What Is the Condominium Property Act in New Brunswick?

If you are buying a condo unit, or you already own one, you will hear about the Condominium Property Act. It is the statute behind the fees you pay, the rules you live by and the board that runs your building.

This article explains in plain words what the Act covers, who it binds and how it shapes your rights and duties. It is general information, not advice on a particular unit or dispute.

This article covers the law of New Brunswick.

What the Act covers

The Condominium Property Act (chapter C-16.05) is administered by Service New Brunswick through a Director of Condominiums. It sorts condominium property into categories: commercial, residential, bare-land, mixed-use or phased-development.

A condominium corporation is created when the declaration is registered. Its objects are to manage the property and assets of the corporation. In everyday terms, the corporation is the body that looks after the shared parts of the property on behalf of all owners.

These categories describe how a property is used or laid out. A building of homes, a commercial plaza and a bare-land development can all be condominiums, yet they may feel quite different day to day. It helps to know which category your property falls into, and the declaration is a good place to start. If you are unsure, a lawyer can help you confirm it.

Who the Act binds

Each owner must comply with the Act, the declaration, the by-laws and the rules. The corporation, for its part, must take reasonable steps to ensure owners comply.

The duty does not stop with owners. A tenancy agreement is treated as including a covenant to comply with the Act and the corporation's governing documents. If you rent out your unit, your tenant is bound too, and you will want to make sure they know the rules.

In practice, condo living comes with shared obligations. Your neighbours are bound by the same documents you are. Reading the rules before you buy helps you avoid surprises, such as limits on how a unit may be used. Whether a particular restriction applies to you depends on the documents for your building, so it is worth confirming with a lawyer.

Declaration, by-laws and rules

The declaration is the founding document. By-laws must be consistent with both the Act and the declaration, and they can be amended by owners holding at least 60% of the common elements.

• The Act is the starting point, and the by-laws must be consistent with it and with the declaration.
• The declaration creates the corporation and sets how common expenses are shared.
• By-laws govern day-to-day matters and must be consistent with the Act and the declaration, and each owner must also comply with the rules.
• Ask for current copies of all of these before you commit to buying.

Think of these documents as layers, with the Act at the base and the rules closest to daily life. When two of them seem to point in different directions, the answer depends on the wording of your documents and the facts, so it is sensible to have a lawyer read them with you.

Money: common expenses, liens and the reserve fund

Owners pay common expenses in the proportions set by the declaration, and the corporation can sue for unpaid assessments. Unpaid amounts can become a lien on the unit that expires 90 days after default unless it is registered.

The corporation must keep a reserve fund for future major repairs. For more than 10 units, a reserve fund study is required every 10 years, with updates every 3 years.

A reserve fund is money set aside for large future costs, such as major building repairs, so that owners are not caught off guard by a sudden large bill. A recent study and a healthy fund are signs that a corporation is planning ahead. Corporations that existed before 2010 had five years to build a reserve fund. How strong a particular fund is depends on the building, so ask to see the actual numbers.

What to do next

Condominium documents can be long, and what they mean for you depends on the particular building. A lawyer can review them with you before you sign or waive any condition.

• Request the declaration, by-laws and rules.
• Ask for the most recent budget and reserve fund study, if one is required.
• Ask whether any assessments are unpaid or any liens are registered against the unit.
• Check when the project was built and whether it was under construction with a building permit before January 1, 2010, since those projects are grandfathered under the old 1969 Act.
• If you plan to rent the unit out, confirm how the rules apply to tenants.

Gather these documents early, read them with a pen in hand, and write down anything that is unclear or surprising. Bringing a short list of questions to a lawyer makes the review faster and more useful, and it gives you time to decide calmly rather than under deadline pressure.

Frequently asked questions