Second

Session, 46th General Assembly

Elizabeth II, 2009

BILL 48

AN ACT RESPECTING

CONDOMINIUMS

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would

enact the Condominium Act, 2009 and repeal

the Condominium Act .

The Bill

would set out the following requirements when selling a condominium unit:

a disclosure statement provided

by the declarant or an estoppel certificate provided by the vendor, which

provides relevant information to the purchaser with respect to the unit being

sold; and

a 10 day cooling-off period

following the signing of the agreement of purchase and sale to allow the

purchaser to review in detail all documentation provided in the disclosure

statement or the estoppel certificate.

Condominium

corporations would be required to have reserve funds, and for all new

condominium corporations and condominium corporations with 10 units or more,

the corporations would be required to complete a reserve fund study.

The Bill

would address the following to improve the operation of condominium

corporations:

the duties of the board of

directors;

dispute resolution between,

among others, unit owners and the condominium corporation; and

the designation of an

individual who is not a unit owner to act on the unit owner's behalf in matters

relating to the functioning of a condominium corporation.

The Bill would

recognize and regulate the following special types of condominiums:

common elements condominium

corporations; or

phased-development condominium

corporations; and

vacant land condominium

corporations.

A BILL

AN ACT

RESPECTING CONDOMINIUMS

Analysis

Short title

Interpretation

PART

ADMINISTRATION

Registrar of condominiums

Deputy registrar of condominiums

Protection of the registrar

Duties of the registrar

Condominium registry

PART

REGISTRATION OF DECLARATION AND DESCRIPTION

Requirements for registration

Contents of the declaration

Amendment of declaration

Contents of description

Amendment of description

Notification of encumbrancers

Agreement on prior encumbrances

Effect of registration of an encumbrance

agreement

PART

III

OWNERSHIP

Ownership of property

PART

CORPORATION

Condominium corporation

Objects and powers

Duties and powers of the corporation

Quorum

Voting

Declarant no longer owning majority of

units

Duties of the corporation to maintain

records

Sharing in assets of corporation

Corporation may bring action

Judgment against corporation

Board of directors

Qualifications of directors

Designate

Removal of director

Effect of defect in election or

appointment

Duties of directors

Indemnification of directors and

officers

Duty to disclose

By-laws

Rules for use of common elements

Annual financial statements

Duties of the owners respecting an audit

Duties and powers of auditors

PART

SALE OF UNITS

Agreements of purchase and sale

Disclosure statement

Estoppel certificate

Cancellation of agreement of purchase

and sale

Budget statement

Accountability for budget statement

PART

OPERATION

Taxation

Easements

Common expenses fund

Reserve fund and reserve fund study

Contingency fund

Lien

Changes in common elements and assets

Considered covenant

Repair after damage

Maintenance

Insurance

Capacity to maintain insurance

Deductible

Where property destroyed

Expropriation of property

Sale of property

Substantial damage

Withdrawal from this Act

Resolution of disputes

PART

VII

AMALGAMATION

Amalgamation

Registration of amalgamation documents

Effect of registration

PART

VIII

COMMON ELEMENTS CONDOMINIUM CORPORATION

Common elements condominium corporation

Owners' land

Contents of declaration

Contents of description

Disclosure statement

Repair after damage and insurance

PART

PHASED-DEVELOPMENT CONDOMINIUM CORPORATION

Phased-development condominium

Disclosure statement

Contents of the declaration

Amendments to declaration and

description

Disclosure of documents

PART

VACANT LAND CONDOMINIUM CORPORATION

Vacant land condominium corporation

Contents of declaration

Contents of description

Status of buildings in corporation

By-laws

Disclosure statement

Repair and maintenance

Substantial damage

Limitation

PART

GENERAL

Regulations

Fees and forms

PART

XII

OFFENCE

Offence

PART

XIII

TRANSITIONAL, REPEAL, COMMENCEMENT

Transitional

RSNL1990 cC-29 Rep.

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Condominium Act,

Interpretation

2. In

this Act

(a) "board" means the board of directors

of a corporation;

(b) "buildings" means buildings and

structures included in a property;

(c) "by-laws" means the by-laws of a

corporation;

(d) "claim" includes a right, title,

interest, encumbrance or demand affecting land but does not include the

interest of an owner in the owner's unit or common interest;

(e) "common elements" means the whole

property with the exception of the units;

(f) "common elements condominium corporation"

means a common elements condominium corporation to which

Part VIII applies;

(g) "common expenses" means the expenses

related to the performance of the objects and duties of a corporation and all

expenses specified as common expenses in this Act or in a declaration;

(h) "common interest" means the interest

in the common elements appurtenant to,

(

i) a unit, in the case of all corporations except

a common elements condominium corporation, or

(ii) an owner's parcel of land to which the common

interest is attached and which is described in the declaration, in the case of

a common elements condominium corporation;

(i) "corporation" means a corporation

created or continued under this Act;

(j) "court" means the Trial Division of the

Supreme Court of Newfoundland and Labrador ;

(k) "declarant" means a person who owns

the freehold estate in the land described in the description and who submits

for registration under this Act a declaration and description that are

registered under this Act, and includes a successor or assignee of that person,

but does not include a purchaser in good faith of a unit who pays fair market

value or a successor or assignee of the purchaser;

(l) "declaration" means a declaration

specified in

section 9 , and includes amendments

to the declaration;

(m) "deputy registrar" means the Deputy

Registrar of Condominiums referred to in

section 4 ;

(n) "description" means a description as

specified in

section 11 and includes all

amendments to the description that comply with

section 12 ;

(o) "disclosure statement" means a

disclosure statement as specified in

section 41 ;

(p) "encumbrance" means a claim that

secures the payment of money or the performance of another obligation, and includes

a mortgage and a lien;

(q) "estoppel certificate" means an

estoppel certificate as specified in

section 42 ;

(r) "law society" means the Law Society

of Newfoundland and Labrador referred to in the Law

Society Act, 1999 ;

(s) "minister" means the minister appointed

under the Executive Council Act to

administer this Act;

(t) "owner" means in relation to

(

i) a corporation other than a common elements

condominium corporation, a person who owns a freehold interest in a unit and

its appurtenant common interest and who is shown as the owner in the Registry

of Deeds and includes a mortgagee in possession and a declarant with respect to

a unit that the declarant has not transferred to another person, or

(ii) a common elements condominium corporation, a

person, including the declarant, who owns a common interest in the common

elements and a freehold interest in the parcel of land to which the common

interest is attached as described in the declaration and who is shown as the

owner in the Registry of Deeds;

(u) "phased-development condominium

corporation" means a phased-development condominium corporation to which

Part IX applies;

(v) "property" means the land, including

the buildings on it, and interests appurtenant to the land, as the land and interests

are described in the description and includes all land and interests

appurtenant to land that are added to the common elements;

(w) "registrar" means the Registrar of Condominiums

referred to in

section 3 ;

(x) "registry" means the Registry of Condominiums

referred to in

section 7 ;

(y) "reserve fund" means a fund

established under

section 49 ;

(z) "reserve fund study" means a periodic

study to determine whether the amount of money in the reserve fund and the

amount of contributions collected by the corporation are adequate to provide

for the projected costs of major repair and replacement of the common elements

and assets of the corporation;

(aa) "surveyor" means a person registered

as a surveyor under the Land Surveyors

Act, 1991 ;

(bb) "unit" means a part of the property

designated as a unit by the description and includes the space enclosed by its

boundaries and all of the land, structures and fixtures within this space in

accordance with the declaration and description; and

(cc) "vacant land condominium corporation"

means a vacant land condominium corporation to which

Part X applies.

(2) In this Act, the ownership of land includes

the ownership of space.

PART I

ADMINISTRATION

Registrar of condominiums

(1) The

Registrar of Deeds, appointed under the authority of the Registration of Deeds Act, shall be the Registrar of Condominiums

and shall perform the duties and functions and exercise the powers that are imposed

or conferred under this Act or prescribed by the regulations.

(2) The registrar may assign those officers and

employees appointed or employed under the Registration

of Deeds Act to perform the duties or exercise the powers imposed on the

registrar under this Act.

Deputy registrar

of condominiums

4. The

Deputy Registrar of Deeds shall be the Deputy Registrar of Condominiums and

shall

(

a) when the registrar is absent or unable to act,

(

b) when the registrar considers it necessary to

delegate his or her authority, or

(

c) when the office of the registrar is vacant

perform the functions of and have all the

powers and authority of the registrar.

Protection of the

registrar

5. The

registrar or the deputy registrar is not, nor is a person acting under his or

her authority, personally liable in an action or proceeding for or in respect

of

an act or a matter done or omitted to be done in good faith in the exercise

or purported exercise of the powers conferred upon the registrar or the deputy

registrar in the performance of duties under this Act or a regulation made

under this Act, or for the costs in connection with an action or proceeding.

Duties of the

registrar

6. The

registrar shall examine all documents, plans and

other materials submitted to the registrar in accordance with this Act or the

regulations.

Condominium registry

7 .

(1) The

registrar shall maintain a Registry of Condominiums where all declarations, amended declarations, descriptions , amended descriptions, court orders, by-laws,

notices of liens and other documents presented for registration under this Act

shall be registered in the manner provided by this section.

(2) The registrar shall maintain in the registry a

record of the time when the documents referred to in subsection (1) are

presented for registration, the location of the property, the number of units,

the name of the corporation, the type of document, the date of the declaration

and description, an amendment to the declaration or description or withdrawal

of the declaration, and those other matters or things that may be prescribed by

the regulations.

(3) Upon the registration of a declaration and description

in the registry, the registrar shall

(

a) maintain in the registry the declaration and description

and all other documents related to the declaration and description that are registered

under this Act; and

(

b) issue in the name of the corporation a

certificate of registration signed by the registrar showing the date of

registration, the location of the property, the registration number and those

other matters that may be prescribed by the regulations.

PART II

REGISTRATION OF DECLARATION AND DESCRIPTION

Requirements for

registration

(1) A

property shall comprise only freehold land and interests appurtenant to that

land.

(2) A

declaration and description may be submitted for registration by or on behalf

of the declarant.

(3) Upon submitting the declaration and

description for registration, the declarant shall submit

(

a) a survey of the property;

(

b) a statutory declaration from a practicing

member of the law society which states

(

i) that the person whose name appears in and who executes

the declaration as owner is the owner of the freehold estate in the property,

(ii) that a person who holds an encumbrance over

the property has received the notification with a copy of the declaration and description

required by

section 13 , and

(iii) that all rates, real property taxes,

assessments, charges and taxes levied or imposed upon the owner and occupier of

the property, or in respect of the property have been paid;

(

c) a copy of the proposed by-laws of the

corporation;

(

d) a notice of the registered office of the

corporation and a notice of directors in accordance with subsection 17 (3); and

(

e) other information the registrar considers

necessary.

(4) Upon acceptance of a declaration and

description for registration, the land and the interests appurtenant to the

land described in the description are governed by this Act.

Contents of the

declaration

(1) A

declaration shall be executed by the declarant and shall contain

(

a) a statement of intention that the land and

interests appurtenant to the land described in the description be governed by

this Act;

(

b) the

consent of all persons having registered encumbrances against the land or

interests appurtenant to the land described in the description or proof that 30

days has elapsed since notification was given under

section 13 ;

(

c) the number of units;

(

d) a statement, expressed in percentages

allocated to the units, of the proportions of the common interests;

(

e) a statement, expressed in percentages

allocated to the units, of the proportions in which the owners are to

contribute to the common expenses;

(

f) provisions relating to limitations on use or

special restrictions or obligations to be imposed on the owner of a unit or

with respect to the unit or common elements;

(

g) a specification of common expenses;

(

h) a specification of the parts of the common

elements that are to be used by the owners of one or more designated units and

not by all the owners;

(

i) provisions respecting the occupation and use of the units and common

elements;

(

j) provisions restricting gifts, leases and sales of the units and common

interests;

(

k) an address for service of all documents served

or to be served on the corporation;

(

l) a specification of the voting majority

required to make substantial changes in the common elements and the assets of

the corporation;

(

m) a specification of an allocation of the

obligations to repair and to maintain the units and common elements;

(

n) a

specification of the percentage of the value of the building that constitutes substantial

damage to the building under

section 62 ;

(

o) a specification of the majority required to

authorize repairs under

section 62 ;

(

p) a

specification of the voting majority required to permit the corporation to

lease part of the common elements;

(

q) a

definition of a standard unit; and

(

r) those other matters or things that may be required

by the regulations.

(2) A declaration may contain a provision that

divides the units into 2 or more classes and, where the declaration divides the

units into 2 or more classes,

(

a) the declaration may contain more than one

provision under one or more of paragraphs (1)(

a) to (

r) and limit the application of each of the provisions to one or more

of the classes; and

(

b) the

corporation may make more than one set of by-laws and limit the application of

each set of by-laws to one or more of the classes.

Amendment of

declaration

(1) The

declaration may be amended with the consent of the owners of at least 80% of

the common elements.

(2) When a declaration is amended, the corporation

shall

(

a) provide

proof to the satisfaction of the registrar, that 80% of the owners of the

common elements consented to the amendment; and

(

b) submit

for registration a copy of the amendment in a form acceptable to the registrar.

(3) Notwithstanding subsection (1), the declarant

or the board may amend the declaration without the consent referred to in that

subsection in order to correct a grammatical, clerical, typographical or

printing error or an error in mathematics and shall file that amendment in the

registry.

(4) Where an amendment is made

under subsection (3) it is considered to have been accepted for registration at

the time of registration of the original documentation.

(5) The amendment referred to in subsection (3) is

not effective until it has been registered in the registry.

Contents of

description

(1) A

description shall contain the following:

(

a) a

written description and plan showing the perimeter of the horizontal surface of

the land and the perimeter of the buildings;

(

b) architectural

or structural plans of the buildings;

(

c) a

specification of the boundaries of each unit by reference to the buildings, or

if there are no buildings, by reference to the appropriate co-ordinate

monument;

(

d) diagrams

showing the shape and dimensions of each unit and the approximate location of

each unit in relation to the other units and the buildings;

(

e) a

certificate of a person who is authorized to practise architecture in the province

that all buildings have been constructed in accordance with the architectural

plans and, if there are structural plans, a certificate of a person who is authorized

to practise engineering, as defined in the Engineers

and Geoscientists Act, 2008 , that all buildings have been constructed in

accordance with the structural plans;

(

f) if no buildings are included in a property, a certificate of a

surveyor that the horizontal boundaries of the units have been monumented on

the ground in the required manner and that the diagrams of the units are

accurate and in accordance with the monuments so placed;

(

g) a

description of interests appurtenant to the land that are included in the

property; and

(

h) those other matters or things that may be

required by the regulations.

(2) Notwithstanding paragraph (1)(b), the

registrar may, upon proof satisfactory to the registrar, waive the requirement

for architectural or structural plans.

Amendment of

description

(1) The

description may be amended with the consent of the owners of at least 80% of

the common elements.

(2) When a description is amended, the corporation

shall

(

a) provide proof to the satisfaction of the

registrar that 80% of the owners of the common elements consented to the amendment;

and

(

b) submit for registration a copy of the

amendment in a form acceptable to the registrar.

(3) Notwithstanding

subsection (1), the declarant or the board may amend a description that is

registered without the consent referred to in that subsection in order to

correct a grammatical, clerical, typographical or printing error or an error in

mathematics and shall file that amendment in the registry.

(4) Where an amendment is made under subsection

(3) it is considered to have been accepted for registration at the time of registration

of the original documentation.

(5) An amendment is not effective until it has

been registered in the registry.

Notification of

encumbrancers

(1) Not

less than 30 days before the presentation for registration of the declaration

and description, the owner shall notify in writing the holder of an encumbrance

over the property of his or her intention to present the declaration and

description for registration and send to the holder at the time of notification

a copy of the declaration and description.

(2) Where a holder of an encumbrance to whom

notice is required to be given under subsection (1) objects to the registration

of the declaration and description by filing in the registry a written notice

of objection before registration is effected, the declaration and description

shall not be accepted for registration until the objection has been withdrawn.

(3) Upon presentation for registration of a

declaration and description, a certified copy of the notification required to

be given under subsection (1) shall be filed with the registrar.

(4) The registrar shall not register a declaration

and description until the expiry of 30 days from the date of the notification

required to be given under subsection (1) unless the holder of the encumbrance

provides written consent to an earlier registration.

Agreement on

prior encumbrances

(1) Before

the registration of a declaration and description under this Act, the owner of

the property and the holder of an encumbrance affecting the property may enter

into an agreement as to how the encumbrance is to be divided among the units

and common elements or is otherwise to be dealt with, and following the

registration of the declaration and description, the holder of the encumbrance

may register the agreement.

(2) An agreement shall not be registered under

subsection (1) unless it is presented for registration within 30 days after the

registration of the declaration and description.

(3) Upon the registration of an agreement under subsection

(1), the encumbrance against the property shall be released and the encumbrances

created by the agreement over the individual units and common elements or

otherwise shall take effect.

(4) An agreement registered under subsection

(1) may provide that an encumbrance created by the agreement shall be considered to

have been registered at a time not earlier than the time when the encumbrance

in respect of the property was registered, and, notwithstanding the Registration of Deeds Act, the

encumbrances created by the agreement shall be considered to have been

registered at the time specified in the agreement.

Effect of registration of an encumbrance agreement

(1) In

the absence of the registration of an agreement under

section 14 an encumbrance affecting the property before the

registration of the declaration and description shall, without the necessity of

registration of an instrument giving effect to it, be considered to attach

proportionately to each unit and the common elements pertaining to each unit in

the proportion that is specified, in the declaration by virtue of the requirement

of paragraph 9 (1)(d), as being the percentage

which all the common elements relate to the unit.

(2) The encumbrances considered to attach

proportionately to each unit under this

section shall release the encumbrance

existing over the property before the registration of the declaration and

description and, notwithstanding the

Registration of Deeds Act, the encumbrances shall be considered to have

been registered at the time when the encumbrance over the property was

registered.

PART III

OWNERSHIP

Ownership of

property

16 .

(1) Units

and common interests are real property for the purpose of this Act.

(2) Subject to this Act, the declaration and the

by-laws, each owner is entitled to exclusive ownership and use of the owner's

unit.

(3) The owners are tenants in common of the common

elements and own an undivided interest in the common elements appurtenant to

each owner's unit.

(4) The proportions of the common interests are

those expressed in the declaration.

(5) The ownership of a unit shall not be separated

from the ownership of the common interest and an instrument that purports to

separate the ownership of a unit from a common interest is void.

(6) Except as provided by this Act, the common

elements shall not be partitioned or divided.

PART IV

CORPORATION

Condominium

corporation

(1) The

registration of a declaration and description under this Act creates a

corporation without share capital the members of which are the owners of the

units.

(2) A corporation shall have a name which

(

a) shall end with the words "condominium corporation";

and

(

b) is approved by the registrar.

(3) The corporation shall, at the time of filing

the declaration and, where there is a change in the registered office or a

change in the directors, file at the registry a notice of the registered office

of the corporation and a notice of directors listing the directors of the

corporation.

Objects and

powers

(1) The

objects of the corporation are to manage the property and assets of the

corporation.

(2) The corporation shall have all corporate

powers and all corporate capacities necessary to enable it to do all acts and

things that are incidental or conducive to or consequential upon the attainment

of its objects.

(3) A corporation may, with the consent of the

owners of at least 66% of the common elements,

(

a) acquire

by purchase, gift, devise, bequest or another means, real or personal property

and sell, mortgage, convey or otherwise deal with the property;

(

b) borrow

money;

(

c) mortgage

or pledge its property or rights, including a future right to be paid money as

a result of a levy made under this Act, in order to secure repayment of money

borrowed by it or the payment or performance of obligations;

(

d) grant

easements affecting the common elements;

(

e) grant

leases of the common elements;

(

f) make capital expenditures;

(

g) consolidate

into one unit 2 or more adjacent units that are included in the property that

is managed by the corporation; and

(

h) levy

special assessments for extraordinary common element expenses.

(4) An easement or lease granted under paragraph

(3)(

d) or (

e) has the same effect as if it were granted by all the owners of

the common elements to which the grant of easement or lease relates.

(5) Where

units are consolidated under paragraph (3)(g)

(

a) the

proportions of the common interests with respect to the consolidated unit is

equal to the proportions of the common interest with respect to all the units

that were consolidated; and

(

b) the

proportion in which the owner of the consolidated unit is to contribute to the

common expenses is equal to the proportion in which all the owners of the units

that were consolidated were to contribute to the common expenses

and the consolidation takes effect when the amended declaration is filed

with and accepted by the registrar.

(6) Subject to the terms of the by-laws, the

affairs of the corporation shall be administered and managed by the board, with

power to appoint agents, solicitors and other persons to help it in the

administration and management of the property and the assets.

(7) The

Corporations Act, paragraph 19(

c) of the

Interpretation Act and, where consistent with the by-laws, paragraph 19(

b) of the

Interpretation Act, shall not

apply to a corporation created under this Act.

Duties and powers

of the corporation

(1) The

corporation has the duty to

(

a) control, manage and administer the common elements

and the assets of the corporation;

(

b) maintain, repair and where necessary renew the

common elements; and

(

c) take all reasonable steps to ensure that the

owners, the occupiers of units, the lessees of common elements and the agents

and employees of the corporation comply with this Act, the regulations, the

declaration, the bylaws and the rules.

(2) On giving reasonable notice, the corporation

or a person authorized by the corporation may enter a part of the common

elements including those of which an owner has exclusive use at any reasonable

time to perform the objects and duties of the corporation or to exercise the

powers of the corporation.

(3) Reasonable notice that is required to be given

under subsection (2) may be dispensed with if the situation is considered by

the corporation or a person authorized by the corporation, to be an emergency.

(4) Upon entering under subsection (2) or (3) a part

of the common elements including those of which the owner has exclusive use,

the corporation has the power to inspect and to carry out repairs or make the

replacements to or within the common elements that are, in the opinion of the

corporation, necessary to keep the property or common elements in a good state

of repair.

Quorum

(1) A

quorum for the transaction of business at a meeting of the members of the

corporation is the presence, either in person or by proxy, of the owners of at

least 30% of the common elements.

(2) Where a quorum is not present at the opening

of, or during, a meeting of members, the owners present shall adjourn the meeting

to a fixed time and place.

Voting

(1) All

voting by owners shall be on the basis of one vote per unit and voting may be

done by proxy.

(2) Where units are consolidated under paragraph 18 (3)(

g) the owners of the consolidated unit are only

entitled to one vote.

(2) Notwithstanding

an authorization, including a provision in an agreement, mortgage or charge

that is made on, before or after the commencement of this subsection, the

holder of a mortgage or charge on a unit may not exercise a right that another

person has, by reason of being the owner of a unit, to vote or consent, unless

the holder of the mortgage or charge is a mortgagee in possession.

(3) Nothing

in subsection (1) or (2) invalidates a vote that was cast or consent that was

given before the commencement of this subsection.

(4) Powers

of voting conferred by, or consent required to be given or document required to

be executed under this Act, the declaration or the by-laws by an owner may be

exercised, given or executed

(

a) in

the case of an owner who is under 19 years of age by that owner's guardian;

(

b) in the case of an owner who has named a

designate under

section 29 , by that designate;

(

c) in

another case, by the person who for the time being is authorized by law to control

the owner's property.

(5) Where

the court, upon application of the corporation or of an owner, is satisfied

that there is no person capable or willing or reasonably available to exercise

the power of voting, giving consent or executing a document, in respect of a

unit, the court

(

a) in

cases where unanimous vote or unanimous consent is required by this Act, the

declaration or the by-laws, shall; and

(

b) in

another case, may

authorize another

proper person to exercise the power of voting, to give the consent or to

execute the document, in respect of the unit.

Declarant no

longer owning majority of units

(1) Within

30 days of the declarant no longer owning a majority of the units in the

property, the declarant shall provide to the corporation without charge, and

for the purposes of paragraphs (e),(f),(

g) and (

j) where available,

(

a) the

seal of the corporation;

(

b) the

minute book for the corporation, containing the most current copies of the

declaration, by-laws, rules, regulations and amendments;

(

c) a

copy of agreements entered into by the corporation or the declarant or the

representatives of the declarant on behalf of the corporation, including a

management contract, deed, service agreement, lease or licence;

(

d) existing

warranties or guarantees for equipment, fixtures or chattels included in the

sale of either the units or common elements that is not protected by a warranty

or guarantee given directly to a unit purchaser;

(

e) as-built

architectural, structural, engineering, mechanical, electrical and plumbing

plans;

(

f) original specifications indicating all material changes;

(

g) plans

for underground site service, site grading, drainage and landscaping, together

with cable-television drawings;

(

h) copies of all policies of insurance and the

related certificates or memoranda of insurance and all insurance trust agreements;

(

i) all records that it has related to the units

or to employees of the corporation;

(

j) plans and information not mentioned in paragraphs (e), (

f) and (

g) but relevant to the future repair or maintenance of the property;

(

k) all financial records of the corporation and

of the declarant relating to the operation of the corporation from the date of

registration of the declaration and the description;

(

l) a copy of the reserve fund study; and

(

m) other

items that may be prescribed by regulation.

(2) When the declarant no longer owns a majority

of the units in the phase, the corporation may, upon providing 60 days notice,

terminate management agreements entered into by the declarant in relation to

the phase.

Duties of the

corporation to maintain records

23 .

(1) The

corporation shall keep adequate records, and a member of the corporation may,

upon giving reasonable notice, inspect the records at any reasonable time.

(2) In

this section, "records" includes

(

a) financial records;

(

b) minutes of meetings of the members of the

corporation and its board;

(

c) the declaration, by-laws and rules;

(

d) all items referred to in

section 22 ;

(

e) all agreements entered into by the corporation;

(

f) disclosures of conflicts of interest; and

(

g) all other records that are specified in the by-laws

of the corporation.

(3) The

corporation shall keep all financial records for at least 7 years from the end

of the last fiscal period to which they relate.

(4) The corporation shall, within a reasonable

time, provide, when requested, a copy of a record to a person upon the person paying

a reasonable fee to compensate the corporation for the labour and copying

charges.

Sharing in assets

of corporation

24. The

members of the corporation share the assets of the corporation in the same

proportions as the proportions of their common interests in accordance with

this Act, the declaration and the by-laws.

Corporation may

bring action

25. An

action with respect to, arising from, or relating to a common element shall be

brought by or against the corporation in its own name.

Judgment against

corporation

(1) A

judgment for the payment of money against the corporation is also a judgment

against each owner at the time the cause of action arose for a portion of the

judgment determined by the proportions specified in the declaration for sharing

the common expenses.

(2) An

owner may be discharged from that judgment by paying to the claimant a portion

of the judgment debt and costs determined by the proportions specified in the

declaration for sharing the common expenses, and upon that payment being made,

the holder of the judgment shall give to the owner a discharge in accordance

with the regulations.

Board of

directors

(1) The

affairs of the corporation shall be managed by a board of directors, consisting

of 3 persons or a greater number as the declaration or by-laws may provide,

elected by the members of the corporation.

(2) Notwithstanding

subsection (1), where the declarant has not ceased to own all the units, the

board of directors shall be chosen in the following manner:

(

a) the

declarant shall appoint that proportion of the total number of directors that

the number of units still owned by the declarant bears to the total number of

units in the property, but where the number so arrived at is not a whole

number, the declarant shall appoint that number of directors that is equal to

the lower of the nearest 2 whole numbers; and

(

b) the

members of the corporation, other than the declarant, shall elect the remaining

directors.

(3) Subsection

(2) does not apply where

(

a) at

a meeting of the members of the corporation at which a board of directors is

chosen, a resolution is passed by the affirmative vote of at least 66% of the

members present in person or by proxy, that the entire board be elected by the

members of the corporation; or

(

b) the

number arrived at by multiplying the total number of directors by the percentage

of the units that the declarant has not ceased to own is less than one half.

(4) The

term of the members of the board shall be 3 years or a lesser period as the

declaration or by-laws may provide, but the members of the board may continue

to act until their successors are elected, and members are eligible for re-election.

(5) Where

a vacancy in the membership of the board occurs, the

board may appoint a person to serve on the board until the next meeting of

members when a confirmation of that member or an election for a new member

shall take place.

(6) Notwithstanding subsection (5), where a

vacancy in the membership of the board occurs and, at the time the vacancy is

filled, subsection (2) applies, the vacancy shall be filled in a manner that

would result in the proportion of the members of the board who are appointed by

the declarant being the same as the proportion of members of the board who

would have been appointed by the declarant where a new board had been chosen in

accordance with subsection (2) at the time the vacancy was filled.

(7) A

quorum for the transaction of business is a majority of the members of the

board or a greater number as the declaration or by-laws may provide.

(8) The declaration or the by-laws may specify and

regulate the qualifications, nomination, election, compensation and removal of

members of the board, and the meetings, functions and officers of the board.

Qualifications of

directors

(1) A

person shall not be elected or hold office as a director where that person

(

a) has

not attained 19 years of age; or

(

b) is

not an owner.

(2) Where

the declarant is entitled to appoint a person as a director, paragraph (1)(

b) does not apply with respect to that appointment.

Designate

(1) A

unit owner may name a person as designate for that person to act on his or her behalf

in matters relating to the functioning of the condominium corporation.

(2) The designate shall be at least 19 years of

age at the time of appointment.

(3) Notwithstanding paragraph 28 (1)(b), the designate is eligible to be nominated

for election to the office of director.

(4) Where the unit owner ceases to own the unit,

the rights of the designate to act on behalf of that owner in matters relating

to the functioning of the corporation are terminated.

(5) Where a designate has been elected to the

office of director and the unit owner ceases to own the unit, the designate's

tenure as a director is terminated.

Removal of

director

(1) A

person may be removed from the office of director by a majority of the votes

cast in favour of the removal at a meeting of the members.

(2) Where

a vote is being taken under subsection (1), the declarant as a member has one

vote.

Effect of defect

in election or appointment

31. An

act of a person is not invalid by reason only of a defect in the election or

appointment of that person as a director or officer or the lack of a

qualification for that office.

Duties of

directors

(1) Every

director and officer of the corporation shall, in exercising the powers and

discharging the duties of office,

(

a) act

honestly and in good faith; and

(

b) exercise

the care, diligence and skill that a reasonably prudent person would exercise

in comparable circumstances.

(2) A

director is not liable when exercising the powers and discharging the duties of

office if the director relies in good faith upon

(

a) financial

statements of the corporation that the auditor, in a written report, an officer

of the corporation or a manager under an agreement for the management of the

property, represents to the director as presenting fairly the financial

position of the corporation in accordance with generally accepted accounting

principles; or

(

b) the

report or opinion of a person whose profession lends credibility to the report

or opinion.

Indemnification

of directors and officers

33. The

by-laws of the corporation may provide that every director and officer of the

corporation and that person's heirs, executors, administrators and other legal

personal representatives may be indemnified by the corporation from and against

(

a) liability

and all costs, charges and expenses that the director or officer sustains or

incurs in respect of an action, suit or proceeding that is proposed or

commenced against that person for or in respect of anything done or permitted

by that person in respect of the execution of the duties of office; and

(

b) all

other costs, charges and expenses that person sustains or incurs in respect of

the affairs of the corporation.

Duty to disclose

(1) A

director of the corporation who has, directly or indirectly, an interest in a

contract or transaction to which the corporation is a party or a proposed

contract or transaction to which the corporation may be a party, shall disclose

in writing to the corporation the nature and extent of the interest.

(2) A

disclosure of an interest in a contract or transaction or a proposed contract

or transaction is sufficient if it is a general notice disclosing that the

director

(

a) is

also a director or officer of a party to a contract or transaction or a

proposed contract or transaction with the corporation; or

(

b) has

a material interest in a party to a contract or transaction or a proposed

contract or transaction with the corporation.

(3) Subsection

(1) does not apply to a contract or transaction unless both it and the director's

interest are material.

(4) Notwithstanding

subsection (2), if the contract or transaction or proposed contract or

transaction to which subsection (1) applies involves the purchase or sale of

real or personal property by or to the corporation, the director shall disclose

(

a) the

cost of the property to the purchaser; and

(

b) if

acquired by the seller within 5 years before the date of the contract or

transaction or the proposed contract or transaction, the cost of the property

to the seller, to the extent to which the interest or information is within the

director's knowledge or control.

(5) The

disclosure required by this

section shall be made

(

a) at

the meeting of the directors at which the contract or transaction or the

proposed contract or transaction is first considered;

(

b) where

the director is not, at the date of the meeting, interested in the contract or

transaction or the proposed contract or transaction, at the next meeting of the

directors held after the director became interested;

(

c) where

the director becomes interested in the contract or transaction after it is

entered into, at the first meeting of the directors held after the director

becomes so interested; or

(

d) where

the contract or transaction or the proposed contract or transaction is one

that, in the ordinary course of the business of the corporation, would not

require approval by the directors or owners, at the first meeting of the

directors held after the director becomes aware of the contract or transaction

or the proposed contract or transaction.

(6) The

board shall enter the disclosure made by a director under this

section in the

minutes of the meeting of the board at which the disclosure was made.

(7) The

director shall not vote or be counted in the quorum on a vote with respect to a

contract or transaction or a proposed contract or transaction to which

subsection (1) applies unless the interest of the director in it

(

a) is

or would be limited solely to liability insurance against liability incurred as

a result of acting as a director or officer of the corporation or remuneration

as a director, officer or employee of the corporation; or

(

b) arises

or would arise solely because the director is a director, officer or employee

of the corporation, if the director has been appointed to the first board by

the declarant.

(8) A

director who complies with this

section and who is acting honestly and in good

faith at the time the contract or transaction is entered into is not

accountable to the corporation or the owners for profit or gain realized from

the contract or transaction by reason only of holding the office of director

and the contract or transaction is not voidable by reason only of the interest of

the director in it if

(

a) the

contract or transaction is confirmed or approved by at least 66% of the votes

cast at a meeting of the owners called for that purpose; and

(

b) the

nature and extent of the interest of the director in the contract or transaction

are declared and disclosed in reasonable detail in the notice calling the

meeting.

By-laws

(1) The

corporation may, on a resolution of not less than 66% of its members, make by-laws

not inconsistent with this Act, the regulations or the declaration

(

a) governing the use, maintenance, management and

administration of the property and assets of the corporation;

(

b) respecting the use of units for the purposes

of preventing unreasonable interference with the use and enjoyment of the

common elements and other units;

(

c) respecting the composition and appointment of

a board of directors, fixing the quorum, the terms of appointment and

establishing rules of procedure and other matters considered necessary for the

proper functioning of the board;

(

d) respecting the voting rights of the members of

the corporation;

(

e) specifying the functions and duties of the

corporation and the board of directors;

(

f) providing for the assessment, collection and

disbursement of contributions from owners of the units relating to the common

elements;

(

g) to establish what constitutes a standard unit

for each class of unit specified in the declaration for the purpose of determining

the responsibility for repairing improvements after damage and insuring them;

(

h) respecting the use of the contingency fund;

(

i) respecting mutual insurance coverage on the

property, units and common elements and the application of the proceeds of

insurance; and

(

j) covering other matters respecting the conduct

and affairs of the corporation.

(2) When the by-laws are made by the corporation,

they shall be registered with the registrar together with a certificate signed

by not less than 66% of the members of the corporation

(

a) stating that the resolution referred to in

subsection (1) has been made and that the persons signing the certificate

concur with the by-laws as filed; and

(

b) specifying members of the corporation.

(3) The by-laws

shall, upon receipt of the approval of members, be immediately forwarded to the

registrar and shall take effect immediately upon receipt of the approval by the

registrar unless the by-laws state a later date from which the by-laws are to

have effect.

(4) By-laws made under this

section may be amended

or revoked by the corporation on a resolution of not less than 66% of its

members and subsection (3) shall apply to the amendment or revocation of the by-laws

as it applies to the by-laws.

Rules for use of

common elements

(1) The

by-laws may provide for the making of rules by the corporation respecting the

use of the common elements for the purpose of preventing unreasonable

interference with the use and enjoyment of the units and common elements.

(2) The

rules shall be reasonable and consistent with this Act, the declaration and the

by-laws and shall be approved by 66% of the members of the corporation.

(3) The

rules shall be complied with and enforced in the same manner as the by-laws.

(4) The rules made under this

section may be

amended or revoked by the corporation on a resolution of not less that 66% of

its members.

Annual financial

statements

(1) The

corporation shall prepare annual financial statements showing its assets and

liabilities and its income and expenses and containing other information that may

be prescribed.

(2) The financial statements shall be in the

required form and shall, upon request, be made available to the registrar.

(3) In the case of a corporation that has as one

of its objects, the management of a property consisting of less than 10 units,

the corporation shall, 10 days or more before the annual meeting of owners,

send by prepaid mail or deliver to each owner at that owner's latest address as

shown on the records of the corporation, a copy of the financial statement.

Duties of the

owners respecting an audit

(1) This

section does not apply with respect to a corporation that has, as one of its

objects, the management of a property consisting of less than 10 units.

(2) At

each annual meeting held after this

section comes into force, the owners shall

(

a) set

the fiscal year of the corporation; and

(

b) appoint

an auditor of the corporation to hold office until the close of the next annual

meeting.

(3) Where

the owners do not set the fiscal year or appoint an auditor, the

board may do so.

(4) A

person shall not be appointed or act as auditor of a corporation who is a

director, officer, employee or manager of the corporation, has an interest in

contracts of the corporation, or is a partner, employer or employee of a

director, officer, employee or manager of the corporation.

(5) A

person shall not be appointed or hold office as auditor of a corporation unless

that person is licensed as a public accountant under the Public Accountancy Act .

(6) Where

an auditor is not appointed at an annual meeting, the auditor in office

continues in office until a successor is appointed.

(7) Notwithstanding

anything contained in this section, the owners may remove an auditor in

accordance with a contract of employment made between the corporation and the

auditor or a provision of law respecting the employment.

(8) The

remuneration of an auditor appointed by the owners shall be fixed by the

owners, or by the board if it is authorized to do so by the owners, and the

remuneration of an auditor appointed by the board shall be fixed by the board.

(9) Where

an auditor is not appointed, the court may, on the application of an owner,

appoint an auditor to hold office until the close of the next annual meeting

and may fix the remuneration to be paid by the corporation for the services of

that auditor.

(10) The

corporation shall give a person appointed as auditor notice in writing of the

appointment immediately after the appointment is made.

Duties and powers

of auditors

(1) The

auditor shall make those examinations that enable a report to the owners as required

by subsection (2).

(2) The

auditor shall make a report to the owners on the comparative financial

statements including a balance sheet, statement of retained earnings, income

statement, statement of changes in financial position and additional statements

or information that may be required, to be laid before the corporation at each

annual meeting during the term of office of the auditor, and shall state in the

report whether, in the opinion of that auditor, the financial statements

referred to present fairly the financial position of the corporation and the

results of its operations for the period under review in accordance with

generally accepted accounting principles applied on a basis consistent with

that of the preceding period, if there was a preceding period.

(3) Where

a report prepared under subsection (2) does not contain the unqualified opinion

required, the auditor shall state in the report the reasons there is no

unqualified opinion provided.

(4) The

auditor of a corporation shall have access at all times to all records,

documents, accounts and vouchers of the corporation and may require from the

directors, officers and employees of the corporation the information and

explanations that, in the opinion of that auditor, are necessary to enable that

auditor to report under subsection (2).

(5) The

auditor of a corporation may attend a meeting of owners and receive all notices

and other communications related to a meeting that an owner is entitled to receive

and be heard at a meeting that the auditor attends with respect to business of

the meeting that concerns him or her as auditor.

(6) At

a meeting of the owners, the auditor, if present, shall answer inquiries

concerning the basis upon which that auditor formed the opinion given in the

report made under subsection (2).

(7) The

financial statement shall be approved by the board and the approval shall be

evidenced by the signature at the foot of the balance sheet by 2 of the

directors authorized to sign, and the auditor's report shall be attached to or

accompany the financial statement.

(8) The

corporation shall, 10 days or more before the annual meeting of owners, send by

prepaid mail or deliver to each owner at that owner's latest address as shown on

the records of the corporation a copy of the financial statement and a copy of

the auditor's report.

(9) The

board shall provide at each annual meeting of owners

(

a) a

financial statement made in accordance with generally accepted accounting

principles;

(

b) the

report of the auditor to the owners; and

(

c) further

information respecting the financial position of the corporation that the by-laws

of the corporation require.

PART V

SALE OF UNITS

Agreements of

purchase and sale

(1) Where

a declarant enters into an agreement of purchase and sale with a purchaser, the

declarant shall, where possible, attach a disclosure statement to that

agreement of purchase and sale.

(2) Where an existing unit owner enters into an

agreement of purchase and sale with a purchaser, the existing unit owner shall,

where possible, attach an estoppel certificate that is dated within 60 days of

the agreement of purchase and sale.

(3) Where the disclosure statement or estoppel

certificate is not available at the time of entering into the agreement of

purchase and sale, the declarant or unit owner shall provide it to the

purchaser as soon as it is available and, at the latest, it shall be provided to the purchaser within 5 days of its receipt

by the declarant or the unit owner.

Disclosure statement

(1) A

disclosure statement shall specify the date on which it was made and shall

contain

(

a) a statement of the name and municipal address

of the declarant and the municipal address of the property;

(

b) a general description of the property

including the types and the number of buildings, units and recreational and

other amenities, together with all conditions that apply to the provision of

amenities;

(

c) a statement whether a building on the property

or a unit has been converted from a previous use;

(

d) a statement whether one or more units may be

used for commercial or other purposes not ancillary to residential purposes;

(

e) a statement of the portion or number of units

that the declarant intends to lease;

(

f) a

schedule of the proposed commencement and

completion dates for amenities, if the construction is not completed;

(

g) a copy of the existing or proposed

declaration, by-laws or rules;

(

h) a statement as to whether the by-laws of the

corporation have been registered;

(

i) a statement as to whether the common property

of the condominium corporation has been mortgaged or transferred;

(

j) a statement of all outstanding judgments

against the corporation and the status of legal actions to which the

corporation is a party;

(

k) a statement of whether, to the knowledge of

the declarant, the corporation intends to amalgamate with another corporation

or whether the declarant intends to cause the corporation to amalgamate with

another corporation within 60 days of the date of registration of the

declaration and description for the corporation;

(

l) if an amalgamation is intended under paragraph

(k), a copy of the proposed declaration, description, by-laws and rules for the

amalgamated corporation, if available;

(

m) a copy of the budget statement described in

section

44 ;

(

n) a copy of the budget of the corporation for

the current fiscal year if more than one year has passed since the conveyance

of the first unit;

(

o) a copy of the reserve fund study; and

(

p) all other information that may be required by

the regulations.

(2) The corporation may charge a reasonable fee

for providing the disclosure statement.

(3) Where a disclosure statement that a corporation

has given under subsection (1) omits material information that it is required

to contain, it shall be considered to include a statement that there is no information.

(4) The disclosure statement binds the corporation,

as of the date it is given or is considered to be given under subsection (3),

with respect to the information that it contains or is considered to contain

under subsection (3) against a purchaser or mortgagee of a unit who relies on

the certificate.

Estoppel

certificate

(1) On

the request of an owner of a unit the corporation shall issue an estoppel

certificate with respect to a unit in the corporation that specifies the date

on which it was made and that contains the following:

(

a) a statement of the common expenses for the

unit and the default in the payment of the common expenses where there is a

default;

(

b) a statement of the increase in the common

expenses, where there is an increase, for the unit that the board has declared

since the date of the budget of the corporation for the current fiscal year and

the reason for the increase;

(

c) a statement of the assessments that the board

has levied, if there have been assessments, against the unit since the date of

the budget of the corporation for the current fiscal year, to increase the

contribution to the reserve fund and the reason for the assessments;

(

d) a statement of the address for service for the

corporation;

(

e) a statement of the names and addresses for

service of the directors and officers of the corporation;

(

f) a statement of the name and address of the corporation's

management company or manager;

(

g) a copy of the management agreements;

(

h) a copy of the current declaration, by-laws and

rules;

(

i) a copy of the certificate of registration of

the corporation from the registry;

(

j) a statement as to whether the by-laws of the

corporation have been registered;

(

k) a statement as to whether the common property

of the condominium corporation has been mortgaged or transferred;

(

j) a statement of all outstanding judgments

against the corporation and the status of legal actions to which the

corporation is a party;

(

k) a copy of the budget of the corporation for

the current fiscal year, the last annual financial statement and the auditor's

report on the statements;

(

l) a copy of the most recent reserve fund study

and updates to it;

(

m) a statement with respect to

(

i) the amount in the reserve fund no earlier than

at the end of a month within 90 days of the date of the estoppel certificate,

and

(ii) current plans to increase the reserve fund where

there are plans;

(

n) a statement of those additions, alterations or

improvements to the common elements, changes in the assets of the corporation

and changes in a service of the corporation that are substantial, where there

have been additions, alterations, improvements or changes, that the board has

proposed but has not implemented, together with a statement of the purpose of

them;

(

o) a certificate or memorandum of insurance for

each of the current insurance policies; and

(

p) all other information that may be required by

the regulations.

(2) The corporation may charge a reasonable fee

for providing the estoppel certificate.

(3) Where an estoppel certificate that a

corporation has given under subsection (1) omits material information that it

is required to contain, it shall be considered to include a statement that

there is no information.

(4) The estoppel certificate binds the

corporation, as of the date it is given or is considered to be given under

subsection (3), with respect to the information that it contains or is

considered to contain under subsection (3) against a purchaser or mortgagee of

a unit who relies on the certificate.

Cancellation of

agreement of purchase and sale

(1) A

purchaser may, in accordance with this

section rescind the agreement of purchase

and sale.

(2) To rescind an agreement of purchase and sale

under this

section a purchaser shall give a written notice of rescission to the

declarant or the declarant's solicitor where subsection 40 (1) applies, or to the existing unit owner or the

existing unit owner's solicitor where subsection 40

(2) applies, within 10 days of the later

of,

(

a) the date that the purchaser receives the

disclosure statement or estoppel certificate required under

section 40 ; and

(

b) the date that the agreement of purchase and

sale is executed by both parties.

(3) Where a notice of rescission is received from

the purchaser under subsection (2), the declarant, where subsection 40 (1) applies, or the existing unit owner, where subsection

40 (2) applies, shall promptly refund, without

penalty or charge, to the purchaser, all money received from the purchaser

under the agreement.

Budget statement

(1) The

declarant shall prepare a budget statement for the corporation for the 12 month

period beginning the first day of the month following the month in which the

first conveyance of a unit to a purchaser occurs.

(2) The budget statement shall contain

(

a) a statement of the common expenses of the

corporation;

(

b) a statement of the proposed amount of each

expense of the corporation, including the cost of the reserve fund study required

for the year and the cost of preparing audited financial statements;

(

c) a statement of the projected monthly common

expense contribution for each unit;

(

d) a statement of the projected monthly reserve

fund contribution for each unit;

(

e) a statement of the amount of all current or

expected fees, charges, rents or other revenue to be paid to or by the corporation

or by the owners for the use of the common elements or other facilities related

to the property;

(

f) a statement of the projected amount of the

reserve fund at the end of the current fiscal year; and

(

g) all other information that may be required by

the regulations.

(3) During the 12 month period referred to in subsection

(1), the owners shall pay to the corporation, each month, their estimated

monthly share of the common expenses and their contribution to the reserve fund

that are set out in the budget statement.

(4) The declarant shall pay the monthly share of

the common expenses and contributions to the reserve fund for unsold units.

Accountability

for budget statement

(1) The declarant is

accountable to the corporation as set out in this

section for the budget

statement prepared in accordance with

section 44

that covers the one-year period immediately following the conveyance of the

first unit.

(2) Immediately following the conveyance of the

first unit, the solicitor for the declarant shall hold in trust from the

proceeds of the sale of the first unit, or subsequent units if the required

amount cannot be achieved from the sale of the first unit, an amount equal to

at least 10% of the budget statement referred to in

section 44 .

(3) The declarant shall pay to the corporation the

amount by which the total actual amount of common expenses incurred for the

period covered by the budget statement exceeds the total budgeted amount.

(4) The declarant shall pay to the corporation the

amount by which the total actual amount of fees, charges, rents and other

revenue paid or to be paid to the corporation, during the period covered by the

budget statement, for the use of part of the common elements or assets or of other

facilities related to the property, is less than the total budgeted amount.

(5) Where the total actual amount of revenue

described in subsection (4) exceeds the total budgeted amount, the declarant

may deduct the excess from the amount payable under subsection (3).

(6) After receiving the financial statements for

the period covered by the budget statement, the board shall compare the actual

amount of common expenses and revenue described in subsections (3) and (4) for

the period covered by the budget statement with the budgeted amounts and shall,

within 30 days of receiving the financial statements, give written notice to

the declarant's solicitor of the amount that the declarant is required to pay

to the corporation under this section.

(7) Where a notice is not given to the solicitor for

the declarant within 30 days of the board's receipt of the financial statement

the solicitor may release the funds held in trust under subsection (2) to the

declarant.

PART VI

OPERATION

Taxation

(1) All

rates, real property taxes, assessments, charges and taxes which may be levied

or imposed by a body or authority under

an Act upon the owner or occupier of,

or in respect of property which has been subdivided into separate units with

common elements under this Act, shall, from the date of registration of a

declaration under this Act and during the time the property is subject to this

Act, be levied and imposed upon the owner or occupier of or in respect of a

unit in the property.

(2) An assessment or levy which is based upon the

value of real property shall be assessed and levied on the basis of the value

of a unit together with the value of the percentage which the common elements

relate to that unit.

Easements

(1) Upon

the registration of a declaration and description there shall be implied by way

of covenant in respect of each unit in favour of and against the owner of the

unit

(

a) an easement of shelter and support by or of

the common elements and by or of every unit capable of enjoying or providing

shelter and support;

(

b) an easement for the provision and passage of

wires, cables, pipes or ducts relating to water, drainage, sewage, electricity,

heating, lighting and other services including telephone, radio and television

services; and

(

c) a right in favour of the owner of the benefit

or advantage of the easement referred to in paragraphs (

a) and (

b) to enter and

to permit a person acting for and on his or her behalf to enter upon the property

upon which the easements referred to in paragraphs (

a) and (

b) are located, for

the purposes of repairing, replacing, renewing or restoring a part of the property

or services affecting or interfering with the easements referred to in paragraphs

(

a) and (b).

(2) An easement of restrictive covenant in the

declaration or by-laws shall not defeat or be construed to defeat the covenants

contained in subsection (1) or to affect the rights of a person or body

entitled by law to enter the property or a unit for the purpose of inspection,

maintenance, repair or renewal of a part of the property or services affecting

the property, the units or the common elements, and a provision in the

declaration or by-laws which purports to provide otherwise is void.

Common expenses

fund

48. The

corporation

(

a) shall establish an operating fund for the

payment of the common expenses and the owners shall contribute to that fund in

proportions specified in the declaration;

(

b) shall assess and collect the owner's

contributions towards the common expenses;

(

c) shall pay the common expenses; and

(

d) has the right to recover from an owner by an

action for debt

(

i) the unpaid amount of an assessment,

(ii) a sum of money expended by it for repairs to,

or work done by it or at its direction in complying with a notice or order by a

competent public or local authority in respect of that portion of the building

comprising the unit of that owner , and

(iii) the legal fees and costs incurred in the

collection of the debt.

Reserve fund and reserve fund study

49 .

(1) The

corporation shall establish and maintain a reserve fund for major repair and

replacement of the common elements and assets of the corporation including,

where applicable, roofs, exteriors of buildings, roads, sidewalks, sewers,

heating, electrical and plumbing systems, elevators, laundry, recreational and

parking facilities.

(2) Where

a corporation has, as one of its objects, the management of a property consisting

of less than 10 units, the corporation shall assess and collect the owners'

contributions to the reserve fund in an amount that would result in the amount

of the reserve fund becoming, and continuing to be, within 5 years after this

subsection comes into force or, where the corporation is created after the

commencement of this subsection, within 5 years after the corporation is

created, 100% of the annual operating budget of the corporation.

(3) Where

a corporation was created under the Condominium

Act in force immediately before the commencement of this Act and has as one

of its objects, the management of a property consisting of 10 or more units,

the corporation shall, upon the commencement of this Act, complete a reserve-fund

study respecting the corporation within 2 years of the coming into force of

this Act in accordance with subsection (4) and provide it to the registrar upon

request.

(4) A reserve-fund study respecting a corporation

that is required by this Act shall be completed in accordance with the regulations,

contain the information, opinions and recommendations and be prepared by the

person or a member of the class of persons as prescribed by the regulations.

(5) Where

this

section requires that a reserve fund study respecting a corporation be completed,

that corporation shall, within each 10-year period after the expiry of the time

limit for filing a reserve fund study, complete a reserve-fund study in

accordance with subsection (4) and provide it to the registrar upon request.

(6) Where

a reserve-fund study respecting a corporation is completed in accordance with

this

section and the amount of the reserve fund of the corporation is less than

the minimum amount that the reserve-fund study recommends that the fund ought

to be, the corporation shall assess and collect contributions from the owners

in an amount that shall result in the reserve-fund amount recommended by the

study being achieved within the period of time recommended in the study and

continuing to be at least the minimum amount recommended in the reserve-fund

study.

(7) The cost of conducting a reserve fund study shall

be a common expense that the board may charge to the common expense fund.

(8) All

contributions collected for a reserve fund shall be paid into the reserve fund

and used only for those purposes referred to in subsection (1) and the reserve

fund shall be deposited and maintained in a chartered bank or a credit union in

the province or invested in securities in which trustees are permitted by law

to invest trust funds.

(9) The declarant shall contribute to the reserve

fund in the amount set out in the declaration for all units he or she holds and

for all units that are not sold .

(10) A fund set up for a purpose mentioned in

subsection (1) is and is considered to be a reserve fund notwithstanding that

it may not be so designated and shall only be used for the purpose for which

the fund was established.

(11) The reserve fund constitutes an asset of the

corporation and shall not be distributed to an owner except upon withdrawal of

the property from the Act.

(12) The obligation of an owner to contribute

towards the common expenses, the reserve fund and a contingency fund shall not

be avoided by waiver of the right to use the common elements or by abandonment.

(13) Surplus

in the operating budget of a corporation at the end of the fiscal year of the

corporation shall be applied either against future common expenses or be paid

into the reserve fund, but shall not, other than on withdrawal of the property

from the Act, be distributed to the owners.

Contingency fund

50. The

corporation may establish a contingency fund to be used for the purpose

provided in the by-laws.

Lien

(1) Where

the owner of a unit fails to pay the share imposed on him or her by the

declaration or the by-laws in respect of the maintenance, repair and renewal of

a common element or a sum that he or she is required to pay under the

declaration or by-laws or is considered by this Act as a debt due by him or

her, the amount unpaid together with all interest owing and all reasonable

legal costs and reasonable costs incurred by the corporation in connection with

the collection or attempted collection of the unpaid amount, shall constitute a

lien on the interest of the owner, and the lien may be registered by the

corporation as an encumbrance over the unit of the owner by the registration in

the Registry of Deeds of an instrument in the required form and in the manner required

by the registrar.

(2) The lien referred to in subsection (1) shall

be payable in priority to all other liens, charges or mortgages in respect of

the unit and the common interest, other than a lien for taxes .

(3) The lien referred to in subsection (1) is not

a charge against the unit and the common interest of a unit registered under

the Registration of Deeds Act until a

certificate evidencing the lien has been recorded in the Registry of Deeds.

(4) Every mortgagee, judgment creditor or other

person having a lien, charge or encumbrance upon or against a unit and the common

interest subject to the lien mentioned in subsection (1) may, after the lien

arises, pay to the corporation the amount of the lien, together with all

interest and expenses and add the amount so paid to that person's mortgage,

judgment or other security, and shall have in that respect the same rights,

remedies and privileges against the unit and the common interest as the mortgagee,

judgment creditor or other person has by virtue of or under the security held

by the mortgagee, judgment creditor or other person and the mortgagee, judgment

creditor or other person may also sue for and recover in an action for debt the

amount so paid, together with interest, and

expenses incurred in the collection of the debt, against the person primarily

liable to pay the amount.

(5) The

lien may be enforced in the same manner as a mortgage and those provisions of

the Conveyancing Act respecting power

of sale shall apply with the necessary changes.

(6) Upon

payment of the unpaid amount, the corporation shall give the owner a discharge

in the required form.

Changes in common

elements and assets

(1) The

corporation, by a vote of members who own 80%, or a greater percentage that is

specified in the declaration, of the common elements, may make a substantial

addition, alteration or improvement to or renovation of the common elements or

may make a substantial change in the assets of the corporation.

(2) The

cost of an addition, alteration or improvement to or renovation of the common

elements and the cost of a substantial change in the assets of the corporation

are common expenses.

Considered covenant

53. Notwithstanding

an agreement, waiver, declaration or other statement to the contrary, every

agreement under which the occupant of a unit is in possession of the unit is considered

to include a covenant that the occupant agrees with the owner that the occupant

shall comply with this Act, the regulations, declaration, by-laws and rules.

Repair after

damage

(1) The

corporation shall repair the units and common elements after damage other than

substantial damage dealt with under

section 62 .

(2) The obligation to repair after damage includes

the obligation to repair and replace after damage but does not include the

obligation to repair after damage improvements made to a unit, or wilful damage

caused to a unit by the unit owner.

(3) For the purpose of this section, the question

of what constitutes an improvement to a unit shall be determined by reference

to a standard unit for the class of unit to which the unit belongs.

(4) Notwithstanding subsection (2), a standard

unit for the class of unit to which the unit belongs shall be the standard unit

described in the declaration or a by-law made under paragraph 35 (1)(g).

(5) Notwithstanding subsection (2), a corporation

that was created before the day this

section comes into force and that had the

obligation of repairing after damage improvements made to a unit before the registration

of the declaration and description shall continue to have the obligation unless

it has, by by-law, established what constitutes a standard unit for the class

of unit to which the unit belongs.

Maintenance

(1) The corporation shall maintain the common elements and each owner

shall maintain the owner's unit.

(2) The obligation to maintain includes the

obligation to repair after normal wear and tear but does not include the

obligation to repair after damage.

(3) A condition shall not be permitted to exist

and an activity shall not be carried on in a unit or the common elements that is

likely to damage the property.

Insurance

(1) The

corporation shall obtain and maintain insurance, on its own behalf and on

behalf of the owners, for damage to the units and common elements that is

caused by major perils or the other perils that the declaration or the by-laws

specify.

(2) In subsection (1), "major perils"

means the perils of fire, lightning, smoke, windstorm, hail, explosion, water escape,

strikes, riots or civil disturbance, impact by aircraft or vehicles, vandalism

or malicious acts.

(3) The

obligation to insure under subsection (1) does not include insurance for damage

to improvements made to a unit.

(4) For the purpose of this section, the question

of what constitutes an improvement to a unit shall be determined by reference

to a standard unit for the class of unit to which the unit belongs.

(5) A standard unit for the class of unit to which

the unit belongs shall be described in the declaration or a by-law made under paragraph

35 (1)(g), however, for a corporation created

under the Condominium Act in force

immediately before the commencement of this Act, where there is no by-law in

place the by-law shall be passed within 6 months of the commencement of this

Act.

(6) Subject to a reasonable deductible, the

insurance required under this

section shall cover the replacement cost of the

property damaged by the perils to which the insurance applies.

Capacity to maintain

insurance

(1) Nothing

in this Act shall be construed to restrict the capacity of a corporation, an

owner or another person to obtain and maintain insurance in respect of an

insurable interest.

(2) For the purposes of

section 56 the corporation shall be considered to have an

insurable interest in the units and common elements.

Deductible

(1) Where

an insurance policy obtained by the corporation in accordance with this Act

contains a deductible clause that limits the amount payable by the insurer, the

portion of a loss that is excluded from coverage shall be a common expense.

(2) Notwithstanding subsection (1), where an

owner, a lessee of an owner or a person residing in the owner's unit with the

permission or knowledge of the owner through

an act or omission causes damage

to the owner's unit, the amount that is the lesser of the cost of repairing the

damage and the deductible limit of the insurance policy obtained by the corporation

shall be added to the common expenses payable for the owner's unit.

(3) Notwithstanding subsection (1), the

corporation may pass a by-law to extend the circumstances in subsection

(2) under which an amount shall be added to the common expenses payable for an

owner's unit where the damage to the unit was not caused by

an act or omission

of the corporation or its directors, officers, agents or employees.

(4) The amount payable by an owner under this

section or as a result of a by-law passed under this

section constitutes an

insurable interest of the owner.

Where property

destroyed

(1) Where a property is destroyed and the

corporation decides under

section 62 it shall

not rebuild, each owner shall provide the board with a certificate of title

certified by a practicing member of the law society outlining the amount of all

encumbrances on his or her unit and shall attach payout statements for

encumbrances that shall be paid.

(2) The board shall provide, in trust for the

owner, to the member of the law society who has certified the title, a cheque

for the amount of the encumbrances that shall be made payable to the holders of

the encumbrances and a cheque for the remaining amount to be paid to the owner.

Expropriation of

property

60 .

(1) Upon

expropriation of the property or a part of the common elements under the Expropriations

Act , this Act ceases to govern the property or the part of the common

elements expropriated.

(2) Where part of the common elements is expropriated

under the Expropriations Act , the owners shall share the proceeds in the

same proportions as their common interests.

(3) Notwithstanding subsection (2), the portion of

the proceeds received on expropriation under the Expropriations Act that

is attributable to a portion of the common elements that is for the use of the

owners of certain designated units, and not all the owners, shall be divided

among the owners of the designated units in the proportions in which their interests

are affected.

Sale of property

(1) Sale of the

property or a part of the common elements may be authorized by the consent of

(a) 80%

of the owners of the common elements; and

(

b) the

persons having registered claims against the property or the part of the common

elements created after the acceptance for registration of the declaration and description.

(2) Where

the sale is authorized under subsection (1), a conveyance shall be executed by

all the owners and a release or discharge shall be given by all the persons

having registered claims against the property or the part of the common

elements created after the acceptance for registration of the declaration and

description, and shall be submitted for registration together with a statutory

declaration from a practicing member of the law society showing that the

persons signing are all the owners and persons having registered claims.

(3) A conveyance referred to in subsection

(2) shall be registered in the Registry of Deeds and a copy shall be filed in the

registry.

(4) Upon

the acceptance for registration of the instruments mentioned in subsection (2),

(

a) the

property or the part of the common elements sold are no longer governed by this

Act;

(

b) claims

against the land and interests appurtenant to the land created before the

acceptance for registration of the declaration and description are as effective

as if the declaration and description had not been accepted for registration;

and

(

c) claims

against the property or the part of the common elements created after the

acceptance for registration of the declaration and description are

extinguished.

(5) The

owners share the proceeds of the sale in the same proportions as their common

interests.

(6) Notwithstanding subsection (5), the portion of

the proceeds of the sale that is attributable to a portion of the common elements

that is for the use of the owners of certain designated units, and not all the

owners, shall be divided among the owners of the designated units in the proportions

in which their interests are affected.

(7) A

corporation that has made a sale under this

section and every owner in the

corporation shall be considered to have made an agreement that an owner who has

dissented on the vote authorizing the sale may, within 15 days of the vote,

submit to mediation or arbitration a dispute over the fair market value of the

property or the part of the common elements that has been sold, determined as

of the time of the sale.

(8) Where an owner submits a dispute to mediation

or arbitration, subsections 64 (2) and (5) apply

to the dispute.

(9) An owner who submits a dispute to mediation or

arbitration shall give the corporation notice of the submission within 24 hours

of submitting the matter to mediation or arbitration.

(10) A dissenting owner who refers a matter to

mediation or arbitration is entitled to receive from the proceeds of the sale

the amount the owner would have received if the sale price had been the fair market

value as agreed to in the mediation settlement or as determined by the arbitration

and shall not be entitled to a further amount.

(11) The corporation shall pay to each of the

owners who served a notice under subsection (9), the deficiency in the amount

to which the owner is entitled where the proceeds of the sale are inadequate to

pay the amount.

(12) The owners other than those who dissented on

the vote authorizing the sale are liable for the amount of the deficiency

payments determined by the proportions of their common interests.

(13) The corporation shall add the amount of the

liability of each of the owners who voted in favour of the sale to the common expenses

appurtenant to the units of those owners and may specify a time for payment by

each of those owners.

Substantial damage

(1) Where

damage to the buildings occurs, the board shall determine within 30 days of the

occurrence whether there has been substantial damage to the extent that the

cost of repair would be 25%, or the greater percentage as specified in the declaration,

of the value of the buildings immediately before the occurrence.

(2) Where

there has been a determination that there has been substantial damage as

provided in subsection (1) and owners who own 80% of the common elements, or

the greater percentage as specified in the declaration, vote for repair within

60 days of the determination, the corporation shall repair.

(3) Where

on a vote the owners do not vote for repair, the corporation shall, within 10

days of the vote, submit for registration a notice of withdrawal in the

required form and the registrar shall accept the notice for registration.

(4) Where

there has not been a vote within 60 days of the determination that there has

been substantial damage under subsection (1), the corporation shall, within 10

days after the expiry of the 60 day period, submit for registration a notice of

withdrawal in the required form and the registrar shall accept the notice for

registration.

(5) Upon

the acceptance for registration of a notice of withdrawal under subsection (3)

or (4),

section 59 applies.

(6) The obligation to repair after damage does not

include the obligation to repair improvements made to a standard unit as

defined in the declaration or the by-laws.

Withdrawal from this

Act

(1) Withdrawal

of the government of the property by this Act may be authorized by the consent

(

a) all the owners of the common elements; and

(

b) the persons having registered claims against

the property or the part of the common elements created after the acceptance

for registration of the declaration and description.

(2) Where the withdrawal of the property from this

Act is authorized under subsection (1), the corporation shall submit for

registration a notice of withdrawal in the required form, executed by all the

owners and all the persons having registered claims against the property

created after the acceptance for registration of the declaration and

description together with a statutory declaration from a practicing member of

the law society showing the persons signing the notice to be all the owners and

persons having registered claims and that all rates, real property taxes,

assessments, charges and other taxes levied or imposed upon the owner and

occupier of every unit or in respect of every unit have been paid.

(3) Upon acceptance for registration of a notice

of withdrawal under subsection (2), or subsection (3) or (4) of

section 62 ,

(

a) the

property is no longer governed by this Act;

(

b) the

owners are tenants in common of the land and interests appurtenant to the land

described in the description in the same proportions as their common interests;

(

c) claims

against the land and the interests appurtenant to the land described in the

description created before the acceptance for registration of the declaration

and description are as effective as if the declaration and description had not

been accepted for registration;

(

d) encumbrances

against each unit and common interest created after the acceptance for

registration of the declaration and description are claims against the interest

of the owner in the land and interests appurtenant to the land described in the

description and have the same priority as they had before the acceptance for

registration of the notice of withdrawal; and

(

e) all

claims against the property created after the acceptance for registration of

the declaration and description, other than the encumbrances mentioned in paragraph

(d), are extinguished.

Resolution of

disputes

(1) Where

a dispute arises between

(

a) an owner and the corporation;

(b) 2 or more owners;

(

c) the declarant and the corporation;

(

d) the declarant and the owner; or

(

e) the owner of a unit and the occupier of

another unit

and both parties consent, the dispute may

be submitted to a certified mediator selected by the parties.

(2) Each party shall pay the share of the mediator's

fees and expenses that,

(

a) the settlement specifies, where a settlement

is obtained; or

(

b) the mediator specifies where the mediation

fails.

(3) Where the parties referred to in subsection

(1) (

a) do not agree to refer the matter to mediation;

(

b) cannot agree on the appointment of a mediator;

(

c) referred the matter to mediation and the

mediation was unsuccessful

the dispute may either be referred to an

arbitrator under the Arbitration Act

or the parties may make application to the court.

(4) A dispute under this

section may only be

referred to an arbitrator with the consent of both parties.

(5) When a matter is referred to arbitration under

this

section each party shall pay the share of the arbitrator's fees and

expenses that the award specifies.

(6) Nothing in this

section restricts the legal remedies

otherwise available for failure to perform a duty imposed by this Act.

PART VII

AMALGAMATION

Amalgamation

65. In

sections 66 and 67 ,

(a) "amalgamated

corporation" means a corporation that is formed as a result of an

amalgamation under sections 66 and 67 ; and

(b) "amalgamating

corporation" means a corporation that is amalgamated with one or more

other corporations under sections 66 and 67 .

Registration of amalgamation documents

(1) Two or more corporations may

amalgamate by registering a declaration and description where

(

a) they

have complied with subsections (2) and (3) and all requirements prescribed by

the regulations; and

(

b) the

owners of at least 80% of the units of each corporation vote in favour of

approving the declaration and description.

(2) The

board of each amalgamating corporation shall call a meeting of the owners for

the purpose of approving the declaration and description of the amalgamated

corporation.

(3) The

board shall give the owners a notice of the meeting which shall include

(

a) a

copy of the proposed declaration and description of the amalgamated corporation

and a copy of the proposed budget for the first year of operations of the

amalgamated corporation;

(

b) a

copy of all proposed by-laws and rules of the amalgamated corporation;

(

c) a

status certificate for each amalgamating corporation in the required form;

(

d) the

report of the accountant or accounting firm of each of the amalgamating

corporations on the last annual financial statements of that corporation, where

it is not included in the status certificate;

(

e) reserve fund study; and

(

f) additional statements or information prescribed by the regulations.

(4) The declaration and description of an

amalgamated corporation shall not be registered unless there is attached a

statutory declaration of a director or an officer of each amalgamating

corporation that establishes to the satisfaction of the registrar that

(

a) there are reasonable grounds for believing

that

(

i) each amalgamating corporation is and the

amalgamated corporation shall be able to pay their liabilities as they become

due, and

(ii) the realizable value of the amalgamated

corporation's assets shall not be less than the aggregate of its liabilities

and stated capital of all classes; and

(

b) there are reasonable grounds for believing

that

(

i) a creditor shall not be prejudiced by the

amalgamation, or

(ii) adequate notice has been given to all known

creditors of the amalgamating corporations and a creditor does not object to

the amalgamation otherwise than on grounds that are frivolous or vexatious.

(5) For the purposes of subsection (4), adequate

notice is given where

(

a) a written notice is sent to each known

creditor having a claim against the corporation that exceeds $1,000;

(

b) a notice is published once in a newspaper

published or distributed in the place where the corporation has its registered

office; and

(

c) each notice states that the corporation

intends to amalgamate with one or more specified corporations in accordance

with this Act and that a creditor of the corporation may object to the

amalgamation within 30 days from the date of the notice.

(6) The

declaration of an amalgamated corporation shall not be registered unless it is

executed by the officers of each of the amalgamating corporations authorized to

sign on behalf of the amalgamating corporation.

(7) Section

63 does not apply to an amalgamation carried

out under this

section but does apply to an amalgamated corporation.

Effect of registration

(1) On registration of a declaration and

description for an amalgamated corporation,

(

a) the

amalgamating corporations are amalgamated and continue as one corporation;

(

b) the

units and common interests of the amalgamating corporations are continued as

units and common interests in the amalgamated corporation;

(

c) all

encumbrances that affected the common elements of the amalgamating corporations

are continued as encumbrances that affect the common elements of the

amalgamated corporation;

(

d) all

declarations, descriptions, by-laws and rules of the amalgamating corporations

cease to apply;

(

e) the

members of the amalgamating corporations are the first members of the

amalgamated corporation;

(

f) the directors of the amalgamating corporations are the first

directors of the amalgamated corporation;

(

g) all

the property and rights of the amalgamating corporations are the property and rights

of the amalgamated corporation and all the obligations and liabilities of the

amalgamating corporations are the obligations and liabilities of the amalgamated

corporation; and

(

h) the

amalgamated corporation replaces the amalgamating corporations as a party in an

action or proceeding to which the amalgamating corporation is a party.

(2) Where

the amalgamated corporation has, as one of its objects, the management of a

property consisting of 10 or more units, the directors shall, immediately

following the registration of the declaration and description for the

corporation, appoint one or more auditors to hold office until the close of the

meeting of owners held under subsection (4).

(3) An amalgamated corporation that has, as one of

its objects, the management of a property consisting of 10 or more units, shall

complete a reserve fund study within 2 years of the date of the amalgamation.

(4) The

first directors of an amalgamated corporation hold office until the members

elect their successors at a meeting which the first directors shall call and

hold within 60 days following the registration of the declaration and

description for the corporation.

(5) At

the meeting referred to in subsection (2) the owners shall appoint successors

to the auditors mentioned in subsection (2) and sections 38 and 39 apply to the successors.

PART VIII

COMMON ELEMENTS CONDOMINIUM CORPORATION

Common elements

condominium corporation

(1) A

declarant may register a declaration and description that create common elements

but do not divide the land into units.

(2) The

type of corporation created by the registration of a declaration and

description under subsection (1) shall be known as a common elements

condominium corporation.

(3) A declaration and description for a common

elements condominium corporation shall not be registered unless the

registration would create a condominium corporation that is not a vacant land

condominium corporation or a phased development condominium corporation.

(4) Subject to this Part, Parts I to VII and XI to XIII apply

with the necessary changes to a common elements condominium corporation, except

that,

(

a) references to a unit shall be considered to be

references to a common interest in the corporation;

(

b) references to a mortgagee of a unit shall be considered

to be references to a mortgagee of a common interest appurtenant to an owner's

parcel of land mentioned in

section 69 ; and

(

c) references to a common interest appurtenant to

a unit shall be considered to be references to a common interest appurtenant to

an owner's parcel of land mentioned in

section 69 .

(5) This Part does not apply to a corporation that

is not a common elements condominium corporation.

Owners' land

(1) A declaration for a common elements condominium corporation shall

not be registered unless each of the owners of a common interest in the

corporation,

(

a) also owns the freehold estate in a parcel of

land,

(

i) that is not included in the land described in

the description, and

(ii) which has been registered in the Registry of

Deeds; and

(

b) has signed a certificate in the required form stating

the owner consents to the registration of the declaration and the filing of the

notice described in subparagraph (2)(b)(i).

(2) Upon the registration of a declaration and

description for a common elements condominium corporation,

(

a) the common interest of an owner in the corporation

attaches to the owner's parcel of land; and

(

b) the declarant shall register against each

owner's parcel of land,

(

i) a notice in the form required by the minister,

and

(ii) a copy of the certificate described in paragraph

(1)(b).

(3) Where an owner's parcel of land is divided into

2 or more new parcels, the owners of the new parcels are joint owners of the

common interest attached to the original parcel.

(4) Notwithstanding another Act, upon the sale of

the parcel of land of an owner in a common elements condominium corporation or

the enforcement of an encumbrance registered against the parcel, the common

interest of the owner in the corporation is not terminated or severed from the

parcel, but continues to be attached to the parcel.

(5) Where an owner defaults in the obligation to

contribute to the common expenses of a common elements condominium corporation,

the corporation has a lien against the owner's parcel of land.

(6) The lien is a lien for the purposes of

section

51 .

(7) Notwithstanding subsection 51 (2), the lien does not have priority over an

encumbrance registered against an owner's parcel of land before the common

interest of the owner attached to it unless the encumbrancer otherwise agrees

in writing.

Contents of

declaration

70. In addition to the

requirements of subsection 9 (1), a declaration

for a common elements condominium corporation shall contain,

(

a) a statement that the common elements are

intended for the use and enjoyment of the owners;

(

b) a legal description of the parcels of land

mentioned in subsection 69 (1); and

(

c) all other material that the regulations

require.

Contents of

description

71. Paragraphs 11 (1)(c), (

d) and (

f) do not apply to a description

for a common elements condominium corporation.

Disclosure statement

72. In addition to the

requirements of

section 41 , a disclosure statement

for a common interest in a common elements condominium corporation shall

contain,

(

a) a statement that the common interest attaches

to the owner's parcel of land described in the declaration of the corporation

and cannot be severed from the parcel upon the sale of the parcel or the

enforcement of an encumbrance registered against the parcel; and

(

b) all other material that the regulations

require.

Repair after

damage and insurance

(1) Sections 54 and 55 do not

apply to a common elements condominium corporation.

(2) The corporation shall repair and replace the

common elements after damage and shall maintain them other than substantial

damage dealt with under

section 62 .

(3) References to a unit in

section 56 shall be considered not to apply to a common

elements condominium corporation.

PART IX

PHASED-DEVELOPMENT CONDOMINIUM CORPORATION

Phased-development

condominium

74 .

(1) A

building or land that is subject to a condominium plan or proposed condominium

plan, may in accordance with this Act and the regulations, be developed in

phases.

(2) In the process of carrying out the development

of a building or land in phases, additional units and additional common

elements may, in accordance with this Act and the regulations, be created.

(3) Upon the acceptance for registration of each

subsequent phase of a phased-development condominium, the subsequent phase is

consolidated into one lot with all phases of the phased-development condominium

previously accepted for registration.

Disclosure statement

75. In

addition to the requirements in

section 41 , a

disclosure statement for a unit in a phased development condominium corporation

shall contain,

(

a) a statement whether the declarant intends to

create one or more phases after the creation of the unit;

(

b) a statement that the declarant is not required

to create a phase after the creation of the unit;

(

c) a statement that sets out the projected year

of registration of the amendments to the declaration and description required

for creating each phase that the declarant intends to create after the creation

of the unit;

(

d) a statement that sets out, for each phase that

the declarant intends to create after the creation of the unit,

(

i) the approximate number of the units included

in the phase and a legal description of the land included in the phase,

(ii) the approximate location of the buildings and

structures to be contained in the phase and a description of the facilities and

services to be contained in the phase,

(iii) a statement of the proportions, expressed in

percentages, of the common interests and common expenses attributable to the

units after the creation of the phase,

(iv) a statement of the facilities and services

that the owners shall share after the creation of the phase, and

(

v) a statement that there are no representations

with respect to the quality of materials or appearance of buildings other than

those specifically set out as representations in the disclosure statement; and

(

e) all other information that is required by the

regulations.

Contents of the

declaration

76. In

addition to the requirements set out in

section 9 ,

a declaration for a phased-development property shall include

(

a) a

statement that the condominium corporation created is a phased-development

property;

(

b) a

description of each phase and the approximate number of units included in each

phase;

(

c) a

statement of the approximate location of the buildings and structures included

in each phase;

(

d) a

statement expressed in percentages of the proportions of the common interests

and common expenses attributable to the units after the creation of the phase

and after the addition of each subsequent phase;

(

e) a

list of the facilities and services that the owners shall share after the

creation of the phase;

(

f) a statement that the declarant is not required to create a phase

after the creation of the present phase;

(

g) a

statement that sets out the estimated registration dates of the amendments to

the declaration and description required for creating each phase that the

declarant intends to create after the creation of the present phase;

(

h) a

copy of the proposed or approved survey or design plans of the condominium

showing

(

i) the perimeter of the horizontal surface of the land and the perimeter

of the buildings, where applicable,

(ii) the shape of the units, the boundaries of the units, the location

of the units in relation to each other, and the location of the units in reference

to the buildings and level numbers, where applicable, and

(iii) the common elements, including those intended for the exclusive use

of the owners;

(

i) the by-laws and common element rules of the corporation; and

(

j) a conceptual design of the entire development identifying the location,

size, number and general style of the units or land in each phase.

Amendments to declaration and description

(1) The declarant shall file with the registrar an

amendment to both the declaration and description and, where the amendment is

different from the documents filed with the initial declaration, proof of the

approval of 80% of the unit owners to create a phase, in a form satisfactory to

the registrar.

(2) A unit owner may not unreasonably withhold the

approval required by subsection (1).

(3) The declarant shall give the corporation and

all owners of units at least 14 days' notice of the intention to register a

phase.

(4) Where

the amendment to create the proposed phase is different from the documents

filed with the initial declaration, the declarant shall provide the corporation

and all owners of units at least 60 days' notice of the intention to register

the phase, along with

(

a) copies

of the amendments to the declaration, description and the by-laws that shall be

filed to register the new phase; and

(

b) the

location and times at which the plans for the new phase may be viewed.

(5) Where

the statements required by paragraph 76 (

d) for any 2

phases are the same, the declarant may substitute one phase for the other in

the order in which they are created.

(6) Notwithstanding

subsection (4), where the requirements of subsection (1) have been fulfilled,

the amendment to the declaration may be filed with the registrar before the 60-day

notice period has elapsed.

(7) The

amendment to the description required to create a phase shall comply with

section

11 .

(8) In

addition to the requirements in subsection (4), the amendment to the

declaration required to create a phase shall include

(

a) the

consent of every person having a registered mortgage against, or interest

appurtenant to, the land included in the phase, as the land and the interests

are described in the amendment to the description required to create a phase;

(

b) a

statement of the proportions of common interests, expressed in percentages,

attributable to the units in the corporation after the creation of the phase;

(

c) a

statement of the proportions of common expenses, expressed in percentages,

which shall be allocated to the units in the corporation after the creation of

a phase; and

(

d) a

specification of all parts of the common elements included in the phase that

are to be used by the owners of one or more designated units and not by all the

owners.

Disclosure of documents

78. When the declarant ceases to own a majority of

the units in the phase, all documents relating to the phase shall be given to

the corporation and the phase shall be considered part of the corporation.

PART X

VACANT LAND CONDOMINIUM CORPORATION

Vacant land condominium

corporation

(1) A

declarant may register a declaration and description that create a corporation

in which, at the time of the registration,

(

a) one or more units are not part of a building

or structure and do not include a part of a building or structure; and

(

b) none of the units are located above or below

another unit.

(2) The type of corporation created by the

registration of a declaration and description under subsection (1) shall be

known as a vacant land condominium corporation.

(3) A declaration and description for a vacant

land condominium corporation shall not be registered unless the registration

would create a condominium corporation that is not a common elements condominium

corporation or, except as provided in the regulations made under this Act, a

phased-development condominium corporation.

(4) Parts I to VII and XI to XIII apply

with necessary modifications to a vacant land condominium corporation.

(5) This Part does not apply to a corporation that

is not a vacant land condominium corporation.

Contents of

declaration

80. Where a unit in a

vacant land condominium corporation is to include a building or structure

constructed after the registration of the declaration and description, the

declaration may contain restrictions with respect to,

(

a) the size, location, construction standards,

quality of materials and appearance of the building or structure;

(

b) architectural standards and construction design

standards of the building or structure;

(

c) the time of commencement and completion of

construction of the building or structure; and

(

d) the minimum maintenance requirements for the

building or structure.

Contents of description

(1) A

description of a vacant land condominium corporation shall contain,

(

a) a written description and plan showing the

perimeter of the horizontal surface of the land, the perimeter of the buildings

and structures on the common elements and the boundaries of each unit;

(

b) architectural and structural plans of the

buildings and structures included in the common elements;

(

c) a certificate of a person who is authorized to

practise architecture in the province that all buildings have been constructed

in accordance with the architectural plans and, if there are structural plans,

a certificate of a person who is authorized to practise engineering, as defined

in the Engineers and Geoscientists Act,

2008 , that all buildings have been constructed in accordance with the

structural plans;

(

d) a description of all interests appurtenant to

the land that are included in the property; and

(

e) all other material that the regulations

require.

(2) Notwithstanding subsection 79 (4),

section 11 does

not apply to vacant land condominium corporations.

(3) Notwithstanding paragraph (1)(b), the

registrar may, upon proof satisfactory to the registrar, waive the requirement

for architectural or structural plans.

Status of

buildings in corporation

(1) The

buildings and structures located on a unit or on the common elements of a

vacant land condominium corporation, whether or not the buildings and

structures had been constructed at the time of the registration of the

declaration and description, are real property and form part of the unit or

common elements respectively.

(2) The corporation is exempt from the obligation

to obtain and maintain the insurance described in

section 56 for buildings and structures located on a unit.

(3) The owner of a unit shall obtain and maintain

the insurance for damage to the unit that, but for subsection (2), the

corporation would have had to obtain with respect to the unit.

By-laws

83. In addition to the

power to make, amend or repeal by-laws under subsection 35 (1), the board of a vacant land condominium corporation

may make, amend or repeal by-laws, not contrary to the declaration, specifying

minimum maintenance requirements for a unit or a building or structure located

on a unit.

Disclosure statement

(1) In addition to the material required under

section

41 , a disclosure statement relating to the

purchase of a unit in a vacant land condominium corporation shall include all

other material that the regulations require.

(2) Where the declarant has not received a

statement in response to a request within 30 days of making it, the disclosure

statement shall contain a statement that the declarant has requested a statement

under subsection (1) but has not received a statement in response to the request.

Repair and maintenance

(1) S ections 54 and 55 do not

apply to a vacant land condominium corporation.

(2) For the purpose of this section, the

obligation to repair after damage includes the obligation to repair and replace

after damage or failure and the obligation to maintain includes the obligation

to repair after normal wear and tear but does not include the obligation to

repair after damage.

(3) A vacant land condominium corporation shall

maintain the common elements and repair them after damage.

(4) The owner of a unit in a vacant land

condominium corporation shall maintain his or her unit and repair it after damage.

(5) Where an owner of a unit in a vacant land condominium

corporation fails to maintain his or her unit within a reasonable time or to repair

it within a reasonable time after damage, the corporation may maintain or

repair the unit.

(6) An owner shall be considered to have consented

to the repairs or maintenance carried out by the corporation and the cost of

the work shall be added to the owner's contribution to the common expenses.

Substantial

damage

(1) Where the

board of a vacant land condominium corporation determines under

section 62 that substantial damage has occurred to a building

located on a unit and the owners do not vote for termination under that

section, the owner of the unit may elect,

(

a) not to repair the damage; or

(

b) to replace the building with a different building,

subject to this Act, the declaration and the by-laws.

(2) An owner of a unit who elects not to repair

the damage shall, as closely as is reasonably possible, restore the land on

which the building was located to the state that the land was in immediately before

the construction of the building.

(3) Where the owner of the unit does not do the

restoration within a reasonable time, the corporation may do it.

(4) The owner shall be considered to have

consented to the restoration done by the corporation and the cost of the

restoration shall be added to the owner's contribution to the common expenses.

Limitation

87. Notwithstanding

anything contained in this or another Act, a future encumbrance shall not be

created or be effective against the property during the period that it remains

subdivided into separate units with common elements under this Act.

PART XI

GENERAL

Regulations

88. The

Lieutenant-Governor in Council may make regulations

(

a) prescribing duties, functions and powers of

the registrar;

(

b) respecting those matters or things that the

registrar shall maintain in the registry;

(

c) respecting those matters that may be required

on the certificate of registration issued under

section 7 ;

(

d) prescribing contents of a declaration;

(

e) prescribing contents of a description;

(

f) prescribing items to be provided to the

corporation when the declarant no longer owns a majority of the units in the

property;

(

g) prescribing contents of a disclosure

statement;

(

h) prescribing contents of an estoppel certificate;

(

i) prescribing contents of a budget statement;

(

j) prescribing the qualifications for persons or

classes of persons who can prepare a reserve fund study;

(

k) prescribing the form and manner of and the

information, opinions and recommendations required in a reserve fund study;

(

l) prescribing requirements an amalgamating

corporation must comply with;

(

m) prescribing statements or information required

to be given by the board to owners in a notice of meeting under paragraph 66 (3)(f); and

(

n) generally, to give effect to the purpose of

this Act.

Fees and forms

89. The minister may set the

fees and approved forms for the purpose of this Act.

PART XII

OFFENCE

Offence

90. An

individual who

(

a) knowingly makes a false statement in a

certificate;

(

b) sells as a condominium, individual units in a

building that are not registered as a condominium under this Act; or

(

c) contravenes a provision of this Act or the

regulations;

commits an offence and is liable on

summary conviction to a fine of not more than $10,000 or to imprisonment for

not more than 6 months or to both.

PART XIII

TRANSITIONAL, REPEAL, COMMENCEMENT

Transitional

(1) Corporations

created under the Condominium Act are

continued as corporations under this Act.

(2) A corporation's lien that was created under

the Condominium Act for the default

of an owner in the obligation to contribute to the common expenses is continued

as a lien under

section 51 .

(3) Part V does not apply to an agreement of purchase

and sale signed before this Act comes into force.

(4) Section 56

does not apply if, at the time this Act comes into force, the corporation has

entered into an insurance policy and that policy has not expired.

(5) Notwithstanding subsection (4), if the

corporation renews an insurance policy described in

section 56 after that

section comes into force,

section 56 applies.

RSNL1990 cC-29

Rep.

93. The Condominium

Act is repealed.

Commencement

94. This Act comes into force on a date to be

proclaimed by the Lieutenant-Governor in Council.

Earl G. Tucker, Queen's Printer