There are a number of reasons why it may be desirable for a piece of property to no longer be a condominium. Sometimes buildings fall apart and need to be demolished. Sometimes part of the property needs to be expropriated by the municipality to widen a road or construct a public service. Sometimes it may be desirable to sell a piece of the property to a neighbour or developer. Sometimes the owners cannot agree on the management or direction of the condominium. In some of these cases, termination may be the best option.
Part VIII of the Condominium Act, 1998 outlines the various options for terminating a condominium. A condo may be terminated for any reason with the consent of the owners and those with registered claims against the property (s.122), upon substantial damage to the property (s.123), upon sale of part or all of the property (s.124) or by court order (s.128). Each section of the Act has its own requirements and process.
Although the Act permits terminations of condominium corporations, there have been only a handful completed in Ontario. The Superior Court recently approved the termination of Simcoe Condominium Corporation No. 32. Continue reading