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Home COFSAB Forum Legislation, Bylaws and Rules Questions About Default Bylaws Reply To: Questions About Default Bylaws

  • Karen

    Administrator
    April 10, 2022 at 4:45 pm

    MarkH

    Jon, if the bylaws do not comply with the CPA&R, the provincial legislation overrides the bylaws (unless the CPA&R grant permission to vary the requirements of the legislation). Similarly, if the bylaws are silent about insurance, you are guided (or told what to do) by the CPA&R.

    You asked (re Section 34.1(2)) about the one-year window to amend an out-of-date bylaw by ordinary resolution. I believe (I haven’t checked) there is a one-year window after the proclamation of the relevant part of the Act. I think the PC Government in 2014 considered the whole Act would be proclaimed in one Order in Council, not piece-meal as has now happened, so Service Alberta would have to answer that question.

    I don’t know what an insurance company would say about the absence of bylaws; I believe they would rely on the requirements of the Act.

    You asked “Would they simply contact an insurance broker and ask for an insurance package meeting the requirements of the CPA&R?” I recently received a notice from my insurance company telling me what the changes in the Act required and noted that some risks are not covered. I had already covered most of those issues (such as damage caused by sewage flooding the basement of my apartment building) in MY policy (not a standard package). You should consider the needs of your project, not the convenience of a one-size-fits-some package.

    It isn’t in your query, but if I were a potential purchaser of a unit in your project, and I found you had no, or very old, bylaws, I would walk away from the purchase. If the bylaws and possibly other documents are not up-to-date, what else about the project has been neglected? (Rhetorical Q for your consideration, please don’t answer!) Up-to-date documents would/should be a good selling point and enhance the value of your project.