Interpretation
37. (1) In this section, “purchaser” means a purchaser, the purchaser’s successors and assigns under an agreement of purchase and sale of a proposed condominium unit who has paid money, to which section 53 of the Act applies, to a declarant; “warranty corporation” means the corporation designated under section 2 of the Ontario New Home Warranties Plan Act. (2) A deposit receipt executed by the warranty corporation providing for compensation to a purchaser is prescribed security for the purposes of clause 53 (1) (b) of the Act. (3) A deposit receipt shall constitute prescribed security only if, by the terms of the deposit receipt, the amount which the warranty corporation is liable to pay to a purchaser thereunder is, (a) where the amount of money paid by a purchaser to a declarant to which section 53 of the Act applies is $20,000 or less, the amount so paid; or (b) where the amount of money paid by a purchaser to a declarant to which section 53 of the Act applies is greater than $20,000, $20,000 or such greater amount as may be provided under the deposit receipt. (4) Despite subsection (2), where a deposit receipt establishes a limit on the liability of the warranty corporation, such deposit receipt shall not constitute prescribed security unless it contains a statement to the effect that any amount paid by a purchaser to a declarant in excess of such limit is subject to subsection 53 (1) of the Act. (5) A purchaser is not liable for the payment to any insurer of any premium payable in respect of a policy of insurance that the warranty corporation takes out to insure its obligation to pay under the deposit receipt. (6) A deposit receipt shall take effect when it has been executed by a purchaser and by or on behalf of the warranty corporation and by or on behalf of a declarant. (7) The obligations of the warranty corporation to a purchaser under a deposit receipt shall not be affected by, (a) failure of the declarant to comply with any term or condition of the declarant’s agreement with the corporation; (b) failure of a declarant to notify the corporation or its insurer or insurers of the receipt from the purchaser of money to which section 53 of the Act applies; (c) failure of the corporation to notify its insurer or insurers of the receipt from the purchaser of money to which section 53 of the Act applies; (d) breach of any term or condition of the deposit receipt; or (e) breach by a purchaser or declarant of any term or condition of any policy of insurance taken out by the corporation. (8) The warranty corporation shall, immediately upon receipt of written notice of a claim by a purchaser under a deposit receipt, provide the purchaser with forms upon which to make proof of loss. (9) Where the warranty corporation receives written notice of a claim under subsection 8, it shall pay the purchaser within sixty days after the right of the purchaser to payment under the deposit receipt has been established. (10) The warranty corporation shall remain liable under a deposit receipt until, (a) a deed or transfer of the unit acceptable for registration is delivered to the purchaser; (b) the declarant pays to the purchaser all money to which section 53 of the Act applies; or (c) the warranty corporation pays to the purchaser the amount of any loss to the extent of the corporation’s liability. (11) Where the warranty corporation is required to make a payment under a deposit receipt, interest at the rate prescribed by section 35 shall be paid to the purchaser to the date of payment of the loss. (12) Where a deposit receipt contains a provision that derogates in any manner from any right or benefit conferred on a purchaser by this Regulation such provision is void to the extent that it derogates from such right or benefit. R.R.O. 1990, Reg. 96, s. 37.