What Is a Bareland Condominium in Saskatchewan and How Does It Work?

A bareland condominium is often described as a unit that is a piece of land, rather than a space inside a shared building. People are drawn to it because it can feel closer to owning a house, while still belonging to a condominium community with shared costs and rules.

This article explains the general picture in Saskatchewan: the law that applies, where the differences from a regular condo tend to show up, and what to check about fees, insurance and documents. The details of any one bareland project depend on its plan and bylaws, so a lawyer should confirm them before you commit.

This article covers the law of Saskatchewan.

The law behind a bareland condo

Saskatchewan condominiums are governed by The Condominium Property Act, 1993 and The Condominium Property Regulations, 2001. The condominium corporation, its bylaws and its condominium plan are the documents that set out how your particular project works.

Bylaws can be amended by special resolution, so the rules you see when you buy may change later. One limit applies to every condominium: no bylaw may prohibit or restrict the lease of units. That matters if you may want to rent out your unit.

How it can differ from a regular condo

What you own in a condominium and what you share with other owners depends on how your particular condominium is set up, so it is worth confirming with a lawyer.

Because of this, do not assume that a bareland unit follows the same pattern as a condo you have seen before. Ask these questions about any project:

• Who owns the building on the unit: you, or the corporation?
• Who must insure the building, and who insures the common property?
• Who maintains and repairs the roof, exterior, driveways and shared areas?
• Which bylaws limit what you can build, change or use the unit for?

Insurance and responsibilities

Insurance is one of the biggest practical differences between projects. Whether you insure the building yourself, whether the corporation does, or whether the cost is shared depends on the bylaws and the plan. Read them closely and ask your insurer to review them before closing, so there is no gap in coverage.

Who is responsible for repairs also depends on your situation, so it is worth confirming with a lawyer. The Condominium Property Act, 1993 and The Condominium Property Regulations, 2001 govern Saskatchewan condominiums, and the bylaws can be amended by special resolution. If any of this is unclear, get it explained in writing by a lawyer before you sign.

Fees, reserve fund and costs of buying

Condominium owners pay fees to the corporation to cover shared costs. The reserve fund is a corporation asset held in trust for statutory purposes, and it cannot be paid out to owners while the property remains under the Act. Its purposes include unforeseen common expenses and major repair or replacement of common property and building systems.

A reserve fund study must be done every five years by a qualified person, such as an engineer or Certified Reserve Planner. Condominiums with fewer than 12 units, and single-owner rental condominiums, are exempt from the reserve fund requirement. Small bareland projects may therefore have little or no reserve, so ask how major costs would be covered.

When you buy, expect more than the price. Saskatchewan has a provincial fee to transfer property based on the property's value, and the current rate should be confirmed before you budget. In a standard Law Society offer-to-purchase template, each party pays their own lawyer, and the purchaser pays the Land Titles Registry fees to register the property in the purchaser's name and to register the purchaser's mortgage.

What to do before you buy

For a resale unit, you can request an estoppel certificate from the corporation. It covers fee payment status, contribution amounts, insurance, and outstanding lawsuits or judgments against the corporation. The corporation must issue it on an owner's application in the prescribed form, it cannot later deny what it certified, and the Regulations allow a fee of up to $200.

For a new condominium, the developer must give the buyer a copy or description of the purchase agreement, bylaws, management agreement and condominium plan, among other documents.

• Read the bylaws, condominium plan and management agreement.
• Ask who owns and insures the building and common areas.
• Request the estoppel certificate on a resale unit.
• Ask for the latest reserve fund study, if one is required.
• Review the title; mortgages and liens appear on it as interests.
• Have a lawyer review the documents before you remove conditions.

Frequently asked questions