jswizzle3737/ontario_laws_and_regs huggingface dataset:
Freehold land only
2. (1) A property shall comprise only freehold land and interests, if any, appurtenant to that land. Who may register (2) A declaration and description may be registered by or on behalf of the owner in fee simple of the land described in the description. Land must be in one division (3) Where the land and the interests appurtenant to the land described in the description are not entirely within one land titles or registry division or not entirely under the Land Titles Act or the Registry Act, the description shall not be registered. Effect of registration (4) Upon registration of a declaration and description, the land and the interests appurtenant to the land described in the description are governed by this Act. R.S.O. 1990, c. C.26, s. 2.
What description must contain
4. (1) A description shall contain, (a) a plan of survey showing the perimeter of the horizontal surface of the land and the perimeter of the buildings; (b) structural plans of the buildings; (c) a specification of the boundaries of each unit by reference to the buildings; (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 surveyor that the buildings have been constructed and that the diagrams of the units are substantially accurate and substantially in accordance with the structural plans; and (f) a description of any interests appurtenant to the land that are included in the property, prepared in accordance with the regulations. Approval of description (2) A description shall not be registered unless it has been approved in accordance with the regulations. R.S.O. 1990, c. C.26, s. 4. Registration
Index
5. (1) Every land registrar in whose office a declaration and description are registered shall keep an index in the prescribed form to be known in English as the Condominium Corporations Index and in French as Répertoire des associations condominiales. Combined offices (2) Where a land titles office is combined with a registry office, one index under subsection (1) shall be kept for all declarations and descriptions registered in the combined offices. Condominium Register (3) Every land registrar in whose office a declaration and description are registered shall keep a register in the prescribed form to be known in English as the Condominium Register and in French as Registre des condominiums. This Act to govern registrations, etc. (4) Declarations, descriptions, by-laws, notices of termination, and other instruments respecting land governed by this Act shall be registered and recorded in the Condominium Register in accordance with this Act and the regulations, but, except as otherwise provided by this Act and the regulations, the Land Titles Act or the Registry Act, as the case may be, applies in respect of property governed by this Act. R.S.O. 1990, c. C.26, s. 5. Units and Common Elements
Nature of units and common interests
6. (1) Units and common interests are real property for all purposes. Ownership of units (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. Dangerous activities (3) No condition shall be permitted to exist and no activity shall be carried on in any unit or the common elements that is likely to damage the property. Right to entry (4) The corporation or any person authorized by the corporation may enter any unit at any reasonable time to perform the objects and duties of the corporation. R.S.O. 1990, c. C.26, s. 6.
Ownership of common elements
7. (1) The owners are tenants in common of the common elements. Common interests (2) An undivided interest in the common elements is appurtenant to each unit. Proportions (3) The proportions of the common interests are those expressed in the declaration. Use of common elements (4) Each owner may make reasonable use of the common elements subject to this Act, the declaration, the by-laws and the rules. Ownership not to be separated (5) The ownership of a unit shall not be separated from the ownership of the common interest, and any instrument that purports to separate the ownership of a unit from a common interest is void. No division (6) Except as provided by this Act, the common elements shall not be partitioned or divided. Encumbrances not enforceable (7) No encumbrance is enforceable against the common elements after the declaration and description are registered. Saving (8) Where, but for subsection (7), an encumbrance would be enforceable against the common elements, the encumbrance is enforceable against all the units and common interests. Discharge (9) Any unit and common interest may be discharged from such an encumbrance by payment to the claimant of a portion of the sum claimed, determined by the proportions specified in the declaration for sharing the common interests. Idem (10) Upon payment of a portion of the encumbrance sufficient to discharge a unit and common interest, and upon demand, the claimant shall give to the owner a discharge of that unit and common interest in accordance with the regulations. R.S.O. 1990, c. C.26, s. 7 (1-10). Assessment (11) For the purposes of municipal assessment and taxation, each unit and common interest constitute a parcel, and the common elements do not constitute a parcel except for those parts of the common elements that are leased for business purposes under section 9 upon which the lessee carries on an undertaking for gain that are in the commercial property class prescribed under the Assessment Act. R.S.O. 1990, c. C.26, s. 7 (11); 1997, c. 5, s. 63. Where corporation deemed to be occupier (12) For the purpose of determining liability resulting from breach of the duties of an occupier of land, the corporation shall be deemed to be the occupier of the common elements and the owners shall be deemed not to be occupiers of the common elements. R.S.O. 1990, c. C.26, s. 7 (12). EASEMENTS
Easements appurtenant to units
8. (1) The following easements are appurtenant to each unit: 1. Where a building or any part of a building, (a) moves after registration of the declaration and description; or (b) after having been damaged and repaired, is not restored to the position occupied at the time of registration of the declaration and description, an easement for exclusive use and occupation in accordance with this Act, the declaration and the by-laws, over the space of the other units and common elements that would be space included in the unit if the boundaries of the unit were determined by the position of the buildings from time to time after registration of the description and not at the time of registration. 2. An easement for the provision of any service through any installation in the common elements or any other unit. 3. An easement for support by the common elements and any other unit capable of providing support. Easements appurtenant to common elements (2) The following easements are appurtenant to the common elements: 1. An easement for the provision of any service through any installation in any unit. 2. An easement for support by any unit capable of providing support. R.S.O. 1990, c. C.26, s. 8.
Easements and leases of common elements
9. (1) The corporation may, by special by-law, (a) lease any part of the common elements, except any part that the declaration specifies is to be used by the owners of one or more designated units and not by all the owners; and (b) grant or transfer an easement or licence through the common elements. Binding on all owners (2) A lease or a grant or transfer of an easement or licence mentioned in subsection (1), signed by the authorized officers of the corporation under its seal, affects the interest of every owner in the common elements as if the lease, grant or transfer had been executed by the owner, and shall have attached thereto an affidavit of one of the officers stating that the lease, grant or transfer was authorized by a special by-law of the corporation. R.S.O. 1990, c. C.26, s. 9. CORPORATION
Creation
10. (1) The registration of a declaration and description creates a corporation without share capital whose members are the owners from time to time. Name of corporation (2) The land registrar shall assign a name to each corporation or proposed corporation in accordance with the regulations. Certain Acts not to apply (3) The Corporations Act and the Corporations Information Act do not apply to the corporation. R.S.O. 1990, c. C.26, s. 10.
Corporation seal
11. (1) The corporation shall have a seal that shall be adopted and may be changed by resolution of the directors. Idem (2) The name of the corporation shall appear in legible characters on the seal. R.S.O. 1990, c. C.26, s. 11.
Objects
12. (1) The objects of the corporation are to manage the property and any assets of the corporation. Corporation duty (2) The corporation has a duty to control, manage and administer the common elements and the assets of the condominium corporation. Duty to effect compliance (3) The corporation has a duty to effect compliance by the owners with this Act, the declaration, the by-laws and the rules. Duties (4) The declaration or the by-laws may specify duties of the corporation consistent with its objects, responsibilities and duties. Right to performance of duties (5) Each owner and each person having a registered mortgage against a unit and common interest has the right to the performance of any duty of the corporation specified by this Act, the declaration, the by-laws and the rules. R.S.O. 1990, c. C.26, s. 12.
Real and personal property
13. (1) The corporation may own, acquire, encumber and dispose of real and personal property for the use and enjoyment of the property. Interest in assets (2) The owners 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. R.S.O. 1990, c. C.26, s. 13.
Action by corporation
14. (1) The corporation after giving written notice to all owners and mortgagees may, on its own behalf and on behalf of any owner, sue for and recover damages and costs in respect of any damage to common elements, the assets of the corporation or individual units, and the legal and court costs in any such actions brought in whole or in part on behalf of any owners in respect of their units shall be borne by those owners in the proportion in which their interests are affected. Idem (2) The corporation after giving written notice to all owners and mortgagees may sue on its own behalf and on behalf of any owner with respect to the common elements and any units, even if the corporation was not a party to the contract in respect of which the action is brought, and the legal and court costs in an action brought in whole or in part on behalf of any owners in respect of their units shall be borne by those owners in the proportion in which their interests are affected. Idem (3) The notice referred to in subsections (1) and (2) is not required to be given in respect of an action brought in the Small Claims Court. Idem (4) Any judgment for payment in favour of the corporation in an action brought on its own behalf is an asset of the corporation. Corporation may be sued (5) The corporation may, as representative of the owners of the units, be sued in respect of any matter relating to the common elements or assets of the corporation. Judgment against corporation (6) Where an action is commenced on or after the 1st day of June, 1979, a judgment for the payment of money against the corporation is also a judgment against each owner at the time of judgment for a portion of the judgment determined by the proportions specified in the declaration for sharing the common interests. Idem (7) Where an action has been commenced before the 1st day of June, 1979, 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. R.S.O. 1990, c. C.26, s. 14.
Board of directors
15. (1) The affairs of the corporation shall be managed by a board of directors, consisting of three persons or such greater number as the by-laws may provide, elected by the owners. Change in number of directors (2) A corporation may by by-law increase or, subject to subsection (1), decrease the number of the directors as set out in its by-laws. Age of directors (3) No person under eighteen years of age shall be a director of the corporation. Qualifications (4) No undischarged bankrupt or mentally incompetent person shall be a director and if a director becomes a bankrupt or a mentally incompetent person he or she thereupon ceases to be a director. Consent (5) A person who is elected or appointed a director is not a director unless, (a) the person was present at the meeting when he or she was elected or appointed and did not refuse at the meeting to act as a director; or (b) where the person was not present at the meeting when he or she was elected or appointed, the person consented to act as director in writing before his or her election or appointment or within ten days thereafter. Idem (6) For the purposes of subsection (5), a person who is elected or appointed as director and refuses under clause (a) of that subsection or fails to consent under clause (b) of that subsection shall be deemed not to have been elected or appointed as a director. Term (7) The term of the members of the board shall be three years or such lesser period as the by-laws may provide, but the directors may continue to act until their successors are elected, and directors are eligible for re-election. Removal (8) Any director may be removed before the expiration of his or her term by a vote of owners who together own a majority of the units and the owners may elect, in accordance with the by-laws dealing with the election of directors, any person qualified to be a member of the board for the remainder of the term of the director removed. Vacancy (9) If a vacancy in the membership of the board occurs, other than by way of removal under subsection (8) or as a result of the number of directors being increased, subject to subsection (11), the majority of the remaining members of the board may appoint any person qualified to be a member of the board to fill the vacancy until the next annual meeting at which time the vacancy shall be filled by election by the owners. Increase (10) Where the number of directors is increased, the vacancies resulting from such increase shall only be filled by election at a meeting of the owners duly called for that purpose. Election when no quorum (11) When there is not a quorum of directors in office, the director or directors then in office shall forthwith call a meeting of owners to fill the vacancies, and, in default or if there are no directors then in office, the meeting may be called by any owner. R.S.O. 1990, c. C.26, s. 15.
Quorum
16. (1) A quorum for the transaction of business is a majority of the members of the board or such greater number as the by-laws may provide. Conduct of business (2) No business of a corporation shall be transacted by its board except at a meeting of directors at which a quorum of the board is present. Idem (3) Where there is a vacancy or vacancies in the board, the remaining directors may exercise all the powers of the board so long as a quorum of the board remains in office. Calling meetings of directors (4) In addition to any other provision in the by-laws of a corporation for calling meetings of directors, a quorum of the directors may, at any time, call a meeting of the directors for the transaction of any business, the general nature of which is specified in the notice calling the meeting. Notice (5) In the absence of any other provision in that behalf in the by-laws of the corporation, at least ten days written notice of the time and place for the holding of the meeting shall be given to every director of the corporation, personally or by prepaid mail, addressed to the director at his or her latest address as shown on the records of the corporation. R.S.O. 1990, c. C.26, s. 16.
Annual meetings
18. (1) A corporation shall hold an annual meeting of the owners not more than three months after the registration of the declaration and description, and subsequently not more than fifteen months after the holding of the last preceding annual meeting, and at such meeting any owner or any mortgagee entitled to vote shall have an opportunity to raise any matter relevant to the affairs and business of the corporation. Other meetings (2) The board, or any mortgagee holding mortgages on not less than 15 per cent of the units, may at any time call a meeting of the owners of the corporation for the transaction of any business, the nature of which shall be specified in the notice calling the meeting. Quorum (3) Unless otherwise provided in this Act, a quorum for the transaction of business at a meeting of owners is those owners present in person or represented by proxy owning 33 1/3 per cent of the units. R.S.O. 1990, c. C.26, s. 18.
Requisition for owners’ meeting
19. (1) The board shall, upon receipt of a requisition in writing made by owners who together own at least 15 per cent of the units, call and hold a meeting of the owners and if the meeting is not called and held within thirty days of the receipt of the requisition, any of the requisitionists may call the meeting, and in such case, the meeting shall be held within sixty days of receipt of the requisition. Requisition (2) The requisition shall state the nature of the business to be presented at the meeting and shall be signed by the requisitionists and deposited at the address for service of the corporation. R.S.O. 1990, c. C.26, s. 19.
Notice
20. (1) At least ten days written notice of every meeting of the owners specifying the place, the date and the hour thereof and the nature of the business to be presented shall be given to each owner or mortgagee entitled to vote, personally or by prepaid mail addressed to the owner or mortgagee at the address provided under subsection (2). Sufficient notice (2) The corporation shall maintain a record upon which shall be entered each owner or mortgagee who notifies the corporation of the person’s entitlement to vote and of the person’s address for service, and the notice of a meeting required by subsection (1) shall be deemed to be sufficiently given if given in accordance with subsection (1) to those persons entered on the record twelve days before the date of the meeting. Right to vote (3) A mortgagee who receives a notice shall, in order to be entitled to exercise the right of the owner to vote or to consent, notify the corporation and the owner of the mortgagee’s intention to exercise such right at least two days before the date specified in the notice for the meeting. R.S.O. 1990, c. C.26, s. 20.
Records
21. The corporation shall keep adequate records, and any owner or agent of an owner duly authorized in writing may inspect the records on reasonable notice and at any reasonable time. R.S.O. 1990, c. C.26, s. 21.
Voting
22. (1) All voting by owners shall be on the basis of one vote per unit and, where two or more persons entitled to vote in respect of one unit disagree on their vote, the vote in respect of that unit shall not be counted. Idem (2) On a show of hands or on a poll, votes may be given either personally or by proxy. Proxy (3) An instrument appointing a proxy shall be in writing under the hand of the appointer or the appointer’s attorney, and may be either general or for a particular meeting. Idem (4) A proxy need not be an owner. Where not entitled to vote (5) Except where, under this Act or the by-laws of the corporation, a unanimous vote of all the owners is required, an owner is not entitled to vote at any meeting if any contributions payable in respect of the owner’s unit are in arrears for more than thirty days prior to the meeting. Majority voting (6) Unless otherwise provided in this Act, all questions proposed for the consideration of the owners at a meeting of owners shall be determined by a majority of the votes cast. No vote for parking or storage unit (7) No owner is entitled to a vote in respect of a unit that is intended for parking or storage purposes. R.S.O. 1990, c. C.26, s. 22.
Officers
23. (1) A corporation shall have a president and a secretary and such other officers as are provided for by by-law or by resolution of the directors and the same person may hold two or more offices. Election and appointment (2) In the absence of other provisions in that behalf in the by-laws, the directors, (a) shall elect the president from among themselves; (b) shall appoint or elect the secretary; and (c) may appoint or elect one or more vice-presidents or other officers. R.S.O. 1990, c. C.26, s. 23.
Standards of care, etc., of directors
24. (1) Every director and officer of a corporation shall exercise the powers and discharge the duties of his or her office honestly and in good faith. Defects (2) The acts of a member of the board or an officer of the board are valid despite any defect that may afterwards be discovered in his or her election or qualifications. R.S.O. 1990, c. C.26, s. 24.
Indemnification of directors
25. (1) Subject to subsection (2), the by-laws of a corporation may provide that every director and officer of the corporation and his or her heirs, executors, administrators and other legal personal representatives may from time to time be indemnified and saved harmless by the corporation from and against, (a) any liability and all costs, charges and expenses that he or she sustains or incurs in respect of any action, suit or proceeding that is proposed or commenced against him or her for or in respect of anything done or permitted by him or her in respect of the execution of the duties of his or her office; and (b) all other costs, charges and expenses that he or she sustains or incurs in respect of the affairs of the corporation. Idem (2) No director or officer of a corporation shall be indemnified by the corporation in respect of any liability, costs, charges or expenses that he or she sustains or incurs in or about any action, suit or other proceeding as a result of which the person is adjudged to be in breach of any duty or responsibility imposed upon him or her under this Act or under any other statute unless, in an action brought against the person in his or her capacity as director or officer, he or she has achieved complete or substantial success as a defendant. Insurance (3) A corporation may purchase and maintain insurance for the benefit of a director or officer thereof except insurance against a liability, cost, charge or expense of the director or officer incurred as a result of a contravention of subsection 24 (1). R.S.O. 1990, c. C.26, s. 25.
Election of new board
26. (1) The board elected at a time when the declarant owns a majority of the units shall, not more than twenty-one days after the declarant ceases to be the registered owner of a majority of the units, call a meeting of the owners to elect a new board, and such meeting shall be held within twenty-one days after the calling of the meeting. Owner, etc., may call meeting (2) If the meeting referred to in subsection (1) is not called within the time provided for by that subsection, any owner or any mortgagee entitled to vote may call the meeting. Things to be turned over to the board (3) At the meeting required under subsection (1), the declarant shall give to the board elected at that meeting, (a) the seal of the corporation; (b) the minute book for the corporation, containing the most current copies of the declaration, by-laws, rules and regulations and any amendments thereto; (c) copies of all agreements entered into by the corporation or the declarant or the declarant’s representatives on behalf of the corporation, including the management contracts, deeds, leases, licences and those items set out in subsection 52 (6); (d) a record maintained under subsection 20 (2); (e) the existing warranties and guarantees for all the equipment, fixtures and chattels included in the sale of either the units or common elements that are not protected by warranties and guarantees given directly to a unit purchaser; (f) the as-built architectural, structural, engineering, mechanical, electrical and plumbing plans; (g) the original specifications indicating thereon all material changes; (h) the plans for underground site service, site grading, drainage and landscaping together with cable television drawings if available; (i) such other available plans and information not mentioned in clause (f), (g) or (h) but relevant to future repair or maintenance of the property; (j) an unaudited financial statement prepared as at a date not earlier than thirty days prior to the meeting; (k) a table depicting the maintenance responsibilities and indicating whether the corporation or the unit owners are responsible; (l) bills of sale or transfers for all items that are assets of the condominium corporation but not part of the real property; (m) a list detailing current replacement costs and life expectancy under normal maintenance conditions of all major capital items in the property, including, where applicable, those items set out in subsection 36 (1); and (n) 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. Idem (4) The declarant shall give to the board within sixty days after the meeting required under subsection (1) an audited financial statement prepared as at the date of the meeting required under subsection (1). R.S.O. 1990, c. C.26, s. 26.
By-laws
28. (1) The board may pass by-laws, not contrary to this Act or to the declaration, (a) to govern the number, qualification, nomination, election, term of office and remuneration of the directors; (b) to regulate the meeting, quorum and functions of the board; (c) to govern the appointment, remuneration, functions, duties and removal of agents, officers and employees of the corporation and the security, if any, to be given by them to it; (d) to govern the management of the property; (e) to govern the maintenance of the units and common elements; (f) to govern the use and management of the assets of the corporation; (g) specifying duties of the corporation; (h) to govern the assessment and collection of contributions towards the common expenses; (i) authorizing the borrowing of money to carry out the objects and duties of the corporation; and (j) respecting the conduct generally of the affairs of the corporation. Confirmation (2) Subject to subsection (5), a by-law passed under subsection (1) is not effective until it is confirmed, with or without variation, by owners who own not less than 51 per cent of the units at a meeting duly called for that purpose. Remuneration of directors (3) A by-law relating to the remuneration of a director or directors shall fix the remuneration and the period for which it is to be paid. By-laws must be reasonable (4) The by-laws shall be reasonable and consistent with this Act and the declaration. Registration (5) When a by-law or special by-law is made by the corporation, the corporation shall register a copy of the by-law or special by-law together with a certificate executed by the corporation that the by-law was made in accordance with this Act, the declaration and the by-laws, and until the copy and certificate are registered the by-law is ineffective. R.S.O. 1990, c. C.26, s. 28. RULES GOVERNING USE OF COMMON ELEMENTS
House rules
29. (1) The board may make rules respecting the use of common elements and units or any of them to promote the safety, security or welfare of the owners and of the property or for the purpose of preventing unreasonable interference with the use and enjoyment of the common elements and of other units. Idem (2) The rules shall be reasonable and consistent with this Act, the declaration and the by-laws. Compliance and enforcement (3) The rules shall be complied with and enforced in the same manner as the by-laws. When rules effective (4) Subject to subsection (5), any rule made under subsection (1) shall be effective thirty days after notice thereof has been given to each owner unless the board is in receipt of a requisition in writing made under section 19 requiring a meeting of owners to consider the rules. Idem (5) If a meeting of owners is required, the rule made under subsection (1) shall become effective only upon approval at such meeting of owners. Owners amending or repealing rules (6) The owners may at any time after a rule becomes effective amend or repeal a rule at a meeting of owners duly called for that purpose. R.S.O. 1990, c. C.26, s. 29.
Entry by canvassers
30. No corporation or servant or agent of a corporation shall restrict reasonable access to the property by candidates, or their authorized representatives, for election to the House of Commons, the Legislative Assembly or any office in a municipal government or school board for the purpose of canvassing or distributing election material. R.S.O. 1990, c. C.26, s. 30. OBLIGATION OF OWNERS AND OCCUPIERS
Obligations and rights of owners, etc.
31. (1) Each owner is bound by and shall comply with this Act, the declaration, the by-laws and the rules. Idem (2) Each owner has a right to the compliance by the other owners with this Act, the declaration, the by-laws and the rules. Right of corporation and encumbrancers (3) The corporation, and every person having an encumbrance against any unit and common interest, has a right to the compliance by the owners with this Act, the declaration, the by-laws and the rules. Obligations and rights of occupiers (4) Each person in occupation of a proposed unit is bound by and shall comply with the rules proposed by the proposed declarant where those rules are reasonable and consistent with this Act. Idem (5) Each person in occupation of a proposed unit has a right to the compliance by every other occupant of a proposed unit with the rules proposed by the proposed declarant. Duty of proposed declarant (6) The proposed declarant has a duty, until registration of the declaration and description, to effect compliance by occupiers of proposed units with the rules proposed by the declarant. R.S.O. 1990, c. C.26, s. 31.
Duty of owners to contribute to common expenses
32. (1) The owners shall contribute towards the common expenses in the proportions specified in the declaration. Application of common surplus (2) Any common surplus in a corporation shall be applied either against future common expenses or paid into the reserve fund, but shall not, other than on termination, be distributed to the owners or mortgagees. No avoidance (3) The obligation of an owner to contribute towards the common expenses shall not be avoided by waiver of the right to use the common elements or by abandonment. R.S.O. 1990, c. C.26, s. 32 (1-3). Lien (4) Where an owner defaults in the owner’s obligation to contribute to the corporation towards the common expenses as provided under subsection (1) or subsection 41 (7), the corporation has a lien for the unpaid amount against the owner’s unit and its appurtenant common interest together with all reasonable costs, charges and expenses incurred by the corporation in connection with the collection or attempted collection of the unpaid amount. R.S.O. 1990, c. C.26, s. 32 (4); 1993, c. 27, Sched. Expiration of lien (5) The lien mentioned in subsection (4) expires three months after the default that gave rise to the lien first occurred unless the corporation within that time registers a notice of lien in the prescribed form, and, where the notice is registered in accordance with subsection 33 (5), no further notice or registration is required in respect of default in payment occurring or continuing after registration. Lien enforcement (6) The lien may be enforced in the same manner as a mortgage. Discharge (7) Upon payment of the unpaid amount together with all reasonable costs, charges and expenses incurred by the corporation in connection with the collection or attempted collection of the unpaid amount and upon demand, the corporation shall give the owner a discharge in the prescribed form. Certificate of lien (8) Any person acquiring or proposing to acquire an interest in a unit from an owner may request the corporation to give a certificate in the prescribed form in respect of the common expenses of the owner and of default in payment thereof, if any, by the owner, together with such statements and information as are prescribed by the regulations, and the certificate binds the corporation as against the person requesting the certificate in respect of any default or otherwise shown in the certificate, as of the day it is given. Idem (9) The corporation shall give the certificate and the statements and information referred to in subsection (8) within seven days after its receipt of the request therefor and, where the corporation fails to give the certificate, statements and information within the time prescribed, the corporation shall be deemed, as against the person requesting the certificate, to have given a certificate stating no default. Fee (10) The corporation may charge a fee for providing the certificate, statements and information referred to in subsection (8), in the amount prescribed by regulation. R.S.O. 1990, c. C.26, s. 32 (5-10).
Lien has priority
33. (1) Where a lien created by subsection 32 (4) is in respect of a unit for residential purposes, that lien has priority over every registered and unregistered encumbrance even if such encumbrance existed prior to the lien arising. Where subs. (1) does not apply (2) Subsection (1) does not apply, (a) to a lien arising before the 1st day of January, 1978; (b) in respect of a claim of the Crown other than by way of a mortgage; (c) in respect of a claim for taxes, charges, rates or assessments levied or recoverable under the Municipal Act, the Education Act, the Local Roads Boards Act, the Statute Labour Act or the Local Improvement Act; or (d) to such lien or claim that may be designated by regulation. Provisions deemed in mortgage (3) Every mortgage of a unit for residential purposes shall be deemed to contain a provision that, (a) the mortgagee has the right to collect the owner’s contribution towards common expenses and shall forthwith pay any amount so collected to the corporation on behalf of the unit owner; (b) the owner’s default in the payment of common expenses shall constitute default under the mortgage; and (c) the mortgagee shall have the right to pay the owner’s contribution towards common expenses that shall from time to time fall due and be unpaid in respect of the mortgaged premises and that such payments together with all reasonable costs, charges and expenses incurred in respect thereto, shall be added to the debt thereby secured and shall be payable forthwith with interest at the rate payable on the mortgage, and, if after demand the owner fails to fully reimburse the mortgagee, the mortgage shall immediately become due and payable at the option of the mortgagee. Statement to mortgagee (4) A corporation shall, where so requested by the holder of a mortgage on a unit for residential purposes, provide, free of charge, to the person making the request a written statement setting out, in respect of the unit, the common expenses of the owner and all payments thereof in default. Notice of lien to be given (5) Where a lien arises in respect of a unit for residential purposes, the corporation shall, on or before the day a notice of lien is registered, give notice of the lien to every encumbrancer whose encumbrance is registered against the title of the unit, by personal service of the notice or by sending the notice by registered prepaid mail addressed to the encumbrancer at the person’s last known address. Where notice of lien not given (6) Where notice of lien is not given as provided in subsection (5), then subsection (1) ceases to apply three months after the default that gave rise to the lien first occurred, provided that where notice is given after registration of notice of lien then the corporation may register another notice of lien, but subsection (1) shall continue to apply to any lien which arose not earlier than three months before the last registration of notice of lien. R.S.O. 1990, c. C.26, s. 33. AUDITORS AND FINANCIAL STATEMENTS
Reserve fund defined
36. (1) In this Act and the regulations, the declaration, by-laws and financial statements prepared in accordance with this Act, the declaration or by-laws, “reserve fund” means a fund set up by the corporation in a special account for major repair and replacement of common elements and assets of the corporation including where applicable without limiting the generality of the foregoing, roofs, exteriors of buildings, roads, sidewalks, sewers, heating, electrical and plumbing systems, elevators, laundry, recreational and parking facilities. Reserve fund established and maintained (2) The corporation shall establish and maintain one or more reserve funds and shall collect from the owners, as part of their contribution towards common expenses, amounts that, calculated on the basis of expected repair and replacement costs and life expectancy of things comprising the common elements and the assets of the corporation, are reasonably expected to provide sufficient funds for major repair and replacement of common elements and assets of the corporation, but in no event shall the contributions to the reserve fund or funds be less than 5 per cent of the amount required for contributions to the common expenses exclusive of the reserve fund. Idem (3) On and after the 1st day of June, 1982, the contribution to the reserve fund or funds shall be not less than 10 per cent of the amount required for contributions to the common expenses exclusive of the reserve fund. Idem (4) Any fund set up for any of the purposes mentioned in subsection (1) shall be deemed to be a reserve fund even if it is not so designated. Use of reserve fund limited (5) No part of a reserve fund shall be used except for the purposes for which the fund was established. Fund not available for distribution (6) The amount of a reserve fund shall constitute an asset of the corporation and shall not be distributed to any owner except on termination of the corporation. Bureau may exempt from subss. (2), (3) (7) The bureau may, upon being satisfied that the corporation has sufficient reserve funds, exempt the corporation from the requirements set out in subsections (2) and (3) upon such terms and conditions and for such period of time as the bureau considers proper. Commencement of subs. (7) (8) Subsection (7) does not come into force until a day to be named by proclamation of the Lieutenant Governor. R.S.O. 1990, c. C.26, s. 36. AUDIT COMMITTEE
Audit committee may be established
37. (1) Where the number of directors of a corporation is more than six, the directors may elect annually from among their number a committee to be known as the audit committee to be composed of not fewer than three directors, of whom a majority shall not be officers or employees of the corporation, to hold office until the next annual meeting of the owners. Auditor shall submit financial statement (2) The auditor shall submit the financial statement to the audit committee for its review and the financial statement shall thereafter be submitted to the board. Auditor’s right to appear (3) The auditor has the right to appear before and be heard at any meeting of the audit committee and shall appear before the audit committee when required to do so by the committee. Committee convening at request of auditor (4) Upon the request of the auditor, the audit committee shall convene a meeting of the committee to consider any matters the auditor believes should be brought to the attention of the board or members. R.S.O. 1990, c. C.26, s. 37. MODIFICATIONS OF COMMON ELEMENTS AND ASSETS
Substantial alterations
38. (1) The corporation may by a vote of owners who own 80 per cent of the units make any substantial addition, alteration or improvement to or renovation of the common elements or may make any substantial change in the assets of the corporation, and the corporation may by a vote of the owners make any other addition, alteration or improvement to or renovation of the common elements or may make any other change in the assets of the corporation. Easement (2) A grant or transfer of an easement to the corporation is as effective as if the corporation owns land capable of being benefitted by the easement. Cost (3) The cost of any addition, alteration or improvement to or renovation of the common elements and the cost of any change in the assets of the corporation are common expenses. Dissenters (4) If any substantial addition, alteration or improvement to or renovation of the common elements is made, or if any substantial change in the assets of the corporation is made, the corporation must, on demand of any owner who dissented, made within ten days after the date of the vote referred to in subsection (1), purchase the owner’s unit and common interest. Arbitration (5) Where the corporation and the owner who dissented do not agree as to the purchase price, the owner who dissented may elect to have the fair market value of the owner’s unit and common interest determined by arbitration under the Arbitrations Act by serving a notice to that effect on the corporation. R.S.O. 1990, c. C.26, s. 38. AGREEMENTS
Management agreement
39. (1) The corporation may by by-law terminate, on giving sixty days notice in writing, any agreement between the corporation and any person for the management of the property entered into at a time when the majority of the members of the board were elected when the declarant was the registered owner of a majority of the units. Agreements expiring (2) Every agreement for the provision of services on a continuing basis, every lease of the common elements or part thereof for business purposes and every agreement for the provision of recreation facilities to the corporation on other than a non-profit basis entered into by a corporation after the 1st day of June, 1979 and at a time when the majority of the members of the board were elected when the declarant was the registered owner of a majority of the units that does not expire within twelve months after its effective date shall be deemed to expire twelve months after its effective date unless, within the twelve month period, the agreement is ratified by the board at a time when the majority of the board members were elected after the declarant ceased to be the registered owner of a majority of the units. R.S.O. 1990, c. C.26, s. 39. INVESTIGATION OF RECORDS
Examination of records
40. (1) Every person in receipt of money paid to or for the benefit of the corporation shall, upon reasonable notice and during normal business hours, make available for examination by the corporation or any owner or mortgagee, all records relating to the receipt and disposition of such money. Application to court (2) Upon application to a judge of the Ontario Court (General Division) by the corporation or any owner or mortgagee, the judge, if satisfied that the application is made in good faith and that it appears to be in the best interests of the applicant to do so, may make an order, upon such terms as to the costs of the investigation or audit or otherwise as the judge considers proper, appointing an inspector to make such investigation of the affairs of any person in receipt of money mentioned in subsection (1) and to make such audit of the accounts and records of such person as the judge considers necessary. Power of inspector (3) An inspector appointed under subsection (2) has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to such investigation or audit as if it were an inquiry under that Act. Trust money (4) All money referred to in subsection (1) shall be held by the person in receipt thereof in trust for the performance of the duties and obligations in respect of which the money is paid, and the person shall pay such money into a separate account at a bank listed under Schedule I or II to the Bank Act (Canada) or trust corporation or a loan corporation or credit union authorized by law to receive money on deposit or a Province of Ontario Savings Office and shall designate the account as a trust account in the name of the corporation. R.S.O. 1990, c. C.26, s. 40. REPAIRS AND MAINTENANCE
Interpretation
41. (1) For the purposes of this Act, the obligation to repair after damage and to maintain are mutually exclusive, and the obligation to repair after damage does not include the repair of improvements made to units after registration of the declaration and description. Duty to repair (2) Subject to section 42, the corporation shall repair the units and common elements after damage. Maintenance of common elements (3) The corporation shall maintain the common elements. Maintenance of units (4) Each owner shall maintain the owner’s unit. Declaration may provide otherwise (5) Despite subsections (2), (3) and (4), the declaration may provide that, (a) each owner shall, subject to section 42, repair the owner’s unit after damage; (b) the owners shall maintain the common elements or any part of the common elements; (c) the corporation shall maintain the units; or (d) each owner shall maintain and repair after damage those parts of the common elements of which the owner has the exclusive use. Where corporation to make repairs for owners (6) The corporation shall make any repairs that an owner is obligated to make and that the owner does not make within a reasonable time. Consent (7) An owner shall be deemed to have consented to have repairs done to the owner’s unit by the corporation under this section and the cost of such repairs shall be added to the owner’s contribution toward common expenses. Warranties (8) All warranties given with respect to work and materials furnished to the property shall enure to the benefit of all unit owners from time to time and to the corporation. R.S.O. 1990, c. C.26, s. 41. WHERE DAMAGE OCCURS
Determination of damage
42. (1) Where damage to the buildings occurs, the board shall determine within thirty days of the occurrence whether there has been substantial damage to 25 per cent of the buildings. Repair of damage (2) Where there has been a determination that there has been substantial damage to 25 per cent of the buildings, the corporation shall repair within a reasonable time, unless, within sixty days after the determination made under subsection (1), by a vote of owners who own 80 per cent of the units, the owners vote for termination. R.S.O. 1990, c. C.26, s. 42. TERMINATION
Notice of termination
43. (1) Where, under subsection 42 (2), the owners vote for termination, the corporation shall, within ten days of the vote, register a notice of termination in the prescribed form. Effect of registration of notice (2) Upon the registration of a notice of termination under subsection (1), (a) the government of the property by this Act is terminated; (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 interests appurtenant to the land created before the registration of the declaration and description are as effective as if the declaration and description had not been registered; (d) encumbrances against each unit and common interest created after the 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 they had before the registration of the notice of termination; and (e) all claims against the property created after the registration of the declaration and description, other than the encumbrances mentioned in clause (d), are extinguished. R.S.O. 1990, c. C.26, s. 43.