The Saskatchewan Condominium Property Act — A Financial Overview
Introduction
Section titled “Introduction”The Condominium Property Act, 1993 is the primary legislation governing condominium corporations in Saskatchewan. Here’s what you need to understand from a financial standpoint.
The Corporation as a Legal Entity
Section titled “The Corporation as a Legal Entity”When a condominium plan is registered in Saskatchewan, a condominium corporation is automatically created. It’s a non-share capital corporation — meaning it doesn’t issue shares, and any surplus belongs to the corporation, not individual owners.
Reserve Fund Requirements
Section titled “Reserve Fund Requirements”Saskatchewan law requires every condominium corporation to establish and maintain a reserve fund. The fund must be used only for major repairs and replacements of common property — not for operating expenses. Contributions must be set at a level sufficient to meet anticipated future costs.
Keeping Funds Separate
Section titled “Keeping Funds Separate”The Act requires that reserve fund activity be recorded separately from operating funds. This isn’t just good practice — it’s a legal obligation.
Financial Reporting to Owners
Section titled “Financial Reporting to Owners”Saskatchewan condo corporations are required to keep proper financial records and make them available to owners. Financial statements must be presented at the Annual General Meeting.
Bylaw Amendments
Section titled “Bylaw Amendments”Any significant change to how the corporation manages its finances requires a bylaw amendment, which requires owner approval at a general meeting.
A Note on Professional Advice
Section titled “A Note on Professional Advice”This overview is for general education. Saskatchewan’s condominium legislation is updated periodically. For specific legal or financial questions, consult a lawyer or accountant familiar with Saskatchewan condominium law.
Disclaimer: For general informational purposes only. Not legal, financial, accounting, or tax advice.