February 17, 2024 - Blog Post

Bare Land Condos

 

Bare land condominiums were first authorized in Saskatchewan by legislation on January 1, 1995. In this type of development, a building is not required to be on the parcel when the condominium plan is submitted for approval. The bare land “unit” is a specific portion of the parcel.

A purchaser buys the “unit” from the developer and contracts with the developer to build a building on the unit. In this sense, the “unit” is analogous to a lot in a subdivision. This type of condominium development usually provides less common property – sometimes just an access road.

A bare land condominium plan must be approved under The Land Surveys Act, 2000. When the plan is approved, a Transform Approval Certificate (TAC) is issued. The developer then applies to Land Registry for titles to the units. When titles are issued, the condominium corporation is created.

The application to Land Registry involves surrendering the title(s) to the source parcel(s) and setting up titles to the units in the plan. In the case of bare land condominium units, the developer must also obtain security or a waiver of security. The declaration is endorsed accordingly, and an interest based on this declaration is registered against the titles. Inquiries regarding security may be made to the Office of Public Registry Administration.

Before you make any assumptions about any type of condo property, it is essential that you first review the filed condo plan in the Land Title Registry. The words, “Bare Land Condo” appear on almost every bare land Condo, with a few exceptions. This indicates that you the purchaser/owner have an interest in the bare lot, and any buildings constructed on that lot, that are not shown on the Condominium plan, and are not the responsibility or interest of the Condominium corporation.  The other condition that is frequently imposed on a bare land condominium is a building scheme. The building scheme is generally filed on the title of each of the condominium lots, and occasionally as part of the bylaws registered by the owner developer. The building scheme sets out the limitations and definitions of what type of development and construction is permitted on the building sites.

Bylaws

Many homeowners in a bare land condominium are often surprised to learn that most of the standard bylaws and the Condominium Property Act and Regulations still fully apply to your corporation. Bylaws that relate to how the Board is elected and their governance, the agenda and business of general bylaws, use of property including nuisance, pets, and administration of the condominium operations, including collection of condo fees, special levies, and voting eligibility likely all apply to your bare land condo. There is still common property, common amenities, and facilities that the condominium corporation continues to be responsible for.  Your common roadways, club houses, recreational facilities, in ground services such as sanitation and water, common liability and risk insurance, management, operations, and reserve planning will all be common expenses that form part of your annual budget.  Most times common expenses in bare land condo corporations are all shared equally subject to your Bylaws. 

Bare land condos operate the same way as most condominiums and town houses, they just look different. Bare-land condos have many benefits. Owners can share recreation facilities and maintenance services, increased security, and lower operating costs, while still maintaining their own home

A bare land condo is basically the same as any condominium development. The different terms define what type of property you own. In a bare land, the boundaries of your unit are the surveyed property lines, not the exterior walls of your home.

They are a popular choice as buyers often prefer the idea of individual housing over apartment style. The big difference is the boundary of the condo unit, and who pays for the maintenance, repairs, and insurance of buildings. The bare land condo unit (lot) is established by the measured boundaries of an area of land, not the walls, roofing, or ground levels. A bylaw can require the condominium corporation to maintain and repair certain parts of the Bare Land unit, but generally no such bylaw is in place, so owners are responsible for their buildings. The common property and assets - roadways, landscaping, and recreation facilities - must be maintained and repaired by the corporation. This also includes insurance. 

Consistent with any development, bare land condominiums must have parking allocated in compliance with local zoning regulations. Parking spaces designated for a specific condominium unit are transferred with the sale of the unit.


Insurance

The normal application of this concept is that the Condo corporation is not responsible for the repair, maintenance or insurance of buildings not shown on a lot of a bare land Condominiums. Bare land Condominium corporations are different from conventional townhouse/apartment style condos because the condo unit is not the boundary of the walls or ceilings of the units, but rather the measured piece of property that the unit sits on.

Sometimes the only building shown on the plan is a club house (for example), whereas the condo units, are bare-land lots which have had houses built on them, but not shown on the plan. In most bare land developments, it is important to inform owners, that the condo corporation is not responsible to maintain or insure their homes built on their condo lots, and that they must fully insure their home, their personal liability and their personal property and betterments. Condominium corporations may choose to insure bare land units: developed for residential purposes where units are not joined by common walls and continuous roofing. as per Subsections 65(2) and (3) of the Act There are some variations of bare land condominium corporations that look like multiple duplexes. In these cases, the corporations have obtained legal advice to develop bylaws where the corporation has taken responsibility to maintain the building exteriors and maintain insurance on the replacement of the structures and fixtures. This helps to ensure a neighbouring property would not be affected by a negligent owners’ unwillingness to insure their property.  

As mentioned previously,there is still common property, common amenities, and facilities that  corporation continues to be responsible for.  Your common roadways, club houses, recreational facilities, in ground services such as sanitation and water, common liability and risk insurance, management and operations, and reserve planning will all be common expenses that form part of your annual budget.  With some exceptions common expenses in bare land condo corporations are all shared equally, even though the condo lots may vary in size. Always check the Bylaws for how this is handled in an individual situation.



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