Clear and Current Disclosure

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In Toronto Standard Condominium Corporation No. 2051 v Georgian Clairlea Inc. (“Georgian”) the Ontario Court of Appeal affirmed the findings of the motion judge with respect to a declarant’s disclosure obligations as set out in the Condominium Act, 1998 (“Act”).

Subsection 72(1) of the Act provides that “the declarant shall deliver to every person who purchases a unit or a proposed unit from the declarant a copy of the current disclosure statement made by the declarant for the corporation of which the unit or proposed unit forms part” (emphasis added).  The obligation to provide the current disclosure statement demonstrates that the Act intends for the declarant’s disclosure obligations to continue as the project changes between inception and final closing. Continue reading

Condo Stats – Grand River Edition

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For any of the self-proclaimed condo geeks out there (I’m thinking of you Jon Juffs), I thought that I would update a post we did previously on condo statistics. As a director for the Grand River chapter of CCI and a resident of the area, it seemed most fitting to start with the Grand River. For those unfamiliar with the area, the Grand River includes Brant, Wellington and Waterloo.  In the next few weeks I’ll provide statistics for the other areas of Ontario.

As of June 27, 2017, the Grand River had 971 condominium corporations registered:

  • Brant – 105
  • Wellington – 237
  • Waterloo Region – 629

As of January 22, 2019,  the Grand River has 1007 condominium corporations registered:

  • Brant – 110
  • Wellington – 249
  • Waterloo 648

It should be noted that the total number is not the number of active condominiums as a few condominiums have been terminated or amalgamated. For instance, I attended a meeting for a Waterloo condominium last night that was created in 2004 when 20 condominiums (ranging in size from 3 units to 16 units) amalgamated into a single condominium. On my wish list is an accurate list of active condominiums for each jurisdiction. Maybe someone at the CAO could help us out?

Apart from the number of condominiums, the trends as far as type, number of units, and style appears to be holding steady. For instance, the last condominium registered in Wellington was a 36 unit townhouse style in Guelph. In my experience, many of the condominiums in Wellington are townhouses; high-rise and single detached condominiums are less common. The last one in Waterloo was a 77 unit low-rise in Waterloo. In Brant, it was a 9 unit vacant land condominium. As a percentage of the total number of condominiums, I suspect that Brant (or possibly  Middlesex) may have the most vacant land condominiums.

That’s it for now.  Share this post and let me know what area you want statistics for next!

 

Coming Soon – Better City Waste Collection Options for Condos in Guelph

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Last week I attended a meeting with staff from the City of Guelph’s Environmental Services department to hear about the City’s latest efforts to provide better waste collection services to multi-residential properties, including condominiums.  The City’s 2014 Solid Waste Management Master Plan Update included a recommendation that City waste collection be expanded to multi-residential properties. One of the key pieces of this recommendation – a front-end large bin collection vehicle – is set to be rolled out in the second quarter of 2019. This has taken longer than initially hoped, but better late than never, right? Continue reading

Modified Record Request Process

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We hear complaints about the new record request process regularly from our clients and owners. The process is cumbersome with the new prescribed forms and timelines. The process takes longer than it did before in many cases (in part because it takes time for people to fill out the forms correctly). Many clients are confused about when they can and cannot charge the requester for labour and copying charges. All of these feelings are completely normal.

The regulations are confusing. Parts described in ten pages could have easily been described in one or two pages if charts were used instead of long, repetitive paragraphs referring the reader to check various other sections of the Act and regulations before they can determine the answer to what was a seemingly straightforward question. Before you know it you’ve spent 20 minutes trying to figure out the answer to a question that used to take 2 minutes.

There is a solution to all your record request problems: The condominium and owner can agree to modify the process. Hooray! Continue reading

Knowing the Signs…Election Times

When you think of an election what comes to mind? In my experience, an upcoming election means preparing for the barrage of campaign advertising, door-to-door canvassers, and social media posts from your relatives and friends that have questionable fact checking. A significant contributor to the visuals of an election are the seemingly inescapable candidate signs on tufts of grass by the local Starbucks or throughout your neighborhood. Condominiums share the unique complication of sharing a collective yard space that represents the building, tenants, and condo corporation, so management must be prepared to manage the political participation of their owners and residents while staying up to date with the current law. Continue reading

Condo Act Changes: A Primer for Real Estate Agents & Lawyers

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Those working in the condo industry often complain that real estate agents and lawyers do not adequately advise their clients before they purchase units in condominiums. With the substantial changes recently made to the Condominium Act, 1998 (the “Act”), and more to come in the following months, it is sure to be a complaint we continue to hear for the foreseeable future. Today, I thought that I would provide a few tips for real estate agents and lawyers acting for those looking to purchase a unit in a condominium.  Continue reading

Common Errors with the Amendments: Part 2

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While we all get a handle on the new forms and requirements (and wait for further amendments still to come), I thought I’d do an update on a post I did a few months ago about common mistakes or misconceptions. Here are some of the most common issues we’ve encountered so far:

Myth: The preliminary notice of meeting is only required for annual general meetings.

Truth: The preliminary notice of meeting is required for ALL owners meetings, including annual general meetings, requisition meetings, and special general meetings. The only time it is not required is where the meeting is called solely to fill vacancies on the board where a quorum has been lost.  For more information, see section 12.2(5) of O.Reg. 48/01.

Myth: There is one form for disclosure by candidates and directors.

Truth: There is no prescribed form for disclosures by candidates or directors. That said, many law firms and management companies have created disclosure forms. Be careful when using these forms. The disclosure obligations for candidates and directors are NOT the same so different forms should be used for candidates prior to election and directors after their election or appointment.

Myth: Nothing bad will happen if we don’t file our returns with the CAO or pay our $1/unit/month assessments.

Truth: There are a number of possible consequences for failing to file the returns or pay the assessments:

  • The CAO can levy late fees for not filing returns on time (see section 9.6 of the Act).
  • The Registrar of the CAO can also order a person to comply with the return and assessment requirements (see section 134.1 of the Act).
  • A corporation that has not paid its fees is incapable of maintaining a proceeding before the Tribunal or a court, except with leave of the court (see section 23.1 of the Act).
  • A person who fails to complete returns or pay assessments may be guilty of an offence and liable to a fine of $25,000 for individuals and up to $50,000 for corporations!

Stay tuned for more common misconceptions and myths.

Soliciting Proxies: What’s Changed?

proxyI’ve had a few files recently where questions surfaced about the new restrictions on who can and can’t solicit proxies for owners’ meetings. When can a manager solicit a proxy? When can’t a manager solicit a proxy? It appears some people may be unaware of the changes to the rules governing the solicitation of proxies for owners’ meetings, especially by managers and others on their behalf.  Continue reading

Forms for Ongoing Disclosure by Directors

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A lot has been written about the obligation of candidates to disclose information and make certain statements prior to their election or appointment to the board of directors. The Act requires candidates to satisfy the disclosure obligations prior to their election to be qualified as directors (see section 29(1)(f) of the Act). Whether the disclosure may be made orally at the meeting or in writing depends upon a number of factors, including when the person notified the condominium of their intention to be a candidate and the condominium’s by-laws. There is no prescribed form for making the required statements in writing, but many law firms and management companies have created forms for candidates to complete prior to the election. The requirements for candidate disclosures are described in section 11.6 of O.Reg. 48/01.  Continue reading

Is it Time to Amalgamate?

stencil.default (33)There is just over a month to go until the amendments to the Condominium Act, 1998, come into force (unless the implementation is delayed again). The industry is abuzz about the amount of work the amendments are going to create with all of the returns, notices of change, certificates, disclosure obligations, etc. So you might be asking “Why would anyone want to create more work for themselves and amalgamate now?”

Continue reading