Bill 106, Protecting Condominium Owners Act, 2015

Orazietti, Hon David Minister of Government and Consumer Services

Current Status: Royal Assent received Chapter Number: S.O. 2015 C.28

Viewing: Royal Assent (current version) pdf

Bill 106                                                                                                                                               2015

An Act to amend the Condominium Act, 1998, to enact the Condominium Management Services Act, 2015 and to amend other Acts with respect to condominiums

CONTENTS

1.

2.

3.

Schedule 1

Schedule 2

Contents of this Act

Commencement

Short title

Amendments to the Condominium Act, 1998 and Other Amendments

Condominium Management Services Act, 2015

 

______________

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

   1.  This Act consists of this section, sections 2 and 3, and the Schedules to this Act.

Commencement

   2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same, Schedules

   (2)  The Schedules to this Act come into force as provided in each Schedule. 

Different dates for same Schedule

   (3)  If a Schedule to this Act or any portion of a Schedule to this Act provides that it is to come into force on a day to be named by proclamation of the Lieutenant Governor, the proclamation may apply to the whole or any portion of the Schedule, and proclamations may be issued at different times as to any portion of the Schedule.

Short title

   3.  The short title of this Act is the Protecting Condominium Owners Act, 2015.

Schedule 1
Amendments to the Condominium Act, 1998 and Other amendments

Condominium Act, 1998

   1.  (1)  Subsection 1 (1) of the Condominium Act, 1998 is amended by adding the following definition:

“administrative agreement” means the agreement described in subsection 1.2 (1); (“accord d’application”)

   (2)  The definition of “by-law” in subsection 1 (1) of the Act is amended by adding “or a by-law made under subsection 21.1 (4)” at the end.

   (3)  The definition of “common expenses” in subsection 1 (1) of the Act is amended by adding “in the regulations” after “this Act”.

   (4)  Subsection 1 (1) of the Act is amended by adding the following definition:

“condominium authority” means the corporation that the Lieutenant Governor in Council has designated as such under clause 1.1 (1) (a); (“autorité du secteur des condominiums”, “autorité”)

   (5)  Subsection 1 (1) of the Act is amended by adding the following definition:

“condominium guide” means a guide that is described in subsection 71.1 (1); (“guide sur les condominiums”)

   (6)  The definition of “corporation” in subsection 1 (1) of the Act is repealed and the following substituted:

“corporation” means, unless the context provides or requires otherwise, a corporation created or continued under this Act; (“association”)

   (7)  Subsection 1 (1) of the Act is amended by adding the following definition:

“declarant affiliate” means a body corporate with or without share capital, whether or not this Act applies to it, that is related to a declarant by reason of being deemed to be,

  (a)  a subsidiary of the declarant under subsection 1 (2) of the Business Corporations Act,

  (b)  a holding body of the declarant under subsection 1 (3) of the Business Corporations Act, or

   (c)  affiliated with the declarant under subsection 1 (4) of the Business Corporations Act; (“membre du même groupe”)

   (8)  Subsection 1 (1) of the Act is amended by adding the following definition:

“delegated provisions”, when used in connection with the condominium authority, means the provisions of this Act and the regulations that the Lieutenant Governor in Council specifies under clause 1.1 (1) (b) and of which the administration is delegated to the condominium authority under subsection 1.1 (3); (“dispositions déléguées”)

   (9)  Subsection 1 (1) of the Act is amended by adding the following definition:

“improvement” means, in relation to a unit,

  (a)  any part of a unit, where the part does not constitute a standard unit or part of a standard unit, or

  (b)  any repair or modification to a standard unit that is done using materials that are higher in quality, as determined in accordance with current construction standards; (“amélioration”)

   (10)  The definition of “Minister” in subsection 1 (1) of the Act is repealed and the following substituted:

“Minister”, in relation to a particular provision of this Act, means the Minister responsible for administration of the provision; (“ministre”)

   (11)  Subsection 1 (1) of the Act is amended by adding the following definition:

“non-leased voting unit” means,

  (a)  except in subsection 46 (2), a unit of an owner who is entitled to vote in respect of the unit at a meeting to elect or to remove a director, where the unit is used for residential purposes and the unit is not subject to a lease, as determined by the regulations, within the 60 day period before the time that the board gives a preliminary notice under subsection 45.1 (1) for the meeting, or

  (b)  in subsection 46 (2), a unit of an owner who is entitled to vote in respect of the unit at a meeting to elect or to remove a director, where the unit is used for residential purposes and the unit is not subject to a lease, as determined by the regulations, within the 60 day period before the date that the board receives a requisition for a meeting under that subsection; (“partie privative non louée conférant le droit de vote”)

   (12)  The definition of “owner” in subsection 1 (1) of the Act is repealed and the following substituted:

“owner” means,

  (a)  in relation to a corporation other than a leasehold condominium corporation or a common elements condominium corporation, a person who is shown as the owner of a freehold interest in a unit and its appurtenant common interest, according to the records of the land registry office in which the description of the corporation is registered, and includes a mortgagee in possession and a declarant with respect to any unit that the declarant has not transferred to another person,

  (b)  in relation to a leasehold condominium corporation, a person who is shown as the owner of the entire leasehold interest in a unit and its appurtenant common interest, according to the records of the land registry office in which the description of the corporation is registered, and includes a mortgagee in possession and a declarant with respect to any unit in which the declarant has not transferred the leasehold interest to another person but does not include a tenant of the owner, or

   (c)  in relation to a common elements condominium corporation, a person, including the declarant, who is shown as the owner of 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, according to the records of the land registry office in which the description of the corporation is registered; (“propriétaire”)

   (13)  Subsection 1 (1) of the Act is amended by adding the following definition:

“pre-existing elements” and “pre-existing elements fund study” have the same meaning as in subsection 17.1 (1) of the Ontario New Home Warranties Plan Act; (“éléments préexistants”, “étude du fonds des éléments préexistants”)

   (14)  The definition of “prescribed” in subsection 1 (1) of the Act is repealed and the following substituted:

“prescribed” means prescribed by the regulations; (“prescrit”)

   (15)  Subsection 1 (1) of the Act is amended by adding the following definitions:

“Registrar” means the Condominium Registrar appointed under subsection 9.1 (1); (“registrateur”)

“regulations” means the regulations made under this Act; (“règlements”)

   (16)  Subsection 1 (1) of the Act is amended by adding the following definitions:

“repair” means to repair or replace after normal wear and tear, damage or failure; (“réparer”)

“reserve fund study provider” means a person who meets all prescribed requirements for the purpose of conducting a reserve fund study; (“fournisseur d’étude de fonds de réserve”)

   (17)  Subsection 1 (1) of the Act is amended by adding the following definition:

“residential condominium conversion project” has the same meaning as in subsection 17.1 (1) of the Ontario New Home Warranties Plan Act; (“projet de conversion en condominiums à usage d’habitation”)

   (18)  The definition of “rule” in subsection 1 (1) of the Act is amended by adding “or a rule made under subsection 21.1 (4)” at the end.

   (19)  Subsection 1 (1) of the Act is amended by adding the following definition:

“standard unit” means, subject to the regulations, for the class of unit in a corporation to which the unit belongs,

  (a)  the standard unit described in a by-law made under clause 56 (1) (h), if the corporation has passed a by-law under that clause, or

  (b)  the standard unit that is prescribed, if the corporation has not passed a by-law under clause 56 (1) (h); (“partie privative normale”)

   2.  The Act is amended by adding the following Part:

Part I.1
Administration of this Act

Delegation

Designation of condominium authority

   1.1  (1)  The Lieutenant Governor in Council may, by regulation,

  (a)  designate a not-for-profit corporation without share capital incorporated under the laws of Ontario as the condominium authority for the purposes of this Act; and

  (b)  subject to subsection (2), specify any provisions of this Act and the regulations, except for this Part and Parts I.2 and XIV, as the delegated provisions for the purposes of subsection (3).

Restriction

   (2)  The specification of provisions as the delegated provisions that is made by a regulation made under clause (1) (b) may be restricted to specified aspects or purposes of the specified provisions.

Delegation of administration

   (3)  If the Lieutenant Governor in Council designates a corporation as the condominium authority, the administration of the delegated provisions is delegated to the authority and the authority shall carry out the administration of the delegated provisions.

Administrative agreement

   1.2  (1)  The Lieutenant Governor in Council shall not designate a corporation under clause 1.1 (1) (a) as the condominium authority until the Minister and the corporation have entered into an agreement to be known as the administrative agreement.

Contents

   (2)  The administrative agreement shall include, at a minimum, terms related to the following matters with respect to the condominium authority:

    1.  The governance of the authority.

    2.  All matters that the Minister considers necessary for the authority to carry out the administration of the delegated provisions.

    3.  The maintenance by the authority of adequate insurance against liability arising out of the carrying out of its powers and duties under this Act or the regulations.

    4.  Any other matter that the Minister considers necessary and that is related to the authority’s powers and duties under this Act or the regulations.

Amendment by Minister

   (3)  Subject to section 1.8, the Minister may unilaterally amend the administrative agreement, after giving the condominium authority the notice that the Minister considers reasonable in the circumstances.

Policy directions

   1.3  (1)  Subject to section 1.8, the Minister may issue policy directions to the condominium authority related to its powers and duties under this Act or the regulations, after giving the authority the notice that the Minister considers reasonable in the circumstances.

Part of the administrative agreement

   (2)  The policy directions are deemed to form part of the administrative agreement.

Compliance

   (3)  The condominium authority shall comply with the policy directions and shall implement measures to do so.

Compliance by condominium authority

   1.4  In carrying out its powers and duties under this Act or the regulations, the condominium authority shall comply with the administrative agreement, this Act, the regulations and other applicable law.

Review

   1.5  (1)  The Minister may,

  (a)  require that policy, legislative or regulatory reviews related to the powers and duties of the condominium authority under this Act, the regulations or the administrative agreement be carried out,

           (i)  by or on behalf of the authority, or

          (ii)  by a person or entity specified by the Minister; or

  (b)  require that reviews of the condominium authority, of its operations, or of both, including, without limitation, performance, governance, accountability and financial reviews, be carried out,

           (i)  by or on behalf of the authority, or

          (ii)  by a person or entity specified by the Minister.

Access to records

   (2)  If a review is carried out by a person or entity specified by the Minister, the condominium authority shall give the person or entity specified by the Minister and the employees of the person or entity access to all records and other information required to conduct the review.

Conflict

   1.6  In the event of conflict, this Part, Part I.2 and the regulations prevail over,

  (a)  the administrative agreement;

  (b)  the Corporations Act, the Corporations Information Act or a regulation made under either of those Acts;

   (c)  the condominium authority’s constating documents, by-laws and resolutions.

Revocation of designation

   1.7  (1)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the condominium authority if the Lieutenant Governor in Council considers it advisable to do so in the public interest.

Revocation for non-compliance

   (2)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the condominium authority if,

  (a)  the authority has failed to comply with this Act, the regulations, other applicable law or the administrative agreement;

  (b)  the Minister has allowed the authority the opportunity of remedying its default within a specified time period that the Minister considers reasonable in the circumstances; and

   (c)  the authority has not remedied its default to the Minister’s satisfaction within the specified time period mentioned in clause (b) and the Minister has so advised the Lieutenant Governor in Council.

Same, no restriction on subs. (1)

   (3)  Nothing in subsection (2) restricts the ability of the Lieutenant Governor in Council to act under subsection (1).

Revocation on request

   (4)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the condominium authority on the terms that the Lieutenant Governor in Council considers advisable in the public interest if the authority requests the revocation.

Transition

   (5)  If the Lieutenant Governor in Council revokes the designation of the condominium authority under this section, the Lieutenant Governor in Council may, by regulation, provide for any transitional matter necessary for the effective implementation of the revocation.

Condition precedent for exercise of certain powers

   1.8  The Minister may exercise a power under subsection 1.2 (3), 1.3 (1) or 1.24 (1) only if the Minister is of the opinion that it is advisable to exercise the power in the public interest because at least one of the following conditions is satisfied:

    1.  The exercise of the power is necessary to prevent serious harm to the interests of the public, corporations, owners or purchasers, mortgagees or occupiers of units.

    2.  An event of force majeure has occurred.

    3.  The condominium authority is insolvent.

    4.  The number of members of the board of directors of the condominium authority is insufficient for a quorum.

Condominium Authority

Criteria and directives re board members

   1.9  (1)  The Minister may, by order,

  (a)  establish competency criteria for members of the board of directors of the condominium authority; and

  (b)  make directives about the nomination of members, the appointment or election process, the length of their terms and whether they may be reappointed or re-elected.

Competency criteria

   (2)  A person is qualified to be appointed or elected to the board of directors only if he or she meets any competency criteria established under clause (1) (a).

Conflict

   (3)  In the event of conflict, an order made under subsection (1) prevails over a by-law or resolution of the condominium authority.

Board appointments

   1.10  (1)  The Minister may appoint one or more members to the board of directors of the condominium authority for a term specified in the appointment.

Majority

   (2)  The number of members appointed by the Minister shall not form a majority of the board of directors.

Composition

   (3)  The members appointed by the Minister may include,

  (a)  representatives of the public, consumer groups, government organizations, corporations, owners or those owners or occupiers who occupy units for residential purposes; and

  (b)  representatives of other interests as the Minister determines.

Change in number of directors

   1.11  The Minister may, by order, increase or decrease the number of members of the board of directors of the condominium authority.

Appointment of chair

   1.12  The Minister may appoint a chair from among the members of the board of directors of the condominium authority.

Public access to corporate by-laws

   1.13  (1)  The condominium authority shall make its corporate by-laws available for public inspection,

  (a)  within the time and manner specified in the administrative agreement; or

  (b)  within 10 days after the by-laws are made by the board of directors, if no time is specified in the administrative agreement.

Access to compensation information

   (2)  The condominium authority shall make available to the public the prescribed information relating to the compensation for members of its board of directors or officers or employees of the authority and relating to any other payments that it makes or is required to make to them, and shall do so in the prescribed manner.

Processes and procedures

   (3)  The condominium authority shall follow the prescribed processes and procedures with respect to providing access to the public to records of the authority and with respect to managing personal information contained in those records.

Employees

   1.14  (1)  Subject to the administrative agreement, the condominium authority may employ or retain the services of any qualified person to carry out any of its powers and duties under this Act or the regulations.

Not Crown employees

   (2)  The following persons are not employees of the Crown and shall not hold themselves out as such:

    1.  Persons who are employed or whose services are retained under subsection (1).

    2.  Members, officers and agents of the condominium authority.

    3.  Members of the board of directors of the condominium authority, including those appointed by the Minister.

    4.  Members of the Condominium Authority Tribunal, if it has been established under Part I.2.

Not Crown agency

   1.15  (1)  Despite the Crown Agency Act, the condominium authority is not an agent of the Crown for any purpose and shall not hold itself out as such.

Same

   (2)  The following persons are not agents of the Crown and shall not hold themselves out as such:

    1.  Persons who are employed or whose services are retained by the condominium authority.

    2.  Members, officers and agents of the condominium authority.

    3.  Members of the board of directors of the condominium authority, including those appointed by the Minister.

    4.  Members of the Condominium Authority Tribunal, if it has been established under Part I.2.

No personal liability, Crown employee

   1.16  (1)  No action or other proceeding shall be instituted against an employee of the Crown for an act done in good faith in the execution or intended execution of a duty under this Act or the regulations or for an alleged neglect or default in the execution in good faith of the duty.

Tort by Crown employee

   (2)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of liability in respect of a tort committed by an employee of the Crown to which it would otherwise be subject.

No Crown liability

   1.17  (1)  No cause of action arises against the Crown as a direct or indirect result of any act or omission that a person who is not an employee or agent of the Crown takes or makes in the execution or intended execution of any of the person’s powers or duties under this Act or the regulations.

No proceeding

   (2)  No action or other proceeding for damages, including but not limited to a proceeding for a remedy in contract, restitution, tort or trust, shall be instituted against the Crown in connection with any cause of action described in subsection (1).

Indemnification of the Crown

   1.18  The condominium authority shall indemnify the Crown, in accordance with the administrative agreement, in respect of damages and costs incurred by the Crown for any act or omission of the authority or its members, officers, directors, employees or agents in the execution or intended execution of their powers and duties under this Act, the regulations or the administrative agreement.

No personal liability, board members and others

   1.19  (1)  No action or other proceeding shall be instituted against a person mentioned in subsection (2), for an act done in good faith in the execution or intended execution of any of the person’s powers or duties under this Act or the regulations or for an alleged neglect or default in the execution in good faith of that power or duty.

Same

   (2)  Subsection (1) applies to,

  (a)  members of the board of directors of the condominium authority;

  (b)  persons who perform functions under this Act or the regulations as employees, agents or officers of the condominium authority or as persons whose services it retains;

   (c)  members of committees of the condominium authority who perform functions under this Act or the regulations;

  (d)  members of the Condominium Authority Tribunal, if it has been established under Part I.2; and

  (e)  individuals who perform functions under the delegated provisions.

Liability of condominium authority

   (3)  Subsection (1) does not relieve the condominium authority of liability to which it would otherwise be subject.

Not public money

   1.20  (1)  The money that the condominium authority collects in carrying out its powers and duties under this Act or the regulations is not public money within the meaning of the Financial Administration Act.

Same

   (2)  The condominium authority may use the money described in subsection (1) to carry out activities in accordance with its objects, subject to subsection 1.23 (2) and any restrictions in this Part.

Audit

   1.21  (1)  The Auditor General appointed under the Auditor General Act may conduct an audit of the condominium authority, other than an audit required under the Corporations Act.

Access to records and information

   (2)  If the Auditor General conducts an audit under subsection (1), the condominium authority shall give the Auditor General and employees of the Auditor General access to all records and other information required to conduct the audit.

Reports

   1.22  (1)  The board of directors of the condominium authority shall report to the Minister on its activities and financial affairs as they relate to this Act and the administrative agreement.

Form and contents

   (2)  The report shall be in a form acceptable to the Minister and shall provide the information that the Minister requires.

Time for reports

   (3)  The board of directors of the condominium authority shall prepare the report for each year and at the other times that the Minister specifies.

Tabling

   (4)  The Minister shall submit each report prepared under this section to the Lieutenant Governor in Council and shall,

  (a)  lay the report before the Assembly if it is in session; or

  (b)  deposit the report with the Clerk of the Assembly if the Assembly is not in session.

Disclosure by board

   (5)  The board of the condominium authority,

  (a)  may give a copy of the report to other persons before the Minister complies with subsection (4); and

  (b)  shall publish the report on its website when the Minister has complied with subsection (4).

Powers and Duties of Condominium Authority

Additional powers

   1.23  (1)  The condominium authority may carry out other activities in accordance with its objects or purposes, subject to subsection (2).

Commercial activities

   (2)  The condominium authority shall not engage in commercial activity through a person or entity that is related to the authority.

Change to objects or purposes

   1.24  (1)  Subject to section 1.8, the Minister may require that the condominium authority make a specified change to its objects or purposes.

Minister’s approval required

   (2)  The condominium authority shall not make any changes to its objects or purposes unless the Minister’s written approval is obtained in advance.

Right to use French

   1.25  (1)  A person has the right to communicate in French with, and to receive available services in French from, the condominium authority.

Definition

   (2)  In subsection (1),

“service” means any service or procedure that is provided to the public by the condominium authority in carrying out its powers and duties under this Act or the regulations and includes,

  (a)  responding to inquiries from members of the public, and

  (b)  any other communications for the purpose of providing the service or procedure.

Board’s duty

   (3)  The board of directors of the condominium authority shall take all reasonable measures and make all reasonable plans to ensure that persons may exercise the right to use French given by this section.

Limitation

   (4)  The right to use French given by this section is subject to the limits that are reasonable in the circumstances.

Advisory councils, advisory process

   1.26  The Minister may require the condominium authority to,

  (a)  establish one or more advisory councils;

  (b)  include, as members of an advisory council, representatives of owners, representatives of occupiers of units, other representatives of the condominium sector and other persons as the Minister determines; or

   (c)  undertake an advisory process in which it seeks advice from one or both of the public and persons with experience or knowledge relating to this Act.

Duty to inform Minister

   1.27  The condominium authority shall promptly inform and advise the Minister with respect to,

  (a)  any material fact that could affect the authority’s ability to perform its duties under this Act or the regulations; or

  (b)  any urgent or critical matter that is likely to require action by the Minister to ensure that the administration of the delegated provisions is carried out properly.

Advice of condominium authority

   1.28  (1)  The condominium authority shall advise or report to the Minister on any matter that the Minister refers to it and that relates to this Part, Part I.2 or the administration of the delegated provisions.

Same

   (2)  The condominium authority may suggest to the Minister amendments to Ontario legislation that it considers would,

  (a)  further the purpose of this Part or Part I.2 or the purpose of the delegated provisions; or

  (b)  assist the authority in carrying out its powers and duties under this Act or the regulations.

Forms and fees

   1.29  (1)  The condominium authority may,

  (a)  establish forms related to the administration of the delegated provisions;

  (b)  in accordance with processes and criteria established by the condominium authority and approved by the Minister, set and collect,

           (i)  fees, costs or other charges related to the administration of the delegated provisions, and

          (ii)  the fees that a party to a proceeding that is the subject of an application to the Condominium Authority Tribunal under Part I.2 is required to pay, if the Tribunal has been established under that Part; and

   (c)  make directives governing the payment of the fees, costs and charges described in clause (b).

Setting fees

   (2)  In setting the fees, costs and charges described in clause (1) (b), the condominium authority may specify their amounts or the method for determining the amounts.

Publication of fee schedule

   (3)  The condominium authority,

  (a)  shall publish the fees, costs and charges, the processes and criteria and the directives on its website and in any other way described in the administrative agreement; and

  (b)  may publish them in any other format that the condominium authority considers advisable.

   3.  The following provisions of the Act are amended by striking out “the Corporations Act” wherever that expression appears and substituting in each case “the Not-for-Profit Corporations Act, 2010”:

    1.  Clause 1.6 (b), as enacted by section 2 of this Schedule.

    2.  Subsection 1.21 (1), as enacted by section 2 of this Schedule.

   4.  The Act is amended by adding the following section:

Assessments of corporations

   1.30  (1)  The condominium authority may assess corporations with respect to the expenses and expenditures that the authority has incurred and made related to executing its powers and duties under this Act or the regulations.

Process for setting assessment

   (2)  In setting an assessment under subsection (1), the condominium authority shall take into account the fees that the authority has received, including fees from its other operations, and shall comply with the processes and criteria that the authority has established and the Minister has approved.

Same, discretion

   (3)  Subject to subsection (2), in setting an assessment under subsection (1), the condominium authority may,

  (a)  provide that the assessment does not apply to the classes of corporations that it specifies;

  (b)  set different amounts for the assessment based on the different classes of corporations that are subject to the assessment or the type and number of units in each corporation that is subject to the assessment;

   (c)  take into account any other consideration that the authority considers appropriate; or

  (d)  set times for payment of the assessment which may coincide with the time that each of the corporations that is subject to the assessment is required to file a return under Part II.1.

Publication of assessment schedule

   (4)  The condominium authority,

  (a)  shall publish the assessments, the processes and the criteria on its website and in any other way described in the administrative agreement; and

  (b)  may publish them in any other format that the condominium authority considers advisable.

Part of common expenses

   (5)  If a corporation is subject to an assessment under subsection (1), the assessment shall form part of the common expenses of the corporation.

Remittance

   (6)  A corporation that is assessed under subsection (1) shall pay the assessment to the condominium authority in the manner and at the time that the authority specifies.

   5.  The Act is amended by adding the following Part:

Part I.2
Condominium Authority Tribunal

Definitions and Administration

Definitions

   1.31  In this Part,

“application” means an application made to the Tribunal under subsection 1.36 (1), (2) or (3); (“requête”)

“Tribunal” means the Condominium Authority Tribunal established under subsection 1.32 (1). (“tribunal”)

Establishment

   1.32  (1)  If the Lieutenant Governor in Council has made a regulation to designate the condominium authority, the Condominium Authority Tribunal is established under that name in English and tribunal de l’autorité du secteur des condominiums in French.

Members

   (2)  The condominium authority may appoint members to the Tribunal as part-time or full-time members for terms of up to four years or such other period that is prescribed.

Eligibility for appointment

   (3)  A person is not eligible to be appointed to the Tribunal unless the person meets the prescribed requirements, but no person who is a member of the board of directors of the authority shall be appointed to the Tribunal.

Reappointment

   (4)  A person appointed as a member of the Tribunal is eligible for reappointment if the person meets the eligibility requirements in subsection (3).

Chair, vice-chairs

   1.33  (1)  The condominium authority shall appoint a chair and at least one vice-chair of the Tribunal from among the members of the Tribunal.

Acting chair

   (2)  If the chair is absent or otherwise unable to act or if the office is vacant, a vice-chair has all the powers and shall perform the duties of the chair.

Termination of appointments

   1.34  The condominium authority may terminate the appointment of the chair, a vice-chair or a member for cause.

   6.  The Act is amended by adding the following sections:

Proceedings

Conflict

   1.35  Despite section 32 of the Statutory Powers Procedure Act, this Act and the regulations prevail over the provisions of that Act with which they conflict.

Applications

   1.36  (1)  Subject to subsection (4), a corporation may apply to the Tribunal for the resolution of a prescribed dispute with one or more of its owners or one or more occupiers or mortgagees of a unit.

Same, by owner or mortgagee

   (2)  Subject to subsection (4), an owner or a mortgagee of a unit may apply to the Tribunal for the resolution of a prescribed dispute with the corporation, another owner or an occupier or a mortgagee of a unit.

Same, by purchaser

   (3)  If the regulations so provide, a purchaser may apply to the Tribunal for the resolution of a dispute with the corporation regarding compliance with subsection 55 (3), but not any other dispute.

Exception

   (4)  An application may not be made to the Tribunal under this section with respect to,

  (a)  a dispute with respect to Part III, section 20, 26, 82.1, 82.2, 85 or 86, subsection 117 (1) or Part VII or VIII; or

  (b)  a dispute involving the determination of title to any real property.

Form of application

   (5)  An application shall be in the form approved by the Tribunal.

Time for application

   (6)  Subject to any other provision of this Act, an application must be made within two years after the dispute to which the application relates arose.

Extension of time

   (7)  If a person does not make an application within the deadline mentioned in subsection (6), the Tribunal may extend the deadline for a time of no more than one additional year if the Tribunal is satisfied that the delay in not applying was incurred in good faith and no substantial prejudice will result to any person affected by the delay.

Combined applications

   1.37  (1)  Two or more persons who are each entitled to make an application may make the application jointly, subject to any provision in the rules of the Tribunal that authorizes the Tribunal to direct that one or more of the applications be considered in a separate proceeding.

Directed joinder

   (2)  Despite the Statutory Powers Procedure Act, the Tribunal may direct that two or more applications be joined or heard together if the Tribunal believes it would be fair to determine the issues raised by them together.

Parties to a proceeding

   1.38  (1)  The parties to a proceeding that is the subject of an application are the parties described in subsection 1.36 (1), (2) or (3), as the case may be, and any other person added as a party under subsection (3).

Rights of corporation

   (2)  If a person or body makes an application under section 1.36 with respect to a unit in a corporation and, under subsection (1), the corporation is not a party to the proceeding that is the subject of the application, the applicant shall serve a copy of the application on the corporation in accordance with the rules of the Tribunal and the corporation is entitled to intervene in the proceeding.

Addition or removal of parties

   (3)  The Tribunal may add or remove a person as a party if the Tribunal considers it appropriate.

Right of affected persons

   1.39  (1)  Subject to section 1.41, the Tribunal shall adopt the most expeditious method of determining the questions arising in a proceeding before it that affords to all persons directly affected by the proceeding an adequate opportunity to know the issues and to be heard on matters in the proceeding.

Method of proceeding

   (2)  Despite the Statutory Powers Procedure Act, any proceeding with respect to an application may be held orally or in writing, in person, by telephone, video conference or electronic mail, or through use of other electronic means in accordance with the rules of the Tribunal.

Alternative dispute resolution

   1.40  (1)  Despite section 4.8 of the Statutory Powers Procedure Act, the Tribunal may direct the parties to a proceeding to participate in an alternative dispute resolution mechanism for the purposes of resolving the proceeding or an issue arising in the proceeding.

Definition

   (2)  In this section,

“alternative dispute resolution mechanism” includes mediation, conciliation, negotiation or any other means of facilitating the resolution of issues in dispute.

Power to dismiss applications

   1.41  (1)  The Tribunal may refuse to allow a person to make an application or may dismiss an application without holding a hearing if the Tribunal is of the opinion that the subject matter of the application is frivolous or vexatious or that the application has not been initiated in good faith or discloses no reasonable cause of action.

Same

   (2)  The Tribunal may dismiss an application without holding a hearing if the Tribunal finds that the applicant has filed documents with the Tribunal that the applicant knew or ought to have known to have contained false or misleading information.

Jurisdiction

   1.42  (1)  Subject to subsection (2), the Tribunal has exclusive jurisdiction to exercise the powers conferred on it under this Act and to determine all questions of fact or law that arise in any proceeding before it.

Exception

   (2)  The Tribunal shall not inquire into or make a decision concerning the constitutional validity of a provision of an Act or a regulation.

Order during proceeding

   1.43  On the request of a party to a proceeding before the Tribunal, the Tribunal may make an order for the detention, preservation or inspection of property and documents that are the subject of the application in the proceeding or as to which a question may arise in the proceeding, and may order a party to provide security in that connection.

Orders at end of proceeding

   1.44  (1)  Subject to subsection (4), in a proceeding before the Tribunal, the Tribunal may make any of the following orders:

    1.  An order directing one or more parties to the proceeding to comply with anything for which a person may make an application to the Tribunal.

    2.  An order prohibiting a party to the proceeding from taking a particular action or requiring a party to the proceeding to take a particular action.

    3.  An order directing a party to the proceeding to pay compensation for damages incurred by another party to the proceeding as a result of an act of non-compliance up to the greater of $25,000 or the amount, if any, that is prescribed.

    4.  An order directing a party to the proceeding to pay the costs of another party to the proceeding.

    5.  An order directing a party to the proceeding to pay the costs of the Tribunal.

    6.  An order directing a corporation that is a party to a proceeding with respect to a dispute under subsection 55 (3) to pay a penalty that the Tribunal considers appropriate to the person entitled to examine or obtain copies under that subsection if the Tribunal considers that the corporation has without reasonable excuse refused to permit the person to examine or obtain copies under that subsection.

    7.  An order directing whatever other relief the Tribunal considers fair in the circumstances.

Orders for costs

   (2)  Despite section 17.1 of the Statutory Powers Procedure Act, an order for costs made under paragraph 4 or 5 of subsection (1) shall be determined in accordance with the rules of the Tribunal.

Order for penalty

   (3)  An order for a penalty made under paragraph 6 of subsection (1) shall be in an amount of not more than the lesser of $5,000 and the prescribed amount, if any.

No order for permanent removal of person

   (4)  The Tribunal shall not make an order requiring a person to vacate a property permanently.

Payment under order for compensation, costs or a penalty

   1.45  (1)  The party against whom an order for compensation, costs or a penalty is made shall pay the amount of the order within 30 days, unless the order specifies another time limit.

Adding to common expenses

   (2)  If an order requires an owner to pay compensation or costs to a corporation, the corporation may add the amount of the order to the contribution to the common expenses payable for the owner’s unit.

Set-off against common expenses

   (3)  If an order requires a corporation to pay compensation, costs or a penalty to an owner and the corporation does not pay the amount of the order within the time limit mentioned in subsection (1), the owner may set off the amount against the contribution to the common expenses payable for the owner’s unit.

Appeals

   1.46  (1)  Subject to subsection (2), an order of the Tribunal in a proceeding is final and binding.

Right to appeal

   (2)  A party to a proceeding before the Tribunal may appeal the order to the Divisional Court on a question of law in accordance with the rules of court.

Powers of court

   (3)  On the appeal, the Divisional Court may affirm, reverse or vary the order of the Tribunal.

Settlement

   1.47  (1)  If the parties to a proceeding that is the subject of an application agree to a settlement in writing and sign the settlement, the settlement is binding on the parties.

Consent order

   (2)  The Tribunal may, on the joint motion of the parties to a settlement described in subsection (1), make an order requiring compliance with the settlement or any part of the settlement.

Application where contravention

   (3)  A party to the settlement described in subsection (1) who believes that another party has contravened the settlement may make an application to the Tribunal for an order under subsection (6),

  (a)  within six months after the contravention to which the application relates; or

  (b)  after the expiry of the time limit described in clause (a) if the Tribunal is satisfied that the delay in applying was incurred in good faith and no substantial prejudice will result to any person affected by the delay.

Form of application

   (4)  An application under subsection (3) shall be in the form that the Tribunal approves.

Parties

   (5)  Subject to the rules of the Tribunal, the parties to the proceeding that is the subject of the application are the parties to the settlement and any other person that the Tribunal adds as a party.

Order

   (6)  If, on an application under subsection (3), the Tribunal determines that a party has contravened the settlement, the Tribunal may make an order that it considers appropriate to remedy the contravention.

Publication of orders

   1.48  The Tribunal shall ensure that a copy of any order that it makes is made available to the public in the prescribed manner.

   7.  (1)  Subsection 2 (1) of the Act is amended by striking out “Subject to the regulations made under this Act and subsection (2)” and substituting “Subject to the regulations and subsections (2) and (2.1)”.

   (2)  Section 2 of the Act is amended by adding the following subsection:

Same, residential condominium conversion project

   (2.1)  A declaration and description that would create a corporation for a residential condominium conversion project shall not be registered unless the declaration contains confirmation from the Registrar, as defined in the Ontario New Home Warranties Plan Act, that,

  (a)  the project, the units or proposed units of it and the common elements of it have been enrolled in the Plan, as defined in that Act, in accordance with the regulations made under that Act;

  (b)  the builder, as defined in clause (b) of the definition of that term in section 1 of that Act, is registered as a builder in respect of the project under that Act; and

   (c)  the vendor, as defined in clause (b) of the definition of that term in section 1 of that Act, is registered as a vendor in respect of the project under that Act.

   8.  Subsection 5 (4) of the Act is repealed and the following substituted:

Same

   (4)  Subject to the regulations, the Corporations Information Act does not apply to the corporation.

   9.  (1)  Paragraph 2 of subsection 6 (2) of the Act is repealed.

   (2)  Paragraph 4 of subsection 6 (2) of the Act is repealed and the following substituted:

    4.  Standard condominium corporations that are not any of the corporations mentioned in paragraph 1 or 3.

   (3)  Subsection 6 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Indication in declaration

   (4)  Subject to the regulations, the declaration shall state,

.     .     .     .     .

   (4)  Subsection 6 (4) of the Act is amended by striking out “and” at the end of clause (a), by adding “and” at the end of clause (b) and by adding the following clause:

   (c)  whether the corporation is a phased condominium corporation.

   (5)  Section 6 of the Act is amended by adding the following subsection:

Phased condominium corporations

   (5)  A phased condominium corporation is a freehold or a leasehold condominium corporation that is subject to Part XI.

   10.  (1)  Subsection 7 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Contents

   (2)  Subject to the regulations, a declaration shall contain,

.     .     .     .     .

   (2)  Subsection 7 (2) of the Act is amended by adding the following clause:

(d.1) a statement of how the proportions mentioned in clauses (c) and (d) are determined;

   (3)  The French version of clause 7 (2) (e) of the Act is repealed and the following substituted:

    e)  l’adresse aux fins de signification de l’association, son adresse civique, si elle est connue, et son adresse postale si elle diffère de son adresse aux fins de signification ou de son adresse civique;

   (4)  Subsection 7 (4) of the Act is amended by adding “subject to the regulations” after “contain” in the portion before clause (a).

   (5)  Clause 7 (4) (a) of the Act is repealed and the following substituted:

  (a)  a statement specifying the common expenses of the corporation and the circumstances that may result in the addition of any amount to the contribution to the common expenses payable for the owner’s unit to indemnify or compensate the corporation for,

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

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

   (6)  Clause 7 (4) (b) of the Act is repealed and the following substituted:

  (b)  conditions or restrictions with respect to the occupation or use of the units, the common elements or the assets, if any, of the corporation;

   (7)  Subsection 7 (4) of the Act is amended by striking out “and” at the end of clause (d) and by repealing clause (e) and substituting the following:

  (e)  a description of the allocation of obligations to maintain the units, the common elements or the assets, if any, of the corporation and to repair them, which allocation has been done in accordance with this Act; and

   (f)  all other material that the regulations permit.

   (8)  Section 7 of the Act is amended by adding the following subsection:

Determination re common expenses

   (4.1)  The common expenses and the addition mentioned in clause (4) (a) shall be determined in accordance with the prescribed restrictions or requirements, if any.

   (9)  Subsection 7 (5) of the Act is amended by adding “A declaration need not be reasonable but” at the beginning.

   11.  Subsection 8 (5) of the Act is amended by adding “and, if applicable, subsection 11 (6)” at the end.

   12.  The Act is amended by adding the following Part:

Part II.1
condominium returns

Registrar

   9.1  (1)  The following person or body shall appoint a person to be known in English as the Condominium Registrar and in French as the registrateur du secteur des condominiums for the purposes of this Act and may appoint a maximum of two deputy Registrars:

    1.  The board of the condominium authority, if the authority is responsible for the administration of this Part.

    2.  The Minister, if there is no condominium authority that is responsible for the administration of this Part.

Powers and duties of Registrar

   (2)  The Registrar shall exercise the powers and perform the duties imposed on him or her under this Act.

Same, deputy Registrar

   (3)  A deputy Registrar shall perform the duties that the Registrar assigns and shall act as the Registrar in the Registrar’s absence.

If more than one deputy Registrar

   (4)  If more than one deputy Registrar is appointed, only one deputy Registrar may act as the Registrar under subsection (3) at any one time.

Returns

   9.2  (1)  Every corporation shall file with the Registrar the following returns by delivering them to the Registrar in the prescribed manner and within the prescribed time and by paying the applicable fee:

    1.  An initial return.

    2.  A turn-over return.

    3.  An annual return.

    4.  Other returns as prescribed.

Contents

   (2)  Each return shall set out the prescribed information as of the prescribed date.

Verification

   (3)  Each return shall be verified by the certificate of,

  (a)  a director or officer of the corporation;

  (b)  a manager under an agreement for the management of the property; or

   (c)  any other individual having knowledge of the affairs of the corporation.

Form

   (4)  Each return shall be in a form that the Registrar approves.

Incomplete return

   (5)  The Registrar may accept a return from a corporation for filing even if the return does not comply with the information requirements of subsection (2), but the corporation shall not be considered to have complied with this section until it has satisfied all of the requirements of this section.

Notice of change

   9.3  (1)  Unless otherwise prescribed, every corporation shall file with the Registrar, within the prescribed time,

  (a)  a notice of change for every change in the directors elected or appointed to the board; and

  (b)  a notice of all additional information, if any, that is prescribed.

Exception

   (2)  It is not necessary to file a notice of change in respect of a director who is re-elected after an immediately preceding term of office.

Verification

   (3)  A notice required under subsection (1) shall be verified by the certificate of,

  (a)  a director or officer of the corporation;

  (b)  a manager under an agreement for the management of the property; or

   (c)  any other individual having knowledge of the affairs of the corporation.

Form

   (4)  A notice required under subsection (1) shall be in a form that the Registrar approves.

No false or misleading statements

   9.4  No person shall make a statement in any return or notice that a corporation is required to file with the Registrar if,

  (a)  the statement is false or misleading with respect to any material fact; or

  (b)  the statement omits to state any material fact, the omission of which makes the statement false or misleading.

No duty of Registrar

   9.5  The Registrar may accept the information contained in any return or notice filed under this Act without making any inquiry as to its completeness or accuracy.

Late filing fee

   9.6  A corporation that files a return or notice under this Part after the time set out in the regulations shall pay the late filing fee set by the Minister or, if the condominium authority is responsible for the administration of this Part, the condominium authority.

Registrar’s database

   9.7  (1)  The Registrar shall maintain, in accordance with the prescribed requirements, an electronic database of,

  (a)  the information contained in every return and notice that the Registrar receives under this Part; and

  (b)  any other information that relates to this Part and that is prescribed.

Publication

   (2)  The Registrar shall make available to the public, by electronic or other means and in accordance with the regulations, the information that is contained in the electronic database and that is prescribed.

Confidentiality

   9.8  A person who obtains information in the course of exercising a power or carrying out a duty related to the administration of this Part or the regulations relating to this Part shall preserve secrecy with respect to the information and shall not communicate the information to any person except,

  (a)  as may be required in connection with a proceeding under this Act or in connection with the administration of this Act or the regulations;

  (b)  as authorized under the Regulatory Modernization Act, 2007;

   (c)  to a prescribed entity or organization, if the purpose of the communication is consumer protection;

  (d)  to a law enforcement agency;

  (e)  to the counsel of the person communicating the information; or

   (f)  with the consent of the person to whom the information relates.

Certificate of Registrar

   9.9  (1)  The Registrar may issue a certificate certifying that,

  (a)  any return or notice required to be filed under this Part has been so filed or has not been so filed;

  (b)  a person named in the certificate on the date or during the period specified in the certificate is shown on the records of the Registrar as a director, officer, manager or attorney for service of the corporation named in the certificate; or

   (c)  information set out in the certificate has been filed under this Part and is contained in the records of the Registrar.

Form of certificate

   (2)  The certificate shall be issued under the seal of the Registrar and shall be signed by the Registrar.

Certificates as evidence

   (3)  A certificate purporting to be under the seal of the Registrar and signed by the Registrar, or any certified copy, shall be received in evidence in any prosecution or other proceeding as proof, in the absence of evidence to the contrary, of the facts so certified without personal appearance to prove the seal, the signature or the official position of the person appearing to have signed the certificate.

   13.  (1)  Subsection 11 (1) of the Act is amended by striking out “and the by-laws” and substituting “the by-laws and the rules”.

   (2)  Section 11 of the Act is amended by adding the following subsections:

Distinction by regulations

   (6)  Despite anything in the declaration, the description, a by-law, an agreement or an instrument, the regulations may specify,

  (a)  what parts of a property or proposed property and what other real property or personal property in respect of a property, a proposed property or a corporation constitute a unit or an asset owned by a corporation or form part of the common elements; and

  (b)  rules and procedures necessary to implement anything described in clause (a).

Exception

   (7)  A provision of a regulation mentioned in subsection (6) ceases to apply to a corporation if a board of the corporation described in subsection (8) so decides and if the corporation has met all other requirements of this Act.

Board affected

   (8)  A board of the corporation mentioned in subsection (7) is a new board elected at a turn-over meeting held under section 43 or a subsequent board, but does not include,

  (a)  a new board elected pursuant to subsection 152 (6); or

  (b)  a board if a majority of the directors on it are those who were elected at any time when the declarant or a declarant affiliate, individually or jointly, owned a majority of the units in the corporation.

   14.  Paragraph 4 of subsection 12 (1) of the Act is repealed and the following substituted:

    4.  An easement mentioned in subsection 21.1 (2) as determined in accordance with the regulations.

   15.  Section 17 of the Act is amended by adding the following subsection:

Levies only for corporation’s loss

   (4)  Subject to the other provisions of this Act, the corporation shall not levy any penalty, fine or any other amount against an owner, an occupier of a unit in the corporation or any other prescribed person if it does not indemnify or compensate the corporation for an actual loss, as is prescribed, that the corporation has incurred in the performance of the corporation’s objects and duties.

   16.  Section 19 of the Act is repealed and the following substituted:

Right of entry

   19.  (1)  Subject to subsection (2), on giving reasonable notice to an owner, the corporation or a person authorized by the corporation may, at any reasonable time, enter a unit of the owner in the corporation or a part of the common elements of which the owner has exclusive use to perform the objects and duties of the corporation or to exercise the powers of the corporation.

Same, no notice

   (2)  Subject to any conditions or restrictions in the regulations, the declaration or a by-law may permit the corporation or a person authorized by the corporation to enter the unit or part of the common elements of which the owner has exclusive use without prior notice to the owner in the event of an emergency or other event or circumstance as is prescribed.

   17.  (1)  Subsections 20 (2) and (3) of the Act are repealed and the following substituted:

Application

   (2)  Subsection (1) applies to,

  (a)  an easement that provides a benefit to or imposes a burden on land owned by the declarant other than the property; or

  (b)  an easement that,

           (i)  the approval authority requires as a condition of approving the declaration and description for the corporation, and

          (ii)  complies with the prescribed requirements if it provides a benefit to or imposes a burden on land that is not the property or land owned by the declarant.

Creation of easement

   (3)  No deed or other document is required to be registered or delivered in order for an easement that is created under subsection (1) to be effective.

   (2)  The English version of subsection 20 (4) of the Act is amended by striking out “even though” and substituting “even if”.

   18.  The Act is amended by adding the following section:

Shared facilities agreement

   21.1  (1)  Subject to the regulations, if any of the following persons or any combination of them share or are proposed to share in the provision, use, maintenance, repair, insurance, operation or administration of any land, any part of a property or proposed property, any assets of a corporation or any facilities or services, they shall enter into an agreement that meets the prescribed requirements and shall ensure that it is registered in accordance with the regulations:

    1.  Two or more corporations.

    2.  A corporation and any other person.

    3.  A corporation and one or more declarants.

    4.  A declarant and one or more corporations.

    5.  Two or more declarants.

    6.  A declarant and any other person.

Covenants running with real property

   (2)  Unless the regulations provide otherwise, any easement or covenant, whether positive or negative in nature, in an agreement mentioned in subsection (1) shall run with any real property that receives a benefit or is subject to a burden under the agreement.

Enforcement

   (3)  The following persons may enforce the easement or covenant against each other:

    1.  A party to the agreement.

    2.  The owner or any subsequent owner of the real property.

    3.  If the real property is property, to which the objects and duties of a corporation apply under section 17, then, subject to the regulations, the corporation and any of its successors and assigns.

By-laws and rules

   (4)  The parties to an agreement mentioned in subsection (1) may, in accordance with the regulations, make, amend or repeal joint by-laws or rules governing the provision, use, maintenance, repair, insurance, operation or administration of any land, any part of a property or proposed property, any assets of a corporation or any facilities or services that are subject to the agreement.

Non-application

   (5)  Sections 56 and 58 do not apply to any by-law or rule made under subsection (4).

   19.  (1)  The definition of “telecommunications agreement” in subsection 22 (1) of the Act is repealed and the following substituted:

“telecommunications agreement” means an agreement for the provision of services or facilities related to telecommunications to, from or within a property and includes a grant or transfer of an easement, lease or licence through the property for the purposes of telecommunications. (“convention concernant les télécommunications”) 

   (2)  The following provisions of the English version of subsection 22 (2) of the Act are amended by striking out “the units of the corporation” wherever that expression appears and substituting in each case “the units in the corporation”:

    1.  Clause (a).

    2.  Clause (b).

    3.  Clause (c).

   (3)  Subsection 22 (3) of the Act is amended by striking out “97 (3), (4), (5) and (6)” and substituting “97 (6), (7), (8) and (9)”.

   (4)  Subsection 22 (8) of the Act is amended by striking out “If the property of a corporation that” at the beginning and substituting “If a property that”.

   (5)  Section 22 of the Act is amended by adding the following subsections:

Loss of owner’s right to consent

   (9.1)  An owner is not entitled to consent under clause (9) (c) if any contributions to the common expenses payable for the owner’s unit are in arrears for 30 days or more.

Payment of arrears

   (9.2)  An owner who, under subsection (9.1), is not entitled to consent may consent after the corporation receives payment of the arrears with respect to the owner’s unit.

   (6)  Section 22 of the Act is amended by adding the following subsection:

No liability

   (10.1)  If, under subsection (9), a corporation terminates an agreement, the corporation and its directors, officers and owners are not liable for,

  (a)  any obligations in respect of the termination, including obligations purporting to be incurred as cancellation charges, administration charges, accelerated payments or any other charges, penalties or fees;

  (b)  any monetary obligations under the agreement respecting any period after the termination takes effect, unless the regulations provide otherwise; or

   (c)  any other prescribed consequences.

   (7)  Clause 22 (12) (b) of the Act is repealed and the following substituted:

  (b)  reimburse the corporation for the damage, if any, that the removal causes to the property that was subject to the agreement.

   20.  Subsection 23 (2) of the Act is amended by striking out “are in the record of the corporation maintained under subsection 47 (2)” in the portion before clause (a) and substituting “appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record”.

   21.  The Act is amended by adding the following sections:

Restriction on ability to sue

   23.1  (1)  A corporation that has unpaid fees, costs, charges or assessments under Part I.1 or paragraph 5 of subsection 1.44 (1) is not capable of maintaining,

  (a)  a proceeding before the Condominium Authority Tribunal if the condominium authority exists; or

  (b)  a proceeding in a court in Ontario except with leave of the court.

Leave of court

   (2)  The court shall grant leave if the court is satisfied that,

  (a)  the failure to pay the fees, costs, charges or assessments under Part I.1 or paragraph 5 of subsection 1.44 (1) was inadvertent;

  (b)  there is no evidence that the public or the owners of the corporation have been deceived or misled; and

   (c)  at the time of the application to the court, the corporation had no unpaid fees, costs, charges or assessments under Part I.1 or paragraph 5 of subsection 1.44 (1).

Contracts valid

   23.2  No contract is void or voidable by reason only that it was entered into by a corporation that has unpaid fees, costs, charges or assessments under Part I.1 or paragraph 5 of subsection 1.44 (1) at the time the contract was made.

   22.  (1)  The English version of clause 24 (1) (b) of the Act is amended by striking out “the units of the corporation” and substituting “the units in the corporation”.

   (2)  The following provisions of the Act are amended by striking out “are in the record of the corporation maintained under subsection 47 (2)” wherever that expression appears and substituting in each case “appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record”:

    1.  Subsection 24 (2).

    2.  Section 25.

   23.  The Act is amended by adding the following section:

No acquisition of units, etc.

   26.1  (1)  Despite anything in the declaration, a by-law, an agreement or an instrument, until a board of a corporation described in subsection (2) decides otherwise, the corporation shall not acquire an interest or a right in a unit, other real property or personal property except for no consideration, unless the regulations provide otherwise.

Board affected

   (2)  A board of a corporation mentioned in subsection (1) is a new board elected at a turn-over meeting held under section 43 or a subsequent board, but does not include,

  (a)  a new board elected pursuant to subsection 152 (6); or

  (b)  a board if a majority of the directors on it are those who were elected at any time when the declarant or a declarant affiliate, individually or jointly, owned a majority of the units in the corporation.

   24.  The Act is amended by adding the following section:

Existing remedies

   26.2  (1)  Unless the regulations provide otherwise, nothing in a declaration, a by-law, an agreement or an instrument affects any remedy that the corporation may have at law against a declarant or a declarant affiliate until a board of the corporation described in subsection (2) decides otherwise.

Board affected

   (2)  A board of a corporation mentioned in subsection (1) is a new board elected at a turn-over meeting held under section 43 or a subsequent board, but does not include,

  (a)  a new board elected pursuant to subsection 152 (6); or

  (b)  a board if a majority of the directors on it are those who were elected at any time when the declarant or a declarant affiliate, individually or jointly, owned a majority of the units in the corporation.

   25.  The Act is amended by adding the following section:

Information certificate to owners

   26.3  A corporation shall send to the owners,

  (a)  at least once every three months or at such other time periods as are prescribed, a certificate that is prepared in accordance with the regulations and that contains the statements described in clauses 76 (1) (d), (e) and (h), the certificate or memorandum described in clause 76 (1) (p) and all other information relating to the corporation as is prescribed; and

  (b)  at the prescribed times, a certificate that is prepared in accordance with the regulations and that includes all other prescribed information relating to the corporation.

   26.  (1)  Subsection 28 (2) of the Act is repealed and the following substituted:

Notice of candidates

   (2)  The notice of a meeting to elect one or more directors shall include the name and address of each individual who, for the purpose of clause 45.1 (1) (a), has notified the board in writing and in accordance with the regulations, if any, of the intention to be a candidate in the election by the date specified in the preliminary notice that the board is required to send under subsection 45.1 (1).

   (2)  Subsection 28 (3) of the Act is repealed and the following substituted:

Notice of non-leased voting position

   (3)  If, under subsection 51 (6), one position on the board is reserved for voting by owners of non-leased voting units, the notice of meeting shall include,

  (a)  a statement that one position on the board is reserved for voting by owners of non-leased voting units; and

  (b)  a statement indicating the name and address of each individual who, for the purpose of subclause 45.1 (1) (a.1) (iv), has notified the board in writing of an intention to be a candidate for the position on the board reserved for voting by owners of non-leased voting units.

   27.  Section 29 of the Act is repealed and the following substituted:

Qualifications

   29.  (1)  No person shall be a director if,

  (a)  the person is not an individual;

  (b)  the person is under 18 years of age;

   (c)  the person has the status of bankrupt;

  (d)  the person has been found, under the Substitute Decisions Act, 1992 or the Mental Health Act, to be incapable of managing property;

  (e)  subject to the regulations, the person has been found to be incapable by any court in Canada or elsewhere; or

   (f)  the person has not complied with the prescribed disclosure obligations within the prescribed time.

Disqualification

   (2)  A person immediately ceases to be a director if,

  (a)  the person has the status of bankrupt;

  (b)  the person has been found, under the Substitute Decisions Act, 1992 or the Mental Health Act, to be incapable of managing property;

   (c)  subject to the regulations, the person has been found to be incapable by any court in Canada or elsewhere;

  (d)  a certificate of lien has been registered under subsection 85 (2) against a unit owned by the person and the person does not obtain a discharge of the lien under subsection 85 (7) within 90 days of the registration of the certificate of lien;

  (e)  the person has not completed the prescribed training within the prescribed time; or

   (f)  the person has not complied with the prescribed disclosure obligations within the prescribed time.

   28.  Subsection 31 (2) of the Act is repealed and the following substituted:

Same

   (2)  Despite subsection (1), a director may continue to act until,

  (a)  a successor is elected, if the director is not elected to a position described in subsection 51 (6); or

  (b)  if the director is elected to a position described in subsection 51 (6), the earlier of,

           (i)  the time at which a successor is elected, and

          (ii)  the first annual general meeting following the expiration of the director’s term.

   29.  Subsection 32 (2) of the Act is repealed and the following substituted:

Quorum

   (2)  A quorum for the transaction of business is a majority of the number of persons of which the board consists in accordance with this Act, irrespective of any vacancy that arises in the board.

   30.  Subsection 33 (1) of the Act is amended by striking out “the purpose” and substituting “that purpose in accordance with section 46”.

   31.  (1)  Subsection 34 (2) of the Act is amended by striking out “If a vacancy arises in the board and” at the beginning and substituting “If a vacancy arises in the board, including in a position described in subsection 51 (6), and if”.

   (2)  Subsection 34 (5) of the Act is amended by adding at the end “in accordance with the regulations”.

   32.  Subsection 35 (5) of the Act is repealed and the following substituted:

Teleconference

   (5)  A meeting of the directors may be held, in accordance with the regulations, by teleconference or another form of communications system that is prescribed, if all directors of the corporation consent to the means used for holding the meeting.

   33.  Subsection 37 (3) of the Act is amended by striking out “or” at the end of clause (a) and by adding the following clause:

(a.1) a report or opinion of a reserve fund study provider with respect to a reserve fund or a reserve fund study, as determined by the regulations, if any; or

   34.  The Act is amended by adding the following section:

Procurement process, etc.

   39.1  A corporation shall not enter into a prescribed contract or transaction unless the procurement process and other contracts or arrangements that the corporation entered into in relation to the contract or transaction meet the prescribed requirements.

   35.  Subsection 42 (9) of the Act is amended by striking out “Despite subsection 50 (1)” at the beginning.

   36.  (1)  Subsection 43 (1) of the Act is amended by striking out “registered”.

   (2)  Subsection 43 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Things to turn over

   (4)  At the meeting, the declarant shall, in accordance with the regulations, if any, deliver to the board elected at the meeting,

.     .     .     .     .

   (3)  Clause 43 (4) (f) of the Act is amended by striking out “subsection 47 (2)” and substituting “subsection 46.1 (3)”.

   (4)  Subsection 43 (5) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Same, after meeting

   (5)  The declarant shall, in accordance with the regulations, if any, deliver to the board within 30 days after the meeting,

.     .     .     .     .

   (5)  Clause 43 (5) (f) of the Act is amended by striking out the portion before subclause (i) and substituting the following:

   (f)  if the property is subject to the Ontario New Home Warranties Plan Act,

.     .     .     .     .

   (6)  Clause 43 (5) (g) of the Act is amended by striking out “after damage”.

   (7)  Clause 43 (5) (h) of the Act is repealed.

   37.  (1)  Subsections 44 (1) and (2) of the Act are repealed and the following substituted:

Performance audit

   (1)  If a property includes one or more units for residential purposes or if the corporation is a common elements condominium corporation, the board shall retain a person who holds a certificate of authorization within the meaning of the Professional Engineers Act or a certificate of practice within the meaning of the Architects Act to conduct a performance audit, on behalf of the corporation, of the common elements described in the description and, unless the regulations provide otherwise, any real property owned by the corporation.

Time for audit

   (2)  A performance audit shall be conducted before the first anniversary of the date of registration of the declaration and description for the corporation or such other time periods following the registration of the declaration and description that are prescribed.

   (2)  Subsection 44 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Purpose

   (4)  The person who conducts the performance audit shall assess, in the person’s professional opinion, whether there are any deficiencies in the performance of the common elements described in the description and the real property that is the subject of the audit, after construction has been completed on them, that,

.     .     .     .     .

   (3)  Clause 44 (4) (b) of the Act is repealed and the following substituted:

  (b)  subject to the regulations, would give rise to a claim described in clause (a) if the property were subject to the Ontario New Home Warranties Plan Act.

   (4)  Subsection 44 (5) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Duties

   (5)  In making the assessment, the person who conducts the performance audit shall,

.     .     .     .     .

   (5)  Clause 44 (5) (c) of the Act is amended by adding “and the real property that is the subject of the audit” after “common elements”.

   (6)  Subclauses 44 (5) (d) (i) and (ii) of the Act are repealed and the following substituted:

           (i)  damage to the units that may have been caused by defects in the common elements and the real property that is the subject of the audit,

          (ii)  defects in the common elements and the real property that is the subject of the audit, which defects may cause damage to the units, and

         (iii)  defects in the common elements and the real property that is the subject of the audit, where those common elements and that real property are adjacent to the units, as determined by the regulations, if any.

   (7)  Subsection 44 (9) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Submission of report

   (9)  Before the first anniversary of the date of registration of the declaration and description, or such other time periods following the registration of the declaration and description that are prescribed, the person who conducts a performance audit shall,

.     .     .     .     .

   38.  Section 45 of the Act is amended by adding the following subsection:

Material for meeting

   (5)  In addition to any matters and material that this Act requires be placed before a meeting of owners, the board shall place before such a meeting, in the prescribed manner, all other material, if any, that is prescribed.

   39.  (1)  The Act is amended by adding the following section:

Procedure for board calling a meeting

   45.1  (1)  Before the board sends out a notice to call a meeting of owners, it shall send a preliminary notice to the owners that is prepared in accordance with the regulations and that contains,

  (a)  if the meeting is to elect one or more directors, a request that each individual who intends to be a candidate for election to the board notify the board in writing, by a date that is specified in the notice and that is determined in accordance with the regulations, of the individual’s intention, name and address;

  (b)  a request that any owner who wishes that the board include any material in the notice calling the meeting provide the material to the board by a date that is specified in the notice and that is determined in accordance with the regulations; and

   (c)  all other materials, if any, that are prescribed.

Material to include in notice of meeting

   (2)  The board is not required to include in the notice calling a meeting of owners any material mentioned in clause (1) (b) or (c) unless the regulations provide otherwise.

   (2)  Clause 45.1 (1) (a) of the Act, as enacted by subsection (1), is amended by adding “subject to clause (a.1)” at the beginning.

   (3)  Subsection 45.1 (1) of the Act, as enacted by subsection (1), is amended by adding the following clause:

(a.1) if there is a vacancy in a position on the board described in subsection 51 (6) or if such a vacancy will arise by the time of the meeting under clause 31 (2) (b) or in the circumstances specified in the regulations, if any,

           (i)  a copy of the text of the definition of “non-leased voting unit” in subsection 1 (1) and the text of subsections 51 (5) and (6),

          (ii)  a statement of the date of the last day of the 15-day period mentioned in subsection 51 (5),

         (iii)  a request for a statement, that complies with the regulations, if any, from each owner of a non-leased voting unit stating that the owner is the owner of a non-leased voting unit, and

         (iv)  a request that each individual who intends to be a candidate, for the position on the board reserved for voting by owners of non-leased voting units, notify the board in writing, by a date that is specified in the notice and that is determined in accordance with the regulations, of the individual’s intention, name and address;

   40.  Section 46 of the Act is repealed and the following substituted:

Requisition for meeting

   46.  (1)  Subject to subsection (2), a requisition for a meeting of owners can only be made by those owners who, at the time the board receives the requisition,

  (a)  own at least 15 per cent of the units;

  (b)  appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record; and

   (c)  have no contributions to the common expenses payable for their units that have been in arrears for 30 days or more.

Meeting re director in reserved position

   (2)  If the nature of the business to be presented at a meeting of owners includes the removal or the election of a director who occupies a position on the board described in subsection 51 (6), a requisition made by owners for the meeting can only be made by those owners who, at the time the board receives the requisition,

  (a)  own at least 15 per cent of the non-leased voting units in the corporation;

  (b)  appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record; and

   (c)  have no contributions to the common expenses payable for their units that have been in arrears for 30 days or more.

Saving

   (3)  If a requisition made under subsection (2) does not meet the requirements of that subsection but does meet the requirements of subsection (1), the meeting may proceed for the transaction of any business pursuant to subsection (1) but not for the removal or the election of a director as described in subsection (2).

Purpose of meeting

   (4)  A requisition for a meeting of owners may be called for any of the following purposes:

    1.  An information meeting of owners being a meeting at which no vote shall be taken on any matter other than routine procedure.

    2.  The removal or the election of one or more of the directors.

    3.  Any other purpose for which this Act or the regulations permit the owners to requisition a meeting of owners.

Form of requisition

   (5)  The requisition shall contain the prescribed information and shall be in the prescribed form.

Delivery of requisition

   (6)  The requisition shall be delivered personally or by registered mail to the president or secretary of the board or deposited at the address for service of the corporation or as is otherwise prescribed.

Response of board

   (7)  Subject to subsection (8), upon receiving a requisition, the board shall, within 10 days or such other time period, if any, that is prescribed, respond to the requisitionists in writing, in accordance with subsection (9), stating that,

  (a)  the board will call and hold a meeting of owners for the transaction of business in the requisition; or

  (b)  the board will not call and hold a meeting of owners for the transaction of business in the requisition and state why, according to the board, the requisition does not comply with any or all of subsections (1) to (6).

Withdrawal of requisition

   (8)  The board is not required to respond to a requisition under subsection (7) if the requisitionists have withdrawn it in accordance with the regulations, if any.

Delivery of response

   (9)  In responding under subsection (7), the board shall deliver its response to the requisitionists at their address for service given in the requisition or as is otherwise prescribed.

Default response

   (10)  If the board does not respond to the requisitionists as required by subsection (7), the board shall be deemed to have responded to the requisitionists as described in clause (7) (a).

Calling meeting

   (11)  Subject to subsection (12), if the board responds or is deemed to have responded as described in clause (7) (a), the board shall,

  (a)  if the requisitionists so request in the requisition or consent in writing, add the business to be presented at the meeting to the agenda of items for the next annual general meeting that, in accordance with this Act, is scheduled to be held, as determined by the board or as determined in the prescribed manner,

           (i)  at least 40 days after the end of the time period that the board has to respond to the requisitionists under subsection (7), in the case of a request,

          (ii)  at least 40 days after the consent is given, in the case of a consent; or

  (b)  otherwise call and hold a meeting of owners within 40 days after the end of the time period that the board has to respond to the requisitionists under subsection (7).

Withdrawal of requisition

   (12)  The board shall not do anything required by clause (11) (a) or (b) if the requisitionists withdraw the requisition in accordance with the regulations, if any, before the next annual general meeting described in that clause (a) or the meeting described in that clause (b), as the case may be, is held. 

Revised requisition

   (13)  If the board responds as described in clause (7) (b), the requisitionists may, within 10 days or such other time period, if any, that is prescribed, revise the requisition in accordance with the regulations and deliver or deposit it in accordance with subsection (6).

Procedure

   (14)  Subsections (6) to (12) apply to a revised requisition as if it were a requisition mentioned in those subsections.

Abandonment

   (15)  If the board responds to an original requisition or a revised requisition as described in clause (7) (b), the requisitionists shall be deemed to have abandoned the original requisition or the revised requisition, which shall then have no force and effect, unless,

  (a)  they deliver or deposit a revised requisition in accordance with subsections (13) and (14); or

  (b)  within 20 days or such other time period, if any, that is prescribed, they,

           (i)  apply, in accordance with Part I.2, to the Condominium Authority Tribunal established under that Part for resolution of the original requisition or the revised requisition as a matter in dispute, if the Tribunal has been established under that Part and the application may be made under that Part, or

          (ii)  apply to the Superior Court of Justice for resolution of the original requisition or the revised requisition, if the Condominium Authority Tribunal has not been established under Part I.2 or the application described in subclause (i) may not be made under that Part.

   41.  The Act is amended by adding the following section:

Record of owners and mortgagees

   46.1  (1)  A corporation shall maintain the record required by subsection (3).

Notice of owner’s name and unit

   (2)  As soon as reasonably possible upon becoming an owner in a corporation and, in any event, no later than 30 days after becoming an owner in a corporation, the owner shall give notice to the corporation in writing, setting out the owner’s name and, in accordance with the regulations, identifying the owner’s unit.

Record of owners and mortgagees

   (3)  A corporation shall maintain a record of,

  (a)  the owner’s name and the identification of the unit, if an owner, at any time, gives notice to the corporation in writing, setting out the owner’s name and, in accordance with the regulations, identifying the owner’s unit;

  (b)  the owner’s address for service if,

           (i)  an owner who has given the notice described in clause (a), notifies the corporation in writing, at any time, of the owner’s name and address for service, including any change in the address for service, and

          (ii)  the owner’s address for service is in Ontario;

   (c)  the mortgagee’s name, the identification of the unit and the mortgagee’s address for service, if,

           (i)  a mortgagee, at any time, gives notice to the corporation in writing, setting out the mortgagee’s name and, in accordance with the regulations, identifying the unit that is the subject of the mortgage,

          (ii)  under the terms of the mortgage, the mortgagee has the right to vote at a meeting of owners in the place of the unit owner or to consent in writing in the place of the unit owner,

         (iii)  the mortgagee notifies the corporation in writing of the right described in subclause (ii) and the mortgagee’s address for service, including any change in the address for service, and

         (iv)  the mortgagee’s address for service is in Ontario;

  (d)  if an owner described in clause (a) agrees to a method of electronic communication under clause 47 (4) (c) and communicates that agreement to the corporation in writing, the name of the owner and a statement of that method; and

  (e)  if a mortgagee described in clause (c) agrees to a method of electronic communication under clause 47 (5) (c) and communicates that agreement to the corporation in writing, the name of the mortgagee and a statement of that method.

Duty to update record

   (4)  A corporation that receives a notification or communication described in subsection (2) or (3) shall update its record to reflect the notification or communication as soon as reasonably possible after receipt or within such other period of time that the by-laws of the corporation provide.

Use of record

   (5)  A corporation shall use the record for the purposes of this Act, and no other purpose.

   42.  Section 47 of the Act is repealed and the following substituted:

Giving notice to owners

   47.  (1)  Any notice that is required under this Act to be given to owners shall,

  (a)  be in writing;

  (b)  be given at least 15 days before the day of the meeting, if the notice is a notice of meeting of owners;

   (c)  if the notice is a preliminary notice described in subsection 45.1 (1), be given at least 20 days before the subsequent notice of meeting of owners described in that subsection;

  (d)  be given to the owners in accordance with subsection (4); and

  (e)  if the notice is a notice of meeting of owners or a preliminary notice described in subsection 45.1 (1), be given to the mortgagees described in subsections (2) and (3) in accordance with subsection (5).

Record date

   (2)  In the case of a notice of meeting of owners, the owners and mortgagees whose names, 20 days before the day of the meeting, appeared in the record of the corporation required by section 46.1 or were required by that section to appear in that record shall be deemed to be the owners and mortgagees to whom the notice is required to be given under subsection (1).

Same, other notice

   (3)  In the case of a preliminary notice described in subsection 45.1 (1) or any other notice to owners that is not a notice of meeting of owners, the owners or mortgagees whose names, five days before the day the notice is given, appeared in the record of the corporation required by section 46.1 or were required by that section to appear in that record shall be deemed to be the owners and mortgagees to whom the notice is required to be given under subsection (1).

Service on owner

   (4)  A notice that is required to be given to an owner shall be,

  (a)  delivered to the owner personally;

  (b)  sent by prepaid mail addressed to the owner at the address for service that appears in the record of the corporation required by section 46.1 or that is required by that section to appear in that record;

   (c)  sent by facsimile transmission, electronic mail or any other method of electronic communication if,

           (i)  the owner agrees, in accordance with subsection (6), that the party giving the notice may give the notice by that method, and

          (ii)  a statement of that method of giving notice appears in the record of the corporation required by section 46.1 or that is required by that section to appear in that record; or

  (d)  delivered at the owner’s unit or at the mail box for the unit unless,

           (i)  the party giving the notice has, by the following time, received a written request from the owner that the notice not be given in this manner,

                 (A)  in the case of a notice of meeting of owners, at least 20 days before the day of the meeting, or

                 (B)  in the case of a preliminary notice described in subsection 45.1 (1) or any other notice to owners that is not a notice of meeting of owners, at least five days before the day the notice is given, and

          (ii)  the owner has given an address for service described in clause (b) that is not the address of the unit of the owner or the address for the mail box for the unit.

Service on mortgagee

   (5)  A notice that clause (1) (e) requires be given to a mortgagee shall be,

  (a)  delivered to the mortgagee personally;

  (b)  sent by prepaid mail addressed to the mortgagee at the address for service that appears in the record of the corporation required by section 46.1 or that is required by that section to appear in that record; or

   (c)  sent by facsimile transmission, electronic mail or any other method of electronic communication if,

           (i)  the mortgagee agrees, in accordance with subsection (6), that the party giving the notice may give the notice by that method, and

          (ii)  a statement of that method of giving notice appears in the record of the corporation required by section 46.1 or that is required by that section to appear in that record.

Agreement to electronic delivery

   (6)  The agreement mentioned in clause (4) (c) or (5) (c) shall be,

  (a)  in writing and in the prescribed manner; or

  (b)  in a form, other than writing, if it is in accordance with the regulations, if any.

Content of notice of meeting

   (7)  A notice of meeting of owners shall,

  (a)  specify the place, the date and the hour of the meeting, as well as the nature of the business to be presented at the meeting; and

  (b)  be accompanied by,

           (i)  a copy of all proposed changes to the declaration, by-laws, rules or agreements that are to be discussed at the meeting,

          (ii)  a copy of the requisition, if an owner has made a requisition under section 46, and

         (iii)  all other material, if any, that is prescribed and that is presented in the prescribed manner, in addition to any material that this Act requires.

Matters at meeting

   (8)  No vote shall be taken at a meeting of owners on any matter other than routine procedure unless that matter was clearly disclosed in the notice of the meeting.

Waiver of notice

   (9)  An owner or mortgagee who attends a meeting or who is represented by proxy at a meeting shall be deemed to have waived the right to object to a failure to give the required notice, unless the person expressly objects to the failure at the meeting.

   43.  (1)  Subsection 48 (1) of the Act is repealed and the following substituted:

Mortgagee’s right to vote

   (1)  A mortgagee of a unit who is described in clause 46.1 (3) (c) has the right to vote at a meeting of owners in the place of the unit owner or to exercise the right, if any, of the unit owner to consent in writing if, at least four days before the date of the meeting,

  (a)  the mortgagee’s name appears in the record required by section 46.1 or is required by that section to appear in that record; and

  (b)  the mortgagee gives notice to the corporation and to the owner of the mortgagee’s intention to exercise the right.

   (2)  Subsection 48 (4) of the Act is repealed and the following substituted:

Voting or consent by owner

   (4)  If none of the mortgagees who have the right exercises the right, the owner has the right to,

  (a)  vote at a meeting of owners subject to subsection 51 (1); or

  (b)  consent in writing if the owner is otherwise entitled to consent under this Act.

   44.  (1)  Subsections 49 (1) and (2) of the Act are repealed and the following substituted:

Loss of owner’s right to vote

   (1)  An owner is not entitled to vote at a meeting if any contributions to the common expenses payable for the owner’s unit have been in arrears for 30 days or more at the time of the meeting.

Payment of arrears

   (2)  An owner who, under subsection (1), is not entitled to vote may vote if the corporation receives payment of the arrears with respect to the owner’s unit before the meeting is held.

   (2)  Subsection 49 (3) of the Act is amended by striking out “housing” and substituting “providing space for”.

   45.  (1)  Subsection 50 (1) of the Act is repealed and the following substituted:

Quorum

   (1)  A quorum for the transaction of business at a meeting of owners, other than a meeting of owners mentioned in subsection 42 (6), section 43 or subsection 45 (2) or such other meetings that are prescribed, is those owners who own 25 per cent of the units in the corporation.

Same, annual general meeting, etc.

   (1.1)  A quorum for the transaction of business at a meeting of owners mentioned in section 43 or subsection 45 (2) or such other meetings that are prescribed is,

  (a)  those owners who own 25 per cent of the units in the corporation, if it is the first attempt to hold the meeting;

  (b)  those owners who own 25 per cent of the units in the corporation, if a quorum is not present at the first attempt to hold the meeting and it is the second attempt to hold the meeting; or

   (c)  subject to subsection (1.2), those owners who own 15 per cent of the units in the corporation, if a quorum is not present at the second attempt to hold the meeting and it is the third or subsequent attempt to hold the meeting.

Higher quorum

   (1.2)  A by-law registered in accordance with subsection 56 (9) after this subsection comes into force may provide that the quorum for the transaction of business at a meeting of owners, other than a meeting of owners that is mentioned in subsection 42 (6) or that is prescribed, is those owners who own 25 per cent of the units in the corporation, subject to subsection (2).

Restriction on voting

   (1.3)  Despite subsection 47 (8), no vote shall be taken at a meeting of owners under clause (1.1) (b) or (c) on any matter other than routine procedure unless that matter was clearly disclosed in the notice of first attempt to hold the meeting under clause (1.1) (a).

   (2)  Subsection 50 (2) of the Act is amended by striking out “must have been entitled to receive notice of the meeting”.

   46.  (1)  Subsection 51 (1) of the Act is repealed and the following substituted:

Voting

   (1)  For an owner to vote at a meeting of owners, the owner’s name must appear in the record of the corporation required by section 46.1 or be required by that section to appear in that record and the owner must be entitled to vote at the meeting.

   (2)  Subsections 51 (5) and (6) of the Act are repealed and the following substituted:

Request for election to reserved position

   (5)  Within 15 days after the board gives a preliminary notice to which clause 45.1 (1) (a.1) applies, an owner of a non-leased voting unit may deliver to the board,

  (a)  the statement mentioned in subclause 45.1 (1) (a.1) (iii); and

  (b)  a request that complies with the regulations, if any, and that a person be elected, at the meeting of owners to which clause 45.1 (1) (a.1) applies, to a position on the board reserved for voting by owners of non-leased voting units.

Reserved position

   (6)  No persons other than the owners of non-leased voting units may elect a person to or remove a person from one of the positions on the board at a meeting of owners to which clause 45.1 (1) (a.1) applies if,

  (a)  the board has received a request described in clause (5) (b) within the time period specified in subsection (5); and

  (b)  on or after the time at which the board is required to call a turn-over meeting under section 43 and as at the last day of the 15-day period mentioned in subsection (5),

           (i)  there is at least one non-leased voting unit in the corporation, and

          (ii)  a minority of the units in the corporation are non-leased voting units.

   (3)  Subsection 51 (7) of the Act is amended by striking out “an owner-occupied unit” and substituting “a non-leased voting unit”.

   (4)  Subsection 51 (8) of the Act is amended by striking out “the owner-occupied units” and substituting “the non-leased voting units”.

   47.  The Act is amended by adding the following section:

Consents

   51.1  (1)  All consents by owners shall be on the basis of one consent per unit.

Joint owners

   (2)  The majority of the owners of a unit may exercise the right to consent in respect of the unit but the consent shall not be counted if there are two or more owners of the unit and they are evenly divided on the exercise of the right to consent.

   48.  (1)  Subsection 52 (1) of the Act is repealed and the following substituted:

Method of voting

   (1)  Votes may be cast by,

  (a)  a show of hands, personally or by proxy; or

  (b)  a recorded vote that is,

           (i)  marked on a ballot cast personally or by a proxy,

          (ii)  marked on an instrument appointing a proxy, or

         (iii)  indicated by telephonic or electronic means, if the by-laws so permit.

Definition

   (1.1)  In subsection (1),

“telephonic or electronic means” means any means that uses the telephone or any other electronic or other technological means to transmit information or data, including telephone calls, fax, e-mail, automated touch-tone telephone system, computer or computer networks.

Proxy

   (1.2)  A vote cast by proxy is subject to the instrument appointing the proxy.

   (2)  The French version of subsection 52 (2) of the Act is amended by striking out “vote par appel nominal” and substituting “vote enregistré”.

   (3)  Subsections 52 (4) to (7) of the Act are repealed and the following substituted:

Appointment of proxy

   (4)  An instrument appointing a proxy shall be in writing under the hand of the appointer or the appointer’s attorney, shall be for one or more particular meetings of owners, shall comply with the regulations and shall be in the prescribed form.

   49.  Section 53 of the Act is repealed and the following substituted:

Majority voting

   53.  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 by owners at the meeting in accordance with subsection 52 (1).

   50.  Section 54 of the Act is amended by striking out “subsection 47 (7) or (8)” and substituting “subsection 47 (4) or (5)”.

   51.  (1)  Subsection 55 (1) of the Act is amended by adding the following paragraph:

  3.1  The returns and notices that it has filed with the Registrar under Part II.1.

   (2)  Paragraph 6 of subsection 55 (1) of the Act is amended by striking out “subsection 47 (2)” and substituting “subsection 46.1 (3)”.

   (3)  Paragraph 10 of subsection 55 (1) of the Act is repealed and the following substituted:

  10.  All instruments appointing a proxy or ballots for a meeting of owners that are submitted at the meeting.

  11.  All other records, if any, that are prescribed.

  12.  Any additional records specified in the by-laws of the corporation.

   (4)  Subsections 55 (2) and (3) of the Act are repealed and the following substituted:

Period of retention

   (2)  In addition to satisfying the requirements of any taxing authority in Ontario, the government of Canada or any other jurisdiction to which the corporation is subject, the corporation shall retain the records mentioned in subsection (1) for the following periods of time:

    1.  For all financial records of the corporation described in paragraph 1 of subsection (1), at least six years from the end of the last fiscal period to which they relate or such longer period that is prescribed.

    2.  For those records described in paragraphs 2 to 11 of subsection (1), the period of time that is prescribed.

    3.  For those records described in paragraph 12 of subsection (1), the period of time specified in the by-law.

    4.  For all other records, the period of time that is prescribed.

Method of retention

   (2.1)  Records may be kept in electronic or paper form in accordance with the prescribed requirements, if any.

Examination of records

   (3)  The corporation shall permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing, to examine or obtain copies of the records of the corporation in accordance with the regulations, except those records described in subsection (4).

Regulation power

   (3.1)  Without limiting the generality of subsection (3), a regulation described in that subsection may,

  (a)  specify processes that a person entitled to examine or obtain copies of records under that subsection must follow to do so;

  (b)  specify processes that the corporation must follow to respond to requests for records;

   (c)  specify fees that a corporation may charge for payment by a person who makes a request to the corporation to examine or obtain copies of records under that subsection, where the fees are for costs relating to the examination or copying of the requested records; and

  (d)  prescribe forms for requests for records or responses to those requests.

   (5)  Subsection 55 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Exception

   (4)  The right to examine or obtain copies of records under subsection (3) does not apply to,

.     .     .     .     .

   (6)  Clause 55 (4) (b) of the Act is repealed and the following substituted:

  (b)  records relating to actual or contemplated litigation, as determined by the regulations, or insurance investigations involving the corporation;

   (7)  Subsection 55 (4) of the Act is amended by adding “or” at the end of clause (c) and by adding the following clause:

  (d)  any prescribed records.

   (8)  Subsections 55 (5) and (6) of the Act are repealed and the following substituted:

Same

   (5)  Clause (4) (c) does not prevent,

  (a)  an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the unit of the owner, the unit being purchased or the unit that is subject to the mortgage, as the case may be;

  (b)  an owner of a unit or an agent of the owner duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the owner; or

   (c)  an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of the record that section 46.1 requires the corporation to maintain.

Waiver

   (6)  Despite subsections (3) and (4), a corporation may disclose a record described in clause (4) (b) but shall not disclose,

  (a)  a record described in clause (4) (a);

  (b)  subject to subsection (5), a record described in clause (4) (c); or

   (c)  subject to the regulations, a record described in clause (4) (d).

   (9)  Subsections 55 (8), (9) and (10) of the Act are repealed and the following substituted:

Penalty for non-compliance

   (8)  A corporation that without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section shall pay a sum determined in accordance with the regulations to the owner, purchaser or mortgagee on receiving a written request for payment from that person.

Recovery of sum

   (9)  The owner, purchaser or mortgagee may recover the sum from the corporation by an action in the Small Claims Court.

Order for production of records

   (10)  If a corporation without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section, the Small Claims Court may order the corporation to produce the records for examination.

Non-application

   (11)  Subsections (8) to (10) do not apply to any matter in dispute for which a person may apply for resolution under section 1.36 to the Condominium Authority Tribunal established under Part I.2.

   52.  (1)  Subsection 56 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

By-laws

   (1)  The board may, by resolution, make, amend or repeal by-laws under this section,

.     .     .     .     .

   (2)  Clause 56 (1) (a) of the Act is amended by adding “disqualification” after “qualification”.

   (3)  Subsection 56 (1) of the Act is amended by adding the following clause:

(b.1) to establish a period of time within which a corporation shall update its record for the purposes of subsection 46.1 (4);

   (4)  Clause 56 (1) (c) of the Act is repealed and the following substituted:

   (c)  to provide that the quorum for the transaction of business at a meeting of owners, other than a meeting of owners that is mentioned in subsection 42 (6) or that is prescribed, is those owners who own 25 per cent of the units in the corporation, subject to subsection 50 (2);

(c.1) to govern the methods permitted for holding a vote by a show of hands or for holding a recorded vote under clause 52 (1) (b) and the procedure for holding the vote, including permitting a recorded vote described in subclause 52 (1) (b) (i) or (ii) to be submitted to the corporation by mail;

   (5)  Clause 56 (1) (h) of the Act is repealed and the following substituted:

  (h)  to establish what constitutes a standard unit for each class of unit specified in the by-law for the purpose of determining the responsibility for repairing or maintaining improvements made to units or insuring the units;

   (6)  Clause 56 (1) (i) of the Act is repealed.

   (7)  Clause 56 (1) (j) of the Act is repealed and the following substituted:

    (j)  to govern the maintenance or repair of the units, the common elements and the assets, if any, of the corporation;

   (8)  Subsection 56 (1) of the Act is amended by adding the following clause:

(l.1)  to govern any matter mentioned in subsection 21.1 (1), if the by-law is made in accordance with the regulations;

   (9)  Clause 56 (1) (o) of the Act is repealed and the following substituted:

  (o)  to modify the procedure set out in the regulations with respect to the mediation or arbitration of disputes or disagreements between,

           (i)  the corporation and the owners, as determined by the regulations, if any, for the purpose of section 82.2 or 125, or

          (ii)  a lessor and a leasehold condominium corporation for the purpose of subsections 168 (3) and (4);

   (10)  Subsection 56 (1) of the Act is amended by adding “or” at the end of clause (p) and by adding the following clause:

  (q)  for any other prescribed purpose.

   (11)  Subsection 56 (3) of the Act is repealed and the following substituted:

Borrowing by-law

   (3)  A corporation shall not borrow money unless it has passed a by-law under clause (1) (e) specifically to authorize the borrowing or unless the regulations provide otherwise.

   (12)  Subsection 56 (4) of the Act is amended by striking out “If the board has made” at the beginning and substituting “If the corporation has passed”.

   (13)  Clause 56 (10) (a) of the Act is repealed and the following substituted:

  (a)  the owners of a majority of the units in the corporation, or such other number of owners that is prescribed, vote in favour of confirming it, with or without amendment; and

   53.  (1)  The following provisions of the English version of section 57 of the Act are amended by striking out “the units of the corporation” wherever that expression appears and substituting in each case “the units in the corporation”:

    1.  Subsection (1).

    2.  Subsection (3).

   (2)  Subsection 57 (4) of the Act is amended by striking out “If the board” at the beginning and substituting “If the corporation”.

   54.  (1)  Subsection 58 (1) of the Act is repealed and the following substituted:

Rules

   (1)  The board may make, amend or repeal rules under this section respecting the use of the units, the common elements or the assets, if any, of the corporation to,

  (a)  promote the safety, security or welfare of the owners and of the property and the assets, if any, of the corporation; or

  (b)  prevent unreasonable interference with the use and enjoyment of the units, the common elements or the assets, if any, of the corporation.

   (2)  Subsection 58 (6) of the Act is amended by striking out “and” at the end of clause (b), by adding “and” at the end of clause (c) and by adding the following clause:

  (d)  a copy of the text of section 46 and this section.

   (3)  Subsection 58 (7) of the Act is repealed and the following substituted:

When rule effective

   (7)  Subject to subsection (8), a rule is not effective until the following time:

    1.  If the board receives a requisition for a meeting of owners under section 46 within 30 days after the board has given notice of the rule to the owners, the earlier of,

            i.  the time at which a quorum is not present at the first attempt to hold the meeting, and

           ii.  the time at which a quorum is present at the first attempt to hold the meeting and the owners do not vote against the rule at the meeting.

    2.  If the board does not receive a requisition for a meeting of owners under section 46 within the 30 days after the board has given notice of the rule to the owners, the day after that 30th day.

   55.  Section 59 of the Act is repealed.

   56.  Section 60 of the Act is amended by adding the following subsections:

Loss of owner’s right to consent

   (6)  An owner is not entitled to consent under clause (5) (c) if any contributions to the common expenses payable for the owner’s unit are in arrears for 30 days or more.

Payment of arrears

   (7)  An owner who, under subsection (6), is not entitled to consent may consent after the corporation receives payment of the arrears with respect to the owner’s unit.

   57.  Clause 61 (b) of the Act is repealed and the following substituted:

  (b)  is a manager under an agreement for the management of the property;

   58.  Subsection 63 (3) of the Act is repealed.

   59.  (1)  Subsection 66 (1) of the Act is repealed and the following substituted:

Financial statements

   (1)  A corporation shall have its financial statements prepared in the prescribed manner and in accordance with Canadian accounting standards for not-for-profit organizations as are prescribed.

   (2)  Subsection 66 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Contents

   (2)  Unless the regulations provide otherwise, the financial statements shall include,

.     .     .     .     .

   (3)  Clauses 66 (2) (a), (b) and (c) of the Act are repealed and the following substituted:

  (a)  the budget of the corporation for the fiscal year to which the financial statements apply;

  (b)  a statement of financial position;

   (c)  a statement of operations;

(c.1) a statement of changes in net assets;

(c.2) a statement of cash flows;

   60.  Subsections 67 (3), (4) and (5) of the Act are repealed and the following substituted:

Standards

   (3)  The auditor’s report shall be prepared in the prescribed manner and in accordance with Canadian auditing standards as are prescribed.

Contents of report

   (4)  In the report the auditor shall,

  (a)  state whether the statement of reserve fund operations and any other prescribed information that relates to the operation of the reserve fund and that is contained in the financial statements do not fairly present the information contained in the materials that the auditor has received under clause 94 (9) (b); and

  (b)  include the other prescribed statements that the auditor considers necessary relating to the corporation’s financial statements and the prescribed requirements of this Act and the regulations.

   61.  Part V of the Act is amended by adding the following section immediately after the heading “Disclosure Requirements”:

Condominium guide

   71.1  (1)  The Minister shall ensure that one or more condominium guides are prepared, each of which shall set out, if the Minister considers appropriate,

  (a)  information for purchasers of units or proposed units;

  (b)  information about the rights and obligations of owners, occupiers of units and the board in a corporation; and

   (c)  such other matters that the Minister considers appropriate.

Different versions

   (2)  A condominium guide may be prepared in different versions depending on the type of corporation, the persons or the circumstances to which it applies, all as the Minister may determine.

Delegation to condominium authority

   (3)  If the condominium authority exists, the Minister may require the authority to prepare any of the condominium guides, subject to the Minister’s approval.

   62.  (1)  Subsections 72 (1) and (2) of the Act are repealed and the following substituted:

Disclosure statement and guide

   (1)  The declarant shall deliver to every person who purchases a unit or a proposed unit from the declarant or a person acting on behalf of or for the benefit of the declarant a copy of,

  (a)  the current disclosure statement made by the declarant for the corporation of which the unit or proposed unit forms part; and

  (b)  the applicable condominium guide under section 71.1.

Purchaser not bound

   (2)  An agreement of purchase and sale of a unit or a proposed unit entered into by a declarant or a person acting on behalf of or for the benefit of the declarant is not binding on the purchaser until the declarant has delivered to the purchaser a copy of the current disclosure statement and the condominium guide in accordance with subsection (1).

   (2)  Subsection 72 (3) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Contents

   (3)  A disclosure statement shall be prepared in accordance with the regulations and shall contain,

.     .     .     .     .

   (3)  Clause 72 (3) (a) of the Act is repealed and the following substituted:

  (a)  a summary prepared in accordance with the prescribed requirements;

(a.1) a statement specifying the date on which it is made;

   (4)  Clause 72 (3) (b) of the Act is amended by striking out “and” at the end of subclause (i), by adding “and” at the end of subclause (ii) and by adding the following subclause:

         (iii)  whether the corporation is a phased condominium corporation;

   (5)  Subsection 72 (3) of the Act is amended by adding the following clause:

(f.1)  if the disclosure statement is for a unit or proposed unit in a residential condominium conversion project,

           (i)  a statement that the project is a residential condominium conversion project,

          (ii)  a list of the pre-existing elements as identified in the pre-existing elements fund study,

         (iii)  a copy of the pre-existing elements fund study,

         (iv)  a statement that subclause 13 (1) (a) (i) of the Ontario New Home Warranties Plan Act does not apply to the pre-existing elements,

          (v)  a copy of the text of subclause 13 (1) (a) (i) and subsection 17.2 (1) of the Ontario New Home Warranties Plan Act, and

         (vi)  a statement that the Registrar, as defined in the Ontario New Home Warranties Plan Act, has confirmed that the conditions set out in subsection 17.2 (1) of the Ontario New Home Warranties Plan Act have been satisfied;

   (6)  Clause 72 (3) (n) of the Act is amended by adding “21.1” after “section”.

   (7)  Clause 72 (3) (q) of the Act is repealed and the following substituted:

  (q)  a copy of the budget statement described in subsection (6), unless the regulations provide otherwise;

(q.1) a statement, prepared in accordance with the regulations, of the circumstances, as may be prescribed, that a declarant knows or ought to know may result in an increase in the common expenses mentioned in any part of subsection (6) after the one-year period immediately following the registration of the declaration and description;

(q.2) a statement, prepared in accordance with the regulations, of the amount of any potential increase mentioned in clause (q.1) that is likely to take place as a result of any of the circumstances mentioned in that clause;

   (8)  Clause 72 (3) (r) of the Act is repealed and the following substituted:

   (r)  if more than one year has passed since the registration of the declaration and description for the corporation, a copy of the budget of the corporation for the current fiscal year and a copy of all amendments, if any, made to that budget;

   (9)  Paragraph 1 of subsection 72 (4) of the Act is amended by striking out “and” at the end of subparagraph i, by adding “and” at the end of subparagraph ii and by adding the following subparagraph:

          iii.  whether the corporation is a phased condominium corporation.

   (10)  Subsection (9) does not apply if subsection (11) comes into force before the day this subsection comes into force.

   (11)  Subsection 72 (4) of the Act is repealed.

   (12)  Subsection 72 (5) of the Act is repealed and the following substituted:

Copy of budget, etc.

   (5)  On the request of the declarant, the corporation shall, promptly and without charge, provide the declarant with a copy of its budget for the current fiscal year and a copy of all amendments, if any, made to that budget.

   (13)  Subsection 72 (6) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Budget statement

   (6)  The budget statement is a statement for the one-year period immediately following the registration of the declaration and description, and it shall cover the corporation’s general and reserve fund accounts, shall be prepared in accordance with the regulations and shall contain, subject to the regulations,

.     .     .     .     .

   (14)  Clause 72 (6) (e) of the Act is repealed and the following substituted:

  (e)  a statement of the portion of the common expenses to be paid into a reserve fund, which shall be determined in accordance with the regulations;

   (15)  Subsection 72 (6) of the Act is amended by adding the following clause:

(i.1)  a statement, prepared in accordance with the regulations, as to whether there will be any increase, as may be prescribed, in the amounts mentioned in this subsection and setting particulars of those increases;

   63.  The Act is amended by adding the following section:

Disclosure of budget

   72.1  If a person enters into an agreement to purchase a unit or a proposed unit from a declarant or a person acting on behalf of or for the benefit of the declarant, the declarant shall deliver to the purchaser, no later than 10 days before delivering to the purchaser a deed to the unit being purchased that is in registerable form, a copy of the budget mentioned in subsection 83.1 (3) for the corporation, unless the regulations provide otherwise.

   64.  (1)  Subsection 73 (1) of the Act is amended by adding “and the condominium guide” after “statement”.

   (2)  Subsection 73 (2) of the Act is amended by striking out “the later of” in the portion before clause (a) and substituting “the latest of” and by striking out “and” at the end of clause (a).

   (3)  Clause 73 (2) (b) of the Act is repealed and the following substituted:

  (b)  the date that the purchaser receives a copy of the applicable condominium guide under section 71.1; and

   (c)  the date that the purchaser receives a copy of the agreement of purchase and sale executed by the declarant and the purchaser.

   65.  (1)  Clause (b) of the definition of “material change” in subsection 74 (2) of the Act is repealed and the following substituted:

  (b)  a substantial modification, within the meaning of subsection 97 (9), that is an addition, alteration or improvement that the corporation makes to the common elements after a turn-over meeting has been held under section 43,

   (2)  The definition of “material change” in subsection 74 (2) of the Act is amended by striking out “or” at the end of clause (d) and by adding the following clauses:

   (f)  except as is otherwise prescribed, an increase of less than 10 per cent in the common expenses mentioned in any part of subsection 72 (6), determined in accordance with the regulations,

  (g)  except as is otherwise prescribed, an increase in the common expenses mentioned in any part of subsection 72 (6) if it is the result of the application, in the prescribed manner, of any prescribed taxes, levies or charges, or

  (h)  anything that is prescribed.

   (3)  Subsection 74 (3) of the Act is repealed and the following substituted:

Contents of revised statement

   (3)  The revised disclosure statement or notice required under subsection (1) shall be prepared in accordance with the regulations, shall clearly identify all changes that, in the reasonable belief of the declarant, are or may be material changes and shall summarize the particulars of them in the prescribed manner.

   (4)  Subsection 74 (4) of the Act is amended by striking out “within a reasonable time” and substituting “as soon as reasonably possible”.

   (5)  Section 74 of the Act is amended by adding the following subsections:

Application

   (11)  A person who is or was a purchaser may make an application to the Superior Court of Justice for an order under subsection (12).

Court order

   (12)  The court, if satisfied that the declarant has, without reasonable excuse, failed to comply with subsection (1), (3), (4), (9) or (10),

  (a)  shall order that the declarant pay damages to the person for the loss that the person incurred as a result of the declarant’s acts of non-compliance with subsection (1), (3), (4), (9) or (10), as the case may be;

  (b)  shall order that the declarant pay the person’s costs of the application;

   (c)  may order the declarant to pay to the person an additional amount not to exceed $10,000; and

  (d)  may order the declarant to comply with subsection (1), (3), (4), (9) or (10), as the case may be.

   66.  (1)  Subsections 75 (1), (2) and (3) of the Act are repealed and the following substituted:

Declarant’s accountability for first year

   (1)  The declarant is accountable to the corporation under this section for,

  (a)  the statement mentioned in clause 72 (6) (e) that is required to be contained in the budget statement described in subsection 72 (6); and

  (b)  the portion of the budget of the corporation for its first fiscal year required by subsection 83.1 (3) that represents the one-year period immediately after the registration of the declaration and description and that is determined in accordance with the regulations.

Reserve fund contributions

   (1.1)  If the budget statement described in subsection 72 (6) does not comply with clause 72 (6) (e), the declarant shall pay to the corporation the amount required for compliance with that clause, as determined in accordance with the regulations.

Common expenses

   (2)  The declarant shall pay to the corporation the amount by which the total actual amount of common expenses incurred for the one-year period mentioned in clause (1) (b), except for the following, exceeds the total budgeted amount for that period:

    1.  The expenses attributable to the termination of an agreement under section 111 or 112.

    2.  The amount, or any part of it, that the declarant is required to pay under subsection (1.1).

    3.  Any other prescribed amount.

Revenue

   (3)  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 one-year period mentioned in clause (1) (b), for the use of any part of the common elements or assets or of any other facilities related to the property, is less than the total budgeted amount for that period.

   (2)  Subsection 75 (4) of the Act is amended by striking out “subsection (2)” at the end and substituting “subsection (1.1) or (2)”.

   (3)  Subsection 75 (5) of the Act is repealed and the following substituted:

Notice of payment

   (5)  After receiving the audited financial statements for the corporation’s first fiscal year, the board shall,

  (a)  if it has not already done so, determine the amount, if any, that the declarant is required to pay to the corporation under subsection (1.1);

  (b)  compare the actual amount of common expenses and revenue described in subsections (2) and (3) for the one-year period mentioned in clause (1) (b) with the budgeted amounts for that period; and

   (c)  within 90 days of receiving the audited financial statements, give written notice to the declarant of the amount that the declarant is required to pay to the corporation under this section.

   67.  (1)  The French version of clauses 76 (1) (d) and (e) of the Act is repealed and the following substituted:

    d)  une indication de l’adresse aux fins de signification de l’association;

    e)  une indication des nom et adresse aux fins de signification des administrateurs et des dirigeants de l’association;

   (2)  Subsection 76 (1) of the Act is amended by adding the following clause:

(h.1) the financial implications, as may be prescribed, of the judgments and legal actions mentioned in clause (h);

   (3)  Clause 76 (1) (i) of the Act is amended by adding “all amendments, if any, to that budget” after “fiscal year”.

   (4)  Clause 76 (1) (j) of the Act is amended by striking out “section 111” and substituting “section 21.1, 111”.

   (5)  Clause 76 (1) (n) of the Act is repealed and the following substituted:

  (n)  a statement of those modifications, within the meaning of subsection 97 (2), that are substantial within the meaning of subsection 97 (9) and that the board has proposed but has not implemented, together with a statement of the purpose of them;

   (6)  Clause 76 (1) (q) of the Act is amended by adding “the contribution to” after “added to”.

   68.  Section 77 of the Act is amended by,

  (a)  striking out “domicile élu” and substituting “adresse aux fins de signification” in the French version; and

  (b)  striking out “the property of the corporation” and substituting “the property”.

   69.  (1)  Subsection 78 (1) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Implied covenants

   (1)  Every agreement of purchase and sale of a unit or proposed unit entered into by a declarant or a person acting on behalf of or for the benefit of the declarant shall be deemed to contain the following covenants by the declarant, which shall apply despite anything in the declaration, a by-law, an agreement or an instrument:

.     .     .     .     .

   (2)  Paragraph 1 of subsection 78 (1) of the Act is amended by striking out “the proposed unit” and substituting “the unit or proposed unit”.

   (3)  Section 78 of the Act is amended by adding the following subsections:

No acquisition of property, etc.

   (1.1)  Every agreement of purchase and sale of a unit or a proposed unit entered into by a declarant or a person acting on behalf of or for the benefit of the declarant shall be deemed to contain the following covenants, which, subject to the regulations, shall apply despite anything in the declaration, a by-law, an agreement or an instrument:

    1.  The purchaser under the agreement of purchase and sale shall not acquire an interest or right in property described in subsection (1.2) if the property is intended for or is for the collective use or enjoyment of the owners in the corporation of which the unit or proposed unit forms part.

    2.  The declarant shall not charge and the purchaser under the agreement of purchase and sale shall not pay any amount that is or is intended to be a projected or actual contribution to the reserve fund of the corporation, unless otherwise permitted under this Act.

    3.  Subject to subsection 23 (6), the purchaser under the agreement of purchase and sale shall not directly or indirectly indemnify, reimburse, or otherwise compensate the declarant or a declarant affiliate for any remedies exercised by or on behalf of a corporation against the declarant or declarant affiliate.

Same

   (1.2)  The property mentioned in paragraph 1 of subsection (1.1) is any real or personal property, other than real or personal property owned by the corporation, as may be prescribed, or the common elements.

Other agreement

   (1.3)  Subject to the regulations, a provision of an agreement to which a purchaser is a party is void if it contravenes the covenant described in subsection (1.1).

   (4)  Subsection 78 (2) of the Act is amended by adding “described in subsection (1) or (1.1)” after “covenants”.

   (5)  Subsection 78 (3) of the Act is amended by adding “or (1.1)” after “subsection (1)”.

   70.  Subsections 79 (1) and (2) of the Act are repealed and the following substituted:

Duty to register declaration and description

   (1)  If a declarant or a person acting on behalf of or for the benefit of the declarant has entered into an agreement of purchase and sale of a proposed unit, the declarant shall take all reasonable steps to complete the buildings required by the agreement subject to all prescribed requirements and to register, without delay, a declaration and description in respect of the property in which the proposed unit will be included.

No right to terminate

   (2)  Despite any provision to the contrary in the agreement of purchase and sale, the declarant or a person acting on behalf of or for the benefit of the declarant is not entitled to terminate an agreement of purchase and sale of a proposed unit by reason only of the failure to register the declaration and description within a period of time specified in the agreement, unless the purchaser consents to the termination in writing.

   71.  (1)  Paragraph 3 of subsection 80 (4) of the Act is amended by adding “subject to the regulations” at the end.

   (2)  Subsection 80 (5) of the Act is repealed and the following substituted:

Reserve fund contribution

   (5)  If the declarant charges the purchaser a monthly occupancy fee for interim occupancy of a proposed unit of a prescribed class for longer than six months or such other period that is prescribed and if the monthly occupancy fee includes a projected contribution to the reserve fund of the corporation, then, with respect to the occupancy fee for each month after the sixth month or such other period that is prescribed, the declarant shall hold in trust and remit to the corporation upon registering the declaration and description the portion of the monthly occupancy fee that represents the projected contribution to the reserve fund in accordance with the regulations, if any.

   (3)  Clause 80 (6) (b) of the Act is amended by striking out “after damage”.

   (4)  Subsection 80 (8) of the Act is amended by striking out “as soon as is practicable” and substituting “as soon as is reasonably possible”.

   72.  Subsections 81 (3) and (4) of the Act are repealed and the following substituted:

Reservation money

   (3)  If a person has paid money to reserve a right to enter into an agreement of purchase and sale for the purchase of a proposed unit and subsequently enters into such an agreement with the declarant or a person acting on behalf of or for the benefit of the declarant, the declarant shall, in accordance with the regulations and within the prescribed period of time on entering into the agreement, credit the money received to the purchase price under the agreement, despite any provision of the agreement.

Trustee

   (4)  Upon receiving money that is required to be held in trust under subsection (1), a trustee of a prescribed class shall hold the money in trust in a separate account in Ontario designated as a trust account at,

  (a)  a bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act; or

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

   73.  (1)  Subsection 82 (1) of the Act is amended by striking out “that the declarant” and substituting “that the declarant or a person acting on behalf of or for the benefit of the declarant”.

   (2)  Subsection 82 (3) of the Act is amended by adding “or a person acting on behalf of or for the benefit of the declarant” at the end.

   (3)  Clause 82 (4) (b) of the Act is amended by striking out “otherwise” and substituting “or a person acting on behalf of or for the benefit of the declarant, otherwise”.

   (4)  Subsection 82 (6) of the Act is amended by striking out “with the declarant” and substituting “with the declarant or a person acting on behalf of or for the benefit of the declarant”.

   74.  The Act is amended by adding the following sections:

Corporation’s sale of the property

   82.1  (1)  A corporation may sell the property if,

  (a)  the owners of at least 80 per cent of the units, at the date of the vote, vote in favour of the sale;

  (b)  at least 80 per cent of those persons who, at the date of the vote, have registered claims against the property that were created after the registration of the declaration and description that made this Act applicable to the units being sold, consent in writing to the sale; and

   (c)  all other conditions, if any, that are prescribed have been satisfied.

Conveyance

   (2)  When a sale takes place, the board shall deliver to the purchaser the following documents signed by the authorized officers of the corporation: a deed and a certificate in the form prescribed by the Minister,

  (a)  stating that the persons who, under subsection (1), are required to vote in favour of the sale or consent in writing to the sale have done so; and

  (b)  containing all other statements and material, if any, that are prescribed.

Net proceeds

   (3)  Subject to subsection (4), the owners at the time of the registration of the deed, as determined by the regulations, shall share the net proceeds of the sale in the same proportions as their common interests, subject to the conditions, if any, that are prescribed.

Same

   (4)  The portion of the net 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, where the owners are those at the time of the registration of the deed, as determined by the regulations, and not all the owners at that time, shall be divided among the owners of the designated units in the proportions in which their interests are affected, subject to the conditions, if any, that are prescribed.

Right of dissenters

   82.2  (1)  A corporation that has made a sale under section 82.1 and every owner in the corporation shall be deemed to have made an agreement in accordance with the prescribed requirements, if any, that an owner who has dissented on the vote authorizing the sale may, within 30 days of the vote, submit to mediation a dispute over the fair market value of the units that have been sold, determined as of the time of the sale.

Application of s. 132

   (2)  If an owner submits a dispute to mediation in accordance with the agreement mentioned in subsection (1), section 132 applies to the dispute with necessary modifications as if it were a disagreement under that section.

Notice

   (3)  An owner who submits a dispute to mediation in accordance with the agreement mentioned in subsection (1) shall give the corporation notice of intention in accordance with the prescribed requirements, if any, within 10 days after the vote authorizing the sale.

Entitlement to amount

   (4)  An owner who serves a notice of intention in accordance with subsection (3) is entitled to receive from the net proceeds of the sale the amount the owner would have received if the sale price had been the fair market value as determined by the arbitration.

Deficiency

   (5)  The corporation shall pay to each of the owners who served a notice of intention in accordance with subsection (3), the deficiency in the amount to which the owner is entitled if the net proceeds of the sale are inadequate to pay the amount, subject to the conditions, if any, that are prescribed.

Liability

   (6)  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.

Common expenses of other owners

   (7)  The corporation shall add the amount of the liability of each of the owners who voted in favour of the sale to the contribution to the common expenses payable for the unit of that owner.

   75.  (1)  Subsection 83 (1) of the Act is amended by striking out “30 days” in the portion before clause (a) and substituting “10 days”.

   (2)  Subsection 83 (2) of the Act is amended by adding “within 10 days of the termination” at the end.

   76.  Part VI of the Act is amended by adding the following section immediately after the heading “Common Expenses”:

Annual Budget

Annual budget

   83.1  (1)  A corporation shall have a budget for each of its fiscal years that is prepared in accordance with this section.

Fiscal year

   (2)  The fiscal year of a corporation shall end on,

  (a)  in the case of the first fiscal year after the registration of the declaration and description, the last day of the month in which the first anniversary of that registration takes place or such other day as is prescribed; and

  (b)  in the case of a fiscal year after the first fiscal year after the registration of the declaration and description,

           (i)  the day specified by a by-law of the corporation passed after a new board is elected at a turn-over meeting held under section 43,

          (ii)  the day specified by a resolution of the board, if there is no by-law as described in subclause (i), or

         (iii)  the next following anniversary of the end of the first fiscal year, if there is no by-law or resolution as described in subclauses (i) and (ii).

Budget for first fiscal year

   (3)  Within the prescribed periods of time, the declarant shall ensure that the budget of the corporation for its first fiscal year is prepared in accordance with the regulations and shall deliver it to,

  (a)  the first board mentioned in subsection 42 (1); or

  (b)  the corporation, if the first board has not been appointed in accordance with subsection 42 (1).

Budget for subsequent years

   (4)  At least 30 days before the start of each fiscal year of the corporation after its first fiscal year, the board shall prepare a budget for the ensuing fiscal year that covers the corporation’s general and reserve fund accounts and that is prepared in accordance with the regulations.

Notice to owners

   (5)  Within 15 days of preparing a budget described in subsection (4), the board shall provide a notice to the owners that is in the prescribed form, if any, containing a copy of the budget.

Implementation

   (6)  The board shall not implement a budget of the corporation until it has provided the notice mentioned in subsection (5).

Amendment

   (7)  Subject to subsection (9), the board may amend a budget of the corporation for any fiscal year at any time before the end of the fiscal year.

Notice to owners

   (8)  Within 15 days of amending a budget of the corporation, the board shall provide a notice to the owners that is in the prescribed form, if any, containing a copy of the budget.

Implementation

   (9)  The board shall not implement an amendment to a budget of the corporation until it has complied with subsection (8).

Notice of non-budgeted amounts

   (10)  If the board proposes that the corporation incur a prescribed expense in a fiscal year that exceeds, in the manner determined by the regulations, the budgeted amount for the expense in the applicable budget or amendment to a budget for that fiscal year, the board shall provide the prescribed notice of the expense to the owners within the prescribed time and in accordance with the prescribed requirements.

   77.  Subsection 84 (3) of the Act is repealed and the following substituted:

No avoidance

   (3)  Subject to subsection (6), an owner is not exempt from the obligation to contribute to the common expenses payable for the owner’s unit even if,

  (a)  the owner has waived or abandoned the right to use,

           (i)  the common elements or the assets, if any, of the corporation, or part of them, or

          (ii)  any land, any part of a property or proposed property, any assets of a corporation or any facilities or services that are subject to an agreement mentioned in subsection 21.1 (1) or 113 (1);

  (b)  the owner is making a claim against the corporation; or

   (c)  the declaration, by-laws or rules restrict the owner from using, as the case may be,

           (i)  the common elements or the assets, if any, of the corporation, or part of them, or

          (ii)  any land, any part of a property or proposed property, any assets of a corporation or any facilities or services that are subject to an agreement mentioned in subsection 21.1 (1) or 113 (1).

Addition to contribution

   (4)  If the corporation makes a prescribed addition to the amount of the contribution to the common expenses payable for an owner’s unit, the corporation shall provide the prescribed notice to the owner within 15 days of making the addition.

Reaction of owner

   (5)  Within 30 days of receiving the notice or within such other time period that is determined by the regulations, the owner shall,

  (a)  pay the amount of the addition to the corporation in the prescribed manner;

  (b)  if the owner transfers the unit within the 30 days or the other time period, as applicable,

           (i)  ensure that the amount of the addition is held in escrow, in accordance with the regulations, when the transaction for the transfer closes until it is to be paid to the person entitled to it, as determined in accordance with the regulations, and

          (ii)  give notice to the corporation, in accordance with the regulations and as soon as reasonably possible after the transfer, that the amount of the addition is being so held in escrow;

   (c)  apply, in accordance with Part I.2, to the Condominium Authority Tribunal established under that Part for resolution of the requirement to pay the addition as a matter in dispute, if the Tribunal has been established under that Part and the application may be made under that Part; or

  (d)  apply to the Superior Court of Justice for resolution of the requirement to pay the addition, if the Condominium Authority Tribunal has not been established under Part I.2 or the application described in clause (c) may not be made under that Part.

Exemption during dispute resolution

   (6)  Subject to subsection (10), an owner who complies with clause (5) (c) or (d) is exempt from the obligation to contribute to the common expenses with respect to the amount of the addition, unless a settlement agreement or a final order of the Condominium Authority Tribunal or of a court provides otherwise, as is determined by the regulations, if any.

Addition owing

   (7)  If an owner who, under subsection (6), is exempt from the obligation to contribute to the common expenses with respect to the amount of the addition ceases to be exempt from the obligation with respect to any part or all of the addition, the corporation shall send the owner a notice specifying a time by which the owner is required to pay, in accordance with the regulations, if any, the amount that ceases to be exempt from the obligation.

Notice of additions to contribution

   (8)  Subject to any other provision of this Act or the regulations dealing with a notice of a contribution to the common expenses, if, pursuant to this Act or the regulations, an amount is added to the contribution to the common expenses payable for an owner’s unit, the corporation shall send the owner a notice specifying a time by which the owner is required to pay the amount in accordance with the regulations, if any.

Part of common expenses

   (9)  An owner who does not comply with clause (5) (a), (c) or (d) shall be deemed to be in default in the obligation to contribute to the common expenses payable for the owner’s unit with respect to the amount of the addition.

Same

   (10)  An owner who does not comply with clause (5) (b) shall be deemed to have been in default, as of the date specified in subsection (11), in the obligation to contribute to the common expenses payable for the owner’s unit with respect to the amount of the addition.

Date of default

   (11)  The date of the default mentioned in subsection (10) shall be a date that is before the closing of the transaction for the transfer mentioned in clause (5) (b) and that is determined in accordance with the regulations.

   78.  (1)  The following provisions of section 85 of the Act are amended by adding “payable for the owner’s unit” after “common expenses” wherever that expression appears:

    1.  Subsection (1).

    2.  Clause (3) (b).

   (2)  Subsection 85 (5) of the Act is repealed.

   79.  (1)  Section 86 of the Act is amended by adding the following subsection:

Competing liens

   (1.1)  If two or more corporations have a lien mentioned in subsection 85 (1) or 139 (5) against the same real property that is prescribed, priority between the liens shall be determined in accordance with the regulations.

   (2)  Subsection 86 (2) of the Act is amended by adding “payable for the owner’s unit” after “common expenses”.

   (3)  Clause 86 (6) (a) of the Act is repealed and the following substituted:

  (a)  the arrears of contributions to the common expenses payable for the owner’s unit that accrued during the three months before the day notice is given and that continue to accrue subsequent to that day; and

   80.  (1)  Subsection 87 (1) of the Act is amended by striking out “the owner’s obligation to contribute to the common expenses” and substituting “the obligation to contribute to the common expenses payable for the owner’s unit”.

   (2)  Subsection 87 (4) of the Act is repealed.

   81.  (1)  Clause 88 (1) (a) of the Act is repealed and the following substituted:

  (a)  the mortgagee has the right to collect the contribution to the common expenses payable for the unit and shall promptly pay the amount so collected to the corporation on behalf of the owner of the unit;

   (2)  Clause 88 (1) (b) of the Act is amended by adding “payable for the owner’s unit” after “common expenses”.

   (3)  Subclause 88 (1) (c) (i) of the Act is amended by striking out “the owner’s contribution to the common expenses” and substituting “the contribution to the common expenses payable for the owner’s unit”.

   (4)  Subsection 88 (2) of the Act is amended by striking out “the common expenses in respect of the unit” and substituting “the contribution to the common expenses payable for the owner’s unit”.

   82.  Sections 89, 90 and 91 of the Act are repealed and the following substituted:

Repair

   89.  (1)  Subject to sections 91 and 123, the corporation shall repair the common elements and the assets, if any, of the corporation.

Same, units

   (2)  Subject to sections 91 and 123, each owner shall repair the owner’s unit.

Maintenance

   90.  (1)  Subject to section 91, the corporation shall maintain the common elements and the assets, if any, of the corporation and each owner shall maintain the owner’s unit.

Same, not repair

   (2)  The obligation to maintain does not include the obligation to repair.

Alterations by declaration

   91.  The declaration may alter the obligation to repair or to maintain as set out in this Act by providing that, subject to the regulations,

  (a)  subject to section 123, the corporation shall repair the units or any part of them;

  (b)  subject to section 123, the owners shall repair the common elements or any part of them;

   (c)  the corporation shall maintain the units or any part of them;

  (d)  the owners shall maintain the common elements or any part of them;

  (e)  the corporation shall carry out an obligation to repair or to maintain on behalf of or for the benefit of an owner and may add the cost of the work to the contribution to the common expenses payable for the owner’s unit;

   (f)  the corporation shall be responsible for the costs to remove or restore parts of a unit or other real property or personal property of an owner in order to carry out an obligation of the corporation to repair or to maintain; and

  (g)  the corporation or the owners shall have the other obligations or responsibilities to repair or to maintain that are prescribed.

   83.  (1)  Subsections 92 (1), (2) and (3) of the Act are repealed and the following substituted:

Work done for owner

   (1)  If an owner has an obligation under this Act to repair and fails to carry out the obligation within a reasonable time, the corporation shall do the work necessary to carry out the obligation unless the regulations provide otherwise.

Same, maintenance

   (2)  If an owner has an obligation under this Act to maintain the common elements or any part of them and the owner fails to carry out the obligation within a reasonable time, the corporation may do the work necessary to carry out the obligation.

Same, maintenance of units

   (3)  If an owner has an obligation under this Act to maintain the owner’s unit and fails to carry out the obligation within a reasonable time and if the circumstances set out in the regulations exist, the corporation may do the work necessary to carry out the obligation.

   (2)  Subsection 92 (4) of the Act is amended by striking out “the owner’s contribution to the common expenses” at the end and substituting “the contribution to the common expenses payable for the owner’s unit”.

   84.  (1)  Subsection 93 (2) of the Act is repealed and the following substituted:

Purpose of fund

   (2)  A reserve fund shall be used solely for,

  (a)  the purpose of major repair of a unit, the common elements or assets, if any, of the corporation, if the corporation has the obligation to repair in that regard under this Act;

  (b)  subject to the regulations, the purpose of complying, in accordance with the regulations, with the requirements imposed by any general or special Act or regulations or by-laws made under that Act; or

   (c)  such other purposes, if any, that are prescribed, subject to the requirements, if any, that are prescribed.

Definition

   (2.1)  In subsection (2),

“major repair” means repair as determined in accordance with the regulations, if any.

   (2)  Subsection 93 (3) of the Act is amended by striking out “the purpose” and substituting “any of the purposes”.

   (3)  Subsections 93 (4), (5) and (6) of the Act are repealed and the following substituted:

Contributions to fund

   (4)  The corporation shall collect contributions to the reserve fund from the owners, as part of the contributions to the common expenses payable for their units, to ensure that the amount of money in the fund and the amount of contributions to the common expenses that the corporation collects are adequate, as determined by the regulations, for the purposes of the fund mentioned in subsection (2).

Outside opinion

   (5)  If the amount of money in a reserve fund is below the prescribed amount, the corporation shall, within the prescribed period of time, if any, obtain a written opinion, in accordance with the regulations, if any, from a reserve fund study provider with respect to the reserve fund and whether the provider recommends that the corporation obtain a reserve fund study before the time at which it is next required to obtain such a study.

   85.  (1)  Subsection 94 (1) of the Act is repealed and the following substituted:

Reserve fund study

   (1)  The corporation shall obtain periodic studies, when required to do so, to determine whether the amount of money in the fund and the amount of contributions to the common expenses that the corporation collects are adequate, as determined by the regulations, for the purposes of the fund mentioned in subsection 93 (2).

Permissive studies

   (1.1)  In addition to obtaining a reserve fund study when it is required to do so, the corporation may obtain a reserve fund study at other times to make the determination described in subsection (1).

   (2)  The following provisions of section 94 of the Act are amended by striking out “conduct” wherever that word appears and substituting in each case “obtain”:

    1.  Subsection (4).

    2.  Subsection (5).

   (3)  Subsection 94 (6) of the Act is repealed and the following substituted:

Person conducting study

   (6)  A reserve fund study shall be conducted by a reserve fund study provider.

   (4)  The English version of subsection 94 (7) of the Act is amended by striking out “conducting” and substituting “obtaining”.

   (5)  Subsection 94 (8) of the Act is repealed and the following substituted:

Plan for funding

   (8)  Within 120 days of receiving a reserve fund study, the board shall review it and propose a plan, in accordance with the regulations, if any, for the future funding of the reserve fund that the board determines will ensure that the amount of money in the fund will be adequate, as determined by the regulations, for the purposes of the fund mentioned in subsection 93 (2).

   86.  (1)  The English version of subsection 95 (1) of the Act is amended by striking out “the purpose” and substituting “the purposes”.

   (2)  Subsection 95 (2) of the Act is amended by adding “Subject to the regulations” at the beginning.

   87.  (1)  Subsection 96 (2) of the Act is amended by striking out “section 92” at the end and substituting “section 91 or 92”.

   (2)  Subsection 96 (3) of the Act is amended by adding “or the assets, if any, of the corporation” after “common elements”.

   88.  The heading immediately before section 97 and sections 97 and 98 of the Act are repealed and the following substituted:

Modifications to Common Elements and Assets

Modifications made by corporation

   97.  (1)  No person shall make a modification except in accordance with this section or section 98.

Definitions

   (2)  In this section,

“cost” means the cost as determined in accordance with the regulations, if any; (“coût”)

“modification” means, subject to subsection (3) and the regulations,

  (a)  an addition, alteration or improvement to the common elements,

  (b)  a change in the assets, if any, of the corporation,

   (c)  a change in the services that the corporation provides to the owners, or

  (d)  any combination or series of additions, alterations, improvements or changes described in clause (a), (b) or (c) that collectively relate to each other, as determined by the regulations. (“modification”)

Interpretation, modification

   (3)  Subject to sections 93, 94 and 95 and the regulations, if a corporation has an obligation to repair the units, the common elements or the assets, if any, of the corporation or to maintain them and if the corporation carries out the obligation using materials that are as reasonably close in quality to the original as is appropriate, as determined in accordance with current construction standards, the work shall be deemed not to be a modification.

Cost assessment

   (4)  The board shall conduct an assessment of the cost to the corporation, in accordance with the regulations, of any modifications that a corporation proposes to make under clause (5) (c) or subsection (6) or (7).

Modifications made without notice

   (5)  A corporation may, without notice to the owners, make a modification if,

  (a)  it is necessary to make the modification to comply with an agreement mentioned in section 21.1 or 113 or the requirements imposed by any general or special Act or regulations or by-laws made under that Act;

  (b)  in the opinion of the board, it is necessary to make the modification to ensure the safety or security of persons using the property or assets, if any, of the corporation or to prevent imminent damage to the property or assets;

   (c)  unless the regulations provide otherwise,

           (i)  the estimated cost, if any, to the corporation of making the modification, based on its total cost, regardless of whether part of the cost is incurred before or after the current fiscal year, is no more than the lesser of 3 per cent of the annual budgeted common expenses for the current fiscal year and $30,000, and

          (ii)  the owners, on an objective basis, would not regard the modification as causing a material reduction or elimination of their use or enjoyment of the units that they own or the common elements or assets, if any, of the corporation, as determined by the regulations; or

  (d)  the modification is for any prescribed purposes, subject to the requirements, if any, that are prescribed.

Modifications made on notice

   (6)  A corporation may make a modification to which subsection (5) does not apply if,

  (a)  the corporation has sent a notice to the owners in accordance with the prescribed requirements, if any, that,

           (i)  describes the proposed modification,

          (ii)  contains,

                 (A)  the prescribed statement, if the owners, on an objective basis, would regard the proposed modification as causing a material reduction or elimination of their use or enjoyment of the units that they own or the common elements or assets, if any, of the corporation, as determined by the regulations, or

                 (B)  the prescribed statement of the estimated cost to the corporation of making the proposed modification, indicating the manner in which the corporation proposes to pay the cost,

         (iii)  specifies that the owners have the right, in accordance with section 46 and within 30 days of receiving the notice, to requisition a meeting of owners, and

         (iv)  contains a copy of the text of section 46 and this section; and

  (b)  the owners,

           (i)  have not requisitioned a meeting in accordance with section 46 within 30 days of receiving a notice under clause (a),

          (ii)  have requisitioned a meeting in accordance with section 46 within 30 days of receiving a notice under clause (a) but a quorum is not present at the first attempt to hold the meeting, or

         (iii)  have requisitioned a meeting in accordance with section 46 within 30 days of receiving a notice under clause (a), a quorum is present at the first attempt to hold the meeting and the owners have not voted against the proposed modification at the meeting.

Approval of substantial modification

   (7)  Despite subsection (6), a corporation shall not make a substantial modification unless the owners who own at least 66 ⅔ per cent of the units in the corporation vote in favour of approving it.

Meeting

   (8)  The vote shall be taken at a meeting duly called for the purpose of subsection (7).

Interpretation, substantial modification

   (9)  For the purposes of subsection (7), a modification is substantial if,

  (a)  the estimated cost to the corporation of making the modification, based on its total cost, regardless of whether part of the cost is incurred before or after the current fiscal year, exceeds the lesser of,

           (i)  10 per cent of the annual budgeted common expenses for the current fiscal year, and

          (ii)  the prescribed amount, if any; or

  (b)  the board elects to treat it as substantial.

Cost of modifications

   (10)  The cost of a modification that the corporation makes under this section shall form part of the common expenses.

Modifications made by owners

   98.  (1)  An owner may make a modification if,

  (a)  the board, by resolution, has approved the proposed modification;

  (b)  the owner and the corporation have entered into an agreement that,

           (i)  allocates the cost of the proposed modification between the corporation and the owner,

          (ii)  sets out the respective duties and responsibilities, including the responsibilities for the cost of repair, maintenance and insurance, of the corporation and the owner with respect to the proposed modification, and

         (iii)  sets out the other matters that the regulations require;

   (c)  subject to subsection (3), the requirements of section 97 have been met in accordance with the regulations in the cases where the regulations specify that those requirements are to apply; and

  (d)  the corporation has included a copy of the agreement described in clause (b) in a notice that the corporation is required to send to the owners, if the corporation is required to send that notice.

Definitions

   (2)  In this section,

“cost” means the cost as determined in accordance with the regulations, if any; (“coût”)

“modification” means an addition, alteration or improvement to the common elements or the assets, if any, of the corporation that is not contrary to this Act, the declaration, the by-laws or the rules. (“modification”)

No notice or approval

   (3)  Clauses (1) (c) and (d) do not apply if the proposed modification relates to a part of the common elements of which the owner has exclusive use and if the board is satisfied, on the evidence that it may require, that,

  (a)  the other owners, on an objective basis, would not regard the proposed modification as causing a material reduction or elimination of their use or enjoyment of units that they own or the common elements or assets, if any, of the corporation, as determined by the regulations;

  (b)  the proposed modification will not give rise to any expense to the corporation;

   (c)  the proposed modification will not detract from the appearance of buildings on the property;

  (d)  the proposed modification will not affect the structural integrity of buildings on the property according to a certificate of an engineer, if the proposed modification involves a change to the structure of the buildings; and

  (e)  the proposed modification will not contravene the declaration, the by-laws, the rules or the prescribed requirements, if any.

When agreement effective

   (4)  An agreement described in clause (1) (b) does not take effect until,

  (a)  the conditions set out in clause (1) (a) and subsection (3) have been met or the conditions set out in clauses (1) (a), (c) and (d) have been met; and

  (b)  the corporation has registered it against the title to the owner’s unit.

If default under agreement

   (5)  The corporation may add the costs, charges, interest and expenses resulting from an owner’s failure to comply with the agreement to the contribution to the common expenses payable for the owner’s unit.

Agreement binds unit

   (6)  The agreement binds the owner’s unit and any easement or covenant, whether positive or negative in nature, in the agreement shall run with the unit.

Enforcement

   (7)  The following persons may enforce the easement or covenant against each other:

    1.  A party to the agreement.

    2.  The owner or any subsequent owner of the unit.

    3.  Subject to the regulations, the corporation and any of its successors and assigns.

   89.  Subsections 99 (5) and (6) of the Act are repealed.

   90.  Subsection 100 (2) of the Act is amended by striking out “the repair or replacement of the damaged units” and substituting “the repair of the damage to the damaged units”.

   91.  Section 105 of the Act is repealed and the following substituted:

Deductible

   105.  (1)  Subject to subsections (2), (3) and (4), if an insurance policy obtained and maintained 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.

Owner’s responsibility

   (2)  Subject to subsection (4), if an owner, a lessee of an owner, a person residing in the owner’s unit with the permission or knowledge of the owner, or any other person or thing that is prescribed, through an act or omission causes damage to a unit, the common elements or the assets, if any, of the corporation, subject to subsection (3), and if the corporation has obtained and maintained coverage for the damage under an insurance policy, the amount that is the lesser of the cost of repairing the damage and the deductible limit of the insurance policy shall be added to the contribution to the common expenses payable for the owner’s unit.

Exception

   (3)  Subject to subsection (4), subsection (2) does not apply if the damage to a unit, the common elements or the assets, if any, of the corporation was caused by an act or omission of the corporation or its directors, officers, agents or employees.

Alteration by declaration

   (4)  After a new board of a corporation is elected at a turn-over meeting held under section 43, a declaration may alter the circumstances in subsection (2) under which an amount shall be added to the contribution to the common expenses payable for an owner’s unit if,

  (a)  the alteration is done in accordance with the restrictions or requirements, if any, that are prescribed; and

  (b)  the corporation has met all other requirements of this Act.

Owner’s insurable interest

   (5)  The amount payable by an owner under this section or as a result of a provision of a declaration that makes the alteration described in subsection (4) constitutes an insurable interest of the owner.

   92.  The Act is amended by adding the following section:

Information to owners

   105.1  Subject to the regulations, the board shall provide the owners, in accordance with the regulations, with a notice containing information relating to the insurance mentioned in each of sections 39, 99, 102 and 105 and the regulations, if any.

   93.  (1)  Clause 107 (2) (d) of the Act is repealed and the following substituted:

  (d)  the owners of at least 90 per cent of the units, or such other percentage that is prescribed, at the time the board approved the proposed amendment have consented to it in writing, if it makes a change in a matter described in clause 7 (2) (c), (d) or (f) or 7 (4) (e), subsection 105 (4) or a matter described in the regulations, if any;

   (2)  Clause 107 (2) (e) of the Act is amended by adding “or such other percentage that is prescribed” after “80 per cent of the units”.

   (3)  Clause 107 (2) (f) of the Act is repealed and the following substituted:

   (f)  the corporation has, in accordance with subsection 47 (5), sent a notice of the proposed amendment to all mortgagees whose names, at the time the board approved the proposed amendment, appeared in the record of the corporation required by section 46.1 or were required by that section to have appeared in that record.

   (4)  Section 107 of the Act is amended by adding the following subsections:

Loss of owner’s right to consent

   (4.1)  An owner is not entitled to consent under this section if any contributions to the common expenses payable for the owner’s unit are in arrears for 30 days or more.

Payment of arrears

   (4.2)  An owner who, under subsection (4.1), is not entitled to consent may consent after the corporation receives payment of the arrears with respect to the owner’s unit.

   94.  The French version of section 108 of the Act is amended by striking out “le domicile élu” and substituting “ladresse aux fins de signification”.

   95.  Subsection 109 (2) of the Act is repealed and the following substituted:

Notice of application

   (2)  The applicant shall give at least 15 days notice of an application to the corporation and to every owner and mortgagee whose name, on the 30th day before the application is made, appears in the record of the corporation required by section 46.1 or is required by that section to appear in that record, but the applicant is not required to give notice to the applicant.

   96.  Subsection 110 (2) of the Act is repealed and the following substituted:

Notice of application

   (2)  The applicant shall give notice of the application in the form and manner that the Director of Titles directs to the corporation and to every owner and mortgagee whose name appears in the record of the corporation required by section 46.1 or is required by that section to appear in that record and whose interest would be affected by the amendment, but the applicant is not required to give notice to the applicant.

   97.  (1)  Subsection 111 (1) of the Act is amended by adding “and despite anything in the declaration, a by-law, an agreement or an instrument” after “subsection (2)”.

   (2)  Section 111 of the Act is amended by adding the following subsection:

No liability

   (3)  If a corporation terminates an agreement under this section, the corporation and its directors, officers and owners are not liable for,

  (a)  any obligations in respect of the termination, including obligations purporting to be incurred as cancellation charges, administration charges, accelerated payments or any other charges, penalties or fees;

  (b)  any monetary obligations under the agreement respecting any period after the termination takes effect, unless the regulations provide otherwise; or

   (c)  any other prescribed consequences.

   98.  (1)  Subsection 112 (1) of the Act is repealed and the following substituted:

Other agreements

   (1)  Subject to subsection (4) and the regulations and despite anything in the declaration, a by-law, an agreement or an instrument, a corporation may, by resolution of the board within 12 months following the election of a new board at a meeting held in accordance with subsection 43 (1), terminate an agreement described in subsection (2) that the corporation has entered into with a person before the election of the new board, other than an agreement mentioned in section 21.1.

   (2)  Section 112 of the Act is amended by adding the following subsection:

No liability

   (4.1)  If a corporation terminates an agreement under this section, the corporation and its directors, officers and owners are not liable for,

  (a)  any obligations in respect of the termination, including obligations purporting to be incurred as cancellation charges, administration charges, accelerated payments or any other charges, penalties or fees;

  (b)  any monetary obligations under the agreement respecting any period after the termination takes effect, unless the regulations provide otherwise; or

   (c)  any other prescribed consequences.

   99.  Subsection 113 (1) of the Act is repealed and the following substituted:

Shared facilities agreements

   (1)  If a corporation and a person have entered into an agreement to share in the provision, use, maintenance, repair, insurance, operation or administration of any land, any part of a property or proposed property, any assets of a corporation or any facilities or services before the owners elected a new board at a meeting held in accordance with subsection 43 (1), any party to the agreement may, within 12 months following the election, make an application to the Superior Court of Justice for an order under subsection (3), unless the regulations provide otherwise.

   100.  Section 114 of the Act is repealed and the following substituted:

Insurance trust agreements

   114.  (1)  Despite anything in the declaration, a by-law, an agreement or an instrument, a corporation may terminate an insurance trust agreement that the corporation has entered into with an insurance trustee by giving at least 60 days notice in writing of the termination date to the trustee.

No liability

   (2)  If a corporation terminates an agreement under this section, the corporation and its directors, officers and owners are not liable for,

  (a)  any obligations in respect of the termination, including obligations purporting to be incurred as cancellation charges, administration charges, accelerated payments or any other charges, penalties or fees;

  (b)  any monetary obligations under the agreement respecting any period after the termination takes effect, unless the regulations provide otherwise; or

   (c)  any other prescribed consequences.

   101.  (1)  Subsection 115 (1) of the Act is repealed and the following substituted:

Corporation’s money

   (1)  A person who receives money on behalf of or for the benefit of the corporation, including money received from owners as contributions to the common expenses or the reserve fund, shall, in accordance with the regulations, hold the money, together with interest and other proceeds earned from investing it, in trust for the performance by the corporation of its duties and obligations.

   (2)  Subsection 115 (2) of the Act is amended by adding at the beginning “In accordance with the requirements, if any, that are prescribed”.

   (3)  Subsection 115 (3) of the Act is repealed and the following substituted:

Location of accounts

   (3)  Each of the accounts shall be located in Ontario or such other location that is prescribed in,

  (a)  a bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act; or

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

   (4)  Subsection 115 (4) of the Act is amended by adding “in accordance with the requirements, if any, that are prescribed” after “shall” in the portion before clause (a).

   (5)  The definition of “eligible security” in subsection 115 (5) of the Act is repealed and the following substituted:

“eligible security” means a bond, debenture, guaranteed investment certificate, deposit receipt, deposit note, certificate of deposit, term deposit or other instrument that is prescribed that,

  (a)  is issued or guaranteed by the Government of Canada or the government of any province or territory of Canada,

  (b)  is issued by an institution located in Ontario and is insured in accordance with the regulations by the Canada Deposit Insurance Corporation or the Deposit Insurance Corporation of Ontario, or

   (c)  is a security of a prescribed class.

   (6)  Subclause 115 (6) (b) (ii) of the Act is repealed and the following substituted:

          (ii)  held in a segregated account under the name of the corporation by a member of the Investment Industry Regulatory Organization of Canada and covered by the Canadian Investor Protection Fund in accordance with the regulations, if any.

   (7)  Clause 115 (7) (b) of the Act is repealed and the following substituted:

  (b)  held in a segregated account under the name of the corporation by a member of the Investment Industry Regulatory Organization of Canada and covered by the Canadian Investor Protection Fund in accordance with the regulations, if any.

   (8)  Subsection 115 (8) of the Act is amended by adding “in accordance with the regulations” after “plan”.

   102.  Sections 116 and 117 of the Act are repealed and the following substituted:

Use by owners

   116.  An owner may make reasonable use of the common elements and the assets, if any, of the corporation, subject to this Act, the declaration, the by-laws and the rules.

Prohibited conditions and activities

   117.  (1)  No person shall, through an act or omission, cause a condition to exist or an activity to take place in a unit, the common elements or the assets, if any, of the corporation if the condition or the activity, as the case may be, is likely to damage the property or the assets or to cause an injury or an illness to an individual.

Same

   (2)  No person shall carry on an activity or permit an activity to be carried on in a unit, the common elements or the assets, if any, of the corporation if the activity results in the creation of or continuation of,

  (a)  any unreasonable noise that is a nuisance, annoyance or disruption to an individual in a unit, the common elements or the assets, if any, of the corporation; or

  (b)  any other prescribed nuisance, annoyance or disruption to an individual in a unit, the common elements or the assets, if any, of the corporation.

   103.  Subsection 119 (3) of the Act is repealed and the following substituted:

Enforcing compliance

   (3)  A corporation, an owner and every person having a registered mortgage against a unit and its appurtenant common interest have the right to require that a person who is required to comply with this Act, the declaration, the by-laws and the rules shall do so.

   104.  (1)  Clause 120 (1) (b) of the Act is amended by striking out “within 90 days of the meeting” and substituting “within 120 days of the meeting or such other time that is prescribed”.

   (2)  Section 120 of the Act is amended by adding the following subsections:

Loss of owner’s right to consent

   (3.1)  An owner is not entitled to consent under clause (1) (b) if any contributions to the common expenses payable for the owner’s unit are in arrears for 30 days or more during the 120 days or other time period mentioned in that clause.

Payment of arrears

   (3.2)  An owner who, under subsection (3.1), is not entitled to consent may consent after the corporation receives payment of the arrears with respect to the owner’s unit.

   105.  (1)  The French version of subsection 122 (1) of the Act is amended by striking out “un avis mettant fin à la régie de la propriété par la présente loi” in the portion before clause (a) and substituting “un avis soustrayant la propriété au régime de la présente loi”.

   (2)  Subsection 122 (1) of the Act is amended by striking out “and” at the end of clause (a), by adding “and” at the end of clause (b) and by adding the following clause:

   (c)  all other conditions, if any, that are prescribed have been satisfied.

   (3)  Subsection 122 (2) of the Act is repealed and the following substituted:

Notice of termination

   (2)  The notice of termination shall be in the form prescribed by the Minister, shall be signed by the authorized officers of the corporation and shall include,

  (a)  a certificate stating that the persons described in clause (1) (b) have consented in writing to the termination; and

  (b)  all other material, if any, that is prescribed.

   106.  (1)  The French version of subsection 123 (1) of the Act is amended by striking out “à la régie de la présente loi” in the portion before clause (a) and substituting “au régime de la présente loi”.

   (2)  Subsections 123 (6) and (7) of the Act are repealed and the following substituted:

Contents of notice

   (6)  The notice shall,

  (a)  specify that,

           (i)  the owners have the right, in accordance with section 46 and within 30 days of receiving the notice, to requisition a meeting of owners, and

          (ii)  the board is required to register a notice terminating the government of the property by this Act if the conditions described in subsection (7) are satisfied; and

  (b)  contain a copy of the text of section 46 and this section.

Vote for termination

   (7)  The board shall register a notice terminating the government of the property by this Act if,

  (a)  the owners have requisitioned a meeting in accordance with section 46 within 30 days of receiving a notice under subsection (5);

  (b)  the owners of at least 80 per cent of the units, at the date of the vote, vote in favour of termination; and

   (c)  all other conditions, if any, that are prescribed have been satisfied.

   (3)  Subsection 123 (9) of the Act is amended by adding “if any” after “subsection (7)”.

   (4)  Subsection 123 (10) of the Act is repealed and the following substituted:

Repairs if no termination

   (10)  If the conditions under subsection (7) have not been satisfied, the corporation shall, within a reasonable time, repair the damage to the building or structure located on the property.

   107.  (1)  Subsection 124 (1) of the Act is repealed and the following substituted:

Termination upon sale of property

   (1)  If the corporation sells the property or a part of the common elements, this Act ceases to govern the property or the part of the common elements being sold.

   (2)  Subsection 124 (2) of the Act is amended by striking out “and” at the end of clause (b), by adding “and” at the end of clause (c) and by adding the following clause:

  (d)  all other conditions, if any, that are prescribed have been satisfied.

   (3)  Section 124 of the Act is amended by adding the following subsections:

Loss of owner’s right to consent

   (2.1)  An owner is not entitled to consent under clause (2) (c) if any contributions to the common expenses payable for the owner’s unit are in arrears for 30 days or more.

Payment of arrears

   (2.2)  An owner who, under subsection (2.1), is not entitled to consent may consent after the corporation receives payment of the arrears with respect to the owner’s unit.

   (4)  Subsections 124 (3), (4) and (5) of the Act are repealed and the following substituted:

Conveyance

   (3)  When a sale takes place, the board shall deliver to the purchaser a deed and a certificate that,

  (a)  are signed by the authorized officers of the corporation and are in the form prescribed by the Minister;

  (b)  state that the persons who, under subsection (2), are required to vote in favour of the sale or consent in writing to the sale have done so; and

   (c)  contain all other statements and material, if any, that are prescribed.

Net proceeds

   (4)  Subject to subsection (5) and section 125, the owners at the time of the registration of the deed, as determined by the regulations, shall share the net proceeds of the sale in the same proportions as their common interests, subject to the conditions, if any, that are prescribed.

Same

   (5)  The portion of the net 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, where the owners are those at the time of the registration of the deed, as determined by the regulations, and not all the owners at that time, shall be divided among the owners of the designated units in the proportions in which their interests are affected, subject to the conditions, if any, that are prescribed.

   108.  (1)  Subsection 125 (1) of the Act is amended by adding “in accordance with the prescribed requirements, if any” after “agreement”.

   (2)  Subsection 125 (2) of the Act is amended by adding “in accordance with the agreement mentioned in subsection (1)” after “mediation”.

   (3)  Subsections 125 (3), (4) and (5) of the Act are repealed and the following substituted:

Notice

   (3)  An owner who submits a dispute to mediation in accordance with the agreement mentioned in subsection (1) shall give the corporation notice of intention in accordance with the prescribed requirements, if any, within 10 days after the vote authorizing the sale.

Entitlement to amount

   (4)  An owner who serves a notice of intention in accordance with subsection (3) is entitled, subject to the conditions, if any, that are prescribed, to receive from the net proceeds of the sale the amount the owner would have received if the sale price had been the fair market value as determined by the arbitration.

Deficiency

   (5)  The corporation shall pay to each of the owners who served a notice of intention in accordance with subsection (3), the deficiency in the amount to which the owner is entitled if the net proceeds of the sale are inadequate to pay the amount, subject to the conditions, if any, that are prescribed.

   (4)  Subsection 125 (7) of the Act is repealed and the following substituted:

Common expenses of other owners

   (7)  The corporation shall add the amount of the liability of each of the owners who voted in favour of the sale to the contribution to the common expenses payable for the unit of that owner.

   109.  (1)  Subsection 126 (1) of the Act is amended by adding “as determined in accordance with the regulations, if any” after “Expropriations Act”.

   (2)  Subsections 126 (2) and (3) of the Act are repealed and the following substituted:

Proceeds

   (2)  Subject to subsection (3), if part of the common elements is expropriated under the Expropriations Actin accordance with subsection (1), the owners, at the time determined by the regulations, shall share the proceeds in the same proportions as their common interests, subject to the conditions, if any, that are prescribed.

Same

   (3)  The portion of the proceeds received on expropriation under the Expropriations Act done in accordance with subsection (1) that is attributable to a portion of the common elements that is for the use of the owners of certain designated units, where the owners are those at the time determined by the regulations, and not all the owners at that time, shall be divided among the owners of the designated units in the proportions in which their interests are affected, subject to the conditions, if any, that are prescribed.

   110.  (1)  Subsection 127 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Effect of registration

   (1)  Upon registration of a notice of termination under section 122 or 123, then, subject to the regulations,

.     .     .     .     .

   (2)  Subsection 127 (1) of the Act is amended by striking out “and” at the end of clause (d), by adding “and” at the end of clause (e) and by adding the following clause:

   (f)  the other consequences, if any, that are prescribed shall come into effect.

   (3)  Subsection 127 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Same, sale or expropriation

   (2)  Upon the registration, in accordance with the regulations, of a deed and a certificate mentioned in subsection 124 (3) or upon expropriation under section 126, then, subject to the regulations,

.     .     .     .     .

   (4)  Subsection 127 (2) of the Act is amended by striking out “and” at the end of clause (b), by adding “and” at the end of clause (c) and by adding the following clause:

  (d)  the other consequences, if any, that are prescribed shall come into effect.

   111.  (1)  The French version of subsection 128 (1) of the Act is amended by striking out “une ordonnance mettant fin à la régie de la propriété par la présente loi” and substituting “une ordonnance soustrayant la propriété au régime de la présente loi”.

   (2)  The French version of subsection 128 (2) of the Act is amended by striking out “cesse d’être régie par la présente loi” in the portion before clause (a) and substituting “soit soustraite au régime de la présente loi”.

   (3)  Subsection 128 (4) of the Act is repealed and the following substituted:

Registration of order

   (4)  If the court makes an order terminating the government of the property by this Act, the applicant shall register the order in accordance with the regulations, if any.

   112.  Section 129 of the Act is repealed and the following substituted:

Distribution of assets

   129.  When the owners and the property cease to be governed by this Act, then, subject to the regulations,

  (a)  the assets of the corporation, at the time determined by the regulations, shall be used to pay all claims for the payment of money against the corporation, at the time determined by the regulations;

  (b)  the remainder of the assets of the corporation, at the time determined by the regulations, shall be distributed among the owners, at the time determined by the regulations, in the same proportions as the proportions of their common interests; and

   (c)  the other consequences, if any, that are prescribed and that relate to the assets shall come into effect.

   113.  Subsection 131 (1) of the Act is amended by adding “subject to the regulations” after “if”.

   114.  (1)  Subsection 132 (1) of the Act is amended by adding “Subject to subsection (4.1)” at the beginning and by adding “including any question of law or equity” after “with respect to the agreement” in the portion before clause (a).

   (2)  Subsection 132 (1) of the Act is repealed and the following substituted:

Mediation and arbitration

   (1)  Subject to subsection (6), every agreement mentioned in subsection (2) shall be deemed to contain a provision to submit a disagreement between the parties with respect to the agreement, including any question of law or equity, to mediation and arbitration.

   (3)  Subsection 132 (2) of the Act is amended by adding the following paragraph:

  3.1  An agreement for sharing as described in section 21.1, if it is prescribed.

   (4)  Subsection 132 (3) of the Act is amended by adding “including any question of law or equity” after “section 75”.

   (5)  Subsection 132 (4) of the Act is amended by adding “Subject to subsection (4.1)” at the beginning and by adding “including a disagreement with respect to any question of law or equity” after “rules”.

   (6)  Section 132 of the Act is amended by adding the following subsections:

Non-application

   (4.1)  Subsections (1) and (4) do not apply to any matter in dispute for which a person may apply for resolution under section 1.36 to the Condominium Authority Tribunal established under Part I.2 if the Tribunal has been established under that Part.

.     .     .     .     .

No order for permanent removal of person

   (8)  If a disagreement is submitted to arbitration under this section, the arbitral tribunal shall not make an award requiring a person to vacate a property permanently.

Copy of arbitration award

   (9)  If a matter is submitted to arbitration under this section, the arbitral tribunal that makes an award as part of the arbitration shall ensure that a copy of the award is delivered to the following person or body within the prescribed time period and in accordance with the regulations:

    1.  The board of the condominium authority, if the authority exists.

    2.  The Minister, if there is no condominium authority.

Same, copy for public

   (10)  Upon receiving a copy described in subsection (9), the board of the condominium authority or the Minister, as the case may be, shall make it available to the public in the prescribed manner.

   (7)  Subsections 132 (3) to (7) of the Act are repealed and the following substituted:

Disagreement on shared facilities

   (3)  Subject to the regulations, even if the persons mentioned in section 21.1 have not entered into an agreement described in that section, they shall be deemed to have agreed in writing to submit a disagreement between them with respect to the sharing described in that section, including a disagreement with respect to any question of law or equity, to mediation and arbitration.

Disagreements on budget matters

   (4)  The declarant and the board shall be deemed to have agreed in writing to submit a disagreement between the parties with respect to the budget statement described in subsection 72 (6), the budget mentioned in subsection 83.1 (3) or the obligations of the declarant under section 75, including any question of law or equity, to mediation and arbitration.

Disagreements between corporation and owners

   (5)  Subject to subsection (6), every declaration shall be deemed to contain a provision that the corporation and the owners agree to submit a disagreement between the parties with respect to the declaration, by-laws or rules, including a disagreement with respect to any question of law or equity, to mediation and arbitration.

Non-application

   (6)  Subsections (1) and (5) do not apply to any matter in dispute for which a person may apply for resolution under section 1.36 to the Condominium Authority Tribunal established under Part I.2 if the Tribunal has been established under that Part.

Process

   (7)  If parties to a disagreement are deemed, under this section, to submit the disagreement to one or both of mediation and arbitration or if a party who is entitled under this Act to submit a disagreement to mediation or arbitration submits the disagreement to mediation or arbitration, the mediation and arbitration shall be conducted in accordance with the process that is prescribed unless,

  (a)  the parties agree in writing to a different process;

  (b)  a by-law of the corporation made under clause 56 (1) (o) specifies a different process, if the disagreement is a disagreement described in that clause; or

   (c)  a by-law of the corporation made under clause 56 (1) (q) specifies a different process, if the disagreement is a disagreement described in that by-law.

   (8)  Section 132 of the Act is amended by adding the following subsection:

Payment of award on disagreements between corporation and owners

   (11)  If a disagreement on a matter described in subsection (5) is submitted to arbitration under this section and an arbitral tribunal under the arbitration makes an order for compensation or costs, then, unless the corporation and the owner who is a party to the arbitration agree in writing otherwise,

  (a)  the party against whom the tribunal makes the order shall pay the amount of the order within 30 days, unless the order specifies another time limit;

  (b)  if the order requires the owner to pay compensation or costs to the corporation, the corporation may add the amount of the order to the contribution to the common expenses payable for the owner’s unit; and

   (c)  if the order requires the corporation to pay compensation or costs to the owner and the corporation does not pay the amount of the order within the time limit mentioned in clause (a), the owner may set off the amount against the contribution to the common expenses payable for the owner’s unit.

   115.  (1)  Subsection 133 (2) of the Act is amended by adding at the beginning “Subject to subsection (3)”.

   (2)  Section 133 of the Act is amended by adding the following subsection:

Exception

   (3)  A corporation or owner is not entitled to make an application under subsection (2) to recover damages for a loss if the corporation or owner, as the case may be, is entitled to make an application to recover damages for the loss under subsection 43 (8) or 74 (11).

   116.  (1)  Subsection 134 (1) of the Act is repealed and the following substituted:

Compliance order

   (1)  Subject to subsections (2), (2.1) and (2.4), an owner, an occupier of a proposed unit, a corporation, a declarant, a lessor of a leasehold condominium corporation or a mortgagee of a unit may make an application to the Superior Court of Justice for an order enforcing compliance with any provision of,

  (a)  this Act, the declaration, the by-laws or the rules; or

  (b)  an agreement that two or more corporations have entered into to share in the provision, use, maintenance, repair, insurance, operation or administration of any land, any part of a property or proposed property, any assets of a corporation or any facilities or services.

   (2)  Subsection 134 (2) of the Act is amended by striking out “available” and substituting “required”.

   (3)  Section 134 of the Act is amended by adding the following subsections:

Notice to owner

   (2.1)  Subject to subsections (2.2) and (2.3), a person is not entitled to apply for an order requiring an occupier of an owner’s unit or any or all of the invitees, agents and employees of the owner or occupier to vacate a property permanently unless the applicant gives reasonable notice of the application to the owner.

Service of notice

   (2.2)  Despite subsection 47 (4), if the applicant is not the corporation, the applicant shall give the notice in the prescribed manner.

Exception, no notice

   (2.3)  An applicant is not required to give the notice described in subsection (2.1) in the event of the circumstances that are prescribed, which may include an emergency or other event.

Non-application

   (2.4)  This section does not apply to any matter in dispute for which a person may apply for resolution under section 1.36 to the Condominium Authority Tribunal established under Part I.2, if the Tribunal has been established under that Part.

   (4)  Subsection 134 (3) of the Act is amended by striking out “subject to subsection (4)” in the portion before clause (a).

   (5)  Subsections 134 (4) and (5) of the Act are repealed.

   117.  The Act is amended by adding the following sections:

Compliance order of Registrar

   134.1  (1)  The Registrar may propose to make an order directing a person to comply with subsection 1.30 (6), any provision of Part II.1 or subsection 132 (9) if the Registrar believes on reasonable grounds that the person has contravened those provisions.

Notice

   (2)  If the Registrar proposes to make an order under subsection (1), the Registrar shall serve notice of the proposed order, together with written reasons, on the person.

Right to hearing

   (3)  The notice shall state that the person is entitled to a hearing by the Licence Appeal Tribunal if the person mails or delivers, within 15 days after the notice is served, a notice in writing requiring a hearing to the Registrar and the Tribunal.

If no hearing

   (4)  If the person does not require a hearing in accordance with subsection (3), the Registrar may make the order.

Hearing

   (5)  If the person requires a hearing in accordance with subsection (3), the Licence Appeal Tribunal shall hold the hearing and may order the Registrar to make the proposed order or to refrain from making the proposed order or may make an order of its own in substitution for that of the Registrar.

Conditions

   (6)  The Licence Appeal Tribunal may attach the conditions to its order that it considers proper.

Parties

   (7)  The Registrar and the person who has required the hearing and all other persons that the Licence Appeal Tribunal specifies are parties to proceedings before the Tribunal under this section.

Decision final

   (8)  A decision of the Licence Appeal Tribunal under subsection (5) is final and not subject to appeal to the Divisional Court.

Notice to owners

   (9)  If a compliance order is made against a corporation or a director or officer of a corporation under this section and there is no possibility of it being replaced under subsection (5), the corporation shall give notice of the order to the owners in the manner prescribed.

Service under s. 134.1

   134.2  (1)  A notice or order required to be given or served by the Registrar under section 134.1 is sufficiently given or served if it is,

  (a)  delivered personally;

  (b)  sent by registered mail; or

   (c)  sent by another manner, if the Registrar can prove receipt of the notice or order.

Deemed service

   (2)  If service is made by registered mail, the service shall be deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person’s control, receive the notice or order until a later date.

Exception

   (3)  Despite subsection (1), the Licence Appeal Tribunal may order any other method of service.

   118.  The Act is amended by adding the following sections:

Order for permanent removal of person

   135.1  (1)  Despite subsections 134 (3) and 135 (3), the court shall not, under either of those subsections, make an order that requires a person to vacate a property permanently unless the court is satisfied that,

  (a)  the person is in contravention of subsection 117 (1) and poses a serious risk,

           (i)  to the health and safety of an individual, or

          (ii)  of damage to the property or the assets, if any, of the corporation;

  (b)  in respect of an order under subsection 134 (3), on the basis of the person’s acts of non-compliance,

           (i)  the person is unsuited for the communal occupation of the property or the communal use of the property, and

          (ii)  no other order will be adequate to enforce compliance; or

   (c)  in respect of an order under subsection 135 (3), on the basis of the person’s conduct,

           (i)  the person is unsuited for the communal occupation of the property or the communal use of the property, and

          (ii)  no other order will be adequate to prohibit the conduct.

Exception

   (2)  A person is not entitled to apply for an order described in subsection (1) against a tenant of a unit if the person is a landlord, within the meaning of the Residential Tenancies Act, 2006, in respect of the unit.

Addition to common expenses

   (3)  If a corporation obtains an award of damages, compensation or costs against an owner or occupier of a unit in an order made under subsection 134 (3) or 135 (3), the damages, compensation or costs, together with any additional actual costs to the corporation in obtaining the order, shall be added to the contribution to the common expenses payable for the unit.

Additional costs of owner

   (4)  If an owner of a unit obtains an award of damages, compensation or costs against a corporation in an order made under subsection 134 (3) or 135 (3), the owner is entitled to recover from the corporation the amount of the award, together with any additional actual costs to the owner in obtaining the order.

Set-off against common expenses

   (5)  If the corporation does not pay the amount an owner is entitled to under subsection (4) within the prescribed time, the owner may set off the amount against the contribution to the common expenses payable for the owner’s unit.

No termination of tenancy

   135.2  (1)  Nothing in this Act permits the termination of a tenancy governed by subsection 37 (1) of the Residential Tenancies Act, 2006.

Same

   (2)  An order described in subsection 135.1 (1) is not an order for the termination of a tenancy described in subsection (1).

   119.  The Act is amended by adding the following section:

Offences, condominium authority

   136.1  (1)  If the condominium authority knowingly contravenes this Act or the regulations, the authority is guilty of an offence and on conviction is liable to a fine of not more than $100,000 for each day or part of a day on which the offence occurs or continues.

Individuals

   (2)  A director, officer, employee or agent of the condominium authority who knowingly contravenes this Act or the regulations is guilty of an offence.

Directors and officers

   (3)  A director or officer of the condominium authority is guilty of an offence if the person,

  (a)  knowingly causes, authorizes, permits or participates in the commission by the authority of an offence mentioned in subsection (1); or

  (b)  fails to take reasonable care to prevent the authority from committing an offence mentioned in subsection (1).

Penalty

   (4)  A person who is convicted of an offence under subsection (2) or (3) is liable to a fine of not more than $25,000 for each day or part of a day on which the offence occurs or continues.

   120.  The Act is amended by adding the following section:

Offences, filings and assessments

   136.2  (1)  A person is guilty of an offence if the person,

  (a)  contravenes section 9.4, except if the person did not knowingly do so and, in the exercise of reasonable diligence, could not have known that the person was contravening that section; or

  (b)  contravenes or fails to comply with subsection 1.30 (6) or any provision of Part II.1, other than section 9.4.

Directors and officers

   (2)  It is an offence for a director or officer of a corporation to fail to take reasonable care to prevent the corporation from committing an offence mentioned in subsection (1), whether or not the corporation has been prosecuted or convicted.

Penalty

   (3)  A person convicted of an offence under this section is liable to a fine of,

  (a)  not more than $50,000, if the person is a corporation; or

  (b)  not more than $25,000, if the person is not a corporation.

   121.  Section 137 of the Act is repealed and the following substituted:

Offences, general

   137.  (1)  A corporation under this Act or any other Act and any other person or entity that contravenes or fails to comply with subsection 43 (1), (3), (4), (5), (7), 55 (1) or 72 (1), section 72.1 or 81, subsection 115 (1), (2), (3), (4) or (9), section 118, subsection 133 (1), section 143, subsection 147 (1), (3), 152 (1), (2) or 161 (2), section 169 or a regulation made under paragraph 4.1 of subsection 177 (1) is guilty of an offence.

Directors and officers

   (2)  An officer or director of a corporation within the meaning of this Act or any other Act who fails to take reasonable care to prevent the corporation from committing an offence mentioned in subsection (1), is guilty of an offence, whether or not the corporation has been prosecuted or convicted.

Other individuals

   (3)  Any of the following individuals who act on behalf of an entity and who fail to take reasonable care to prevent the entity from committing an offence mentioned in subsection (1), are guilty of an offence, whether or not the entity has been prosecuted or convicted:

    1.  A partner or general manager and assistant general manager of an entity that is a partnership.

    2.  Any other individual designated for the purpose of this subsection by a by-law or resolution of any entity.

    3.  Any other individual who performs functions normally performed by an individual described in paragraph 2.

Penalties

   (4)  A person who is convicted of an offence under subsection (1), (2) or (3) is liable to,

  (a)  a fine of not more than $250,000, if the person is a corporation within the meaning of this Act or any other Act; or

  (b)  a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or both, if the person is an individual.

Limitation

   (5)  No proceeding under this section shall be commenced after the second anniversary of the day on which the facts upon which the proceeding is based first came to the knowledge of the Director designated under the Ministry of Consumer and Business Services Act.

Compliance order

   (6)  The court hearing the proceeding may make an order requiring a person convicted of an offence to comply with the provisions of this Act that the person has contravened, if the court has competent jurisdiction to make the order.

Orders for compensation, restitution

   (7)  If a corporation under this Act or any other Act or any other person is convicted of an offence under subsection (1) or (2), the court making the conviction may, in addition to any other penalty, order the person convicted to pay compensation or make restitution.

   122.  (1)  Subsection 138 (3) of the Act is amended by striking out “or, except as provided in the regulations made under this Act, a phased condominium corporation” at the end.

   (2)  Subsection 138 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:.

Application

   (4)  Subject to this Part and the regulations, Parts I to IX, XI and XIV apply with necessary modifications to a common elements condominium corporation, except that,

.     .     .     .     .

   123.  Section 140 of the Act is amended by adding “and subject to the regulations” after “subsection 7 (2)” in the portion before clause (a).

   124.  Section 143 of the Act is repealed and the following substituted:

Disclosure statement

   143.  In addition to the requirements of subsection 72 (3), a disclosure statement for a common interest in a common elements condominium corporation shall contain 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.

   125.  (1)  Subsection 144 (1) of the Act is amended by striking out “(d)” and substituting “(c)”.

   (2)  Subsection 144 (2) of the Act is repealed and the following substituted:

Repair and maintenance

   (2)  Subject to sections 91 and 123, the corporation shall repair the common elements and the assets, if any, of the corporation and shall maintain them.

   126.  (1)  Clauses 145 (1) (a) and (b) of the Act are repealed.

   (2)  Subsection 145 (4) of the Act is repealed and the following substituted:

Application

   (4)  Subject to this Part, the other Parts of this Act apply with necessary modifications to a phased condominium corporation unless those other Parts specifically provide that they do not apply to a particular type of phased condominium corporation.

   (3)  Subsection 145 (5) of the Act is amended by adding “subsection 2 (2.1)” after “description in”.

   127.  (1)  Subsection 146 (4) of the Act is amended by adding “Subject to the regulations” at the beginning in the portion before clause (a).

   (2)  Subsection 146 (4) of the Act is amended by adding the following clause:

(c.1) a statement of how the proportions mentioned in clauses (b) and (c) are determined;

   128.  (1)  Subclause 147 (1) (d) (iii) of the Act is repealed and the following substituted:

         (iii)  the statements described in clauses 146 (4) (b) and (c),

     (iii.1)  the statement described in clause 146 (4) (c.1),

   (2)  Subsection 147 (1) of the Act is amended by adding “and” at the end of clause (c), by striking out “and” at the end of subclause (d) (v) and by repealing clause (e).

   (3)  Subsection 147 (4) of the Act is amended by adding “subject to the regulations” after “phase” in the portion before clause (a).

   129.  Clause 149 (1) (c) of the Act is amended by striking out “a statement specifying” at the beginning in the portion before subclause 1 and substituting “a statement that is prepared in accordance with the regulations and that specifies”.

   130.  Subsection 152 (2) of the Act is repealed and the following substituted:

Obligation upon creation of phase

   (2)  Upon the registration of the amendments to the declaration and description required for creating a phase, the declarant shall turn over to the board the following materials that relate to the phase and that the declarant has not previously turned over to the board:

    1.  All materials mentioned in subsections (1) and 43 (4) and clauses 43 (5) (a) to (g) and (l) and (m).

    2.  Subject to the regulations, the materials mentioned in clause 43 (5) (h), as that clause read immediately before the day subsection 36 (7) of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force.

   131.  (1)  Subsection 154 (1) of the Act is amended by adding “and despite anything in the declaration, a by-law, an agreement or an instrument” after “subsection (2)”.

   (2)  Subsection 154 (3) of the Act is repealed and the following substituted:

Other agreements

   (3)  Subject to subsection (4), subsection 112 (5) and the regulations and despite anything in the declaration, a by-law, an agreement or an instrument, within 12 months following the first election of the board under section 43 after the registration of the amendments to the declaration and description required for creating a phase, the corporation may, by resolution of the board, terminate an agreement described in subsection 112 (2) that the declarant has entered into on behalf of the corporation before the registration of the amendments and that affects the property contained in the phase, other than an agreement mentioned in section 21.1.

   (3)  Subsection 154 (4) of the Act is amended by adding “under subsection (1) or (3)” after “To terminate an agreement”.

   (4)  Section 154 of the Act is amended by adding the following subsection:

No liability

   (4.1)  If a corporation terminates an agreement under subsection (1) or (3), the corporation and its directors, officers and owners are not liable for,

  (a)  any obligations in respect of the termination, including obligations purporting to be incurred as cancellation charges, administration charges, accelerated payments or any other charges, penalties or fees;

  (b)  any monetary obligations under the agreement respecting any period after the termination takes effect, unless the regulations provide otherwise; or

   (c)  any other prescribed consequences.

   (5)  Subsection 154 (5) of the Act is repealed and the following substituted:

Shared facilities agreements

   (5)  If a declarant on behalf of a corporation has entered into an agreement to share in the provision, use, maintenance, repair, insurance, operation or administration of any land, any part of a property or proposed property, any assets of a corporation or any facilities or services before the registration of the amendments to the declaration and description required for creating a phase and if the agreement affects the property contained in the phase, any party to the agreement may, within 12 months following the first election of the board under section 43 after the registration of the amendments, make an application to the Superior Court of Justice for an order under subsection (6) unless the regulations provide otherwise.

   132.  (1)  Subsection 155 (3) of the Act is amended by striking out “or, except as provided in the regulations made under this Act, a phased condominium corporation” at the end.

   (2)  Subsection 155 (4) of the Act is amended by adding “XI” after “IX”.

   133.  Subsection 156 (1) of the Act is amended by adding “subject to the regulations” after “may” in the portion before clause (a).

   134.  (1)  Subsection 161 (1) of the Act is amended by striking out “mentioned in section 72” and substituting “and the condominium guide as required by section 72”.

   (2)  Subsection 161 (2) of the Act is repealed and the following substituted:

Contents

   (2)  In addition to the material required under subsection 72 (3), a disclosure statement relating to the purchase of a unit or a proposed unit in a vacant land condominium corporation shall include whatever statement that the declarant has received from the municipality or the Minister of Municipal Affairs and Housing, as the case may be, in response to a request.

   (3)  Subsection 161 (3) of the Act is amended by adding “that is prepared in accordance with the regulations and” after “contain a statement”.

   135.  (1)  Subsection 162 (2) of the Act is repealed.

   (2)  The following provisions of section 162 of the Act are amended by striking out “after damage” wherever that expression appears:

    1.  Subsection (3).

    2.  Subsection (4).

    3.  Subsection (5).

   136.  The following provisions of the Act are amended by striking out “the owner’s contribution to the common expenses” wherever that expression appears and substituting in each case “the contribution to the common expenses payable for the owner’s unit”:

    1.  Subsection 162 (6).

    2.  Subsection 163 (4).

   137.  Subsection 164 (3) of the Act is amended by adding “XI” after “IX”.

   138.  (1)  Subsection 166 (1) of the Act is repealed and the following substituted:

Declaration

   (1)  A declaration for a leasehold condominium corporation and an amendment to a declaration for a leasehold condominium corporation to make the corporation a phased condominium corporation shall not be registered unless it is executed by the lessor.

   (2)  Subsection 166 (2) of the Act is amended by adding “and subject to the regulations” after “7 (2)” in the portion before clause (a).

   (3)  Subsection 166 (3) of the Act is amended by adding “in accordance with the prescribed requirements” after “sets them out”.

   (4)  Subsection 166 (4) of the Act is repealed and the following substituted:

Amendment to declaration

   (4)  An amendment to the declaration that affects the leasehold interests in the property, other than an amendment to make the corporation a phased condominium corporation, is not effective unless the lessor has consented in writing to the amendment.

   139.  Subsection 168 (3) of the Act is amended by adding “including any question of law or equity” at the end.

   140.  Section 169 of the Act is repealed and the following substituted:

Disclosure statement

   169.  In addition to the matters mentioned in subsection 72 (3), a disclosure statement in the case of a leasehold condominium corporation shall include a statement by the declarant whether the provisions of the leasehold interests in the property are in good standing and have not been breached.

   141.  Subsection 171 (2) of the Act is repealed and the following substituted:

Contribution to common expenses

   (2)  The corporation shall collect from each owner, as part of the contribution to the common expenses payable for the owner’s unit, a portion of the rent and the amounts described in subsection (1) based on the proportion in which the owner is to contribute to the common expenses and that is allocated to the owner’s unit in the declaration.

   142.  Subsection 174 (8) of the Act is amended by adding “in accordance with the regulations” at the end.

   143.  The Act is amended by adding the following section:

Fees

   176.1  (1)  The Minister may, by order, establish fees that are payable for filing returns and notices under Part II.1 or for obtaining search reports, copies of documents and information or other services under that Part.

Orders are not regulations

   (2)  Part III (Regulations) of the Legislation Act, 2006 does not apply to an order made under subsection (1).

Exception

   (3)  Subsection (1) does not apply if the condominium authority is responsible for the administration of Part II.1.

   144.  (1)  Subsection 177 (1) of the Act is amended by adding the following paragraphs:

  0.1  requiring the condominium authority to collect and publish statistics on its activities and financial affairs in accordance with the requirements specified in the regulations;

  0.2  providing that sections 1.36 to 1.47 apply only in respect of a property located in the geographic area specified in the regulations;

.     .     .     .     .

  2.1  governing the form and content of a declaration or a description;

  2.2  specifying provisions that are deemed to be included in declarations and descriptions registered before May 5, 2001;

  2.3  governing what constitutes and what does not constitute an inconsistent provision for the purposes of subsection 7 (5), 56 (8) or 58 (4);

.     .     .     .     .

  3.1  for the purposes of clause 22 (2) (a), governing what constitutes a network upgrade or an agreement for a network upgrade;

  3.2  governing what constitutes an interest or a right mentioned in subsection 26.1 (1) or 78 (1.1);

  3.3  governing the training that a person must complete for the purposes of clause 29 (2) (e), including,

            i.  authorizing the board of the condominium authority or the Minister to designate training courses,

           ii.  authorizing the board of the condominium authority or the Minister to designate organizations that are authorized to provide the courses designated in subparagraph i, and

          iii.  requiring the condominium authority or the Minister to keep records relating to training;

   (2)  The English version of paragraph 4 of subsection 177 (1) of the Act is amended by striking out “a table of contents” and substituting “a summary”.

   (3)  Subsection 177 (1) of the Act is amended by adding the following paragraphs:

  4.1  governing material that is to be made available on a website that a declarant or declarant affiliate maintains or makes use of in relation to a property or proposed property;

  4.2  governing when a person shall be deemed to be acting on behalf of or for the benefit of a declarant in respect of the purchase of a unit or a proposed unit under this Act or shall be deemed not to be so acting;

.     .     .     .     .

  6.1  setting out provisions that are deemed to be included in the declaration, the by-laws or the rules unless they are amended or repealed in accordance with this Act;

  6.2  restricting provisions of the declaration, the by-laws or the rules of a corporation that a board, other than a board of the corporation described in subsection 11 (8), may approve, make, amend or repeal and governing the remedies available to persons affected by non-compliance with a regulation made under this paragraph;

  6.3  if a regulation made under paragraph 6.2 restricts a board of a corporation to which that paragraph applies from approving, making, amending or repealing a provision of the declaration, the by-laws or the rules of the corporation, governing the circumstances where a decision of a board of a corporation described in subsection 11 (8) to approve, make, amend or repeal such a provision is not valid and governing the remedies available to persons affected by that decision;

   (4)  Subsection 177 (1) of the Act is amended by adding the following paragraph:

  6.4  governing the quorum required for the transaction of business at a meeting of owners to which clause 45.1 (1) (a.1) applies;

   (5)  The French version of paragraph 8 of subsection 177 (1) of the Act is amended by striking out “la formule” and substituting “la forme”.

   (6)  Subsection 177 (1) of the Act is amended by adding the following paragraphs:

  8.1  specifying the manner of requesting or delivering statements and other material mentioned in section 26.3, 51, 72, 72.1, 74, 76, 77, 81, 82, 83.1, 115, 143, 147, 149, 150, 152, 161 or 169, requiring the person to whom the statements and material are delivered to provide an acknowledgment of the delivery and governing the acknowledgement;

  8.2  for the purposes of subsection 11 (7) and sections 26.1 and 26.2, governing the circumstances where the decision of a board of a corporation under those provisions is not valid and governing the remedies available to persons affected by that decision;

  8.3  for the purposes of subsection 51 (3) or 51.1 (2), governing the circumstances when two or more owners of a unit are deemed to be evenly divided on how to exercise the right to vote or consent in respect of the unit under that subsection;

  8.4  governing the remedies available to a person who is or was a purchaser under section 72.1 if a declarant does not comply with that section;

.     .     .     .     .

10.1 for the purposes of subsection 92 (1), (2) or (3), governing what constitutes work necessary to carry out the obligation mentioned in that subsection;

   (7)  Paragraph 12 of subsection 177 (1) of the Act is amended by striking out “conducted” at the end and substituting “obtained”.

   (8)  Paragraph 13 of subsection 177 (1) of the Act is repealed.

   (9)  Paragraph 14 of subsection 177 (1) of the Act is repealed.

   (10)  Subsection 177 (1) of the Act is amended by adding the following paragraph:

  13.  governing the manner in which the current fiscal year mentioned in clause 97 (5) (c) or 97 (9) (a) is to be determined;

   (11)  Subsection 177 (1) of the Act is amended by adding the following paragraph:

  14.  governing what constitutes a condition or activity mentioned in section 117;

   (12)  Subsection 177 (1) of the Act is amended by adding the following paragraphs:

15.1 specifying the qualifications that a person must have to be appointed as an administrator under section 131 and specifying the conditions or requirements that a person must fulfil to be so appointed;

15.2 for the purposes of sections 82.1, 82.2, 124 and 125, governing what constitutes the net proceeds of a sale mentioned in the applicable section;

15.3 requiring an applicant who makes an application under subsection 128 (1) to give notice of the application and governing the contents of the notice and the time required for giving it;

15.4 for the purposes of subsections 135.1 (3) and (4), governing what constitutes any additional actual costs that a corporation or an owner incurs in obtaining an order described in either of those subsections;

.     .     .     .     .

18.1 governing the manner in which section 75 applies to a phased condominium corporation;

.     .     .     .     .

19.1 for the purposes of subsection 162 (5), governing what constitutes work necessary to carry out the obligation mentioned in that subsection;

.     .     .     .     .

24.1 defining any word or expression used in this Act that has not already been expressly defined in this Act;

.     .     .     .     .

  26.  providing for any transitional matter necessary for the effective implementation of this Act or the regulations.

   (13)  Paragraph 6 of subsection 177 (2) of the Act is amended by striking out “phased”.

   (14)  Subsection 177 (2) of the Act is amended by adding the following paragraphs:

  7.1  governing any return or notice required to be filed under Part II.1, including governing their form, the manner of accepting them, the determination and confirmation of the date of their receipt and their period of retention and destruction;

  7.2  specifying alternative methods of filing returns and notices under Part II.1 and governing their filing by each method, including governing the manner of accepting them and the determination and confirmation of the date of their receipt;

   145.  Subsection 178 (2) of the Act is amended by adding “payable for the owner’s unit” after “common expenses”.

   146.  (1)  The following provisions of the Act are amended by striking out “the regulations made under this Act” wherever that expression appears and substituting in each case “the regulations”:

    1.  Subsection 3 (5).

    2.  Clause 7 (2) (h).

    3.  Subsection 8 (1), in the portion before clause (a).

    4.  Clause 8 (1) (h).

    5.  Subsection 8 (2).

    6.  Subsection 14 (2).

    7.  Clause 43 (5) (m).

    8.  Clauses 44 (5) (a) and (b).

    9.  Clause 44 (8) (f).

  10.  Clause 57 (2) (b).

  11.  Clause 66 (2) (g).

  12.  Clause 72 (3) (t).

  13.  Clause 72 (6) (k).

  14.  Clause 76 (1) (s).

  15.  Subsection 120 (1), in the portion before clause (a).

  16.  Clause 120 (3) (e).

  17.  Subsection 138 (1).

  18.  Subclause 139 (1) (a) (ii).

  19.  Subsection 139 (3).

  20.  Clause 140 (c).

  21.  Subsection 145 (1), in the portion before clause (a).

  22.  Clause 146 (4) (f).

  23.  Clause 146 (5) (c).

  24.  Clause 146 (11) (a).

  25.  Clause 152 (1) (b).

  26.  Subsection 155 (1), in the portion before clause (a).

  27.  Clauses 157 (1) (c) and (e).

  28.  Clause 158 (1) (a).

  29.  Subclause 158 (1) (b) (i).

  30.  Clause 158 (3) (a).

  31.  Subsection 162 (1).

  32.  Subsection 164 (1).

  33.  Clause 166 (2) (e).

  34.  Subsections 167 (1) and (2).

  35.  Clause 170 (c).

   (2)  Subsection (3) applies only if section 3 of Schedule 9 to the Strong Action for Ontario Act (Budget Measures), 2012 does not come into force before the day subsection 1 (15) of this Schedule comes into force.

   (3)  Subsection 5 (2) of the Act is amended by striking out “the regulations made under this Act” and substituting “the regulations”.

   (4)  Subsection (5) applies only if section 3 of Schedule 9 to the Strong Action for Ontario Act (Budget Measures), 2012 comes into force on or before the day subsection 1 (15) of this Schedule comes into force.

   (5)  Subsection 5 (2) of the Act, as re-enacted by section 3 of Schedule 9 to the Strong Action for Ontario Act (Budget Measures), 2012, is amended by striking out “the regulations made under this Act” and substituting “the regulations”.

Other Amendments

Building Code Act, 1992

   147.  Clause 8 (2) (b) of the Building Code Act, 1992 is repealed and the following substituted:

  (b)  the applicant is a builder or a vendor, as defined in clause (a) of the definition of “builder” or “vendor”, as the case may be, in section 1 of the Ontario New Home Warranties Plan Act, and is not registered under that Act;

Development Charges Act, 1997

   148.  (1)  Clause 2 (2) (f) of the Development Charges Act, 1997 is repealed and the following substituted:

   (f)  the approval of a description under section 9 of the Condominium Act, 1998; or

   (2)  Subsection (4) applies only if Bill 73 (An Act to amend the Development Charges Act, 1997 and the Planning Act), introduced on March 5, 2015, receives Royal Assent.

   (3)  References in this section to provisions of Bill 73 are references to those provisions as they were numbered in the first reading version of the Bill.

   (4)  Subsection (1) applies only if, on or before the day this section comes into force, subsection 2 (1) of Bill 73 is not in force.

Education Act

   149.  Clause 257.54 (2) (f) of the Education Act is repealed and the following substituted:

   (f)  the approval of a description under section 9 of the Condominium Act, 1998; or

Land Titles Act

   150.  Section 40 of the Land Titles Act is repealed and the following substituted:

Easements affecting condominium property

   40.  (1)  In this section,

“common elements”, “corporation”, “declarant”, “declaration”, “description”, “property” and “unit” have the same meaning as in the Condominium Act, 1998. (“parties communes”, “association”, “déclarant”, “déclaration”, “description”, “propriété”, “partie privative”)

Easements created by condominium declaration

   (2)  An easement is created for all purposes to the same extent as if it had been created by a transfer if,

  (a)  the first registered description of the easement is that contained in a declaration and description;

  (b)  the easement is,

           (i)  an easement expressly intended to be an easement through the property and to benefit other land owned by the declarant,

          (ii)  an easement expressly intended to be an easement through land owned by the declarant, other than the property, and to benefit the property.

         (iii)  an easement expressly intended to be an easement through land that is not part of the property and that is owned by a person, other than the declarant, and to benefit the property, or

         (iv)  an easement expressly intended to be an easement through the property for the benefit of land that is not part of the property and that is not owned by the declarant; and

   (c)  the requirements with respect to the easement that are set out in the Condominium Act, 1998 and the regulations made under it have been complied with.

Same

   (3)  In addition to subsection (2), an easement described in subclause (2) (b) (i) or (ii) that is created under that subsection is created as if the declarant had not been the owner of both the land having the benefit of the easement and the land subject to the burden of the easement.

Easement to benefit condominium property

   (4)  If, in a transfer that is registered before the registration of a transfer of any unit made by the declarant, the declarant transfers an easement through land outside the property to the corporation to be part of the common elements, the easement does not merge by operation of law.

Easement affecting condominium common elements

   (5)  If, in a transfer that is registered before the registration of a transfer of any unit made by the declarant, the common elements are made subject to an easement expressly intended to benefit other land owned by the declarant, the easement is created for all purposes as if the declarant had not been the owner of both the land having the benefit of the easement and the land subject to the burden of the easement.

Easement becomes part of condominium common elements

   (6)  If, in an instrument, a corporation expresses an intention that an easement transferred to the corporation is to be part of the common elements and if any instrument in relation to the easement required by the Condominium Act, 1998 or a predecessor of that Act has been registered, the easement, upon registration of the instrument in which the intention is expressed, becomes part of the common elements.

Exception re Planning Act

   (7)  Section 50 of the Planning Act does not apply to an easement to which subsection (2) or (3) applies if the description was approved or exempted under subsection 9 (3) of the Condominium Act, 1998 or a predecessor of that subsection.

Retroactive effect

   (8)  Except to the extent that rights governed by this section have been determined by a court, this section has retroactive application.

Land Transfer Tax Act

   151.  The definition of “single family residence” in subsection 1 (1) of the Land Transfer Tax Act is amended by striking out “Condominium Act” in the portion before clause (a) and substituting “Condominium Act, 1998”.

Line Fences Act

   152.  The following provisions of the Line Fences Act are amended by striking out “Condominium Act” wherever that expression appears and substituting in each case “Condominium Act, 1998”:

    1.  Subsection 1 (4), in the portion before clause (a).

    2.  Clause 1 (4) (a).

Mortgages Act

   153.  The definition of “mortgagee” in section 44 of the Mortgages Act is amended by striking out “subsection 32 (6) of the Condominium Act” and substituting “subsection 85 (6) of the Condominium Act, 1998”.

Ontario New Home Warranties Plan Act

   154.  (1)  The Ontario New Home Warranties Plan Act is amended by adding the following heading before section 1:

Definitions and Administration

   (2)  The definitions of “builder” and “regulations” in section 1 of the Act are repealed and the following substituted:

“builder” means,

  (a)  except in relation to a residential condominium conversion project, a person who undertakes the performance of all the work and supply of all the materials necessary to construct a completed home, whether for the purpose of sale by the person or under a contract with a vendor or owner, or

  (b)  in relation to a residential condominium conversion project, a person who undertakes the performance of all the work and supply of all the materials necessary to construct a completed home in the project, whether for the purpose of sale by the person or under a contract with a vendor or owner; (“constructeur”)

“regulations” means, as applicable,

  (a)  the regulations made by the Lieutenant Governor in Counsel under section 22.1, or

  (b)  the by-laws of the Corporation made under section 23; (“règlements”)

   (3)  Section 1 of the Act is amended by adding the following definition:

“residential condominium conversion project” means a residential condominium conversion project as defined in subsection 17.1 (1); (“projet de conversion en condominiums à usage d’habitation”)

   (4)  The definition of “vendor” in section 1 of the Act is repealed and the following substituted:

“vendor” means,

  (a)  except in relation to a residential condominium conversion project, a person who, on the person’s own behalf, sells a home not previously occupied to an owner and includes a builder, as defined in clause (a) of the definition of “builder”, who acts as such under a contract with the owner, or

  (b)  in relation to a residential condominium conversion project, a person who, on the person’s own behalf, sells a home in the project to an owner and includes a builder, as defined in clause (b) of the definition of “builder”, who acts as such under a contract with the owner; (“vendeur”)

   (5)  The Act is amended by adding the following heading before section 6:

Registration of Vendors and Builders

   (6)  The Act is amended by adding the following heading before section 11:

Ontario New Home Warranties Plan

   (7)  The Act is amended by adding the following sections:

Residential Condominium Conversion Projects

Interpretation

   17.1  (1)  In this section and sections 17.2 to 17.5,

“capital replacement plan”, in relation to a residential condominium conversion project, means a plan that,

  (a)  contains,

           (i)  details of any of the pre-existing elements of the project that can reasonably be expected to require prescribed repair during the initial period determined in accordance with subsection (2),

          (ii)  a schedule outlining the expenditures that can reasonably be expected for any prescribed repair of the pre-existing elements mentioned in subclause (i) during the initial period determined in accordance with subsection (2), and

         (iii)  any other prescribed information, and

  (b)  is prepared by a prescribed person in accordance with the prescribed criteria; (“plan de remplacement d’immobilisations”)

“commencement date”,

  (a)  in relation to a residential condominium conversion project that does not include a phase, means the date on which construction of the project is commenced as set out in subsection (3), or

  (b)  in relation to a phase of a residential condominium conversion project that constitutes a phase, means the date on which construction of the phase is commenced as set out in subsection (4); (“date de début”)

 

“phase” has the same meaning as in subsection 145 (3) of the Condominium Act, 1998; (“étape”)

“pre-existing elements” means the physical portions or components of a property or proposed property,

  (a)  that are or will be incorporated into,

           (i)  a residential condominium conversion project by the commencement date of the project, or

          (ii)  a phase of a residential condominium conversion project by the commencement date of the phase,

  (b)  that existed before the applicable commencement date mentioned in clause (a), and

   (c)  whose primary use before the applicable commencement date mentioned in clause (a) was,

           (i)  a use other than residential, or

          (ii)  a prescribed use; (“éléments préexistants”)

“pre-existing elements fund” means a fund that applies to the pre-existing elements of a residential condominium conversion project; (“fonds des éléments préexistants”)

“pre-existing elements fund study” means a fund study that,

  (a)  applies to the pre-existing elements of a residential condominium conversion project,

  (b)  contains the prescribed information, and

   (c)  is prepared by a prescribed person in accordance with the prescribed criteria; (“étude du fonds des éléments préexistants”)

“property” has the same meaning as in the Condominium Act, 1998; (“propriété”)

“property assessment report” means a report that,

  (a)  provides details of the condition of a property or proposed property that is a residential condominium conversion project,

  (b)  is prepared by a prescribed person in accordance with the prescribed criteria, and

   (c)  contains the prescribed information; (“rapport d’évaluation de propriété”)

“proposed property”, “proposed unit” and “purchaser of a unit” have the same meaning as in the Condominium Act, 1998; (“propriété projetée”, “partie privative projetée”, “acquéreur d’une partie privative”)

“residential condominium conversion project” means a project that,

  (a)  consists of a property or proposed property,

  (b)  includes or is proposed to include units capable of being used as self-contained dwellings for year-round residential occupancy, and

   (c)  contains pre-existing elements; (“projet de conversion en condominiums à usage d’habitation”)

“unit” has the same meaning as in the Condominium Act, 1998. (“partie privative”)

Initial period

   (2)  The initial period mentioned in the definition of “capital replacement plan” in subsection (1) is the period that begins on the date determined in the prescribed manner with respect to a residential condominium conversion project and ends on the prescribed anniversary of that date or, if no anniversary is prescribed, on its third anniversary.

When construction is commenced

   (3)  For the purposes of this section and sections 17.2 to 17.5, construction of a residential condominium conversion project that does not include a phase is commenced,

  (a)  if any portions or components of the foundation of the project include pre-existing elements, on the date when any work on the project, other than prescribed work, is commenced; or

  (b)  if no portions or components of the foundation of the project include any pre-existing elements, on the earlier of,

           (i)  the date when excavation on the project, other than prescribed work, is commenced, or

          (ii)  the date when other preparatory or related work for the installation of portions or components of the foundation of the project, other than prescribed work, is commenced.

Same, phase

   (4)  For the purposes of this section and sections 17.2 to 17.5, construction of a phase of a residential condominium conversion project is commenced,

  (a)  if any portions or components of the foundation of the phase include pre-existing elements, on the date when any work on the phase, other than prescribed work, is commenced; or

  (b)  if no portions or components of the foundation of the phase include any pre-existing elements, on the earlier of,

           (i)  the date when excavation on the phase, other than prescribed work, is commenced, or

          (ii)  the date when other preparatory or related work for the installation of portions or components of the foundation of the phase, other than prescribed work, is commenced.

Application of this Act

   17.2  (1)  This Act applies to a residential condominium conversion project and to a unit or a proposed unit in it only if,

  (a)  the builder is registered as a builder under this Act in respect of the project;

  (b)  the vendor is registered as a vendor under this Act in respect of the project; and

   (c)  the project, the units or proposed units of it and the common elements of it have been enrolled in the Plan.

Limitation, pre-existing elements

   (2)  Despite subsection (1) and despite anything else in this Act, subclause 13 (1) (a) (i) does not apply with respect to pre-existing elements.

Conditions precedent: enrolment, sale of units

   17.3  (1)  The conditions listed in subsection (2), in addition to any other conditions under this Act that apply, must be satisfied before,

  (a)  a residential condominium conversion project, the units or proposed units of it and the common elements of it are enrolled in the Plan; or

  (b)  a person sells or offers for sale any unit or proposed unit in a residential condominium conversion project.

Same

   (2)  The conditions mentioned in subsection (1) are the following:

    1.  The vendor has provided to the Registrar, in the prescribed manner and within the prescribed times,

            i.  a property assessment report for the residential condominium conversion project,

           ii.  a capital replacement plan for the project, and

          iii.  a pre-existing elements fund study for the project.

    2.  The Registrar has determined, in accordance with the prescribed criteria, that the project qualifies for enrolment in the Plan.

    3.  The vendor has provided evidence satisfactory to the Registrar that,

            i.  the pre-existing elements fund has been established in the prescribed manner, and

           ii.  the vendor has complied with any other requirements imposed by the Registrar or with any prescribed requirements with respect to the pre-existing elements fund.

    4.  The vendor has provided evidence satisfactory to the Registrar that,

            i.  the funding amount required by the Registrar has been placed in the pre-existing elements fund, in accordance with the prescribed requirements, or

           ii.  if the Registrar has given the vendor written permission to act under this subparagraph, the funding amount required by the Registrar will be placed in the pre-existing elements fund, in accordance with the prescribed requirements, on or before the date of registration of the declaration and description under the Condominium Act, 1998.

Confirmation of registration and enrolment

   17.4  (1)  With respect to a residential condominium conversion project, the Registrar shall provide confirmation of the facts set out in subsection (2), in the prescribed manner,

  (a)  to the builder and the vendor; and

  (b)  to any other prescribed person.

Same

   (2)  The facts mentioned in subsection (1) are,

  (a)  the fact that the residential condominium conversion project, the units or proposed units of it and the common elements of it have been enrolled in the Plan;

  (b)  the fact that the builder of the project is registered as a builder in respect of the project under this Act; and

   (c)  the fact that the vendor of the project is registered as a vendor in respect of the project under this Act.

Prohibition

   (3)  No person shall commence construction of a residential condominium conversion project unless the Registrar has provided the confirmation described in subsection (1).

Pre-existing elements fund

   17.5  (1)  The vendor of a residential condominium conversion project shall establish and maintain the pre-existing elements fund for the project in accordance with the prescribed requirements and shall not seek reimbursement of any portion of the funding from the owner or purchaser of a unit or proposed unit, from the corporation, as defined in subsection 1 (1) of the Condominium Act, 1998, in respect of the project or from another corporation.

Use of fund

   (2)  The pre-existing elements fund shall be,

  (a)  held in accordance with the prescribed requirements; and

  (b)  used and accounted for in accordance with the prescribed requirements.

   (8)  The Act is amended by adding the following heading before section 18:

Enforcement

   (9)  The Act is amended by adding the following heading before section 20:

General

   (10)  Subsections 22 (1) and (2) of the Act are repealed and the following substituted:

Offences

   (1)  Every person is guilty of an offence who,

  (a)  knowingly furnishes false information in any application under this Act or in any statement or return required to be furnished under this Act or the regulations;

  (b)  contravenes section 6 or 12 or subsection 18 (4); or

   (c)  contravenes subsection 17.4 (3).

Directors and officers

   (2)  Every director or officer of a corporation who knowingly concurs in an offence described in subsection (1) is guilty of an offence.

Penalties

   (2.1)  A person who is convicted of an offence under subsection (1) or (2) is liable to,

  (a)  a fine of not more than $250,000, if the person is a corporation; or

  (b)  a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or both, if the person is an individual.

   (11)  The French version of subsection 22 (3) of the Act is repealed and the following substituted:

Prescription

   (3)  Sont irrecevables les instances visées à l’alinéa (1) a) qui sont introduites après le premier anniversaire du jour où les faits sur lesquels elles se fondent sont venus pour la première fois à la connaissance du registrateur.

   (12)  Section 22 of the Act is amended by adding the following subsection:

Same

   (5)  A proceeding under clause (1) (c) shall not be commenced after the second anniversary of the day on which the facts upon which the proceeding is based first came to the knowledge of the Registrar.

   (13)  The Act is amended by adding the following section:

Regulations

   22.1  The Lieutenant Governor in Council may make regulations prescribing,

  (a)  the manner of determining the date mentioned in subsection 17.1 (2);

  (b)  the anniversary mentioned in subsection 17.1 (2);

   (c)  requirements for the purposes of clause 17.5 (2) (a).

   (14)  Clause 23 (1) (n) of the Act is amended by adding at the end “except a matter listed in section 22.1”.

Planning Act

   155.  (1)  Subsection 50 (14) of the Planning Act is amended by striking out “Condominium Act” and substituting “Condominium Act, 1998”.

   (2)  The following provisions of the Act are amended by striking out “Condominium Act” wherever that expression appears and substituting in each case “Condominium Act, 1998”:

    1.  Clause 70.3 (2) (e).

    2.  Subsection 70.3 (3.1).

   (3)  Subsection (5) applies only if Bill 73 (An Act to amend the Development Charges Act, 1997 and the Planning Act), introduced on March 5, 2015, receives Royal Assent.

   (4)  References in this section to provisions of Bill 73 are references to those provisions as they were numbered in the first reading version of the Bill.

   (5)  Subsection (1) applies only if, on or before the day this section comes into force, subsection 29 (3) of Bill 73 is not in force.

Registry Act

   156.  Subsection 27 (5) of the Registry Act is amended by striking out “subsection 50 (2)” and substituting “subsection 9 (3)”.

Residential Complex Sales Representation Act

   157.  Clause 3 (b) of the Residential Complex Sales Representation Act is amended by striking out “Condominium Act” and substituting “Condominium Act, 1998”.

Strong Action for Ontario Act (Budget Measures), 2012

   158.  Subsection 1 (2) of Schedule 9 to the Strong Action for Ontario Act (Budget Measures), 2012 is repealed.

Commencement

Commencement

   159.  (1)  Subject to subsection (2) and (3), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  Section 3 comes into force on the later of the day subsection 211 (1) of the Not-for-Profit Corporations Act, 2010 comes into force and the day section 2 of this Schedule comes into force.

Same

   (3)  Subsections 48 (2) and 144 (5) and sections 148 to 153 and 155 to 158 come into force on the day the Protecting Condominium Owners Act, 2015 receives Royal Assent.

Schedule 2
Condominium Management SErvices Act, 2015

 

CONTENTS

PART I
INTERPRETATION

1.

Interpretation

PART II
ADMINISTRATION

Delegation

2.

3.

4.

5.

6.

7.

8.

9.

Designation of administrative authority

Administrative agreement

Policy directions

Compliance by administrative authority

Review

Conflict

Revocation of designation

Condition precedent for exercise of certain powers

Administrative Authority

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Criteria and directives re board members

Board appointments

Change in number of directors

Appointment of chair

Public access to corporate by-laws

Employees

Not Crown agency

No personal liability, Crown employee

No Crown liability

Indemnification of the Crown

No personal liability, board members and others

Not public money

Audit

Reports

Powers and Duties of Administrative Authority

24.

25.

26.

27.

28.

29.

30.

Additional powers

Change to objects or purposes

Right to use French

Advisory councils, advisory process

Duty to inform Minister

Advice of administrative authority

Forms and fees

Miscellaneous

31.

32.

33.

Director

Registrar

Offences, administrative authority

PART III
LICENSING

34.

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

Prohibition, condominium management services

Exemptions

Notification of licence required

Application for licence

Conditions of licence

Refusal without hearing

Refusal with a hearing

Notice re: refusal, suspension, etc.

Continuation pending renewal

Immediate suspension

Further application

PART IV
REGULATION OF LICENSEES

45.

46.

47.

48.

49.

50.

51.

52.

53.

54.

55.

56.

Notice of changes to registrar

Notice to registrar re corporations

Notice of issue or transfer of shares

Contract required

Principal condominium manager

Financial statements

Restrictions on employees

Disclosure of interest

Prohibition re: proxy instruments

Duty re records

False information

No counselling contraventions

PART V
COMPLAINTS, DISCIPLINE, INSPECTIONS, INVESTIGATIONS AND ENFORCEMENT

Complaints and Discipline

57.

58.

Complaints

Discipline proceedings

Inspections and Investigations

59.

60.

61.

62.

63.

64.

Inspectors

Inspections without warrant

Appointment of investigators

Investigations with warrant

Seizure of things not specified

Searches in exigent circumstances

Orders

65.

66.

67.

Freeze order

Freeze orders, non-licensees

Compliance orders

Offences

68.

69.

70.

71.

Offence

Orders for compensation, restitution

Default in payment of fines

Liens and charges

PART VI
GENERAL

72.

73.

74.

75.

76.

Confidentiality

Service

Fees

Certificate as evidence

Information concerning licensees

PART VII
REGULATIONS

77.

78.

Minister’s regulations

Lieutenant Governor in Council regulations

PART VIII
AMENDMENTS TO THIS ACT

79.

Amendments to this Act

PART IX
COMPLEMENTARY AMENDMENTS

80.

81.

82.

Condominium Act, 1998

Licence Appeal Tribunal Act, 1999

Protecting Condominium Owners Act, 2015

PART X
COMMENCEMENT AND SHORT TITLE

83.

84.

Commencement

Short title

______________

Part I
interpretation

Interpretation

   1.  (1)  In this Act,

“administrative agreement” means the agreement described in subsection 3 (1); (“accord d’application”)

“administrative authority” means the corporation that the Lieutenant Governor in Council has designated as such under subsection 2 (1); (“organisme d’application”)

“client” means a condominium corporation to which a condominium management provider or a condominium manager provides condominium management services; (“client”)

“common expenses” has the same meaning as in the Condominium Act, 1998; (“dépenses communes”)

“condominium corporation” means a “corporation” as defined in the Condominium Act, 1998; (“association condominiale”)

“condominium management provider” means a corporation, partnership, sole proprietor, association or other organization or entity that, on behalf of others and for compensation or reward or the expectation of such, provides condominium management services or holds himself, herself or itself out as such; (“fournisseur de services de gestion de condominiums”)

“condominium management services” means any of the following services provided to or on behalf of a condominium corporation:

    1.  Collecting or holding contributions to the common expenses or other amounts levied by, or payable to, the corporation.

    2.  Exercising delegated powers and duties of the corporation or its board of directors, including,

            i.  making payments to third parties on behalf of the corporation,

           ii.  negotiating or entering into contracts on behalf of the corporation, or

          iii.  supervising employees or contractors hired or engaged by the corporation,

but does not include an activity excluded by the regulations; (“services de gestion de condominiums”)

“condominium manager” means an individual who has the prescribed qualifications to be licensed as a condominium manager under this Act and who provides condominium management services to,

  (a)  a client on behalf of a condominium management provider, or

  (b)  a client directly, if authorized by a regulation made for the purposes of subsection 51 (3); (“gestionnaire de condominiums”)

“delegated provisions” means the provisions of this Act and the regulations for which the administration is delegated to the administrative authority under subsection 2 (2); (“dispositions déléguées”)

“employ” means to employ, appoint, authorize or otherwise arrange to have another person act on one’s behalf, including as an independent contractor; (“employer”)

“equity share” means, in respect of a corporation, a share of a class or series of shares of a corporation that carries a voting right either under all circumstances or under circumstances that have occurred and are continuing; (“action participante”)

“inspector” means the registrar or an inspector appointed under subsection 59 (2); (“inspecteur”)

“investigator” means an investigator appointed under subsection 61 (1); (“enquêteur”)

“licensee” means a condominium management provider or condominium manager who is licensed under this Act; (“titulaire de permis”, see also “agréé”)

“Minister” means the Minister of Government and Consumer Services or whatever other member of the Executive Council to whom the responsibility for the administration of this Act is assigned under the Executive Council Act; (“ministre”)

“officer” includes,

  (a)  the chair and any vice-chair of the board of directors, the president and any vice-president, the secretary and assistant secretary, the treasurer and assistant treasurer and the general manager and assistant general manager of a corporation,

  (b)  a partner or general manager and assistant general manager of a partnership, and

   (c)  any other individual designated as an officer by by-law or resolution of an organization or any other individual who performs functions normally performed by an individual occupying such office; (“dirigeant”)

“owner” has the same meaning as in the Condominium Act, 1998; (“propriétaire”)

“prescribed” means prescribed by the regulations; (“prescrit”)

“principal condominium manager” means the principal condominium manager designated under section 49; (“gestionnaire principal”)

“purchaser of a unit” has the same meaning as in the Condominium Act, 1998; (“acquéreur d’une partie privative”)

“regulations” means regulations made under this Act; (“règlements”)

“Tribunal” means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999 or whatever other tribunal is prescribed; (“Tribunal”)

“unit” has the same meaning as in the Condominium Act, 1998. (“partie privative”)

Associated persons

   (2)  For purposes of this Act, one person is associated with another person in any of the following circumstances:

    1.  One person is a corporation of which the other person is an officer or director.

    2.  One person is a partnership of which the other person is a partner.

    3.  Both persons are partners of the same partnership.

    4.  One person is a corporation that is controlled directly or indirectly by the other person.

    5.  Both persons are corporations and one corporation is controlled directly or indirectly by the same person who controls directly or indirectly the other corporation.

    6.  Both persons are members of the same voting trust relating to shares of a corporation.

    7.  Both persons are associated within the meaning of paragraphs 1 to 6 with the same person.

Part II
Administration

Delegation

Designation of administrative authority

   2.  (1)  The Lieutenant Governor in Council may, by regulation designate a not-for-profit corporation without share capital incorporated under the laws of Ontario as the administrative authority for the purposes of this Act.

Delegation of administration

   (2)  If the Lieutenant Governor in Council designates a corporation as the administrative authority, the administration of all provisions of this Act and the regulations, except for this Part and Part VII, is delegated to the authority and the authority shall carry out the administration of the delegated provisions.

Administrative agreement

   3.  (1)  The Lieutenant Governor in Council shall not designate a corporation under subsection 2 (1) as the administrative authority until the Minister and the corporation have entered into an agreement to be known as the administrative agreement.

Contents

   (2)  The administrative agreement shall include, at a minimum, terms related to the following matters with respect to the administrative authority:

    1.  The governance of the authority.

    2.  All matters that the Minister considers necessary for the authority to carry out the administration of the delegated provisions.

    3.  The maintenance by the authority of adequate insurance against liability arising out of the carrying out of its powers and duties under this Act or the regulations.

Compliance with operating principle

   (3)  The administrative agreement shall require the administrative authority to comply with the principle of promoting the protection of the public interest.

Amendment by Minister

   (4)  Subject to section 9, the Minister may unilaterally amend the administrative agreement, after giving the administrative authority the notice that the Minister considers reasonable in the circumstances.

Policy directions

   4.  (1)  Subject to section 9, the Minister may issue policy directions to the administrative authority related to its powers and duties under this Act or the regulations, after giving the authority the notice that the Minister considers reasonable in the circumstances.

Part of the administrative agreement

   (2)  The policy directions are deemed to form part of the administrative agreement.

Compliance

   (3)  The administrative authority shall comply with the policy directions and shall implement measures to do so.

Compliance by administrative authority

   5.  In carrying out its powers and duties under this Act or the regulations, the administrative authority shall comply with the administrative agreement, this Act, the regulations and other applicable law.

Review

   6.  (1)  The Minister may,

  (a)  require that policy, legislative or regulatory reviews related to the powers and duties of the administrative authority under this Act, the regulations or the administrative agreement be carried out,

           (i)  by or on behalf of the authority, or

          (ii)  by a person or entity specified by the Minister; or

  (b)  require that reviews of the administrative authority, of its operations, or of both, including, without limitation, performance, governance, accountability and financial reviews, be carried out,

           (i)  by or on behalf of the authority, or

          (ii)  by a person or entity specified by the Minister.

Access to records

   (2)  If a review is carried out by a person or entity specified by the Minister, the administrative authority shall give the person or entity specified by the Minister and the employees of the person or entity access to all records and other information required to conduct the review.

Conflict

   7.  In the event of conflict, this Act and the regulations prevail over,

  (a)  the administrative agreement;

  (b)  the Corporations Act, the Corporations Information Act or a regulation made under either of those Acts;

   (c)  the administrative authority’s constating documents, by-laws and resolutions.

Revocation of designation

   8.  (1)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the administrative authority if the Lieutenant Governor in Council considers it advisable to do so in the public interest.

Revocation for non-compliance

   (2)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the administrative authority if,

  (a)  the authority has failed to comply with this Act, the regulations, other applicable law or the administrative agreement;

  (b)  the Minister has allowed the authority the opportunity of remedying its default within a specified time period that the Minister considers reasonable in the circumstances; and

   (c)  the authority has not remedied its default to the Minister’s satisfaction within the specified time period mentioned in clause (b) and the Minister has so advised the Lieutenant Governor in Council.

Same, no restriction on subs. (1)

   (3)  Nothing in subsection (2) restricts the ability of the Lieutenant Governor in Council to act under subsection (1).

Revocation on request

   (4)  The Lieutenant Governor in Council may, by regulation, revoke the designation of the administrative authority on the terms that the Lieutenant Governor in Council considers advisable in the public interest if the authority requests the revocation.

Transition

   (5)  If the Lieutenant Governor in Council revokes the designation of the administrative authority under this section, the Lieutenant Governor in Council may, by regulation, provide for any transitional matter necessary for the effective implementation of the revocation.

Condition precedent for exercise of certain powers

   9.  The Minister may exercise a power under subsection 3 (4), 4 (1) or 25 (1) only if the Minister is of the opinion that it is advisable to exercise the power in the public interest because at least one of the following conditions is satisfied:

    1.  The exercise of the power is necessary to prevent serious harm to the interests of the public, condominium corporations, owners or purchasers, mortgagees or occupiers of units.

    2.  An event of force majeure has occurred.

    3.  The administrative authority is insolvent.

    4.  The number of members of the board of directors of the administrative authority is insufficient for a quorum.

Administrative Authority

Criteria and directives re board members

   10.  (1)  The Minister may, by order,

  (a)  establish competency criteria for members of the board of directors of the administrative authority; and

  (b)  make rules about the nomination of members, the appointment or election process, the length of their terms and whether they may be reappointed or re-elected.

Competency criteria

   (2)  A person is qualified to be appointed or elected to the board of directors only if he or she meets any competency criteria established under clause (1) (a).

Conflict

   (3)  In the event of conflict, an order made under subsection (1) prevails over a by-law or resolution of the administrative authority.

Board appointments

   11.  (1)  The Minister may appoint one or more members to the board of directors of the administrative authority for a term specified in the appointment.

Majority

   (2)  The number of members appointed by the Minister shall not form a majority of the board of directors.

Composition

   (3)  The members appointed by the Minister may include,

  (a)  representatives of the public, consumer groups, government organizations, condominium corporations, owners or those owners or occupiers who occupy units for residential purposes; and

  (b)  representatives of other interests as the Minister determines.

Change in number of directors

   12.  The Minister may, by order, increase or decrease the number of members of the board of directors of the administrative authority.

Appointment of chair

   13.  The Minister may appoint a chair from among the members of the board of directors of the administrative authority.

Public access to corporate by-laws

   14.  (1)  The administrative authority shall make its corporate by-laws available for public inspection,

  (a)  within the time and manner specified in the administrative agreement; or

  (b)  within 10 days after the by-laws are made by the board of directors, if no time is specified in the administrative agreement.

Access to compensation information

   (2)  The administrative authority shall make available to the public the prescribed information relating to the compensation for members of its board of directors or officers or employees of the authority and relating to any other payments that it makes or is required to make to them, and shall do so in the prescribed manner.

Processes and procedures

   (3)  The administrative authority shall follow the prescribed processes and procedures with respect to providing access to the public to records of the authority and with respect to managing personal information contained in those records.

Employees

   15.  (1)  Subject to the administrative agreement, the administrative authority may employ or retain the services of any qualified person to carry out any of its powers and duties under this Act or the regulations.

Not Crown employees

   (2)  The following persons are not employees of the Crown and shall not hold themselves out as such:

    1.  Persons who are employed or whose services are retained under subsection (1).

    2.  Members, officers and agents of the administrative authority.

    3.  Members of the board of directors of the administrative authority, including those appointed by the Minister.

Not Crown agency

   16.  (1)  Despite the Crown Agency Act, the administrative authority is not an agent of the Crown for any purpose and shall not hold itself out as such.

Same

   (2)  The following persons are not agents of the Crown and shall not hold themselves out as such:

    1.  Persons who are employed or whose services are retained by the administrative authority.

    2.  Members, officers and agents of the administrative authority.

    3.  Members of the board of directors of the administrative authority, including those appointed by the Minister.

No personal liability, Crown employee

   17.  (1)  No action or other proceeding shall be instituted against an employee of the Crown for an act done in good faith in the execution or intended execution of a duty under this Act or the regulations or for an alleged neglect or default in the execution in good faith of the duty.

Tort by Crown employee

   (2)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of liability in respect of a tort committed by an employee of the Crown to which it would otherwise be subject.

No Crown liability

   18.  (1)  No cause of action arises against the Crown as a direct or indirect result of any act or omission that a person who is not an employee or agent of the Crown takes or makes in the execution or intended execution of any of the person’s powers or duties under this Act or the regulations.

No proceeding

   (2)  No action or other proceeding for damages, including but not limited to a proceeding for a remedy in contract, restitution, tort or trust, shall be instituted against the Crown in connection with any cause of action described in subsection (1).

Indemnification of the Crown

   19.  The administrative authority shall indemnify the Crown, in accordance with the administrative agreement, in respect of damages and costs incurred by the Crown for any act or omission of the authority or its members, officers, directors, employees or agents in the execution or intended execution of their powers and duties under this Act, the regulations or the administrative agreement.

No personal liability, board members and others

   20.  (1)  No action or other proceeding shall be instituted against a person mentioned in subsection (2), for an act done in good faith in the execution or intended execution of any of the person’s powers or duties under this Act or the regulations or for an alleged neglect or default in the execution in good faith of that power or duty.

Same

   (2)  Subsection (1) applies to,

  (a)  members of the board of directors of the administrative authority;

  (b)  persons who perform functions under this Act or the regulations as employees, agents or officers of the administrative authority or as persons whose services it retains;

   (c)  members of committees of the administrative authority who perform functions under this Act or the regulations; and

  (d)  individuals who perform functions under this Act or the regulations.

Liability of administrative authority

   (3)  Subsection (1) does not relieve the administrative authority of liability to which it would otherwise be subject.

Not public money

   21.  (1)  The money that the administrative authority collects in carrying out its powers and duties under this Act or the regulations is not public money within the meaning of the Financial Administration Act.

Same

   (2)  The administrative authority may use the money described in subsection (1) to carry out activities in accordance with its objects, subject to subsection 24 (2) and any restrictions in this Part.

Audit

   22.  (1)  The Auditor General appointed under the Auditor General Act may conduct an audit of the administrative authority, other than an audit required under the Corporations Act.

Access to records and information

   (2)  If the Auditor General conducts an audit under subsection (1), the administrative authority shall give the Auditor General and employees of the Auditor General access to all records and other information required to conduct the audit.

Reports

   23.  (1)  The board of directors of the administrative authority shall report to the Minister on its activities and financial affairs as they relate to this Act and the administrative agreement.

Form and contents

   (2)  The report shall be in a form acceptable to the Minister and shall provide the information that the Minister requires.

Time for reports

   (3)  The board of directors of the administrative authority shall prepare the report for each year and at the other times that the Minister specifies.

Tabling

   (4)  The Minister shall submit each report prepared under this section to the Lieutenant Governor in Council and shall,

  (a)  lay the report before the Assembly if it is in session; or

  (b)  deposit the report with the Clerk of the Assembly if the Assembly is not in session.

Disclosure by board

   (5)  The board of the administrative authority,

  (a)  may give a copy of the report to other persons before the Minister complies with subsection (4); and

  (b)  shall publish the report on its website when the Minister has complied with subsection (4).

Powers and Duties of Administrative Authority

Additional powers

   24.  (1)  The administrative authority may carry out other activities in accordance with its objects or purposes, subject to subsection (2).

Commercial activities

   (2)  The administrative authority shall not engage in commercial activity through a person or entity that is related to the authority.

Change to objects or purposes

   25.  (1)  Subject to section 9, the Minister may require that the administrative authority make a specified change to its objects or purposes.

Minister’s approval required

   (2)  The administrative authority shall not make any changes to its objects or purposes unless the Minister’s written approval is obtained in advance.

Right to use French

   26.  (1)  A person has the right to communicate in French with, and to receive available services in French from, the administrative authority.

Definition

   (2)  In subsection (1),

“service” means any service or procedure that is provided to the public by the administrative authority in carrying out its powers and duties under this Act or the regulations and includes,

  (a)  responding to inquiries from members of the public, and

  (b)  any other communications for the purpose of providing the service or procedure.

Board’s duty

   (3)  The board of directors of the administrative authority shall take all reasonable measures and make all reasonable plans to ensure that persons may exercise the right to use French given by this section.

Limitation

   (4)  The right to use French given by this section is subject to the limits that are reasonable in the circumstances.

Advisory councils, advisory process

   27.  The Minister may require the administrative authority to,

  (a)  establish one or more advisory councils;

  (b)  include, as members of an advisory council, representatives of owners, representatives of occupiers of units, other representatives of the condominium sector and other persons as the Minister determines; or

   (c)  undertake an advisory process in which it seeks advice from one or both of the public and persons with experience or knowledge relating to this Act.

Duty to inform Minister

   28.  The administrative authority shall promptly inform and advise the Minister with respect to,

  (a)  any material fact that could affect the authority’s ability to perform its duties under this Act or the regulations; or

  (b)  any urgent or critical matter that is likely to require action by the Minister to ensure that the administration of the delegated provisions is carried out properly.

Advice of administrative authority

   29.  (1)  The administrative authority shall advise or report to the Minister on any matter that the Minister refers to it and that relates to this Act or the administration of the delegated provisions.

Same

   (2)  The administrative authority may suggest to the Minister amendments to Ontario legislation that it considers would,

  (a)  further the purpose of this Act; or

  (b)  assist the authority in carrying out its powers and duties under this Act or the regulations.

Forms and fees

   30.  (1)  The administrative authority may,

  (a)  establish forms related to the administration of the delegated provisions;

  (b)  in accordance with processes and criteria established by the administrative authority and approved by the Minister, set and collect fees, costs or other charges related to the administration of the delegated provisions; and

   (c)  make rules governing the payment of the fees, costs and charges described in clause (b).

Setting fees

   (2)  In setting the fees, costs and charges described in clause (1) (b), the administrative authority may specify their amounts or the method for determining the amounts.

Publication of fee schedule

   (3)  The administrative authority,

  (a)  shall publish the fees, costs and charges, the processes and criteria and the rules on its website and in any other way described in the administrative agreement; and

  (b)  may publish them in any other format that the administrative authority considers advisable.

Miscellaneous

Director

   31.  (1)  Subject to subsection (2), the following person or body shall appoint a director for the purposes of this Act and may appoint a maximum of two deputy directors:

    1.  The board of the administrative authority.

    2.  The Minister, if there is no administrative authority.

Director cannot be registrar

   (2)  A person appointed as the registrar or a deputy registrar under subsection 32 (1) shall not be appointed as the director or a deputy director under subsection (1).

Deputy director, duties

   (3)  A deputy director shall perform the duties that the director assigns and shall act as director in the director’s absence.

If more than one deputy director

   (4)  If more than one deputy director is appointed, only one deputy director may act as the director under subsection (3) at any one time.

Registrar

   32.  (1)  Subject to subsection (2), the following person or body shall appoint a registrar for the purposes of this Act and may appoint a maximum of two deputy registrars:

    1.  The board of the administrative authority.

    2.  The Minister, if there is no administrative authority.

Registrar cannot be director

   (2)  A person appointed as the director or a deputy director under subsection 31 (1) shall not be appointed as the registrar or a deputy registrar under subsection (1).

Powers and duties of registrar

   (3)  The registrar shall exercise the powers and perform the duties imposed on him or her under this Act.

Same, deputy registrar

   (4)  A deputy registrar shall perform the duties that the registrar assigns and shall act as the registrar in the registrar’s absence.

If more than one deputy registrar

   (5)  If more than one deputy registrar is appointed, only one deputy registrar may act as the registrar under subsection (4) at any one time.

Offences, administrative authority

   33.  (1)  If the administrative authority knowingly contravenes this Act or the regulations, the authority is guilty of an offence and on conviction is liable to a fine of not more than $100,000 for each day or part of a day on which the offence occurs or continues.

Individuals

   (2)  A director, officer, employee or agent of the administrative authority who knowingly contravenes this Act or the regulations is guilty of an offence.

Directors and officers

   (3)  A director or officer of the administrative authority is guilty of an offence if the person,

  (a)  knowingly causes, authorizes, permits or participates in the commission by the authority of an offence mentioned in subsection (1); or

  (b)  fails to take reasonable care to prevent the authority from committing an offence mentioned in subsection (1).

Penalty

   (4)  A person who is convicted of an offence under subsection (2) or (3) is liable to a fine of not more than $25,000 for each day or part of a day on which the offence occurs or continues.

PART III
Licensing

Prohibition, condominium management services

   34.  (1)  No person shall provide condominium management services unless licensed as a condominium management provider or as a condominium manager.

Unlicensed persons

   (2)  A person who is not licensed as a condominium management provider or condominium manager shall not,

  (a)  directly or indirectly hold himself, herself or itself out as being a condominium management provider or condominium manager, respectively; or

  (b)  perform any of the functions of a condominium management provider or condominium manager.

Licence a requirement to bring action

   (3)  Except as otherwise prescribed, no action, application, arbitration or other legal proceeding shall be commenced for remuneration for services in connection with providing condominium management services unless, at the time of providing the services, the person bringing the proceeding was licensed or exempt from licensing under this Act and the proceeding may be stayed upon motion.

Exception

   (4)  Subsection (3) does not affect,

  (a)  any right of an employee, within the meaning of the Employment Standards Act, 2000 or a successor Act to it, to commence an action, application, arbitration or other legal proceeding for the recovery of wages or the enforcement of other rights provided under an employment contract, the common law or other legislation; or

  (b)  any right to commence an action, application, arbitration or other legal proceeding for the recovery of wages or the enforcement of other rights provided under a collective agreement.

Change in partnership

   (5)  A change in the membership of a licensed partnership shall be deemed to create a new partnership for the purpose of the licence.

Exemptions

   35.  Despite section 34, a licence shall not be required in respect of the provision of condominium management services by the persons or in the circumstances that are prescribed.

Notification of licence required

   36.  Subject to section 42, no condominium management provider or condominium manager shall provide condominium management services until notified in writing by the registrar that the provider or the manager, as the case may be, is licensed.

Application for licence

   37.  (1)  An applicant that meets the prescribed requirements is entitled to a licence or a renewal of a licence by the registrar unless,

  (a)  the applicant is not a corporation and,

           (i)  having regard to the applicant’s financial position or the financial position of an interested person in respect of the applicant, the applicant cannot reasonably be expected to be financially responsible in engaging in the activities of a licensee,

          (ii)  the past or present conduct of the applicant or of an interested person in respect of the applicant affords reasonable grounds for belief that the applicant will not perform the activities of a licensee in accordance with law and with integrity and honesty, or

         (iii)  the applicant or an employee or agent of the applicant makes a false statement or provides a false statement in an application for a licence or for a renewal of a licence;

  (b)  the applicant is a corporation and,

           (i)  having regard to its financial position or the financial position of an interested person in respect of the corporation, the applicant cannot reasonably be expected to be financially responsible in engaging in the activities of a licensee,

          (ii)  having regard to the financial position of its officers or directors or an interested person in respect of its officers or directors, the applicant cannot reasonably be expected to be financially responsible in engaging in the activities of a licensee,

         (iii)  the past or present conduct of its officers or directors or of an interested person in respect of its officers or directors or of an interested person in respect of the corporation affords reasonable grounds for belief that it will not perform the activities of a licensee in accordance with the law and with integrity and honesty, or

         (iv)  an officer or director of the corporation makes a false statement or provides a false statement in an application for a licence or for a renewal of a licence;

   (c)  the applicant or an interested person in respect of the applicant is carrying on activities that are, or will be if the applicant is licensed, in contravention of this Act or the regulations, other than the code of ethics established under section 77;

  (d)  the applicant is in breach of a condition of the licence; or

  (e)  the applicant fails to comply with a request made by the registrar under subsection (3).

Interested person

   (2)  For the purposes of this section, a person shall be deemed to be an interested person in respect of another person if the person is associated with the other person or if, in the opinion of the registrar,

  (a)  the person has or may have a beneficial interest in the other person’s activities;

  (b)  the person exercises or may exercise control either directly or indirectly over the other person; or

   (c)  the person has provided or may have provided financing either directly or indirectly to the other person’s activities.

Request for information

   (3)  The registrar may request an applicant for a licence or a renewal of a licence to provide to the registrar, in the form and within the time period specified by the registrar,

  (a)  information specified by the registrar that is relevant to the decision to be made by the registrar as to whether or not to grant the licence or renewal; and

  (b)  verification, by affidavit or otherwise, of any information described in clause (a) that the applicant is providing or has provided to the registrar.

Conditions of licence

   38.  (1)  A licence is subject to the conditions to which the applicant or licensee consents, that the registrar applies under section 40, that the Tribunal orders or that are prescribed.

Licence not transferable

   (2)  A licence is not transferable.

Refusal without hearing

   39.  (1)  If an applicant for a licence or a renewal of a licence does not meet the prescribed requirements, the registrar shall refuse to grant or renew the licence.

No hearing

   (2)  Section 41 does not apply to a refusal under subsection (1) to grant or renew a licence.

Notice of refusal

   (3)  The registrar shall give the applicant written notice of a refusal under subsection (1), setting out the reasons for the refusal, and subsection 73 (3) does not apply to the notice.

Refusal with a hearing

   40.  (1)  Subject to section 41, the registrar may refuse to license an applicant or may suspend or revoke a licence or refuse to renew a licence if, in his or her opinion, the applicant or licensee is not entitled to a licence under section 37.

Conditions

   (2)  Subject to section 41, the registrar may,

  (a)  approve the licence or the renewal of a licence on the conditions that the registrar considers appropriate; and

  (b)  at any time, apply to a licence the conditions that the registrar considers appropriate.

Notice re: refusal, suspension, etc.

   41.  (1)  The registrar shall notify an applicant or licensee in writing if he or she proposes to,

  (a)  refuse under subsection 40 (1) to grant or renew a licence;

  (b)  suspend or revoke a licence; or

   (c)  apply conditions to a licence or renewal to which the applicant or licensee has not consented.

Content of notice

   (2)  The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or licensee is entitled to a hearing by the Tribunal if the applicant or licensee mails or delivers, within 15 days after service of the notice, a written request for a hearing to the registrar and to the Tribunal.

Service of notice

   (3)  The notice of proposal shall be served on the applicant or licensee in accordance with section 73.

Service of hearing request

   (4)  A request for a hearing under subsection (2) is sufficiently served if delivered personally or sent by registered mail to the registrar and to the Tribunal.

Same

   (5)  If service is made by registered mail, it shall be deemed to be made on the third day after the day of mailing.

Other methods

   (6)  Despite subsection (4), the Tribunal may order any other method of service.

If no request for hearing

   (7)  If the applicant or licensee does not request a hearing in accordance with subsection (2), the registrar may carry out the proposal.

Hearing

   (8)  If the applicant or licensee requests a hearing in accordance with subsection (2), the Tribunal shall hold the hearing and may, by order, direct the registrar to carry out the registrar’s proposal or substitute its opinion for that of the registrar and the Tribunal may attach conditions to its order or to a licence.

Parties

   (9)  The registrar, the applicant or licensee and the other persons that the Tribunal specifies are parties to the proceedings under this section.

Immediate effect

   (10)  Even if a licensee appeals an order of the Tribunal under section 11 of the Licence Appeal Tribunal Act, 1999, the order takes effect immediately, unless the order provides otherwise, but the Divisional Court may grant a stay until the disposition of the appeal.

Voluntary cancellation

   (11)  The registrar may cancel a licence upon the request in writing of the licensee and this section does not apply to the cancellation.

Continuation pending renewal

   42.  If, within the time prescribed or, if no time is prescribed, before the expiry of the licensee’s licence, the licensee has applied for a renewal of a licence and paid the required fee, the licence shall be deemed to continue until,

  (a)  the renewal is granted;

  (b)  the registrar gives the licensee written notice of the registrar’s refusal under section 39 to grant the renewal;

   (c)  the time for requesting a hearing under section 41 has expired if the licensee receives a notice of a proposal under that section and does not request such a hearing; or

  (d)  the Tribunal makes its order if the licensee receives a notice of a proposal under section 41 and does request such a hearing.

Immediate suspension

   43.  (1)  If the registrar proposes to suspend or revoke a licence under section 40 and if the registrar considers it in the public interest to do so, the registrar may by order temporarily suspend the licence.

Immediate effect

   (2)  An order under subsection (1) takes effect immediately.

Expiry of order

   (3)  If the licensee requests a hearing under section 41, the order expires 15 days after the Tribunal receives the written request for a hearing, but the Tribunal may extend the time of expiration until the hearing is concluded, if a hearing is commenced within the 15-day period.

Same

   (4)  Despite subsection (3), if it is satisfied that the conduct of the licensee has delayed the commencement of the hearing, the Tribunal may extend the time of the expiration for the order,

  (a)  until the hearing commences; and

  (b)  once the hearing commences, until the hearing is concluded.

Further application

   44.  Once a decision of the registrar to refuse a person a licence or a renewal of a licence or to revoke a licence of a person has become final, the person may reapply for a licence only if,

  (a)  the time prescribed to reapply has passed since the refusal or revocation; and

  (b)  the person satisfies the registrar that new or other evidence is available or that material circumstances have changed.

Part IV
REGULATION OF LICENSEES

Notice of changes to registrar

   45.  (1)  Every licensed condominium management provider shall, within five days after the event, notify the registrar in writing of,

  (a)  any change in address for service; and

  (b)  the date of commencement or termination of the employment of every condominium manager that the provider employs and, in the case of the termination of employment of a condominium manager, the reason for the termination.

Same, condominium manager

   (2)  Every licensed condominium manager shall, within five days after the event, notify the registrar in writing of,

  (a)  any change in address for service;

  (b)  the commencement or termination of his or her employment by a condominium management provider and the date of the commencement or termination, as the case may be; and

   (c)  the commencement or termination of his or her employment by a condominium corporation and the date of the commencement or termination, as the case may be.

Change in officers or directors

   (3)  A licensed condominium management provider that is a corporation or a partnership shall not change its officers or directors except with the prior consent of the registrar and shall, after receiving that consent, notify the registrar in writing of the change within five days after making it.

Timing

   (4)  The registrar shall be deemed to have received a notice under this section on the day on which he or she actually received it or, if the notice is sent by mail, on the day of mailing.

Notice to registrar re corporations

   46.  (1)  When it is licensed and on each renewal of its licence, a condominium management provider that is a corporation shall disclose to the registrar the identity of,

  (a)  each person that beneficially owns or controls 10 per cent or more of the equity shares issued and outstanding at the time of the licence or the renewal of the licence, as the case may be; and

  (b)  persons that are associated with each other and that together beneficially own or control 10 per cent or more of the equity shares issued and outstanding at the time of the licence or the renewal of the licence, as the case may be.

Calculating number of shares

   (2)  In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purposes of this section, the total number shall be calculated as the total number of all shares beneficially owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equal to the total number of votes carried.

Notice of issue or transfer of shares

   47.  (1)  In addition to the disclosure required under section 46, every licensed condominium management provider that is a corporation shall notify the registrar in writing within 30 days after the issue or transfer of any equity shares of the corporation, if the issue or transfer results in,

  (a)  any person, or any persons that are associated with each other, acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation; or

  (b)  an increase in the percentage of issued and outstanding equity shares of the corporation beneficially owned or controlled by any person, or any persons who are associated with each other, where the person or the associated persons already beneficially owned or controlled 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation before the issue or transfer.

Same

   (2)  Despite subsection (1), if a licensee that is a corporation becomes aware of a transfer that otherwise falls into that subsection after the transfer has taken place, it shall notify the registrar in writing within 30 days after knowledge of the transfer comes to the attention of its officers or directors.

Calculating number of shares

   (3)  In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purpose of this section, the total number shall be calculated as the total of all the shares beneficially owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equal to the total number of votes it carries.

Contract required

   48.  (1)  Every licensee that provides condominium management services to a client shall have a written contract governing the services and shall not provide such services except in accordance with the contract.

Contents

   (2)  The contract shall comply with the prescribed requirements.

Principal condominium manager

   49.  (1)  Every licensed condominium management provider shall,

  (a)  in accordance with this section, designate one of its licensed condominium managers as its principal condominium manager and notify the registrar of the identity of the manager; and

  (b)  notify the registrar, within five days, if the principal condominium manager changes.

Sole proprietor

   (2)  A licensed condominium management provider that is a sole proprietorship shall,

  (a)  ensure that the sole proprietor meets the prescribed requirements for being designated as the principal condominium manager; and

  (b)  designate the sole proprietor as the principal condominium manager.

Not a sole proprietor

   (3)  A licensed condominium management provider that is not a sole proprietorship shall,

  (a)  employ at least one licensed condominium manager; and

  (b)  designate, as the principal condominium manager, one of its licensed condominium managers who meets the prescribed requirements for being so designated.

Duties

   (4)  A principal condominium manager shall ensure that the condominium management provider complies with this Act and the regulations.

Financial statements

   50.  (1)  Every licensed condominium management provider shall, when required by the registrar, file a financial statement that shows the matters specified by the registrar and that is signed by its principal condominium manager and certified by a person licensed under the Public Accounting Act, 2004.

Confidential

   (2)  The information contained in a financial statement filed under subsection (1) is confidential and no person shall otherwise than in the ordinary course of the person’s duties communicate the information or allow access to the financial statement.

Restrictions on employees

   51.  (1)  No licensed condominium management provider shall employ an unlicensed person to perform a function for which licensing is required.

Duty of condominium management provider

   (2)  A licensed condominium management provider shall ensure that every condominium manager that the provider employs carries out his or her duties in compliance with this Act and the regulations.

Restriction on condominium managers

   (3)  Subject to the regulations, a licensed condominium manager shall not act as a condominium manager unless he or she is employed by a condominium management provider.

Disclosure of interest

   52.  A licensee who, directly or indirectly, has an interest in a contract or transaction to which the client is a party or a proposed contract or transaction to which the client will be a party, shall disclose in writing to the client the nature and extent of the interest, in accordance with the prescribed requirements and in the form determined by the registrar.

Prohibition re: proxy instruments

   53.  A licensee, or any person acting on behalf of a licensee, shall not solicit an instrument appointing a proxy for a meeting of owners where the subject matter of the meeting includes,

  (a)  any matter directly related to the licensee;

  (b)  the removal or the election of one or more of the directors of the client; or

   (c)  any other prescribed matter.

Duty re records

   54.  (1)  Subject to the regulations and subsection (2), every licensee that provides condominium management services to a client shall immediately transfer to the client all documents and records relating to the client upon termination of any contract for the condominium management services provided.

Copies

   (2)  Subject to the regulations, a licensee may make and retain a copy of a document or record mentioned in subsection (1) if the licensee requires the copy for purposes relating to the contract or such other purposes as are prescribed.

No pressuring

   (3)  No licensee shall retain anything that the licensee is required to transfer to a client under subsection (1) as a means of pressuring the client to fulfil contractual obligations to the licensee.

False information

   55.  (1)  No licensee shall falsify, assist in falsifying or induce or counsel another person to falsify or assist in falsifying any information or document related to the licensee’s providing of condominium management services.

Furnishing information

   (2)  No licensee shall furnish, or induce or counsel another person to furnish, any information or documents related to the licensee’s providing of condominium management services if the information or documents are false or deceptive.

Same, assisting

   (3)  No licensee shall assist in furnishing, or induce or counsel another person to assist in furnishing, any information or documents related to the licensee’s providing of condominium management services if the licensee knows that the information or documents are false or deceptive.

No counselling contraventions

   56.  No licensee shall counsel, advise or knowingly assist a person to contravene this Act, the Condominium Act, 1998or any other prescribed Act.

PART V
COMPLAINTS, DISCIPLINE, INSPECTIONS, INvestigations AND ENFORCEMENT

Complaints and Discipline

Complaints

   57.  (1)  If the registrar receives a complaint about a licensee, the registrar may request information in relation to the complaint from any licensee.

Request for information

   (2)  A request for information under subsection (1) shall indicate the nature of the complaint.

Duty to comply with request

   (3)  A licensee who receives a written request for information shall provide the information as soon as practicable.

Procedures

   (4)  In handling complaints, the registrar may do any of the following, as appropriate:

    1.  Attempt to mediate or resolve the complaint.

    2.  Give the licensee a written warning that if the licensee continues with the activity that led to the complaint, action may be taken against the licensee.

    3.  Require the principal condominium manager of the licensee to take further educational courses if the licensee is a condominium management provider.

    4.  Require the licensee to take further educational courses if the licensee is a condominium manager.

    5.  Refer the matter, in whole or in part, to the discipline committee.

    6.  Take an action under section 40, subject to section 41.

    7.  Take further action as is appropriate in accordance with this Act.

Discipline proceedings

   58.  (1)  A discipline committee is established to hear and determine, in accordance with the prescribed procedures, if a licensee has failed to comply with the code of ethics established under section 77.

Appeals committee

   (2)  An appeals committee is established to consider, in accordance with the prescribed procedures, appeals from the discipline committee.

Appointment of members

   (3)  The board of the administrative authority or, if there is no administrative authority, the Minister shall appoint the members of the discipline committee and the members of the appeals committee and, in making the appointments, shall ensure that the prescribed requirements for the composition of each committee are met.

Result of a determination

   (4)  If the discipline committee makes a determination under subsection (1) that a licensee has failed to comply with the code of ethics, it may order any of the following as appropriate:

    1.  Require the principal condominium manager of the licensee to take further educational courses if the licensee is a condominium management provider.

    2.  Require the licensee to take further educational courses if the licensee is a condominium manager.

    3.  If the licensee is a condominium management provider, require the licensee, in accordance with the terms, if any, that the committee specifies, to fund educational courses for condominium managers employed by the licensee or to arrange and fund the courses.

    4.  If the licensee is a condominium manager, require the condominium management provider that employs the licensee, in accordance with the terms, if any, that the committee specifies, to fund educational courses for condominium managers that the provider employs or to arrange and fund the courses.

    5.  Impose the fine that the committee considers appropriate, to a maximum of $25,000, or such lesser amount as is prescribed, to be paid by the licensee to the administrative authority or to the Minister of Finance if there is no administrative authority.

    6.  Suspend or postpone the taking of further educational courses, the funding or the funding and arranging of educational courses or the imposition of the fine for the period and upon the terms that the committee designates.

    7.  Fix and impose costs that the licensee is required to pay to the administrative authority or to the Minister of Finance if there is no administrative authority.

Appeal

   (5)  A party to the discipline proceeding may appeal the final order of the discipline committee to the appeals committee.

Power of the appeals committee

   (6)  The appeals committee may, by order, overturn, affirm or modify the order of the discipline committee and may make an order under subsection (4).

Taking of educational course

   (7)  A licensee that is required under subsection (4) to take an educational course shall do so,

  (a)  within the time period specified in the order of the discipline committee, if the requirement is not the subject of an appeal;

  (b)  within the time period specified in the order of the appeals committee, if the requirement is the subject of an appeal; or

   (c)  at the first reasonable opportunity after the last order made in respect of the educational course, if no time period is specified in that order.

Arranging and funding educational courses

   (8)  A condominium management provider that is required under subsection (4) to fund educational courses for condominium managers that it employs or to arrange and fund such courses shall do so,

  (a)  within the time period specified in the order of the discipline committee, if the requirement is not the subject of an appeal;

  (b)  within the time period specified in the order of the appeals committee, if the requirement is the subject of an appeal; or

   (c)  at the first reasonable opportunity after the last order made in respect of the educational course, if no time period is specified in that order.

Payment of fine

   (9)  The licensee shall pay any fine imposed under subsection (4) on or before,

  (a)  the day specified in the order of the discipline committee, if the fine is not the subject of an appeal;

  (b)  the day specified in the order of the appeals committee, if the fine is the subject of an appeal; or

   (c)  the 60th day after the date of the last order made in respect of the fine, if no day is specified in that order.

Public access

   (10)  The discipline committee and the appeals committee shall make their decisions available to the public in the manner and at the frequency, if any, that are prescribed.

Inspections and Investigations

Inspectors

   59.  (1)  The registrar is, by virtue of his or her office, an inspector.

Appointment

   (2)  The registrar may appoint persons to be inspectors for the purposes of conducting inspections.

Certificate of appointment

   (3)  The registrar shall issue to every inspector a certificate of appointment bearing the registrar’s signature or a facsimile of it.

Proof of appointment

   (4)  Every inspector who is conducting an inspection under this Act shall, upon request, produce the certificate of appointment as an inspector.

Inspections without warrant

   60.  (1)  An inspector may, without a warrant or court order, conduct an inspection in accordance with this section for the purpose of,

  (a)  ensuring compliance with this Act and the regulations;

  (b)  dealing with a complaint under section 57; or

   (c)  ensuring the licensee remains entitled to a licence.

Power to enter premises

   (2)  As part of an inspection, an inspector may, without a warrant or court order, enter and inspect, at any reasonable time, any of the following premises, other than any part of the premises used as a dwelling:

    1.  The business premises of a licensee.

    2.  A property, as defined in the Condominium Act, 1998, in respect of which a licensee provides condominium management services to the condominium corporation.

Powers on inspection

   (3)  While carrying out an inspection, an inspector,

  (a)  is entitled to free access to all money, valuables, documents and records of the person being inspected that are relevant to the inspection;

  (b)  may make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the inspection;

   (c)  may require a person to produce any document or record relevant to the inspection and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the document or record;

  (d)  may use any data storage, processing or retrieval device or system used to engage in activities of a licensee in order to produce information that is relevant to the inspection and that is in any form; and

  (e)  may, upon giving a receipt for them, remove for examination and copy anything relevant to the inspection, including any data storage disk or other retrieval device in order to produce information, but shall promptly return to the person being inspected the thing that was removed.

No use of force

   (4)  An inspector shall not use force to enter and inspect premises under this section.

No obstruction

   (5)  No person shall obstruct an inspector conducting an inspection or withhold from the inspector or conceal, alter or destroy any money, documents or records that are relevant to the inspection.

Compliance

   (6)  If an inspector under clause (3) (c) requires a person to produce a document or record and to provide assistance, the person shall produce the document or record or provide the assistance, as the case may be.

Admissibility of copies

   (7)  A copy of a document or record certified by an inspector to be a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Appointment of investigators

   61.  (1)  The director may appoint persons to be investigators for the purposes of conducting investigations.

Certificate of appointment

   (2)  The director shall issue to every investigator a certificate of appointment bearing the director’s signature or a facsimile of it.

Proof of appointment

   (3)  Every investigator who is conducting an investigation under this Act shall, upon request, produce the certificate of appointment as an investigator.

Investigations with warrant

   62.  (1)  Upon application made without notice by an investigator, a justice of the peace may issue a warrant, if satisfied on information under oath that there is reasonable ground for believing that,

  (a)  a person has contravened or is contravening this Act or the regulations or has committed an offence under the law of any jurisdiction that is relevant to the person’s fitness for a licence; and

  (b)  there is,

           (i)  in any building, dwelling, receptacle or place anything relating to the contravention of this Act or the regulations or to the person’s fitness for a licence, or

          (ii)  information or evidence relating to the contravention of this Act or the regulations or the person’s fitness for a licence that may be obtained through the use of an investigative technique or procedure or the doing of anything described in the warrant.

Powers under warrant

   (2)  Subject to any conditions contained in it, a warrant obtained under subsection (1) authorizes an investigator,

  (a)  to enter or access the building, dwelling, receptacle or place specified in the warrant and examine and seize anything described in the warrant;

  (b)  to make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the investigation;

   (c)  to require a person to produce the information or evidence described in the warrant and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the information or evidence described in the warrant;

  (d)  to use any data storage, processing or retrieval device or system used to engage in the activities of a licensee in order to produce information or evidence described in the warrant, in any form; and

  (e)  to use any investigative technique or procedure or do anything described in the warrant.

Entry of dwelling

   (3)  Despite subsection (2), an investigator shall not exercise the power under a warrant to enter a place, or part of a place, used as a dwelling, unless,

  (a)  the justice of the peace is informed that the warrant is being sought to authorize entry into a dwelling; and

  (b)  the justice of the peace authorizes the entry into the dwelling.

Conditions on warrant

   (4)  A warrant obtained under subsection (1) shall contain the conditions that the justice of the peace considers advisable to ensure that any search authorized by the warrant is reasonable in the circumstances.

Expiry of warrant

   (5)  A warrant issued under this section shall name a date of expiry, which shall be no later than 30 days after the warrant is issued, but a justice of the peace may extend the date of expiry for an additional period of no more than 30 days, upon application without notice by an investigator.

Time of execution

   (6)  An entry or access under a warrant issued under this section shall be made between 6 a.m. and 9 p.m., unless the warrant specifies otherwise.

Use of force

   (7)  An investigator may call upon police officers for assistance in executing the warrant and the investigator may use whatever force is reasonably necessary to execute the warrant.

No obstruction

   (8)  No person shall obstruct an investigator executing a warrant under this section or withhold from the investigator or conceal, alter or destroy anything relevant to the investigation being conducted pursuant to the warrant.

Expert help

   (9)  The warrant may authorize persons who have special, expert or professional knowledge and other persons as necessary to accompany and assist the investigator in respect of the execution of the warrant.

Compliance

   (10)  If an investigator under clause (2) (c) requires a person to produce evidence or information or to provide assistance, the person shall produce the evidence or information or provide the assistance, as the case may be.

Return of seized items

   (11)  An investigator who seizes anything under this section or section 63 may make a copy of it and shall return it within a reasonable time.

Admissibility of copies

   (12)  A copy of a document or record certified by an investigator as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Seizure of things not specified

   63.  An investigator who is lawfully present in a place pursuant to a warrant or otherwise in the execution of the investigator’s duties may, without a warrant, seize anything in plain view that the investigator believes on reasonable grounds will afford evidence relating to a contravention of this Act or the regulations.

Searches in exigent circumstances

   64.  (1)  An investigator may exercise any of the powers described in subsection 62 (2) without a warrant if the conditions for obtaining the warrant exist but by reason of exigent circumstances it would be impracticable to obtain the warrant.

Dwellings

   (2)  Subsection (1) does not apply to a building or a part of a building that is being used as a dwelling.

Use of force

   (3)  The investigator may, in executing any authority given by this section, call upon police officers for assistance and use whatever force is reasonably necessary.

Applicability of s. 62

   (4)  Subsections 62 (8) to (12) apply, with necessary modifications, to a search under this section.

Orders

Freeze order

   65.  (1)  If the conditions in subsection (2) are met, the director may in writing,

  (a)  order any person having on deposit or controlling any assets or trust funds of a licensee or former licensee to hold those funds or assets;

  (b)  order a licensee or former licensee to refrain from withdrawing any asset or trust fund from a person having it on deposit or controlling it; or

   (c)  order a licensee or former licensee to hold any asset or trust fund of a client or other person in trust for the person entitled to it.

Conditions

   (2)  The director may make an order under subsection (1) if the director believes that it is advisable for the protection of the clients of a licensee or former licensee and,

  (a)  a search warrant has been issued under this Act; or

  (b)  criminal proceedings or proceedings in relation to a contravention under this Act or under any other Act are about to be or have been instituted against the licensee or former licensee in connection with or arising out of engaging in the activities of a licensee.

Limitation

   (3)  In the case of a financial institution described in subsection (4), the order under subsection (1) applies only to the offices and branches named in the order.

Financial institutions

   (4)  A financial institution mentioned in subsection (3) is,

  (a)  a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada);

  (b)  a corporation registered under the Loan and Trust Corporations Act; or

   (c)  a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994.

Release of assets

   (5)  The director may consent to the release of any particular asset or trust fund from the order or may wholly revoke the order.

Exception

   (6)  Subsection (1) does not apply if the licensee or former licensee files with the director, in the manner and amount that the director determines,

  (a)  a personal bond accompanied by collateral security;

  (b)  a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance;

   (c)  a bond of a guarantor accompanied by collateral security; or

  (d)  another prescribed form of security.

Application to court

   (7)  An application may be made to the Superior Court of Justice for a determination in respect of the disposition of an asset or trust fund,

  (a)  by a person in receipt of an order under subsection (1), if that person is in doubt as to whether the order applies to the asset or trust fund; or

  (b)  by a person who claims an interest in the asset or trust fund that is subject to the order.

Notice

   (8)  If an order is made under this section, the director may register in the appropriate land registry office a notice that an order under subsection (1) has been issued and that the order may affect land belonging to the person mentioned in the notice, and the notice has the same effect as the registration of a certificate of pending litigation, except that the director may in writing revoke or modify the notice.

Cancellation or discharge application

   (9)  A licensee or former licensee in respect of which an order is made under subsection (1) or any person having an interest in land in respect of which a notice is registered under subsection (8) may apply to the Tribunal for cancellation in whole or in part of the order or for discharge in whole or in part of the registration.

Disposition by Tribunal

   (10)  The Tribunal shall dispose of the application after a hearing and may cancel the order or discharge the registration in whole or in part if the Tribunal finds that,

  (a)  the order or registration is not required in whole or in part for the protection of clients of the applicant or of other persons having an interest in the land; or

  (b)  the interests of other persons are unduly prejudiced by the order or registration.

Parties

   (11)  The applicant, the director and the other persons that the Tribunal specifies are parties to the proceedings before the Tribunal.

Court application

   (12)  If the director has made an order under subsection (1) or registered a notice under subsection (8), the director may apply to the Superior Court of Justice for directions or an order relating to the disposition of assets, trust funds or land affected by the order or notice.

Notice not required

   (13)  An application by the director under this section may be made without notice to any other person.

Freeze orders, non-licensees

   66.  (1)  The director may make an order described in subsection (2) in respect of the money or assets of a person who is not licensed under this Act and who is alleged to have engaged in activities for which licensing is required under this Act at a time when the person was not licensed to do so if,

  (a)  the director receives an affidavit in which it is alleged, and in which facts are set out supporting the allegation, that the person who is not licensed under this Act,

           (i)  is subject to criminal proceedings or proceedings in relation to a contravention under this Act or any other Act that are about to be or have been instituted against the person in connection with or arising out of activities for which licensing is required under this Act, or

          (ii)  owns a building, dwelling, receptacle or place, or carries on activities in a building, dwelling, receptacle or place, in respect of which a search warrant has been issued under section 62; and

  (b)  the director, based on the affidavit mentioned in clause (a), finds reasonable grounds to believe that,

           (i)  in the course of activities for which licensing is required under this Act, the person who is the subject of the allegation mentioned in clause (a) has received money or assets from clients, and

          (ii)  the interests of those clients require protection.

Order

   (2)  In the circumstances described in subsection (1), the director may, in writing,

  (a)  order any person having on deposit or controlling any money or asset of the person who is the subject of the allegation mentioned in clause (1) (a) to hold the money or asset; or

  (b)  order the person who is the subject of the allegation mentioned in clause (1) (a),

           (i)  to refrain from withdrawing any money or asset from a person having it on deposit or controlling it, or

          (ii)  to hold any money or asset of a client or other person in trust for the person who is entitled to it.

Application

   (3)  Subsections 65 (3) to (13) apply with necessary modifications to an order made under this section.

Compliance orders

   67.  (1)  If it appears to the director that a person is not complying with this Act or the regulations or an order made under this Act, the director may apply to the Superior Court of Justice for an order directing that person to comply, and, upon the application, the court may make the order that the court thinks fit.

Same

   (2)  Subsection (1) applies in addition to any other procedures that may be available to the director, whether or not the director has exercised his or her rights under the procedures.

Appeal

   (3)  An appeal lies to the Divisional Court from an order made under subsection (1).

Offences

Offence

   68.  (1)  A person or entity, other than the administrative authority, is guilty of an offence if the person or entity,

  (a)  furnishes false information in any application under this Act or in any statement or return required under this Act;

  (b)  fails to comply with any order, direction or other requirement under this Act, other than an order made under section 58; or

   (c)  contravenes or fails to comply with any section of this Act or the regulations made under the Act, other than a code of ethics established under section 77.

Condominium management providers

   (2)  An officer or director of a condominium management provider who fails to take reasonable care to prevent the provider from committing an offence mentioned in subsection (1) is guilty of an offence.

Penalties

   (3)  A person or entity that is convicted of an offence under this Act is liable to,

  (a)  a fine of not more than $50,000 or imprisonment for a term of not more than two years less a day or both, in the case of an individual; or

  (b)  a fine of not more than $250,000, if the person or entity is not an individual.

Limitation

   (4)  No proceeding under this section shall be commenced more than two years after the facts upon which the proceeding is based first came to the knowledge of the director.

Orders for compensation, restitution

   69.  (1)  If a person or entity is convicted of an offence under section 68, the court making the conviction may, in addition to any other penalty, order the person or entity convicted to pay compensation or make restitution.

If insurance has paid

   (2)  If an order is made in the favour of a person or entity under subsection (1) and that person or entity has already received compensation or restitution from an insurer, the person or entity ordered to pay the compensation or make restitution shall deliver the amount to the insurer.

Default in payment of fines

   70.  (1)  If a fine payable as a result of a conviction for an offence under section 68 is in default for at least 60 days, the director may disclose to a consumer reporting agency the name of the defaulter, the amount of the fine and the date the fine went into default.

If payment made

   (2)  Within 10 days after the director has received notice that the fine has been paid in full, the director shall inform the consumer reporting agency of the payment.

Liens and charges

   71.  (1)  If a fine payable as a result of a conviction for an offence under section 68 is in default for at least 60 days, the director may by order create a lien against the property of the person or entity that is liable to pay the fine.

Liens on personal property

   (2)  If the lien created by the director under subsection (1) relates to personal property,

  (a)  the Personal Property Security Act, except Part V, applies with necessary modifications to the lien, despite clause 4 (1) (a) of that Act;

  (b)  the lien shall be deemed to be a security interest that has attached for the purposes of the Personal Property Security Act; and

   (c)  the director may perfect the security interest mentioned in clause (b) for the purposes of the Personal Property Security Act by the registration of a financing statement under that Act.

Liens and charges on real property

   (3)  If the lien created by the director under subsection (1) relates to real property, the director may register the lien against the property of the person or entity liable to pay the fine in the proper land registry office and on registration, the obligation under the lien becomes a charge on the property.

Initiation of sale proceedings prohibited

   (4)  The director shall not initiate sale proceedings in respect of any real property against which the director has registered a lien under subsection (3).

Proceeds of sale

   (5)  If a lien is perfected by registration under subsection (2) or is registered against real property under subsection (3) and the related real or personal property is sold, the director shall ensure that the funds he or she receives as a result of the sale are used to pay the fine.

Discharge of lien

   (6)  Within 10 days after the director has knowledge of the payment in full of the fine, the director shall,

  (a)  discharge the registration of any financing statement registered under clause (2) (c); and

  (b)  register a discharge of a charge created on registration of a lien under subsection (3).

PART VI
GENERAL

Confidentiality

   72.  (1)  A person who obtains information in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations shall preserve secrecy with respect to the information and shall not communicate the information to any person except,

  (a)  as is required in connection with a proceeding under this Act or in connection with the administration of this Act or the regulations;

  (b)  to a ministry, department or agency of a government engaged in the administration of legislation similar to this Act or legislation that protects consumers or to any other entity to which the administration of legislation similar to this Act or legislation that protects consumers has been assigned;

   (c)  as authorized under the Regulatory Modernization Act, 2007;

  (d)  to a prescribed entity or organization, if the purpose of the communication is consumer protection;

  (e)  to a law enforcement agency;

   (f)  to the counsel of the person communicating the information; or

  (g)  with the consent of the person to whom the information relates.

Testimony

   (2)  Except in a proceeding under this Act, no person shall be required to give testimony in a civil proceeding with regard to information obtained in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations.

Service

   73.  (1)  Any notice, order or request is sufficiently given or served if it is,

  (a)  delivered personally;

  (b)  sent by registered mail; or

   (c)  sent by another manner if the sender can prove receipt of the notice, order or request.

Deemed service

   (2)  If service is made by registered mail, the service shall be deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person’s control, receive the notice, order or request until a later date.

Exception

   (3)  Despite subsections (1) and (2), the Tribunal may order any other method of service it considers appropriate in the circumstances.

Fees

   74.  (1)  The Minister may, by order, establish fees that are payable under this Act in respect of a licence, a renewal of a licence, late filings and other administrative matters.

Exception

   (2)  Subsection (1) does not apply if there is an administrative authority.

Legislation Act, 2006, Part III

   (3)  An order made under this section is not a regulation for the purposes of Part III (Regulations) of the Legislation Act, 2006.

Certificate as evidence

   75.  (1)  For all purposes in any proceeding, a statement purporting to be certified by the director is, without proof of the office or signature of the director, admissible in evidence as proof, in the absence of evidence to the contrary, of the facts stated in it in relation to,

  (a)  the licensing or non-licensing of any person;

  (b)  the filing or non-filing of any document or material required or permitted to be filed with the registrar;

   (c)  the time when the facts upon which the proceedings are based first came to the knowledge of the director; or

  (d)  any other matter pertaining to licensing or non-licensing of persons or to filing or non-filing of information.

Proof of document

   (2)  Any document made under this Act that purports to be signed by the director or a certified copy of the document is admissible in evidence in any proceeding as proof, in the absence of evidence to the contrary, that the document is signed by the director without proof of the office or signature of the director.

Information concerning licensees

   76.  (1)  As required by regulation, the registrar shall make available to the public the names of licensees and other information, as prescribed, in respect of licensees.

Same

   (2)  The names of licensees shall be made available in the prescribed form and manner and with the information that is prescribed.

PART VII
REGULATIONS

Minister’s regulations

   77.  (1)  The Minister may make regulations,

  (a)  establishing a code of ethics for the purposes of subsection 58 (1);

  (b)  governing the jurisdiction and procedures of any committee established under this Act;

   (c)  respecting any matter that is delegated by the Lieutenant Governor in Council to the Minister under paragraph 26 of subsection 78 (1).

Code of ethics

   (2)  A regulation under clause (1) (c) may be made as part of the code of ethics established under clause (1) (a).

Conflicts

   (3)  If there is a conflict between a regulation made under this section and a regulation made by the Lieutenant Governor in Council under section 78, the latter prevails.

Lieutenant Governor in Council regulations

   78.  (1)  The Lieutenant Governor in Council may make regulations,

    1.  defining, for the purposes of this Act and the regulations, any word or expression that is used in this Act but not defined in this Act;

    2.  specifying any matter or thing that this Act describes as being prescribed or done in accordance with the regulations;

    3.  exempting any person or class of persons or class of activities from any provision of this Act or the regulations and attaching conditions to an exemption;

    4.  respecting applications for a licence or a renewal of licence;

    5.  governing educational and examination requirements for applicants for a licence, applicants for a renewal of licence and licensees, including,

            i.  requiring applicants for a licence, applicants for a renewal of licence and licensees to meet educational requirements that the board of the administrative authority, the Minister, the director or the registrar has specified or to complete a program of studies or one or more courses that the board of the administrative authority, the Minister, the director or the registrar has designated,

           ii.  authorizing the board of the administrative authority, the Minister, the director or the registrar to designate organizations that are authorized to provide the programs and courses designated under subparagraph i, and

          iii.  requiring that all educational requirements specified under subparagraph i and the list of all programs and courses designated under that subparagraph be made available to the public;

    6.  requiring an applicant for a licence or a renewal of a licence to provide information to the registrar concerning persons other than the applicant in order to assist the registrar in determining whether the persons are or may be interested persons;

    7.  specifying information that licensees must provide to the registrar and requiring that specified information be verified by affidavit;

    8.  requiring the registrar to make available to the public the names of licensees and prescribing the form and manner in which the registrar must make the names available and specifying other information in respect of licensees that the registrar must make available to the public;

    9.  specifying the responsibilities of condominium management providers, condominium managers or principal condominium managers;

  10.  prescribing matters that condominium managers must disclose to the condominium management providers that employ them and to condominium management providers that are prospective employers, and the circumstances under which such disclosures are required;

  11.  governing the activities of licensees including,

            i.  specifying terms that licensees are required to include in contracts for condominium management services that they provide to clients,

           ii.  specifying matters that they must disclose and when they must disclose them in the course of providing condominium management services, including the conditions under which disclosure is required and matters related to any holdings in,

                  A.  condominium management providers, other than the condominium management provider by which they are employed, in the case of condominium managers, or

                  B.  other condominium management providers, in the case of condominium management providers, and

          iii.  specifying statements that licensees must provide in respect of providing condominium management services, the content of the statements, the manner of providing them, the circumstances under which a statement is not required and the consequences of failing to provide statements;

  12.  requiring licensees to provide, on request and in the prescribed circumstances, proof of licence and specifying the nature of the proof and the manner in which they must provide it;

  13.  requiring licensees to maintain business premises that comply with the prescribed rules;

  14.  respecting financial security requirements for licensees, including requiring them to be bonded or insured or have collateral security, and prescribing the forfeiture of bonds, the disposition of proceeds and other terms related to the financial security requirements;

  15.  governing the insurance that licensees must have, including,

            i.  prescribing the types of insurance they must have, and

           ii.  prescribing the minimum amounts for which they must be insured under each type of insurance;

  16.  requiring licensees or any class of licensees to maintain trust accounts, governing those accounts including specifying the money that shall be held in trust and the conditions of the trust and authorizing the registrar to specify the location at which the trust accounts must be kept;

  17.  governing the documents and records that licensees must keep, including the manner and location in which licensees must keep them and the time periods for which they must keep them and authorizing the registrar to specify the location at which licensees must keep them;

  18.  governing the transfer of documents and records that a licensee is required to make to a client under section 54, including,

            i.  specifying the form in which and the time at which the licensee is required to make the transfer,

           ii.  specifying the rights and obligations of the parties if the licensee does not comply with the requirement, and

          iii.  specifying the rights of any other condominium management provider or condominium manager who provides condominium management services to the client after the time at which the licensee was required to make the transfer, if the licensee did not make the required transfer;

  19.  governing the making and retaining of copies of documents and records by a licensee under subsection 54 (2), including,

            i.  specifying conditions that apply to the making of the copies,

           ii.  specifying the time period during which the licensee is authorized to retain the copies, and

          iii.  requiring the licensee to return the copies to the client or to destroy the copies after the expiry of the time period mentioned in subparagraph ii and governing the disposition of the copies under this subparagraph;

  20.  specifying procedures and other matters related to complaints under section 57;

  21.  governing the composition of the discipline committee and the appeals committee and, subject to subsection 58 (3), governing matters relating to the appointment of the members of those committees;

  22.  respecting inspections and investigations under this Act;

  23.  requiring that any information required under this Act be in a form approved by the director, the registrar or the Minister, as specified in the regulation;

  24.  specifying rules relating to addresses for service under this Act;

  25.  authorizing the director or the board of the administrative authority to conduct quality assurance programs in relation to the administration of this Act or the regulations and to use information collected under this Act for the purposes of those programs;

  26.  delegating any matter that may be the subject of a regulation under this section to the Minister;

  27.  providing for any transitional matter necessary for the effective implementation of this Act or the regulations, including,

            i.  authorizing persons who are not licensees but who provide condominium management services to clients before section 34 comes into force to continue to provide those services, subject to the requirements set out in the regulations, and

           ii.  governing the application of prescribed provisions of this Act and the regulations to licensees and other prescribed persons.

Residual authority to act

   (2)  Despite any delegation to the Minister under paragraph 26 of subsection (1) and without having to revoke the delegation, the Lieutenant Governor in Council continues to have authority to make regulations in respect of the matter that is the subject of the delegation.

Making regulation not revocation

   (3)  If the Lieutenant Governor in Council makes a regulation to which subsection (2) applies, the regulation does not have the effect of revoking a delegation under this section unless the regulation so specifies.

Minister’s regulations preserved

   (4)  The Lieutenant Governor in Council may, by regulation, revoke a delegation to the Minister under paragraph 26 of subsection (1), but the revocation of a delegation does not result in the revocation of any regulation the Minister made under the delegated power before the revocation of the delegation.

PART VIII
amendments to this Act

Amendments to this Act

   79.  (1)  Clause 7 (b) is amended by striking out “the Corporations Act” and substituting “the Not-for-Profit Corporations Act, 2010”.

Same

   (2)  Subsection 22 (1) is amended by striking out “the Corporations Act” and substituting “the Not-for-Profit Corporations Act, 2010”.

PART IX
Complementary Amendments

Condominium Act, 1998

   80.  (1)  Subsection 1 (1) of the Condominium Act, 1998 is amended by adding the following definitions:

“condominium management provider”, “condominium management services” and “condominium manager” have the same meaning as in the Condominium Management Services Act, 2015; (“fournisseur de services de gestion de condominiums”, “gestionnaire de condominiums”, “services de gestion de condominiums”)

   (2)  Clause 9.2 (3) (b) of the Act, as enacted by section 12 of Schedule 1 to the Protecting Condominium Owners Act, 2015, is repealed and the following substituted:

  (b)  a condominium manager licensed under the Condominium Management Services Act, 2015 who provides condominium management services to the corporation under that Act; or

   (3)  Clause 9.3 (3) (b) of the Act, as enacted by section 12 of Schedule 1 to the Protecting Condominium Owners Act, 2015, is repealed and the following substituted:

  (b)  a condominium manager licensed under the Condominium Management Services Act, 2015 who provides condominium management services to the corporation under that Act; or

   (4)  The Act is amended by adding the following section:

Agreement for management services

   17.0.1  A corporation shall not enter into an agreement with a condominium management provider or a condominium manager to receive condominium management services unless the provider or manager, as the case may be, is licensed under the Condominium Management Services Act, 2015.

   (5)  Clause 37 (3) (a) of the Act is repealed and the following substituted:

  (a)  financial statements of the corporation that the auditor in a written report, an officer of the corporation or a condominium manager who provides condominium management services to the corporation under an agreement between the corporation and either the manager or a condominium management provider represents to the director as presenting fairly the financial position of the corporation in accordance with generally accepted accounting principles; or

   (6)  Section 55 of the Act is amended by adding the following subsection:

Providing records to provider or manager

   (2.1)  If a corporation has entered into an agreement with a condominium management provider or a condominium manager to receive condominium management services, the corporation shall provide the provider or manager, as the case may be, with any of the corporation’s records that the provider or manager reasonably requires and shall do so at the time and in the manner that is prescribed and in accordance with the prescribed requirements.

   (7)  Subsection (6) applies only if subsection 51 (4) of Schedule 1 to the Protecting Condominium Owners Act, 2015 does not come into force before the day that subsection (6) comes into force.

   (8)  Section 55 of the Act is amended by adding the following subsection:

Providing records to provider or manager

   (2.2)  If a corporation has entered into an agreement with a condominium management provider or a condominium manager to receive condominium management services, the corporation shall provide the provider or manager, as the case may be, with any of the corporation’s records that the provider or manager reasonably requires and shall do so at the time and in the manner that is prescribed and in accordance with the prescribed requirements.

   (9)  Subsection (8) applies only if subsection 51 (4) of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force on or before the day that subsection (8) comes into force.

   (10)  Clause 61 (b) of the Act is repealed and the following substituted:

  (b)  is a condominium manager who provides condominium management services to the corporation under an agreement between the corporation and either the manager or a condominium management provider;

   (11)  Section 77 of the Act is repealed and the following substituted:

Information on corporation

   77.  On the request of any person, the corporation shall, without fee, provide the names and address for service of,

  (a)  the directors and officers of the corporation;

  (b)  the condominium management provider or the condominium manager, if any, with whom the corporation has entered into an agreement to receive condominium management services;

   (c)  any other person responsible for the management of the property; and

  (d)  the person to whom the corporation has delegated the responsibility for providing status certificates.

   (12)  Subsection 111 (1) of the Act is repealed and the following substituted:

Management agreements

   (1)  Subject to subsection (2), a corporation may, by resolution of the board, terminate an agreement under which it receives condominium management services and that it has entered into with a person before the owners elected a new board at a meeting held in accordance with subsection 43 (1).

   (13)  Subsection (12) applies only if subsection 97 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015 does not come into force before the day that subsection (12) comes into force.

   (14)  Subsection 111 (1) of the Act, as amended by subsection 97 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015, is repealed and the following substituted:

Management agreements

   (1)  Subject to subsection (2) and despite anything in the declaration, a by-law, an agreement or an instrument, a corporation may, by resolution of the board, terminate an agreement under which it receives condominium management services and that it has entered into with a person before the owners elected a new board at a meeting held in accordance with subsection 43 (1).

   (15)  Subsection (14) applies only if subsection 97 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force on or before the day that subsection (14) comes into force.

   (16)  Paragraph 4 of subsection 132 (2) of the Act is repealed and the following substituted:

    4.  An agreement that the corporation has entered into with a condominium management provider or a condominium manager and under which the corporation receives condominium management services.

   (17)  Subsection 154 (1) of the Act is repealed and the following substituted:

Termination of agreements

   (1)  Subject to subsection (2), after the registration of the amendments to the declaration and description required for creating a phase, a corporation may, by resolution of the board, terminate an agreement under which it receives condominium management services in respect of the property contained in the phase and that the declarant entered into on behalf of the corporation before the registration of the amendments.

   (18)  Subsection (17) applies only if subsection 131 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015 does not come into force before the day that subsection (17) comes into force.

   (19)  Subsection 154 (1) of the Act, as amended by subsection 131 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015, is repealed and the following substituted:

Termination of agreements

   (1)  Subject to subsection (2) and despite anything in the declaration, a by-law, an agreement or an instrument, after the registration of the amendments to the declaration and description required for creating a phase, a corporation may, by resolution of the board, terminate an agreement under which it receives condominium management services in respect of the property contained in the phase and that the declarant entered into on behalf of the corporation before the registration of the amendments.

   (20)  Subsection (19) applies only if subsection 131 (1) of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force on or before the day that subsection (19) comes into force.

Licence Appeal Tribunal Act, 1999

   81.  Subsection 11 (1) of the Licence Appeal Tribunal Act, 1999 is amended by adding the following:

Condominium Management Services Act, 2015

Protecting Condominium Owners Act, 2015

   82.  (1)  Section 57 of Schedule 1 to the Protecting Condominium Owners Act, 2015 is repealed.

   (2)  Subsection (1) applies only if subsection 80 (10) of Schedule 2 to the Protecting Condominium Owners Act, 2015 comes into force on or before the day section 57 of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force.

   (3)  Section 68 of Schedule 1 to the Protecting Condominium Owners Act, 2015 is repealed.

   (4)  Subsection (3) applies only if subsection 80 (11) of Schedule 2 to the Protecting Condominium Owners Act, 2015 comes into force on or before the day section 68 of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force.

PART X
COMMENCEMENT and SHORT TITLE

Commencement

   83.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

   (2)  Subsection 79 (1) comes into force on the later of the day subsection 211 (1) of the Not-for-Profit Corporations Act, 2010 comes into force and the day section 7 of this Schedule comes into force.

Same

   (3)  Subsection 79 (2) comes into force on the later of the day subsection 211 (1) of the Not-for-Profit Corporations Act, 2010 comes into force and the day subsection 22 (1) of this Schedule comes into force.

Same

   (4)  Subsections 80 (2) and (3) come into force on the later of the day subsection 34 (1) of this Schedule comes into force and the day section 12 of Schedule 1 to the Protecting Condominium Owners Act, 2015 comes into force.

Short title

   84.  The short title of the Act set out in this Schedule is the Condominium Management Services Act, 2015.

EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 106 and does not form part of the law.  Bill 106 has been enacted as Chapter 28 of the Statutes of Ontario, 2015.

The major elements of the Bill are described below.

SCHEDULE 1
Amendments to the Condominium Act, 1998 and other amendments

Condominium Act, 1998

The main changes are to the following Parts of the Act.

Part I.1 (ss. 2-4)

A new Part I.1 allows the Lieutenant Governor in Council to designate a not-for-profit corporation as the condominium authority and to specify provisions of the Act and the regulations made under the Act whose administration is delegated to the condominium authority.

The Part includes mechanisms for government oversight, including requirements for an administrative agreement between the condominium authority and the Minister, annual and other reports by the authority, competency criteria for board members and oversight by the Auditor General.

The condominium authority is not an agent of the Crown. Employees of the authority are not Crown employees. There is no Crown liability for actions of the authority and the authority is required to indemnify the Crown for damages or costs.

The condominium authority is able to set forms and fees and to assess corporations and new owners with respect to the authority’s expenses and expenditures, in accordance with processes and criteria approved by the Minister.

Part I.2 (ss. 5, 6)

If the condominium authority is designated under Part I.1, a new Part I.2 establishes a Condominium Authority Tribunal for the resolution of disputes primarily between condominium corporations and owners or mortgagees. The condominium authority appoints members of the Tribunal, as well as a chair and vice-chairs.

A corporation, owner, mortgagee or purchaser can apply to the Tribunal for a resolution of particular disputes prescribed by the regulations. Certain disputes are excluded, including disputes involving Part III (Ownership), liens and the determination of title to real property. The Tribunal has exclusive jurisdiction to exercise its powers. Appeals on questions of law go to the Divisional Court.

Part II (ss. 7-11)

The form and content of declarations are subject to the regulations. Certain mandatory contents are set out in the Act, including a new requirement for a statement of how the proportions of each owner’s common expenses and common interests are determined. A declaration may contain additional information permitted under the Act and the regulations, including conditions or restrictions with respect to the occupation, use, maintenance and repair of assets of the corporation and statements regarding the common expenses and circumstances that may result in additions to an owner’s obligation to contribute to the common expenses.

Part II.1 (s. 12)

A new Part II.1 requires corporations to file returns with the Condominium Registrar and to notify the Registrar of any change in directors. The Registrar and deputy Registrars are appointed by the condominium authority if the authority is delegated responsibility for this Part. Otherwise, they are appointed by the Minister. False, misleading or missing statements in a return give rise to an offence under the Act. The Part provides for the confidentiality of information collected, with certain exceptions.

Part III (ss. 13, 14)

The regulations can specify property that is to be an asset of the corporation or form part of the common elements and specify rules and procedures regarding this allocation of property. A regulation regarding the allocation of property does not apply if the board of directors of a corporation decides otherwise in cases where the board is not controlled by the declarant and meets the other requirements of the Act.

Part IV (ss. 15-60)

A corporation is prohibited from levying fines, penalties or other amounts against owners, occupiers or other prescribed persons, unless it is to compensate or indemnify the corporation for an actual loss as prescribed or doing so is otherwise permitted under the Act.

Corporations, declarants and other persons who have shared use or obligations in relation to land, a condominium property, assets of a corporation and other facilities or services are required to enter into an agreement.  The regulations can set out what the agreements must contain and can provide for circumstances where no agreement is required.

An owner in arrears of common expenses for 30 days or more is not entitled to consent to any of the following until the owner pays the arrears: amendments to a declaration or description, the termination of certain telecommunications agreements in relation to a condominium property, the dispensing with an audit, the amalgamation of corporations or the sale of any of their exclusive use common elements.

A corporation that has unpaid fees, costs, charges or assessments under Part I.1 or I.2 is not entitled to maintain a proceeding before the Condominium Authority Tribunal or in an Ontario court except with leave of the court.

A corporation is not required to make payment to acquire an interest in any property until a board of directors of the corporation that is not controlled by the declarant decides otherwise or unless the regulations provide otherwise. Similarly, no provision of a declaration, by-law, agreement or other instrument affects a remedy that a corporation has against a declarant or related persons unless that board of directors of the corporation decides otherwise.

Corporations are required to periodically provide prescribed information, including insurance updates, to the owners. Corporations are prohibited from entering into certain contracts unless the required procurement process has been followed.

The qualifications and disqualifications for being the director of a corporation are expanded to include disclosure obligations and required training.

Board meetings can be held by teleconference or another form of communication system if all directors consent. Protection from liability for directors and officers is expanded to cover cases where the individual relies in good faith on a report or opinion of a reserve fund study provider.

Upon becoming an owner, the owner is required to notify the corporation of the owner’s name and to identify the owner’s unit. An owner may, but is not required to, notify the corporation of the owner’s address for service.

The Schedule changes procedural requirements for the calling and holding of owners’ meetings. The changes include preliminary notices for candidates for the election of directors and agenda items, required contents in notices of meetings, required materials for meetings, new quorum rules for meetings, expansion of methods of voting at meetings, new requirements regarding proxies, rules regarding a position on the board for the election of owners of non-leased voting units and requisitions for meetings.

The Schedule changes the requirements regarding the retention of corporation records and changes the rights, requirements and remedies regarding access to records by purchasers, owners and mortgagees.

The Schedule expands the powers of a board of directors of a corporation to make by-laws and rules. The Schedule repeals the power to make joint by-laws and rules relating to shared facilities and services and replaces them with regulation-making authority relating to shared facilities agreements.

The Schedule updates the standards required for the preparation of the financial statements of a corporation and an auditor’s report relating to those statements.

Part V (ss. 61-75)

The Minister will ensure that one or more condominium guides are prepared. Declarants are required to provide the guide to purchasers along with the required disclosure statement. Information in the disclosure statement is expanded and, subject to the regulations, includes new budget statement information and information on expected common expense increases. Declarants are required to disclose their final first-year budget figures at least 10 days before the closing date of the purchase and sale.

The first-year budget deficit obligations of declarants, where amounts for certain common expenses exceed budgeted amounts, are expanded to address a declarant’s non-compliance with requirements regarding budgeted contributions to the corporation’s reserve fund.

Certain requirements and obligations are extended to agreements of purchase and sale entered into on behalf of declarants and any reservation money paid in relation to those agreements. Purchasers are not required to acquire an interest in property intended for the use or benefit of owners, not including the common elements or property owned by the corporation.  A certain portion of occupancy fees paid by purchasers of prescribed units is required to be allocated to the corporation’s reserve fund in accordance with the regulations. New requirements apply to reservation and purchase money that is required to be held in trust. Status certificates, which contain information regarding a unit and the corporation, must contain additional information.

Part VI (ss. 76-103)

Corporations are required to prepare a budget for their first and subsequent fiscal years and to give notice to the owners regarding the budget and any amendments to it.

Certain additions to the contribution of an owner to the common expenses require the corporation to give notice to the owner. Upon receiving the notice, the owner is required either to pay the added amount or to submit the matter to dispute resolution. A notice is required if any other additions are made to the contribution to the common expenses payable by an owner. The notice must include a deadline for payment.

Changes to the obligations with respect to the maintenance and repair of units, common elements and assets of a condominium corporation address the manner in which a declaration can alter the obligations to maintain or repair as set out in the Act.

Changes to provisions relating to reserve funds and reserve fund studies deal with matters such as the use of reserve funds, an owner’s obligation to contribute to the reserve fund and the required and permissible times for obtaining periodic reserve fund studies.

If an owner causes damage to a unit, the common elements or any assets of a corporation, an amount, up to a maximum of the corporation’s insurance deductible, is added to the contribution to the common expenses payable by the owner, subject only to a declaration amendment.

The Schedule expands the rights of corporations to terminate certain agreements entered into before a new turnover board is elected.

Restrictions relating to the use of units, common elements and the assets of corporations and conditions and activities in them are expanded to include acts or omissions that are likely to cause damage, injury or illness and activities relating to noise and other nuisances.

Other Parts (ss. 104-121)

Amendments set out which disagreements are subject to mandatory mediation and arbitration and allow for a default process to be set by regulation.

A court is not allowed to make an order that requires a person to vacate a condominium property permanently except in the extraordinary circumstances that are set out in the Act. A court is not allowed to make an order to terminate a residential tenancy governed by the Residential Tenancies Act, 2006.

Owners are entitled to greater costs recovery, similar to the costs entitlement of a corporation, with respect to compliance matters before the courts.

The Schedule creates additional offences under the Act, mainly with respect to the new Parts I.1 and II.1. It is an offence for the condominium authority to knowingly contravene the Act or for a person to contravene or fail to comply with an assessment under Part I.1 or to make a false or misleading statement in a condominium return under Part II.1. The Registrar is allowed to issue compliance orders to enforce payment of assessments and to enforce Part II.1.

Parts X to XIII (ss. 122-142)

Certain new provisions relating to repair and maintenance obligations, disclosure statements, turnover obligations, termination and amendment of certain agreements, apply to condominium corporations, other than standard condominium corporations, such as common elements condominium corporations.

A declarant is not currently allowed to register a phase, as defined in Part XI, in a leasehold condominium corporation or, unless the regulations so allow, in a common elements condominium corporation or a vacant land condominium corporation. Those restrictions are removed.

Part XIV (ss. 143-146)

The Lieutenant Governor in Council may make regulations requiring the condominium authority to disclose specified information and records to the public. The current regulation-making powers are expanded to include declarations, descriptions, by-laws, rules, director training, websites of a declarant, definitions for undefined words or expressions and transitional matters.

Ontario New Home Warranties Plan Act (s. 154)

The Schedule amends the Act to set out additional requirements relating to residential condominium conversion projects, including conditions to be met in order for warranties under the Act to apply. Residential condominium conversion projects are defined as certain projects that consist of a condominium property or proposed condominium property, that include or are proposed to include units capable of being used as self-contained dwellings for year-round residential occupancy and that have certain other characteristics.

The Schedule makes consequential amendments to other Acts.

SCHEDULE 2
Condominium Management Services ACT, 2015

The Schedule enacts a new Act, the Condominium Management Services Act, 2015 and makes complementary amendments to the Condominium Act, 1998 and the Licence Appeal Tribunal Act, 1999.

Part I

Part I deals with definitions and interpretation.

Part II

The Lieutenant Governor in Council is allowed to designate a not-for-profit corporation as the administrative authority. If an administrative authority is designated, the administration of specified provisions of the Act and the regulations made under the Act is delegated to the authority and the authority is required to carry out the administration of the delegated provisions.

The Part includes mechanisms for government oversight, including requirements for an administrative agreement between the administrative authority and the Minister, annual and other reports by the authority, competency criteria for board members and oversight by the Auditor General.

The administrative authority is not an agent of the Crown. Employees of the authority are not Crown employees. There is no Crown liability for actions of the authority and the authority is required to indemnify the Crown for damages or costs.

The administrative authority is able to set forms and fees in accordance with processes and criteria approved by the Minister.

If an administrative authority is designated, it is required to appoint a director and registrar. Otherwise the Minister responsible for administering the Act appoints the director and the registrar.

Part III

The Act requires that persons who provide management services, as defined, to condominium corporations be licensed as condominium management providers or condominium managers. The former are not individuals. The latter are individuals who provide condominium management services to a condominium corporation either directly, if authorized by the regulations made under the Act, or as an employee on behalf of a condominium management provider.

Part IV

Every licensee that provides condominium management services to a client has to have a written contract governing the services and shall not provide such services except in accordance with the contract. Every licensed condominium management provider has to have a principal condominium manager who meets the requirements prescribed by the regulations. That manager has to ensure that the condominium management provider complies with the Act and the regulations. A licensed condominium management provider has to ensure that every condominium manager whom the provider employs carries out his or her duties in compliance with the Act and the regulations. Providing false information is also prohibited.

Part V

The Act allows the registrar to deal with complaints made about licensees. In addition, a discipline committee and an appeal committee are established. If a committee finds that a licensee has breached the code of ethics established by a Minister’s regulation, the licensee is subject to a fine of up to $25,000 or a lesser prescribed amount.

The Act allows inspectors appointed by the registrar to conduct regulatory inspections without a warrant and investigators appointed by the director to conduct both an investigation with a warrant and searches in exigent circumstances.

In certain circumstances that are set out and that involve the protection of clients, the director may also freeze the assets of licensees and former licensees, as well as the assets of non-licensees who are alleged to have engaged in activities for which licensing is required under the Act. The director may also apply to court for a compliance order. The Act also creates offences.

Part VI

The Act contains general provisions dealing with such matters as the preservation of secrecy, service of documents and the setting of fees by the Minister. The Minister may make regulations establishing a code of ethics, governing the jurisdiction of committees and in areas prescribed by the Lieutenant Governor in Council. The Lieutenant Governor in Council may make regulations dealing with a broad range of matters to regulate the industry, including requiring the administrative authority to disclose specified information and records to the public.

Current Parliament
Past & Present
Contact an MPP
Participation in Committees
Watch the Legislature in Action
Use of Assembly Grounds
Petitions