AlbertaRealEstateExam

👥 PCM · Governance, Law and Advising the Board

What this topic covers

Governance, the Condominium Property Act in practice and advising the board, for the Practice of Condominium Management (PCM) exam (2027 blueprint). These are original study notes for practice questions, not RECA material. Legal points rest on the texts in force on 1 January 2027; thresholds, periods and amounts can change and are checked in the current version of the text. The PCM blueprint is RECA's outline of what candidates should know.

Developer period and handover

Professional responsibilities

Meetings, bylaws, rules

Rented units, remedies

Work, communication, technology

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Sample questions (8)

1. An interim board member is a director of the elevator maintenance company bidding for the corporation's service contract and also owns a unit in the building. The member wants to vote on the bid. What should the condominium manager advise?

  1. The member may vote, because owning a unit brings the member within the Act's exception.
  2. The member must declare the interest, not vote, and not be counted toward the quorum.
  3. The member may vote if the other interim board members approve the bid in advance.
  4. The member must resign from the interim board before the corporation considers the bid.

(CPA current as of May 14, 2026) Under section 10.1(7) of the Condominium Property Act, an interim board member with a material interest in a transaction to which the corporation is to become a party must declare it, must not vote on it and is not counted when determining the quorum. The exception in section 10.1(8) covers an interest that exists only because the member owns a unit; here the interest comes from the directorship, so owning a unit changes nothing. Approval by the other members does not lift the bar, and resignation is not required, because the member stays on the interim board for other business.

2. Eight months ago, the first board elected while owners at arm's length from the developer held over 50% of the unit factors took office. It wants to end a landscaping contract that the developer's affiliate signed with the interim board, and the contract has no early exit clause. What should the manager advise?

  1. Wait for the contract term to end, because a missing exit clause prevents termination.
  2. Give the other party written notice of a termination date at least 60 days away.
  3. Give 30 days' written notice, because that is the usual period for service contracts.
  4. Pay the other party the remaining contract value, because ending the contract creates liability.

(CPA current as of May 14, 2026) Section 17.1 of the Condominium Property Act lets a corporation end an agreement within 12 months after its board first consists of directors elected when owners at arm's length from the developer held more than 50% of the unit factors, despite any contrary term. The corporation must give written notice of the termination date at least 60 days ahead, or any shorter period the agreement sets; this agreement sets none. A landscaping contract is not among the agreements that section 20.4 of the Condominium Property Regulation protects from termination. Waiting is unnecessary, 30 days is not the statutory period, and the corporation is not liable to the other party by reason only of the termination.

3. The board tells the manager to ignore a purchaser's lawyer's written request for the corporation's prescribed documents until the seller pays arrears. What should the manager do?

  1. Follow the instruction, then record the board's reasons for it in the next set of minutes.
  2. Decline to follow it, explain the 10-day duty, and refuse further services if the board insists.
  3. Release the documents once the purchaser's lawyer pays the seller's arrears to the corporation.
  4. Follow the instruction for now, and ask the RECA Registrar to confirm it was proper afterwards.

(CPA current as of May 14, 2026; Real Estate Act Rules current as of July 17, 2023) Section 44(1) of the Condominium Property Act requires the corporation to provide the prescribed documents within 10 days after receiving a written request from a purchaser's solicitor, and it does not let the corporation make them depend on anyone paying the seller's arrears. Rule 80.88(b) of the Real Estate Act Rules limits the duty of obedience to lawful instructions and Rule 80.88(h) requires compliance with the Act, so the manager declines and explains the deadline; under Rule 41(j), a licensee must refuse to provide further services to a client who instructs them to withhold a disclosure required by law, which applies if the board maintains its instruction. Following the instruction, even with reasons in the minutes, breaches the Act, and the RECA Registrar does not confirm board instructions.

4. A condominium manager must NOT do which of the following with the corporation's information?

  1. Pass the board's authorized handover package to the incoming management company.
  2. Tell an owner's friend by phone which neighbours are behind in their contributions.
  3. Give records to a court after being served with a valid order for their production.
  4. Send a purchaser's lawyer the prescribed documents requested in writing to the corporation.

(Real Estate Act Rules current as of July 17, 2023) Rule 44(1) of the Real Estate Act Rules bars a licensee from disclosing information about a client, property or transaction unless the client authorizes it or the law requires it. A friend's curiosity is neither, so the call breaches the Rule. A handover the board has authorized, records produced under a court order, and prescribed documents given on a written request under the Condominium Property Act all fall within the two exceptions.

5. After a management agreement ends, within what time must the manager return the corporation's property, and on what terms?

  1. Within 14 days, with a reasonable handling fee payable by the corporation.
  2. Within 60 days, once the manager's unpaid invoices have been settled in full.
  3. Within 90 days, together with the delivery of the final accounting.
  4. Within 30 days after termination, and at no charge to the corporation.

(CPA current as of May 14, 2026) Section 17.2(2) of the Condominium Property Act requires a condominium manager to return all property belonging to the corporation within 30 days after the management agreement is terminated, at no charge. The Act allows no handling fee, and it does not let the manager hold records back until invoices are paid. A longer 60-day or 90-day period is not provided for, so the final accounting does not extend the deadline.

6. A board asks its manager whether a proposed building envelope repair report is technically sound. The manager has no engineering training. What is the best response?

  1. Explain the limit of the manager's competence, advise hiring an engineer, and tell the broker.
  2. Give an informal opinion on the report but label it unofficial so the board relies on it less.
  3. Compare the report with online guides and confirm to the board that it looks sound to the manager.
  4. Return the report to the contractor who wrote it and ask that contractor to certify its soundness.

(Real Estate Act Rules current as of July 17, 2023) Rule 80.88(f) of the Real Estate Act Rules requires the licensee to advise the corporation to obtain expert advice on matters of importance, and PCM blueprint 1.1.10 expects the manager to raise issues beyond their competence with the broker. An unofficial opinion or an online comparison still presents the manager as competent on the engineering point. Asking the report's author to certify it adds no independent review.

7. A manager has three open tasks: mailing an annual general meeting notice due to owners at least 14 days before the meeting, answering a routine parking question, and tidying the vendor list. Which approach to priorities is best?

  1. Complete the notice first because it has a legal deadline, then rank the others.
  2. Work through the tasks in the order they arrived, whatever each one involves.
  3. Start with the task the most persistent owner has asked about during the week.
  4. Clear the quickest tasks first so the list looks shorter and the owner gets a reply.

(CPA current as of May 14, 2026) Section 30(3) of the Condominium Property Act sets a minimum of 14 days for written notice of an annual general meeting, so a missed mailing can make the meeting improper. Good time management ranks tasks by consequence and deadline (PCM blueprint 1.3.2), not by speed, arrival order or who asks most often. The routine parking question and the vendor list can wait without legal risk.

8. In the PCM blueprint, what does continuous improvement mean for a condominium manager?

  1. Maintaining and enhancing competence through learning, reflection and applied knowledge.
  2. Logging the minimum course hours needed each cycle to keep a licence in good standing.
  3. Reviewing the brokerage's financial results each quarter to look for cost savings.
  4. Replacing the management software whenever a newer version comes onto the market.

(PCM blueprint 1.3.1 ; Real Estate Act Rules current as of July 17, 2023) The PCM blueprint clarification describes continuous improvement as maintaining and enhancing one's competence through lifelong learning, reflective practice and integrating learning in a changing environment; it supports the duty in Rule 41(b) of the Real Estate Act Rules to provide competent service. Meeting a minimum hours requirement is compliance, not improvement. Cost reviews and software upgrades may support the brokerage but they do not develop the manager's own competence.

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