Module 1 Flashcards
Protecting Condo Owners act establishes
condo authority of Ontario and management authority of Ontario
Condo corps are made when the declarant
files a declaration and description to the land registry office
Declaration contains
Boundaries of each suite and owner’s share of common ele
Description contains
plans and surveys
Owners of a common el corp must own a
freehold parcel of land
Shared facilities agreement
should be used for a mixed-use property
Reserve fund study
determines how much money needs to be in the fund to ensure repairs in the future
Tribunal decisions can be appealed
on questions of law to the divisional court level
loss of owners right to vote
if they are 30 days past due on the common elements fee
If an owner does not pay common elements fee
condo corp can place a lien of the title of the unit plus interest & legal costs
Condo acts gives owners who hold at least 15% of the units the right
to call a meeting at any time
Condo disclosure statement contains
proposed first budget, condo declaration, bylaws, rules, condos proposed features and amenenties
Within 10 days of a condo being registered the builder is required to
appoint a board of directiors (first board - 3 ppl)
Goal of turnover meetings
transfer control of the condo corp from builder to the owners
Turnover meetings must be held
no more than 21 days following the transfer of control
Condo bylaws may protect directors
from exposure to liability & reimburse for legal fees
Reserve fund study is updated
every 3 yrs
W/i 6 months of being appointed directors must take
online training is finance and corporate proccesses
Must call a meeting before the later of the 30th day after declarant transfers 20% or 90 days after the first unit is transferred
First board
Responsible for drafting the corp’s bylaws and regulations
Developer
Bylaws and rules must be consistent with the
decleration and the condo act
Bylaws govern the
corp’s internal operations and management of property & assets
Rules focus on
promoting safety, security and welfare of others
Condo mangement regulatory authority of ontario has
a registry to verify management is still valid
Insurance types for condo managers
fidelity (protects clients from the dishonesty of management) and errors and omissions
Periodic info certificates
sent twice per fiscal year, includes key info about a corp (board, finances, insurance, reserve fund)
info certificate updates
sent to owners w/i 30 days of key changes
New owner info certificates
sent to new owners within 30 days after they sent written notice
Has exclusive jurisdiction to resolve most disputes record retention and access
condominium authority tribunal
Licensed condo management must not be employed by
more than 1 management provider (must obtain written consent if not)
Required to hold insurance
condo management providers
if there is a change in the insurance of a condo management providers
must notify client w/i 15 days
establishes the legal structure of the corp
decleration
plans for the property as approved in the development app process
description
Name of a condo corp
based on location & a sequential number (includes corp’s type (standard, common ele)
Maintains a public registry of corporations and all of their details
condo authority of ontairo
If an owner leases their unit they must
notify the corporation within 10 days (and provide all of the renter’s info and lease agreement)
Required to keep a index of condo corps registered in their area
land registar
Act applies to an owner renting out their condo unit
residential tenancies act
Warranty coverage begins on
the date of possession and remains until the end of the warranty period
Warranty coverage begins on
the date of possession and remains until the end of possession and remains in effect if unit is sold (and warranty has not expired)
New Home Warranties Plan Act for Condos provides 7 year warranty for
major structural defects
Common elements are covered for the lesser of
$50,000 x # of units OR $2.5 mil
Conversion projects dont have this type of warranty
one year workmanship and materials warranty
May extend this date multiple times but must give 90 days noticed
outside occupancy date
Warranty of common elements of a condo begins on the date
of registration of the corp
lists rules and financial status of the corp, condo features & amenities, budget for first year after registration, rules and bylaws
Disclosure statement drafted by the builder
lists rules and financial status of the corp, condo features & amenities, budget for first year after registration
Disclosure statement drafted by the builder
Disclosure statements to new condos are what
status certificates are for resale condos
10-day cooling off period on applies to
purchase of new condo units
If the APS allows the builder to extend occupancy date, permits cap on adjustments fees, assignment agreements
should be reviewed during cooling off period
Period between occupancy and ownership
interim occupancy (buyers take occupancy before corp is registered)
paid during interim occupancy period (taxes, common expense contribution, etc) (similar to rent, do not go towards retiring a mortgage)
occupancy fees
pre-delivery inspection is prior to taking possession and is mandated by
the provincial warranty program
Mortgage funds can only be advanced to a buyer when that buyer
takes title to the condo unit (can only happen when the condo corp is registered)
Agreement that’s purpose is to hand over contractual rights and responsibilities of the original contract while protecting legal rights of s&b
assignment agreement
Ownership of a unit cannot pass to a buyer untill the condo is
registered and the title is transferred
Risks associated with assigning an agreement
- May not qualify for financing
- May not be eligible for at HST rebate
HST for pre-construction condos
included in purchase price
Taxes paid on closer
provinical land transfer tax (+municipal if in toronto)
Who pays land transfer tax on a pre-construction assignment
assignee
Leasehold condo
cannot be less than 40 years or longer than 99 years
Assignor will owe
capital gains
