Presentation on theme: "Ontario Condominiums 101A Fundamental Concepts and New Properties Michael H. Clifton Partner, Clifton Kok LLP Condominium Development Law Condominium Management."— Presentation transcript:
Types of Condominium Ontario Condominiums Freehold Condominiums Leasehold Condominiums Standard Condominiums Vacant Land Condominiums Common Element Condominiums Phased Condominiums
A Digression on Unit Boundaries Traditional Unit Boundaries -inside or outside of drywall -surface of sub-floor or floor slab -upper or lower surface of upper-most ceiling Unit owner owns basically just airspace and fixtures. Essential structure, roof and all exterior (lawns, decks, driveways) are common elements. Often garage included as part of the unit. Whole Lot Unit Boundaries -Unit boundary extends to edge of typical lot line (sometimes called “lot line” unit boundaries) Unit owner owns the entire building and surrounding lands, just like an ordinary lot in a subdivision or a freehold townhome. Whole Building Unit Boundaries -Unit boundary surrounds the building envelope, but does not include the lawn, driveway or deck areas -Might also exclude the roof and eaves Unit owner owns the entire building but the surrounding lands are part of the common elements.
Buying or Selling a NEW CONDOMINIUM Disclosure Interim Occupancy Deposits 2 Closings??
Disclosure Statement Table of Contents Budget Statement Draft Declaration, By-law(s) & Rules Standard Unit Definition Material Agreements Other information RECEIPT!!! Disclosure
81. (1) A declarant shall ensure that a trustee of a prescribed class* or the declarant’s solicitor receives and holds in trust all money, together with interest earned on it, as soon as a person makes a payment, (a)with respect to reserving a right to enter into an agreement of purchase and sale for the purchase of a proposed unit; (b)on account of an agreement of purchase and sale of a proposed unit; or (c)on account of a sale of a proposed unit. 1998, c. 19, s. 81 (1) *20. (1) The following classes are prescribed as trustees for the purpose of subsection 81 (1) of the Act: 1.Persons, other than the declarant’s solicitor, who are entitled to practise law in Ontario as solicitors. 2.A partnership, other than the declarant’s solicitor, of persons who are entitled to practise law in Ontario as solicitors. 3.Escrow agents for deposits with respect to a project who have entered into a deposit trust agreement with the declarant and either the warranty corporation or an insurer to govern money to be held in trust under section 81 of the Act with respect to the project. O. Reg. 48/01, s. 20 (1). Deposits “proposed unit” means land described in an agreement of purchase and sale that provides for delivery to the purchaser of a deed in registerable form after a declaration and description have been registered in respect of the land; (“partie privative projetée”)
“An agreement of purchase and sale may permit …the occupancy of a proposed unit before the purchaser receives a deed to the unit that is in registerable form.” Interim Occupancy Occupancy fee interest calculated on a monthly basis on the unpaid balance of the purchase price at the prescribed rate An amount reasonably estimated on a monthly basis for municipal taxes attributable to the unit The projected monthly common expense contribution for the unit