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A building management statement is a document that is registered in the Titles Office.  It is an encumbrance that is registered on the title of each of the lots to which the statement applies. The document contains terms and conditions that benefit and burden the land to which the statement applies (Land Titles Act Section 54A).  It identifies all of the lots that are bound by its terms and conditions. There must be at least 2 lots bound by the statement. The lots must be 2 volumetric lots, or 1 standard format lot and 1 volumetric lot. The owners of the lots must sign the building management statement agreeing to its terms before the statement can be registered. All of the lots to which the statement applies must be lots–

  • Wholly or partly contained in a building, or
  • Wholly or partly containing a building.

The building management statement may only have the content allowed under the Land Titles Act Section 54C. It must have provisions that deal with the following necessities

  • The supply of services to the lots
  • The rights of owners, occupiers and invitees to access the lots.  These rights are effective like easements and avoid the need for easements (Land Titles Act  Section 54C(3))
  • The rights of each of the lots to rely on the other lots for support and shelter
  • The obligations of each of the parties to make appropriate insurance arrangements.

In addition to the mandatory provisions set out above, there are also the following optional matters that may be dealt with under the building management statement.  Experience has shown that the statement should focus on the optional matters as they are the areas where the majority of disputes arise from lack of contents in these areas to specify guidelines for the parties involved.

  • The establishment and operation of a management group to make decisions relevant to the lots
  • Financial matters, so that the lots have collected sufficient funds to spend on their joint responsibilities
  • Maintenance of the lots and any shared areas
  • Aesthetic matters that are controlled by an architectural or landscaping code
  • Dispute resolution for the owners in respect of issues affecting the building and the building management statement
  • Administration, repair, maintenance, operation, use and replacement for common services and facilities together with details on the methodology for each type of cost sharing and where possible percentage splits between the parties.
  • General administrative arrangements
  • Arrangements for accomplishing extinguishments of the statement.

 

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Last edited by Tim Sheehan - Stewart Silver King and Burns
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