Standard Unit By-laws
Also see: By-laws; Standard Unit Definition; About Condo memoranda on (a) the Standard Unit Definition generally and (b) the "bare bones" form of definition (i) from the condominium corporation's perspective and (ii) from the unit owner's perspective
Short Answer
One or more condominium by-laws that set out the "standard unit definition(s)" for each class or type of unit within the condominium.
Definition
As set out in the Condopædia article on the subject, a Standard Unit Definition for a condominium defines which components of a unit are to be treated as "standard" - meaning, insured by the condominium corporation and subject of the obligation to repair the unit after damage - and which parts are to be treated as "improvements" - meaning, insured by the unit owner and, subject to the declaration, solely the responsibility of the owner to insure, repair and maintain.
All condominium corporations that were established prior to May 5, 2001, (the day the Condominium Act, 1998, (the "Act") came into force) as well as any Standard (including Phased) or Leasehold Condominium established since that date for which the declarant did not prepare a form of Standard Unit Definition (or whose definition requires amendment in the opinion of the board of directors of the corporation), should enact or have enacted a Standard Unit By-law. Even if the declarant has provided an adequate definition, it could be advisable to enact the same as a by-law in order to help ensure it is avaialble to all owners, as well as to all purchasers and their solicitors, and unlikely ever to be lost by virtue of being registered against title to all of the units.
If a condominium of the type mentioned lacks a Standard Unit Definition from the declarant and does not enact one by by-law, then the entirety of each unit is to be considered "Standard" and thus insurable by the condominium corporation.
Vacant Land Condominiums and Common Elements Condominiums do not require a Standard Unit Definition and therefore would not enact this type of by-law.
See the Condopædia article, By-laws, for general information on the procedure for enacting a condominium by-law.
All condominium corporations that were established prior to May 5, 2001, (the day the Condominium Act, 1998, (the "Act") came into force) as well as any Standard (including Phased) or Leasehold Condominium established since that date for which the declarant did not prepare a form of Standard Unit Definition (or whose definition requires amendment in the opinion of the board of directors of the corporation), should enact or have enacted a Standard Unit By-law. Even if the declarant has provided an adequate definition, it could be advisable to enact the same as a by-law in order to help ensure it is avaialble to all owners, as well as to all purchasers and their solicitors, and unlikely ever to be lost by virtue of being registered against title to all of the units.
If a condominium of the type mentioned lacks a Standard Unit Definition from the declarant and does not enact one by by-law, then the entirety of each unit is to be considered "Standard" and thus insurable by the condominium corporation.
Vacant Land Condominiums and Common Elements Condominiums do not require a Standard Unit Definition and therefore would not enact this type of by-law.
See the Condopædia article, By-laws, for general information on the procedure for enacting a condominium by-law.
What you need to know…
…as a Unit Owner
When a Standard Unit By-law is put forward to the owners for vote, they should consider the same sorts of issues as are indicated in the next column on this page ("...as a Board Member or Manager"). Since this by-law is very important to the operation and costs of the corporation, and directly impacts each unit owner's insurance and repair obligations and costs, owners should ensure they attend and vote at any meeting regarding the same. Whether or not enacted by by-law, each unit owner should be aware of the Standard Unit Definition in effect for his or her corporation and type of unit. In particular, an owner needs to know about this in order ensure that his or her unit owner's insurance policy is adequate to cover, and does not specifically exclude, those components of the unit defined as "improvements." If the condominium has a Standard Unit Definition, a copy of it should be provided by the owner to his or her insurance provider or agent to ensure adequate coverage is maintained. Owners also should be aware that any component of the unit defined as "standard" is subject to the obligation for repair after damage as defined in the Act and/or the declaration of the condominium. If the owner bears that obligation in respect of such components and fails to carry out the obligation in a timely manner, the condominium corporation can perform the repair and charge its costs for the same back to the owner as a common expense obligation. Again, this is the case whether or not the definition that is in effect has been set out by by-law. |
…as a Board Member or Manager
Unless the declarant has set out a Standard Unit Definition as a schedule provided at Turnover to the corporation pursuant to the Act, or a by-law establishing the same has been duly enacted, the condominium corporation does not have a Standard Unit Definition. This is not a condition that any responsible board of directors or manager should allow, unless it is the deliberate intention of the board that the entirey of each unit is to be treated as standard. When seeking to enact a Standard Unit By-law, the board of directors, with the assistance of the property manager, if any, must consider two things. First, they should consider which components of the units it is appropriate and advisable for the condominium corporation to insure. This might or might not include all components. Often, corporations will seek to exclude from coverage (i.e., define as "improvements") those components of a unit that owners are most likely to upgrade or change (such as floor coverings, countertops, and certain plumbing features) as well as trim and other decorative fixtures. Conversely, corporations may seek to include as "standard" items that are structural or otherwise are required to ensure the unit, if substantially damanged, can be reconstructed to at least the basic shell with required utility feeds. Second, they should consider which components of the unit the corporation should ensure are subject of the obligation to repair after damage. If the condition of a unit component is relevant solely to the individual owner's enjoyment or use of the property, such a component might reasonably be defined as an "improvement," leaving the owner solely responsible for its repair (subject to any contrary provisions in the declaration of the corporation). However, any components that, if left in disrepair, could negatively impact the condition or safety of other units or the common elements, or that could diminish the appearance and/or value and enjoyment of the property for other owners, generally should be defined as "standard". (See the About Condo memos referenced at the top of this page - particularly those dealing with "bare bones" forms of definition - for more specific considerations in regard to these matters.) |
…as a Declarant
Since May 5, 2001, declarants (of Standard and Leasehold Condominiums) are required under the Act to deliver a schedule setting out the Standard Unit Definition for each class of unit in the condominium, within 30 days of the Turnover Meeting. See subsection 43(5)(h) of the Act. However, a declarant is effectively required to have such a definition in place well before this. See the Condopædia article on Standard Unit Definitions. Often, as part of the organization of the condominium corporation, a declarant, through its solicitors, will see to the registration of the initial by-law(s) of the corporation, which should typically be the by-law(s) included in the declarant's disclosure materials for the new condominium. It is both reasonable and affordable for the declarant to ensure that such by-law or by-laws will include the standard unit definition. NB: As noted in the Condopædia article on Standard Unit Definitions, the declarant's definition should not simply restate the unit specifications and options listed in the declarant's marketing materials. If this is the way that the declarant has prepared the Standard Unit Definition for the corporation, it would be better not to enact it as a by-law, since such a definition is very likely to be substantially flawed and fail to accomplish what is intended by the Act. In that case, the unit owners would be well-advised to discard the declarant's definitino and establish a more appropriate form of definition by by-law after Turnover. |