All You Need to Know About Condo Rules
Condominium rules and regulations play an integral role in the function of every condo unit. In Ontario, all sets of condo by-laws and rules must conform to the Condominium Act and the declarations filed with respect to each condominium and should be consistent with one another. Rules and regulations are created by the board of directors of a condominium and, once ratified, become binding on all unit owners, tenants, guests and the condominium corporation itself. Rules and regulations are typically created in order to address activities within the condominium that may not be sufficiently addressed in the by-laws or declaration . They are not mandatory as the act does not require a condominium corporation to have rules and regulations, but most do. They are more common in larger condos than smaller ones, where the extra residents create more restrictions that need to be addressed. In addition, rules and regulations are commonly seen in condominiums with amenities and recreational facilities and for which advanced booking may be required (for example, gyms, pools, party rooms, parking and locker facilities, service elevator times, summer barbeque areas). Rules and regulations can also be used to address visitors or guests, moving in and out of units, common element usage, noise, pets, smoking, the appearance of units and balconies and other issues.
The 8 Critical Components of Effective Condominium Rules
In the same way that there are common elements in most condominium bylaws, so too are there common elements to condominium rules and regulations. The rules and regulations of most condominiums will have the following types of provisions:
- Common areas and limited common areas: Just as bylaws will state that the common elements and limited common elements are the property of the unit owners (and subject to assessments accordingly), rules can regulate the proper use of those areas.
- Use of units: In addition to the restriction on the age of residents, some of the other common restrictions affecting units include prohibitions on pets, limitations on the number of occupants, and prohibitions on use of the unit for commercial purposes.
- Restrictions as to use of the common elements: Beyond the limitations on the use of the common elements due to their physical nature (pool hours, exercise room hours, etc), rules may also regulate the use of the common elements for social uses (e.g., parties and events), as well as prohibit activities that may disturb other owners.
- Restrictions as to the appearance of the units and common elements: The physical appearance is one of the areas where a board can typically enact rules without having a corresponding prohibition in the bylaws. Examples of these rules might include discussions of acceptable window treatments or plantings.
- Commercial endeavors and leasing of units: Most bylaws will restrict owners from engaging in commercial activities in their units. There may also be other restrictions, such as prohibiting home businesses or leasing units for less than a year.
- Penalties for rule violations: Discovering a problem is not enough; a well-drafted set of rules provides ample guidance for how a board can regulate rules violations. The penalties for rule violations may be quantified in the rules or left to the discretion of the board.
As with the bylaws, it’s important for the association to be familiar with the rules and regulations that govern the behavior of the owners and occupants in the condominium.
Regular Standards for Condo Living
Condo rules and regulations typically have some common standards reflected in most pre-printed forms used by condominium management companies. These can usually be found in the areas of noise, pet limitations, permitted uses of the common elements, and enforcement.
Rules for Quiet Enjoyment
The condo management company understands that no one wants to be disturbed by noises in the condo above or below. For this reason, the rules typically address standards for noise in condo units which interfere with other residents quiet enjoyment. The rule will usually provide something like:
"No Owner shall make or permit any disturbing noises or do or permit any act which will interfere with the rights, comforts or convenience of any other Owner. No owner shall cause or permit the doors of his or her condominium unit, including door leading from a garage to a garage space, to slam. No owner shall play musical instruments or sing in such manner as to cause unreasonable noise or disturbance."
Pet Rules
It is unfortunate but animals may cause problems in a condo. The rules will typically cover the size of pets permitted in the condo unit or limit the total number of pets an owner may have. The rules will also regulate how pets may use the common elements and what types of pet supplies are permitted within a unit. The rules usually state something like:
"No animals, birds or reptiles of any kind shall be kept in any Unit, except domesticated dogs, cats, birds, fish, and other non-flammable aquatic species. A maximum of two (2) of such animals shall be kept in any unit. All pets must be leashed when outside of the unit. No pet shall be allowed to urinate or defecate on the Common Elements. All excrement must be immediately removed from the Common Elements by the Owner and properly disposed of. Owners are responsible for any damage done to the Common Elements, Limited Common Elements, or Association Property by their pet and the Owner’s agent or guest, and for any injury to any person caused by such pet. Notwithstanding the right of an Owner to have a pet in the Unit pursuant to the provisions of this Section, neither the Board nor the Association shall have any liability to such Owner with respect to material damage to the Unit or contents thereof, or relative to the health or well-being of such pet."
Use of Common Elements
Coming home late at night after a long day of work in the city, many condo owners do not want to have to go down the elevator to the first floor, all the way across the lobby to the garage, and to have to haul groceries from the garage to the third floor. This is why there is an elevator in the building. Rules usually address how and when owners can use the elevator, and under what circumstances the doors of the elevator can be propped open. Rules normally state something like:
"No Owner shall leave the doors of an elevator open or otherwise hold it in an open position for excessive periods, or slide the doors or gates off their rollers. In order to avail oneself of the rights hereinafter granted to use the elevators, an Owner must first notify the Manager or the Management Company in writing of the date and time, and the duration of the proposed use, and the purpose for which it is planned to be used. During ordinary business hours, with 48 hours advance notice, an Owner shall have the right to use the elevators in the Garage and in the Condominium. Any other use of such elevators is prohibited. Use of the elevators in the Condominium after ordinary business hours must be specifically authorized, orally or in writing, by the Manager or the Management Company."
Enforcement
There are some unwritten rules condo owners should know about. Owners should be mindful that condo boards have the right to evict renters, assess fines for delinquent assessments, and penalties for rules violations. However, these are not viewed as rights. They are remedies for violations of provisions contained in the bylaws and rules and regulations. The rules may state something like:
"Any Owner violating these Rules shall be subject to such sanctions, including but not limited to suspension of the privileges of the Recreational Facilities, and fines, as may be provided for in the By-Laws. Each Owner shall be liable for any damage to the Common Elements, Limited Common Elements or Association Property caused by said Owner or occupant. Moreover, each Owner shall be liable for any damage, if any, to any other Owners’ residence in the Condominium caused by his unit or Resident. In addition to any other remedies available to the Association, a fine for the violation of these Rules and Regulations may be levied in such amount as may be determined by the Board of Directors. Each Unit Owner, tenant, guest or visitor shall be subject to a fine not to exceed $100.00 per violation of these Rules and Regulations. Any fine shall be levied in the same manner as a Special Assessment against such Unit Owner’s assessment account and all provisions of the By-Laws applicable to the collection of Special Assessments shall be applicable to the collection of any fines hereinabove described. Such fines shall be in addition to all other rights and remedies provided for herein or provided for by the Condominium Act or the By-Laws of the Association.
Sample Rules and Regulations for Condominium Associations
The following is a sample condo rules and regulations to provide guidance on the typical provisions found in condominium documents:
Condominium Unit Etiquette
In order to promote the friendly coexistence of all homeowners, these general guidelines are provided:
Be courteous.
Be respectful of your neighbors privacy and `right to quiet enjoyment’.
Play radios, stereos, television sets and musical instruments at reasonable volume, especially after 10 PM weekdays and after 11PM weekends and holidays.
Be courteous to all visitors and treat clubhouse staff with consideration. Sandcastle Club staff are individuals trying to do a job, just like you do, at home. A little courtesy towards members of the Sandcastle Community and their guests will be appreciated and returned in kind.
Be respectful of condominium documents, rules and regulations and policies.
Be vigilant and report any abnormalities in the operation of the buildings or grounds.
Be a good neighbor. Keep the common lands free from litter, keep doors closed and locked when entering or leaving the buildings.
Hallways and stairs are for community use only. Do not store carts, planters, bicycles, containers or any items not expected to be in the corridors.
Stay off balcony railings and fences. They are not made for climbing or walking upon.
Refrain from throwing objects off balconies and dropping individual items off the balconies. It does no good to witness the indignation over neighbours who allow snow to silently tumble to the ground from their balconies if you are rejecting that indignation by throwing a pop bottle over the balcony rail onto the vehicle in the parking lot below.
Park only in the designated areas. Occupy only your own stall. Do not change without permission of the unit owner of the stall in question.
Do not block the driveway at the parkade entrance/exit or where work is being performed on the grounds. Observe all ‘No Parking’ signs and cones which are set up for your benefit.
Do not park in stalls designated for ‘Visitors/Guests’.
Do not block `food delivery’ carts.
Observe and obey all posted signs. Failure to comply with posted rules such as ‘speed limits’ and ‘parking rules’ will results in sanctions against the owner of the vehicle.
Violators will not be tolerated. Violators will be subject to fines.
Guests
Your guests should not be, or be perceived to be, intruding on the rights of other owners and their guests.
Security
The security of our condominium communities can only be assured by all residents being careful and aware of your surroundings. We ask that you close windows securely before leaving your unit.
Conduct which is threatening, harassing, abusive, bullying, bullying, stalking and/or intimidating in nature, is unacceptable.
How to Write Effective Rules for Your Condo
When it comes to drafting condo rules, the Board that makes the most sense is one that takes into account the comments of the owners, collects a range of options, and then formulates a set of rules that are clear, fair and measurable. The difficulty often comes in knowing how far you can take the "discussions" before the rules will require owner approval. This will depend in part upon both the common law and the legislation. While the information that follows provides a general guideline of how you can draft your rules without implicitly requiring owner approval, you will need to consult your own legal counsel to confirm how the legislation and common law impacts on your particular situation.
Committees are an extremely important source of objective feedback. Be particularly cautious of any committee that seems to be dominated by one or two voices who dismiss every viewpoint but their own. Remember that committees should serve only to advise the Board; they do not have the authority to decide anything, nor should they.
Meetings should be held with as many owners as are interested in participating, and a list of names should be compiled, as well as a list of consensus agreements and a list of disagreements. The object of these meetings is to get uninformed or misinformed people more informed and also to give those who have much at stake the opportunity to air their views in a very public forum . After the input from the meetings is gathered, it is usually possible to look at the issues and see where the consensus lies. If there are provisions that are so divisive that you cannot seem to come to a general agreement, you may simply want to leave them out.
One of the most difficult issues confronting committees is determining when to get rid of a potentially troublesome clause from the approved list. Usually, the guidelines for doing this revolve around the question of whether the clause is necessary — if it is, then keep it, even if there is some heated disagreement regarding it. If it’s not at all clear that the clause is necessary, it is usually best to drop it and see if any number of owners object. If they don’t, then it is likely the clause was not needed.
In order to be useful to the majority of the people, condo rules must be measurable, i.e. they must have a set of parameters that can be easily defined. The more general or abstract the rule, the more difficult it will be to administer it. This is not to say that an abstract rule may not be helpful. For instance, if your rule is that only residential pets are permitted, then you can clearly determine whether Guineas or camels belong to that category.
Enforcing and Upholding Condo Rules
Enforcement of condominium rules and regulations is essential to maintaining community order and harmony. Often, an enforcement system is built into the rules themselves through provisions establishing fines or other penalties for non-compliance. This may also include provision for suspension of privileges or privileges that attach to utilization of the common elements or limited common elements. The power of an association to establish and enforce such penalties is set out in the governing documents for most condominium associations.
For example, most condominium declarations set forth the authority of the board to adopt rules and regulations concerning use of the common elements and limited common elements and the manner in which the condominium units may be used. In addition to implementing those rules, the board generally has additional authority to adopt penalties for non-compliance with association rules and regulations, governed by the association’s bylaws. If a unit owner fails to comply with these rules and regulations and/or continues to violate them, the association has the option of pursuing additional enforcement against the offending unit owner.
An additional tool any condominium association may use is its ability to fine a unit owner in the event that such owner violates a rule or regulation. The ability to fine a unit owner for violation of the governing documents must be contained in the declaration and the procedure for imposing such fine must be followed (called "due process"). To recover the fine, an association must typically bring an action for recovery of money damages in a court of law.
In most circumstances, if the offending unit owner will not pay the fine to the association, then an association can in turn tack on the fine to the unit owner’s common assessment account and hold such unit owner responsible for same. Many declarations specifically provide for imposition of fines for violations of the declaration and/or rules and regulations. For example, the Declaration for The Enclave at Warwick Condominium states:
Section 2. Any violation of the restrictions or covenants set forth in the Declaration and/or by the Board of Managers of The Enclave at Warwick Condominium ("the Association") will subject the violator to the remedies set forth in Article IX of the Declaration of Condominium. Owner of any Unit will be liable for any and all damages to the Common Elements or Limited Common Elements caused by the violation of any restrictions or covenants of the Declaration by such Owner or any of his family, agents, guests, tenants or employees. Further, the cost of such damages may be collected by the Association from the Owner as part of the Owner’s share of the Common Expenses.
Section 3. The Board of Managers shall have the right to collect an Owner’s share of Common Expenses, together with interest thereon, if any, and any other sum which may be chargeable to said Owner or the Owner’s Unit . . . together with interest thereon computed at the highest rate permitted by law from the date such charges become due, plus reasonable attorneys’ fees incurred in connection with such collection.
In the event that a unit owner is specified to be liable for payment of attorneys’ fees in the event the association pursues a delinquent unit owner in court, the association will be able to recover its reasonable attorneys’ fees through the collection of the delinquent account. As a condition precedent to recovery of attorneys’ fees by an association it must substantially prevail, whether by obtaining a verdict in its favor, a voluntary judgment of money damages or a consent judgment.
Non-payment of the monthly common assessment is the most common reason that condominium associations seek to recover money damages using the court system. If a unit owner fails to pay his or her share of the common expenses, or monthly common assessment, that amount will accrue interest (provided for in the declaration itself) and the association will be afforded the right to place a lien against the offending unit owner’s property. When that occurs, the association will either have to pay out of pocket for a foreclosure or else settle its claim with the offending unit owner. Because the association will then be out of pocket, it will have a powerful incentive to either get its money back through settlement or arrangement or have the court enforce its lien and obtain foreclosure of the unit owner’s unit.
The attorneys’ fees that the association incurs in enforcing the declaration or associations’ rights/obligations can be substantial and should be taken into consideration when enforcing its documents. On a positive note, those costs are typically recoverable by the association as part of the delinquent unit owner’s common items of expense and would typically allow the association to recoup its attorneys’ fees.
If the offending unit owner chooses to contest the association’s action, this creates another layer to the action as the association will have to now engage in a trial, whether it is a bench trial or jury trial, to recover its unpaid contribution. In this situation, the offending unit owner may elect to present a defense to the association’s claim or simply file a counterclaim against the association. A counterclaim is a claim that the unit owner makes against the association in the same lawsuit as the association’s claim against the offending unit owner. Notwithstanding that the offending unit owner files a counterclaim against the association, the association is still entitled to recover its attorneys’ fees from the offending unit owner if it prevails with a final order from the court or if the unit owner voluntarily pays the association’s outstanding common items of expense.
Changing Rules to Meet New Needs
Condo rules are not meant to be set in stone; they are a living, breathing component of the community. In order to effectively govern and enhance the quality of life in the development, condo rules should be reviewed and updated from time to time to align with the evolving needs and preferences of the condominium association.
By frequently assessing the relevance and effectiveness of the rules, associations can ensure that their regulations are adequately addressing any new challenges and the changing demands of the residents. This process of adaptation may require input from various parties, including the board of directors, residents, and legal counsel, to determine the need for changes and develop updated versions of the rules. By proactively reviewing the rules and making necessary updates, associations can avoid the risk of running afoul of ever-changing laws and regulations.
Amending the condo rules is typically a straightforward process. As a threshold matter, the amendment provisions of the condo documents should be reviewed to ensure that the outlined procedure is followed. Importantly, some states impose special requirements before amending condominium rules and regulations. For example , in certain states, the board must first announce the proposed changes to residents before adopting them. Other states require approval of amendments by a majority of unit owners. In addition, the applicable community association laws in each state may need to be considered before adopting the proposed amendments to existing rules and regulations.
Once the condominium association has verified that its proposed rule changes will be valid and enforceable, a notice should be posted in the building’s common areas. Posting the notice in public spaces will provide all residents with an opportunity to review the proposed rule changes. After providing residents adequate opportunity to weigh in on the new condo rules, the association can adopt the new rules and distribute a copy of the new rules to all residents. Additionally, condo associations may want to give consideration to incorporating the new condo rules in their next posting or distribution of any consolidated documents.
If the new rules or amendments are not well received by the unit owners, associations will then have to consider what modifications are necessary to ensure that the condominium rules are satisfactory to the community.