With the boom of condominium development in Toronto in the past 10 years, a lot of people don’t really have an exact idea what is a condo.

A Condominium is a corporation, a collection of owners that hold title to his/her own unit, who share with other owners a proportion of interest in the property constituting the Condominium.

Board of Directors
The Board of Directors consist of three to seven people, typically five. Elected by the owners, the Board is responsible for managing the condominium corporation’s property and business affairs. The Board of Directors must enforce the Act and the condominium documents (declaration, by-laws and rules).

Condominium Act
The Condominium Act governs condominium ownership. The act takes precedence over the condominium documents and over all agreements where a conflict arises.

Declaration
The Declaration outlines the details the common elements, the units, the percentage ownership each owner has in common elements, common expense proportions and creation of exclusive use common elements. The declaration can be changed only with the consent of all owners.

By-laws
The by-law indicate how the corporation will be organized. Bylaws are passes by the Board of Directors and must be approved by the owners. They must be registered with the local land registry office in order to become in effect.

Rules
Rules are related to the use of the common elements and units. The Board of Directors passes rules, owners’ approval are not required. Rule(s) become effective 30 days after each owner has been notified, unless a requisition signed by at least 15% the owners is submitted, in which case,
a meeting is required to amend said rule(s).

Common Expenses
Each owner is responsible to contribute to the budget for repair and maintenance of the common
elements. The Board of Directors will prepare an estimated operating budget for the fiscal year. An owner can not waive his/her right to use common elements in order to reduce his/her contribution.