Changes to the Condominium Act, 1998: Part 2 – Additional Provisions in the Declaration

Post by: Evan Holt

Part 1 of this series discussed the new mandatory provisions for condominium declarations. Now, in Part 2 of this series, the discussion focuses on additional (optional) provisions that may be included in the declaration.

Section 7 (4) of the Condominium Act describes additional contents that may be contained in condominium declarations. Although this is a rather open ended category, the revisions to the Condominium Act provide detail with respect to the type of provisions that a developer may wish to include.

Section 7 (4) (a) of the Condominium Act currently states that a declaration may contain a statement specifying the common expenses of the corporation.  Bill 106 proposes to amend this section adding that a declaration may contain a statement specifying the common expenses of the corporation and the circumstances that may result in the addition of any amount to the contribution to the common expenses payable for the owner’s unit to indemnify or compensate the corporation for,

(i)            an actual loss, as is prescribed, that the corporation has incurred in the performance of the corporation’s objects and duties, or

(ii)           any other purpose, if any, that is prescribed.

As with the alterations to the mandatory declaration provisions, this subtle change will provide clarity to a purchaser with respect to how and why common expense fees may fluctuate over time should the declarant choose to include a statement specifying common expenses.

In addition, Bill 106 proposes to also add section 7 (4) (f) which states that the regulations will contain additional optional items that will be permitted to be included in condominium declarations.

To view Bill 106 click here

Choosing a Condo Plan That is Right for You – Part 4: Common Elements Condominiums

Post by: Roy Gentles

Introduction

In our previous blog post we discussed phased standard condominiums.  In this post we will offer part one of our discussion on common elements condominiums.

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Common Elements Condominium Plans

A common elements condominium plan (“CECP”) refers to a condominium plan where the condominium property consists only of common elements.  As such, there are no condominium units in CECPs.  Instead of owning a unit in the condominium plan, as one would see in other types of condominiums, each owner in a CECP owns an undivided interest in the common elements of the CECP.  Ownership of an undivided interest in the common elements of the CECP occurs when the owner of a piece of freehold land outside of the proposed CECP consents to having  his or her land “tied” to the CECP.  This consent is obtained at the time the CECP is being established.  The owner’s freehold piece of land so tied to the CECP is referred to as a Parcel of Tied Land (“POTL”).

The POTLs tied to a CECP take the place of units for most purposes in the legal structure of a common elements condominium.  However, the POTLs are not part of the CECP; the POTLs have and retain freehold tenure.

An example can help clarify how a CECP can be used.  For this example, a developer wants to build a residential development with single family dwellings on half acre freehold lots and does not want to bring those lots into a condominium plan. The developer also wants to allow the owners of the freehold lots the use of a shared recreational facility, such as tennis courts.

The developer has decided for marketing or other reasons it would be beneficial to sell the homes as freehold estates instead of selling the homes as condominium units.

However, the developer, or the municipality which has to approve the development, is worried that the recreational facility will not be properly taken care of over the long run and, instead of adding value to the development, will detract value from it if the recreational facility is not under the jurisdiction of a condominium.  The main concerns facing the developer or municipality are usually: 1) how is this recreational facility to be governed; and 2) how will the recreation facility be properly funded over the long term.  Including the recreational facility in the CECP resolves these concerns.

In this example the recreational facility could be registered as the common elements of a CECP.  The lots containing the single family dwellings would become the POTLs to the CECP.  The owners of each single-family freehold home (the POTL)  would own a freehold estate in his or her home and an undivided interest in the common elements condominium, which consists of the recreational facility.

The common elements condominium corporation, which is automatically created upon registration of the CECP, would :

  • manage the recreational facility;
  • be responsible for the maintenance and repair of recreational facility; and
  • collect the monies necessary to operate the recreational facility and to properly fund the recreational facility reserve fund from the owners of the POTLs.

The owners of the POTLs are obligated, on the same basis as if such owners were the owners of condominium units, to pay common expenses on account of costs of operating the CECP and to fund the reserve fund of the CECP as needed.  As the POTLs are not part of the CECP, no costs related to the POTLs become part of the condominium budget.

CECPs are often useful in providing parking or in providing an access roadway to freehold parcels of land that do not otherwise have adequate legal or physical access to a public street.  In this circumstance, only the parking lot or the roadway that leads to the freehold parcels of land would be in the CECP.

Take Home: Pros and Cons of Common Elements Condominium Plans

The greatest advantage of a CECP is allowing a developer to provide a shared feature or facility to a group of freehold parcels of land and have that shared feature or facility governed by the provisions of the Condominium Act.  This ensures the governance of the shared feature or facility is regulated by the provisions of the Condominium Act and also ensures there are sufficient funds available to maintain, operate, repair and replace the shared feature or facility.

If the owner of a POTL fails to pay the common expenses attributable to his or her freehold parcel of land, the common elements condominium corporation has the right to register a common expense lien against the POTL.  A common expense lien is a first charge against the POTL, ranking ahead of any mortgages on the property if properly processed.

The shared features or facilities in a CECP can include anything a developer seeks to have shared by the owners of the parcels of land.  The most usual shared features and facilities are items such as access roads, parking facilities, recreational facilities, other amenities, retaining walls and/or noise walls.

Common expenses for common elements condominiums are usually much less than in other types of condominiums because the common expenses are only on account of costs relating to the shared facility, not the POTLs.  As discussed in our blog on phased condominiums, currently only standard condominiums can be phased, therefore a developer is forced to register the entire CECP at one time. It is usually not practically possible to add POTLs to a CECP once the CECP is registered.  It is also important to note that POTLs cannot be subdivided without an amendment to the condominium declaration.  It is however possible, in some circumstances, to register a new condominium on top of a POTL.

In part two of our discussion on CECPs, we will look at how CECPs are treated under the Ontario New Home Warranties Plan Act  and discuss some other aspects of such plans.

Choosing a Condo Plan That is Right for You – Part 3: Phased Condominiums

Post by: Carly Haynes

Our previous blog post discussed standard condominiums. This week we will offer a discussion on a specific type of standard condominium, phased condominiums.

Phased Standard Condominium Plans

As the name suggests, a phased condominium plan is a condominium plan that is developed and registered in stages.  Currently the Condominium Act, 1998 (the “Act”) only allows standard condominiums to be phased.  In phased condominium projects, there is one condominium plan which is expanded through amendments to the condominium declaration and description plans, with each new registration constituting a phase as new units are constructed. The condominium plan gradually increases in size as phases are added until the project is complete.  This type of project is attractive to builders  as they are able to balance sales of the units and registration of additional phases in order to ensure the project does not become over-extended.  After each phase is registered the builder can complete the closing of the units in that phase which allows the builder to obtain sales proceeds to assist in constructing the next phase.

The registration of the condominium declaration which brings the first building(s) into the condominium plan is not the first phase. Our office usually refers to this first registration as the Initial Registration.  The first “phase “is the next registration after the Initial Registration.  Needless to say this causes confusion.  Most people quite logically assume the Initial Registration is the first phase.  It isn’t.

References in this blog to a “declarant” mean the person/company that registers the condominium.  Often the builder is the declarant.

Typically phased condominium plans are made up of town homes but there are many examples of phased apartment building condominium plans and single family home condominium plans.

When considering undertaking a phased condominium project, it is important to note the first phase cannot register until title to the majority of the units in the Initial Registration of the condominium plan are no longer owned by the declarant and the declarant has delivered certain documents to the condominium corporation pertaining to the phase to be registered (this requirement applies to the first phase only, not subsequent phases). Furthermore, a phase cannot be registered until all facilities and services have been installed as required by the municipality to ensure  the phase being added to the condominium can function properly even if the planned additional phases are never added to the condominium.

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Phase Disclosure

There are specific disclosure provisions for phased condominiums. Section 147 of the Act requires that all purchasers be provided with disclosure statements which provide specific information on phasing, including whether the declarant intends to create one or more further phases, the projected timing of registration of subsequent phases and details regarding units, location of buildings etc.

The Act permits the condominium corporation to apply for injunctive relief or damages if the declarant proposes certain changes to the proposed phase from what was disclosed in the disclosure statement which are “material and detrimental”.  This type of application could result in significant delays for a declarant, and as such a declarant  who is uncertain about future plans for future phases should fairly and completely disclose all options for the project that the declarant is considering in its disclosure statement to purchasers to reduce the chances of this complication.

A successful injunction application by a condominium corporation does not necessarily preclude the registration of the proposed phase.   It may simply mean the proposed phase will have to proceed as a separate condominium.  The approval authority may have concerns with this result but if the declarant has carefully drafted the condominium documents with proper cross easements between the registered condominium and the lands being held for future phases the problem should not be insurmountable.

Take Home: Pros and Cons of Phased Condominium Plans

The most substantial benefit of a phased condominium plan is that phasing eliminates the requirement to have all proposed buildings in a standard condominium plan completed before the condominium plan can be registered.  This allows a builder to build and close units in segments (and get proceeds of these sales) rather than having to wait for all of the proposed units in the condominium to be constructed before registering the condominium plan and transferring title to purchasers, allowing the declarant to start paying down their construction loan.  This can dramatically reduce the amount of the declarant builder’s construction loan as he or she is only borrowing enough at any one time to build part of the proposed development.

A phased condominium can allow a declarant to post less security with Tarion.   Rather than having to post security for the whole development (possibly at $20,000 per unit), the declarant is only required to post security for the units in the proposed phase.  This is subject to the declarant not entering into any agreement of purchase and sale for units in phases not covered by Tarion.

The only significant drawback  associated with phased condominiums is increased costs on multiple fronts for each phase due to the costs related to the registration of multiple phases, including application and approval fees, planner, lawyer, engineer and surveyor fees.

Finally, the individual unit sales agreements cannot be closed until the unit is built and registered within the condominium. As such, in order to justify the costs associated with each new phase, a sufficient number of agreements of purchase and sale need to have been entered into for the proposed units in the new phase. However, it often makes more financial and practical sense to create a phased condominium instead of multiple condominiums.

Choosing a Condo Plan That is Right For You- Part 1 : Vacant Land Condominiums

Post by: Carly Haynes

Ontario’s Condominium Act, 1998( “the Act”) provides for different types of condominiums, which in turn allows developers to utilize a condominium plan which is best suited to their needs. These variations include vacant land, leasehold, common elements and standard condominiums.  Only standard condominiums can be phased although there is hope the 002ability to phase condominium plans will be extended to other types of condominium in the expected updates to the Act.  The type of condominium development undertaken by a developer will vary based on a range of factors including the type of interest held in the land, intended future use and development plans.  It is important to be aware of the various positive and limiting aspects of each form of condominium when undertaking a development project in order to insure an efficient and successful project.

Vacant Land Condominium Plan

A vacant land condominium plan (“VLCP”) refers to a condominium plan that contains at least one unit with no structures on it at the time of registration of the declaration and description (the documents that are registered to create the condominium).

A VLCP allows the condominium plan to be registered on the land before structures are constructed on all of the units. In other words, what usually presents as a vacant “lot” is the unit, and the common elements are made up of any other parts of the plan outside the units such as for example, roads, visitor parking, sewers, recreational facilities etc.

Pursuant to the Act, the following qualifications must be met in order to register as a VLCP:

1.         No unit in a VLCP can be part of a building;

2.         If at the time of registration of the condominium, a unit in the VLCP contains any structure, the structure must be within the boundaries of the unit and cannot “straddle” a unit boundary. For example, a foundation for a town home block cannot be in place at the time of the registration of the vacant land condominium plan as it would constitute a structure crossing a unit boundary; and

3.         Units in a VLCP cannot be stratified. This restriction does not preclude the construction of multi storey buildings on units in a VLCP.  Rather, it prevents having units above or below each other.

VLCPs are generally intended for the development of units containing single buildings, whether they happen to be residential, commercial or industrial.    However, town homes can be constructed on a vacant condominium plan.  The foundations cannot be put in place until after condominium registration because of wording in the regulations to the Act.

If there are incomplete common elements at the time of condominium registration the municipal approval authority may allow the condominium plan to be registered but the approval authority is obligated to take sufficient security from the developer to ensure the common elements will be completed at a later date.

Money Matters

As any experienced developer will tell you, Tarion New Home Warranty enrollment fees for condominium projects represent a significant cost for residential developments.  Tarion can require security of up to $20,000.00 for each proposed condominium in a standard condominium plan.  The good news in regards to VLCPs is that Tarion treats these condominium units as a freehold homes, therefore no Tarion security is necessary for the common elements in the condominium. That being said, while Tarion doesn’t provide any warranty on the common elements of a VLCP, it will in almost all cases continue to apply to the new homes which are constructed on the units.

Upon completion of construction of the buildings on the condominium units, maintenance and repair obligations regarding each unit fall to the owners of the unit, not the condominium corporation.  The Act prohibits the condominium from doing any maintenance or repairs with respect to a vacant land condominium unit unless the owner fails to do so.

The Act also makes all insurance obligations with respect to the unit the responsibility of the unit owner.  While the unit owners are responsible for the units themselves, the vacant land condominium corporation remains responsible for the common elements.

Take Home

Positive aspects of VLCPs include:

  • registering the whole condominium at one time, prior to building
  • sales agreements for new homes on a VLCP can be closed as soon as construction is completed because the unit is already registered within the condominium; and   The builder does not have to wait for condominium registration or a phase to register.
  • developers are not required to post security to Tarion to enroll the condominium in Tarion.

The downsides of a VLCP include:

  • certain municipalities may be wary about foundation walls being situated on lot lines (see requirement #2 above) after condominium registration .
  • all units must be registered at once, and once registered the lot and parcel sizes are fixed;
  • no sales agreements can be finalized until the draft plan of approval of the proposed condominium is complete and construction cannot begin for any structure (such as town home) that will straddle a unit boundary until the condominium plan is registered, meaning all conditions placed on the draft plan must be met prior to such construction.  Single family home construction that will not straddle a unit boundary is not affected by this restriction. ; and
  • the inability of the condominium to insure any part of the units may result in the buildings having inadequate insurance which can result in serious repercussion in the event of a fire or other damage particularly if the units are semi-detached homes or townhomes.

In Part Two of this blog series we will discuss the pros and cons of standard phased condominiums.

Schedule G Part 3: Schedule G – Municipality

Post by: Craig Robson

With respect to phased condominiums, a “Schedule G- Municipality” is required for each phase with the exception of the final phase. The legislation does not specifically exempt the last phase from having a Schedule G – Municipality but the Registry Office has accepted that because this Schedule G is speaking about future phases it makes no sense to require the Schedule on the last phase of a phased condominium.

The Initial Registration of a phased condominium is not considered a “phase” and does not require a “Schedule G- Municipality”.  There is no explanation for this omission other than it was an oversight.

The drafters of the legislation seem to have had some lapses in this part of the Act.

Regardless of the legislation’s failure to require Schedule G – Municipality for the Initial Registration of a phased condominium, it is important to be aware that knowledgeable approval authorities require engineer certification for the Initial Registration as a condition of the registration (where the issue is perhaps most likely to arise) to address the same issues noted in a Schedule G – Municipality.

The purpose of the Schedule G – Municipality is to ensure that each phase being registered is “self-sufficient” with respect to services and street access if the balance of the phases in the project do not proceed.   The legislation wants to ensure the registered phases are not cut off from required street access and services if future phases do not proceed.

The following excerpt from O. Reg. 48/01, s. 52 addresses this need for a “Schedule G- Municipality”:

 (5) The material to be added to Schedule G to the declaration is,

(a) the certificates, with respect to the land included in the phase, that subsections 5 (8) and (9) and section 6 require; and

(b) a statement from any of the municipalities in which the land included in the phase is situated, or from the Minister of Municipal Affairs and Housing if the land is not situated in a municipality, that,

(i) all facilities and services have been installed or provided as the person making the statement determines are necessary to ensure the independent operation of the corporation if no subsequent phases are created, or

(ii) a bond or other security has been posted that is sufficient to ensure the independent operation of the corporation if no subsequent phases are created. O. Reg. 48/01, s. 52 (5).

(6) The statement described in clause (5) (b) shall be signed by a person authorized to bind the municipality or the Minister making the statement. O. Reg. 48/01, s. 52 (6).

(7) For the purposes of clause 146 (11) (a) of the Act, the facilities and services covered by the bond or the security mentioned in that clause have been installed or provided when there are no facilities and services remaining to be installed or provided that the person making the statement described in clause (5) (b) determines are necessary to ensure the independent operation of the corporation if no subsequent phases are created. O. Reg. 48/01, s. 52 (7).

In our opinion, the required facilities and services in 52(5)(b)(i) above should include the obvious pipes, wires etc. for electricity, telecommunications, sanitary and storm sewers, gas (if available) and water as well as access to a municipal street/road either directly through the common elements or by way of good and sufficient easements in favour of the condominium corporation.

The Schedule G – Municipality does not have a prescribed form.

A major issue with Schedule G – Municipality is that the Condominium Act does not obligate any municipality to sign the schedule which is a consistent issue and problem with the legislation in general.  Therefore a developer of a phased condominium could be stymied in its ability to complete the phases of a phased condominium if the municipality will not cooperate.  There would appear to be nothing the developer could do about this in the absence of a prior written commitment from the municipality to provide the Schedule G at the appropriate time.   This is a serious issue.

We have found most municipalities to be cooperative in providing the schedules when needed.   However, a usual and legitimate request that is made by municipalities before they will sign Schedule G – Municipality is to have the project engineer certify:

  • that the requisite services and facilities are in place; or,
  • the costs to install the same in support of a request to permit registration to proceed on the basis of a bond or letter of credit for incomplete services and facilities.

While the legislation does not specifically address this, it is not unreasonable for the municipality to require the project lawyer to provide his or her written opinion (based on and subject to the information received from the project engineer as to location and extent of services and facilities), that following the registration of the phase in question:

  • the required services and facilities needed by the phase (including access to a municipal street/road) will either be part of or through the common elements of the condominium plan; or,
  • by way of good and sufficient easements in favour of the condominium corporation.

Hopefully, the forthcoming amendments to the Condominium Act will obligate municipalities to provide required schedules such as Schedule G – Municipality provided proper certifications and opinions are provided to the municipality or provide for certifications from the project engineers and lawyer in lieu of the municipality signing the required schedule.

Schedule G Continued – Elaboration on Electrical Installations

Post by: Craig Robson

In our first Schedule G blog we included the following comments on electrical installations:

5. Paragraph 9 of Form 2 says all installations with respect to the provision of electricity are in place.

  • Does this mean only lateral lines to and including the electric meters, or do the unit service panels also have to be installed or is live electricity at the wall sockets required?

We think the lateral lines need to be to the electrical panels of the units and those panels have to be in place.  However, we do not think the lines have to run beyond that.

We have had some issues with respect to this provision of Schedule G since our last blog.  We think that it may be prudent to at least have the electricity lines in place that are needed to operate the unit furnace, ventilating equipment and if there is air conditioning, the unit air conditioner, subject to the comments below.

In passing, it is noted that the Schedule G provisions with respect to heating and ventilation state:

All installations with respect to the provision of heat and ventilation are in place and heat and ventilation can be provided

The Schedule G provisions with respect to air conditioning do not have the bolded provision set out above in relation to heating and ventilation.  The provisions with respect to air conditioning merely state:

All installations with respect to the provision of air conditioning are in place.

Does the omission of the statement “… and air conditioning can be provided” in this section of Schedule G mean that while heat and ventilation systems must be operable, the air conditioning equipment is not required to be operable at the time of the Schedule G signing?   We think that a good argument can be made that this omission allows for Schedule G to be signed even if the air conditioning is not then hooked up to the electrical system as long as the unit air conditioning (if there is to be any) is in place.

The more conservative approach is to have the electricity hooked up to the air conditioners at the time of the Schedule G inspection unless there is a reason this cannot be easily done at the time of the Schedule G inspection.

“Heads Up” to Architects, Engineers, Condominium Developers and Municipalities re: Schedule G in Ontario Condominium Declarations and Amendments

Post by: Greg Carpenter

The regulations to the Condominium Act of Ontario (the “Act”) prescribe two forms of Schedule G Certificates of an Architect or Engineer that are required in condominium declarations:

  1. Certificate of Architect or Engineer (Schedule G to Declaration for a Standard or Leasehold Condominium Corporation) (Under Clauses 5(8)(a) and (b) of O.Reg. 48/01 or clause 8(1)(e) or (h) of the Act) (formerly Form 2 and referred to in this blog as “Form 2”); and
  2. Certificate of Architect or Engineer (Schedule G to Declaration for a Common Elements or Vacant Land Condominium Corporation) (Under Subsections 40 (11) and 56 (7) of Ontario Regulation 48/01 and under Clauses 8 (1) (e) and (h) or Clauses 157 (1) (c) and (e) of the Act) (formerly Form 17 and referred to in this blog as “Form 17”).

Form 2 is required for standard condominium declarations and leasehold condominium declarations.  Form 2 is also required in all amendments to a declaration adding phases to a standard phased condominium.  Form 17 is required in the declaration of a common elements condominium or vacant land condominium.

There is also a Schedule G Statement of a municipality which is required for amendments to the declaration of a phased standard condominium.  This municipality Schedule G does not have a prescribed form.  Despite the fact the Act does not exempt the amendment for a final phase from including this municipality Schedule G, it is not required for such final phase.

We will not be examining the Form 17 Schedule G (common elements and vacant land condominiums) in detail in this blog post.  We intend to address that Form in a future post.

These Schedule G forms are “prescribed” by the Regulations under the Act and cannot be changed without Ministry approval.  In our experience, Ministry approval is not granted readily.  However, we have had success in obtaining approval for wording changes in cases where a situation was clearly not anticipated when the Regulations were drafted.

Some Registry/Land Titles Office examiners have rejected the Form 2 submitted with a declaration or amendment for technical review if the alternate choice in Paragraphs 4, 5, 8 or 10 has been deleted and not left in the Form without the box ticked off.  Other examiners accept the form with the alternate choices deleted.  This gives rise to a whole other discussion of the complete lack of uniform interpretation of legislation by the Land Registry offices.  Each office appears to operate in isolation of the others and one never knows if what is acceptable to Registry Office A will be accepted by Registry Office B.

There are a number of situations where completion of the Form 2 Schedule G is not straight forward:

1. Paragraph 1 of Form 2 says the exterior building envelope is weather resistant if required by the construction documents and has been completed in general conformity with the construction documents.

How does one certify in special situations such as:

  • on a conversion when there are no original construction documents available;
  • if the building was built using draftsman’s drawings without any inspection by an architect.  To what extent will an architect or engineer  need to open walls and make other intrusive investigations, etc. to verify conformity with construction documents?

2. Paragraph 2 of Form 2 says that except as otherwise specified in the Regulations, floor assemblies are constructed to the sub-floor.

  • What happens in the case of a non-residential condominium where floors are not required to be in place until after registration of the condominium?  In our view the architect or engineer can still sign Schedule G in such circumstances even though there is no floor in place as the Regulations to the Act provide the lowermost floor does not have to be in place with respect to non-residential condominiums.

 3. Paragraph 6 of Form 2 says all installations with respect to the provision of water and sewage services are in place.

  • Does this mean, in the case of sewage services, installed just to the unit boundary?  Or does it mean hooked up so that toilets can flush?
  • In the case of water services, does this mean only laterals from the street to and including the municipal water meter for the unit?  Or does it mean hooked up so the taps will work?

 In our view the services need to be at least installed to the unit boundary or meter, as the case may be.  The Regulations to the Act do not require units to be finished to the point where all the internal plumbing is completed.

 4. Paragraph 8 of Form 2 says all installations with respect to the provision of air conditioning are in place or, alternately, there are no installations with respect to the provision of air conditioning.

If there is an obligation to have air conditioning for each unit or if the project specifications indicate air conditioning is a “standard feature”, there is little doubt the architect or engineer must confirm each unit is served by an operational air conditioning unit.

 However, it is not unusual for air conditioning to be an optional extra.  Therefore, at the time of condominium registration it is quite possible some of the units may not have air conditioning, either because the buyers of those units did not choose the air conditioning option or because the units are not sold.

 In our view, the architect or engineer needs a clear, unequivocal written statement from the builder as to which of the units are required to have air conditioning, either because air conditioning is a standard feature, is required by the municipality (in case of noisy sites) or because the air conditioning “option” has been chosen.  The architect or engineer then needs to inspect each of the units that is to have air conditioning and ensure the air conditioning equipment is in place and operational.

 5. Paragraph 9 of Form 2 says all installations with respect to the provision of electricity are in place.

  • Does this mean only lateral lines to and including the electric meters, or do the unit service panels also have to be installed or is live electricity at the wall sockets required?

We think the lateral lines need to be to the electrical panels of the units and those panels have to be in place.  However, we do not think the lines have to run beyond that.

 6. Paragraph 11 of Form 2 says except as otherwise specified in the Regulations, the boundaries of the units are completed to the drywall (not including taping and sanding), plaster or other final covering, and perimeter doors are in place.

  • What does this mean where unit boundaries are not in whole or in part dry walled or have other final coverings?  Many unit boundaries have nothing to do with walls or other features that might be dry walled.  In addition, some condominium units’ walls are not dry walled but are covered with plaster or brick or other substance.  Based on our discussions with the Ministry it’s clear the drafter of this paragraph simply screwed up and made a bunch of erroneous assumptions  (welcome to the Condominium Act).  This paragraph can be interpreted to say that whatever features are monumenting unit boundaries must be in place.  This has been confirmed during discussions with Ministry staff.

There is nothing on Schedule G that indicates what property the Schedule is intended to cover.  This is a significant concern.  How does the signatory know which property the Schedule he or she signs is going to be used for?  It would be very possible (although completely inappropriate) for a builder to keep extra copies of signed Schedule G from Project A and use them for Project B.

We suggest the signatory add a short description of the property in the vicinity of her or his signature.  We have not had any issues in being able to register declarations with Schedule G’s that have been altered to add a description of the property to which it is intended to apply.  This description can either be a short legal description, an address or a combination thereof.

Watch for our upcoming blogs addressing additional issues and points about Forms 2, 17 and other Schedule G issues matters on our website www.rcllp.ca.