Real Estate Council of Alberta Fundamentals Practice Exam

What is essential for a condominium to legally exist?

1. A website presence

2. A financial audit

3. A registered plan with Alberta land titles

4. A tax clearance

The correct answer is: A registered plan with Alberta land titles

For a condominium to legally exist, it is essential to have a registered plan with Alberta land titles. This registration is critical because it establishes the legal framework for the condominium, including individual unit boundaries, common property, and the rights and obligations of the owners within the condominium corporation. The registered plan provides public notice of the existence of the condominium and outlines the specifics of the development, which is necessary for both legal recognition and transaction purposes. Other options, while they may involve aspects of condominium management or operation, do not constitute the fundamental legal requirement for the establishment of a condominium. A website presence, for instance, can enhance communication and information sharing but is not a legal necessity for existence. A financial audit is important for transparency and management of finances but does not pertain to the legal formation. Similarly, a tax clearance, which ensures that property taxes are up to date, is not a prerequisite for the condominium's legal establishment. Thus, the registered plan with Alberta land titles is the foundational element necessary for a condominium's existence.