It is my understanding a condo board can have a by-law stating something to the affect of (No more than 60% of all units may be rental units at one time) but in Edmonton this cannot be enforced.

Is there a similar ruling when a Condo board is asking for a deposit near $1000 in order for them to allow you to rent?

Living in, or renting the landlord is still liable, without an agreement of what will happen to that money and how they may use it, is this even legal?