Transcript Ontario Condominiums 101A - Clifton Kok LLP Legal Counsel

Ontario Condominiums 101A
Fundamental Concepts
and New Properties
Michael H. Clifton
Partner, Clifton Kok LLP
Condominium Development Law
Condominium Management Law
© 2007, Michael H. Clifton
Types of Condominium
Ontario Condominiums
Freehold Condominiums
Standard Condominiums
Phased Condominiums
Vacant Land Condominiums
Common Element
Condominiums
Leasehold Condominiums
A Digression on Unit Boundaries
Whole
Traditional
Unit
UnitUnit
Boundaries
Boundaries
Whole Lot
Building
-inside
-Unit
boundary
or outside
extends
of drywall
to edge of
Boundaries
typical lot line (sometimes called “lot
-surface
of sub-floor
or floor
slab
-Unit
boundary
surrounds
the building
line” unit
boundaries)
envelope,
does
not include
the
-upper or but
lower
surface
of upper-most
Unit
owner owns the entire building
lawn,
ceilingdriveway or deck areas
and surrounding lands, just like an
-Might
also
exclude
the roof
Unit owner
ordinary
lotowns
in a subdivision
basically
just
orand
airspace
a eaves
freehold
and
townhome.
Essential
structure,
Unitfixtures.
owner
owns
the entire
building
roofthe
andsurrounding
all exteriorlands
(lawns,
but
aredecks,
part of
driveways)
common elements.
the commonare
elements.
Often garage included as part of the
unit.
Buying or Selling a
NEW CONDOMINIUM
Disclosure
Deposits
Interim Occupancy
2 Closings??
Disclosure
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Disclosure Statement
Table of Contents
Budget Statement
Draft Declaration, By-law(s)
& Rules
Standard Unit Definition
Material Agreements
Other information
RECEIPT!!!
Deposits
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).
Interim Occupancy
• “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.”
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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