people, go vote!

~CondoSensei

I loved this article on why renting a condo makes sense for some people.  Done right, it is the peak of maintenance free living.  Think about it - along with the usual "shut the door" and go advantages of a condo - you can have a nicer place, in a better location

The article does a good job about walking you through the basics of the financial advantages - less in mortgage payments, fewer car payments, etc. etc.  The usual financial stuff...

However, there's one incredibly important factor this article has missed that makes renting even MORE attractive.  As a renter - you have ZERO responsibilities for Special Assessments / Special Levies, thereby eliminating one of the most important risks facing owners.  You pay your rent, nothing more.  What if Condo fees for the building sky rocket due for any number of reasons?  Not your problem - if the landlord tries to jack your rent beyond market rates - you move.

Do you give up some capital appreciation - yes.  But if your goal is low maintenance living, it's a small price to pay to never have to worry about a 'leaky condo' or the dreaded special assessment

~CondoSensei

Albertans everywhere are still waiting for their new NDP government to really wade into the waters  of making hard decisions.   Unfortunately, the old Bill 9 (the Condominium Property Amendment Act of 2014) introduced under the old PC party seems to have stalled out one step before being ratified into law.  Admittedly, with the Province's Oil and Gas sector in tatters, one can only hope the NDP is indeed focused on that...

As you would expect, some opposition members are telling the NDP to cancel the old Bill 9 and start all over again.  It doesn't go far enough they say - which I'd have to agree with.  Bill 9 does not touch on several topics I see affecting condo & strata owners such as insurance deductibles, and most of all - specifying acceptable limits of reserve fund underfunding.

However, it's a start, and half a step forward is still better than no step forward at all.  A full new round of consultations as the Wildrose suggest would probably add 2-3 years to the process.  Albertans need improvements to the Act now, even if there are a few glaring omissions.

So I'd have to say to Rachel & gang - pass it now, but keep on working on additional amendments for a couple years for now.

Not a good story for the owners involved in this situation where owners were all special assessed to raise $2.3 million.

I feel for the owners of this building but this comment from the story is particularly important.

Owners would have known about the eventual repairs had they read condo minutes from the past five years and gotten a pre-purchase inspection, he said.

These are small steps Conforti said could save other condo buyers a lot of headache.

“I always try to think ‘Where did I go wrong?’” she said. “That’s the hard part, coping with the fact that we bought something that’s in need of so many repairs.


1 hour reading through the minutes might have prevented her loss sadly.   This is one of many tips in our articles on what to consider before buying a condo.  


~CondoSensei