Governing Documents

Governing documents and the Condominium Act set out what condominium owners, residents and corporations are allowed to do. The Act and the documents can’t contradict each other but if they do, the Act is supreme, followed by the declaration, the by-laws and then the rules.

Living in a condo means being part of a community where everyone has a collective interest in the well-being of the corporation. The governing documents are critical in laying the framework for how the condo corporation should manage its affairs and achieve this harmony.

1. The Condo Act

The Act regulates life in condos, including how they are created, purchased and governed.

2. The declaration

The declaration is one of the two legal documents that create a condo corporation. The declaration is prepared by the declarant and is filed with the Land Registry Office along with the description. The declaration can typically only be amended in two ways, with the written consent of 80 or 90 per cent of unit owners depending on the type of amendment, or a court order.

3. The by-laws

By-laws specify how the corporation will run. This includes setting the number of directors on the board beyond what’s minimally required by the Condo Act, quorum, board meeting procedures and more. By-laws can cover an extensive range of matters but mainly focus on the governance of the property and how the board will carry out its duties. By-laws are required to be reasonable and consistent with both the Condo Act, and the condo corporation’s declaration. The by-laws can be considered the administrative guide and like the declaration, must be registered at the Land Registry Office.

4. The rules

Rules define how the units and common elements can be used and establishes the standards of behaviour for the community. Rules must be reasonable. They promote safe and continuous enjoyment of units and common elements and dictate what individuals can and cannot do on the condo property.

Rules may prohibit excessive noise, regulate the use of amenities, restrict smoking etc. Unlike the declaration and by-laws, rules do not have to be registered at the Land Registry Office to be in effect.

5. Policies

Policies are not governing documents. They exist to complement them. Policies can be created, adopted and amended by the corporation without the approval of owners unless otherwise specified in the governing documents or policy. They typically outline things like room bookings and fees, the hours of use for amenities, etc. Owners should be informed of any policy changes. Policies cannot impose limitations or restrictions beyond what is found in the condo corporation’s declaration, by-laws and rules.

All members of condo communities must comply with the Condo Act and governing documents.

Boards can follow these steps to resolve any issues:

1. Notify residents who are not complying to make them aware of the issue
   
2. Follow up as required, including by sending them a letter
3. If necessary, send a letter from legal counsel
4. File the issue to the Condo Authority Tribunal if it is within the CAT’s jurisdiction.
5. File the issue to mediation, arbitration or the Superior Court if it is not within the CAT’s jurisdiction.

For more information on the most common types of condo disputes, read about Solving Common Issues.