When it comes to buying or building a condominium in Calgary, it’s essential to understand the key differences between a Bare Land Condo and a Conventional Condo. These two condo types come with distinct ownership structures, and the presence of a Real Property Report (RPR) plays a crucial role in determining your obligations as an owner. In this blog, we’ll explore these differences, the need for an RPR, and how insurance factors into the equation.

Bare Land Condo

A Bare Land Condo, often referred to as a sub-dividable single-family home, is constructed on an empty lot. These condos can take on the appearance of a typical neighborhood, featuring single-family homes, townhouses, or duplexes. What sets them apart is the ownership structure. In a Bare Land Condo, the owners not only possess the interior of their unit but also own the land on which the dwelling stands.

Most Bare Land Condos require a Real Property Report due to the unique land ownership arrangement. This report ensures that you, as the owner, have a clear understanding of your property’s boundaries and the associated structures.

Conventional Condo

A Conventional Condo is essentially a bare land condominium that has been subdivided into individual units. Within a Conventional Condo, you’ll find multiple units, each with its own separate entrance and a staircase leading exclusively to that unit. This format is commonly seen in apartment-style condominiums.

In the case of Conventional Condos, an RPR is typically not required. This is because the property’s structure is governed by a condominium plan, which outlines the size and boundaries of individual units, common property, unit factors, and property boundaries.

Insurance in Bare Land Condo

A common source of confusion in Bare Land Condo complexes relates to insurance. Unlike Conventional Condos, where owners collectively own the land and individually own their units, in a Bare Land Condo, owners have ownership of both the land and the buildings on their respective lots.

Insurance obligations for Bare Land Condo corporations are distinct from those of conventional condominium projects. The Condominium Property Regulation outlines the perils that condominium corporations must insure against. For Bare Land Condos, the condominium corporation is obligated to insure only against perils that pose a risk to the bare land units or managed property, unless additional insurance obligations are outlined in the bylaws.

Understanding your specific insurance obligations in a Bare Land Condo complex necessitates a thorough review of your condominium’s bylaws. These bylaws will detail the responsibilities of both owners and the condominium corporation, shedding light on the extent of coverage required.

Seeking Professional Advice

In cases where questions arise about insurance and maintenance obligations in your Bare Land Condo, it’s advisable to consult with an insurance broker. They can help you navigate the intricacies of your condominium’s insurance requirements. Additionally, reviewing the condominium corporation’s Standard Insurable Unit Description (SIUD) can offer further clarity on insurance obligations for owners and the corporation.

In conclusion, comprehending the differences between Bare Land Condos and Conventional Condos, along with their respective insurance obligations, is crucial for a smooth condominium ownership experience in Calgary.