NEW CONDOMINIUM ACT IN EFFECT

Justice Minister Bob Mitchell today announced that the new Condominium
Property Act 1993 is now in effect.

"This updated legislation recognizes and addresses many issues in the
development and operation of condominiums," Mitchell said. "The old act
was written more than 25 years ago. It pre-dated the substantial
increase in the number of people buying condominiums as homes."

Mitchell said the new act balances the interests of condominium unit
owners, condominium boards, and condominium developers by defining new
rights and responsibilities for each party. It enhances consumer
protection for unit owners, recognizes condominiums as corporations,
and defines their responsibilities and administrative scope.

Enhanced consumer protection includes requiring developers to:

ù provide the condominium corporation with documents relevant to the
condominium complex including all warranties and guarantees,
working drawings and specifications, and written agreements to
which the corporation is a party;

ù give prospective unit purchasers a disclosure package containing a
copy of the bylaws, any existing or proposed management agreement,
and information about parking, exclusive use areas, and tenants;
failure to provide this information may entitle a prospective
purchaser to rescind the purchase agreement and have the deposit
returned.

Recognizing that condominiums are corporations which enter into
contracts, make investments, make decisions about common property and,
in some cases, manage large amounts of money, the act requires
corporations to:

ù have a board of directors, hold regular annual general meetings,
keep proper books of account, and prepare annual financial
statements;

ù establish a reserve fund to provide for major repairs and
replacements, subject to certain conditions, and place a caveat
against a unit owner's title when reserve fund or common expense
fund fees are in arrears;

ù disclose to the subsequent purchaser of a condominium unit
information providing a good idea of the financial status of the
corporation.

A condominium corporation also can apply to have the method of property
tax assessment changed if the existing method has an inequitable
application among units in the complex.

Recognizing that condominium living frequently gives rise to minor
disputes between the corporation and a unit owner or between unit
owners, the new act also includes a provision permitting the parties to
submit to arbitration, a faster and less expensive method of dispute
resolution, rather than going to court.

The Condominium Property Act 1993 and the Condominium Property
Regulations came into effect Jan. 1. Copies of the act and regulations
can he obtained from The Queen's Printer, 1971 Smith Street, Regina.
Phone: 787-6894.

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For further information, contact:

Lisa Ann Wood
Justice
Regina
Phone: 787-7872