R.R.O. 1990, Reg. 96: GENERAL

under Condominium Act, R.S.O. 1990, c. C.26

Versions

revoked or spent May 5, 2001

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Condominium Act
Loi sur les condominiums

REGULATION 96

Amended to O. Reg. 48/01

GENERAL

Note: This Regulation was revoked on May 5, 2001. See: O. Reg. 48/01, s. 65 (1).

This Regulation is made in English only.

Interpretation

1. In this Regulation,

“Condominium Corporations Index” means the Condominium Corporations Index under subsection 5 (1) of the Act;

“condominium property” means property as defined in subsection 1 (1) of the Act to which the Act applies;

“Condominium Register” means the Condominium Register under subsection 5 (3) of the Act;

“land registrar” means the land registrar in whose registry or land titles division, as the case may be, the property is situate. R.R.O. 1990, Reg. 96, s. 1.

PART I
REGISTRATION AND RECORDING

2. A declaration and description shall not be received for registration unless,

(a) the declaration appears to be executed by every owner of and every person having a registered mortgage against the land and interests appurtenant to the land described in the description;

(b) the declaration is accompanied by such proof as to the execution by, and age of every such owner and person as is required by or under the Land Titles Act or the Registry Act in the case of a transfer or deed, with respect to each owner, and in the case of a cessation of charge or certificate of discharge of mortgage, with respect to each person having a registered mortgage;

(c) the Land Registrar has approved the description and signified approval by completing Form 2 of Regulation 97 of the Revised Regulations of Ontario, 1990; and

(d) the declaration contains a schedule to be known as Schedule A that describes the land and interests appurtenant to the land intended to be governed by the Act and states that, in the solicitor’s opinion, based on the parcel register or abstract index and the plans and documents recorded in them, the legal description is correct, the easements described exist in law and the declarant is the registered owner of the land and appurtenant easements. R.R.O. 1990, Reg. 96, s. 2; O. Reg. 179/91, s. 1.

3. The Condominium Corporations Index shall be in Form 1. R.R.O. 1990, Reg. 96, s. 3.

4. (1) Where a declaration and description are received for registration, the land registrar shall,

(a) endorse on the declaration and description the day, hour and minute of receipt, which shall be the same for both the declaration and the description;

(b) assign to the declaration a registration number in the series of numbers used for instruments dealing with land;

(c) assign to the description an identification that comprises the name of the land titles or registry division in which the land described in the description is situate, excluding the number of the division, followed by the words “Condominium Plan No.” and the number assigned as part of the name of the corporation under clause (e);

(d) record in the Condominium Corporations Index such particulars with reference thereto as are indicated by the headings of the columns in Form 1; and

(e) in assigning to the corporation a name as required by subsection 10 (2) of the Act, use a name that comprises the name of the land titles or registry division in which the land described in the description is situate, excluding the number of the division, followed by the words “Condominium Corporation No.” and the next available consecutive number. R.R.O. 1990, Reg. 96, s. 4 (1); O. Reg. 129/92, s. 1.

(2) No change shall be made in the name of a condominium corporation after the name is assigned under clause (1) (e). R.R.O. 1990, Reg. 96, s. 4 (2).

5. In respect of a condominium property under the Land Titles Act, except where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, the Condominium Register shall be kept in a loose-leaf book and shall include a set of four groups of pages consisting of,

(a) a Property Parcel Register in Form 2;

(b) a Constitution Index in Form 3;

(d) a series of Unit Registers, one for each unit included in the property, in Form 5. R.R.O. 1990, Reg. 96, s. 5.

6. In respect of a condominium property under the Registry Act, except where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, the Condominium Register shall be kept in a loose-leaf book and shall include a set of four groups of pages consisting of,

(a) a Property Abstract Index in Form 6;

(b) a Constitution Index in Form 3;

(d) a series of Unit Indexes, one for each unit included in the property, in Form 5. R.R.O. 1990, Reg. 96, s. 6.

7. (1) Where a condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, the Condominium Register shall be kept in automated form and shall contain one Unit Index for each unit.

(2) A Unit Index shall contain,

(a) the unit number and level number of the unit;

(b) the identification required by clause 4 (1) (c);

(d) the description of the condominium property; and

(e) an entry of every instrument, notice and entry relating to the condominium property. R.R.O. 1990, Reg. 96, s. 7.

8. A consent under clause 3 (1) (b) of the Act of a person having a registered charge or mortgage shall be in Form 7. R.R.O. 1990, Reg. 96, s. 8.

9. (1) An amendment to a declaration under subsection 3 (4) of the Act shall be in Form 8 and shall be accompanied by a declaration of an authorized officer of the corporation in Form 9.

(2) Where an amendment to a declaration requires an amendment to the registered description, the amendment to the declaration shall not be registered unless an amendment to the description is registered at the same time. R.R.O. 1990, Reg. 96, s. 9.

10. Where a declaration and description are received for registration under the Land Titles Act, except where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, the land registrar shall,

(a) record them in the existing parcel register where the land that includes the condominium property is entered;

(b) re-enter the condominium property in a Property Parcel Register;

(d) record them in a Common Elements and General Index; and

(e) establish a Unit Register for each unit included in the condominium property. R.R.O. 1990, Reg. 96, s. 10.

11. Where a declaration and description are received for registration under the Registry Act, except where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, the land registrar shall,

(a) record them in the existing abstract index for the land that includes the condominium property;

(b) prepare an abstract index in Form 6 for the condominium property and record therein,

(i) the certificate of title under the Certification of Titles Act, making a general reference to the exceptions, limitations, qualifications and reservations in Schedule B of the certificate,

(ii) the instruments referred to Schedule C of the certificate,

(iii) all instruments registered after the effective date of the certificate and before date of registration of the declaration and description, and

(iv) the declaration and description;

(d) record them in the Common Elements and General Index; and

(e) establish a Unit Index for each unit included in the condominium property. R.R.O. 1990, Reg. 96, s. 11.

12. Where a declaration and description that affect land in a part of Ontario designated under Part II of the Land Registration Reform Act are received for registration, the land registrar shall,

(a) record them in the existing parcel register or abstract index where the land that includes the condominium property is entered;

(b) establish a Unit Index for each unit included in the condominium property;

(d) where the Registry Act applies to the land, record in each Unit Index,

(i) the certificate of title under the Certification of Titles Act, making a general reference to the exceptions, limitations, qualifications and reservations in Schedule B of the certificate,

(ii) the instruments referred to in Schedule C of the certificate, and

(iii) all instruments registered after the effective date of the certificate and before the date of registration of the declaration and description; and

(e) record the declaration and description in each Unit Index. R.R.O. 1990, Reg. 96, s. 12.

13. A notice of a resolution changing the address for service and the mailing address of a condominium corporation under subsection 3 (7) of the Act shall be in Form 12 and shall be recorded in the Condominium Corporations Index. R.R.O. 1990, Reg. 96, s. 13.

14. A certificate referred to in subsection 28 (5) of the Act shall be in Form 13. R.R.O. 1990, Reg. 96, s. 14.

15. (1) In this section,

“easement” means an easement, right of way, right or licence in the nature of an easement, profit prendre or other incorporeal hereditament, but does not include such an easement arising by operation of law.

(2) Every easement that is appurtenant to the land included in the property and every easement to which the land included in the property is subject and is shown on the condominium description shall be described in the declaration and shall be set out in Schedule A thereto.

(3) Every easement that is appurtenant to the land to be included in the property or to which the land to be included in the property is subject, that is shown on the condominium description and that is to be effectively created upon the registration of the declaration and description, shall be described in the declaration and shall be set out in Schedule A thereto.

(4) Except where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, where an easement affecting the common elements or a part of the common elements, but not affecting a unit,

(a) was in existence at the time of registration of the declaration and description, the easement shall be recorded in the Common Elements and General Index and in the Property Abstract Index or Property Parcel Register, as the case may be; or

(b) is created on or after the registration of the declaration and description, the easement shall be recorded in the Common Elements and General Index.

(5) Where a condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, every easement affecting the common elements shall be recorded in each Unit Index. R.R.O. 1990, Reg. 96, s. 15.

16. For the purposes of the Land Titles Act and the Registry Act, the Condominium Register shall be deemed to be a register or an abstract index, as the case may be, for the parcel of land that comprises the condominium property. R.R.O. 1990, Reg. 96, s. 16.

17. (1) Where, after the registration of a declaration and description, an instrument that mentions or purports to affect all units and common elements included in a condominium property is received for registration, and,

(a) the instrument is a deed or transfer of the property under section 44 of the Act, a notice of termination under section 43 or 45 of the Act or an order for termination under section 46 of the Act, the procedures prescribed by sections 25 to 31 of this Regulation apply;

(b) the instrument is a by-law of the condominium corporation, or an amendment to the declaration or description, the instrument shall be recorded,

(i) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index, and

(ii) in all other cases, subject to subsection 18 (2), only in the Constitution Index;

(c) the instrument is an encumbrance to which subsection 7 (8) of the Act applies or an instrument dealing with all the units included in the property in respect of such an encumbrance, the instrument shall be recorded,

(i) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index, and

(ii) in all other cases, only in the Common Elements and General Index; or

(d) the instrument is not an instrument mentioned in clause (a), (b) or (c), the instrument shall be recorded,

(i) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index, and

(ii) in all other cases, subject to subsection (2), only in the Common Elements and General Index.

(2) Where an instrument registered after the 1st day of January, 1981, to which subclause (1) (d) (ii) applies is a complete discharge of an encumbrance recorded in the Property Parcel Register or Property Abstract Index or is an application for a caution under the Land Titles Act, or is a deed, transfer or other instrument by which ownership of the condominium property is changed and is received for registration before the registration of a deed or transfer of any unit and common interest, that instrument shall also be recorded in the Property Parcel Register or Property Abstract Index, as the case may be.

(3) Despite subsection 18 (1) of the Registry Act, a by-law of a condominium corporation shall not be entered in the by-law index under the subsection. R.R.O. 1990, Reg. 96, s. 17.

18. (1) Subject to subsection (2), where, after the registration of a declaration and description, an instrument that mentions one or more units and common interests, but not all the units and common elements included in the condominium property, is received for registration, the instrument shall be recorded only in the Unit Register or Unit Index, as the case may be, for each unit mentioned in the instrument.

(2) Where the common elements and one or more units and common interests, but not the units and common elements included in the condominium property, are mentioned in a by-law of a condominium corporation or in an amendment of the declaration or description, the by-law or amendment shall be recorded,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index; and

(b) in all other cases, in the Constitution Index, the Common Elements and General Index and the Unit Register or Unit Index for each unit mentioned in the by-law or amendment. R.R.O. 1990, Reg. 96, s. 18.

19. (1) The description of a unit and common interest in an instrument received for registration shall comprise the unit number, the level number or letter, the identification of the condominium plan, a reference to the name of the municipality in which the condominium is situate at the time of execution of the instrument and, where the condominium is in a part of Ontario designated under Part II of the Land Registration Reform Act, the unit’s property identifier.

(2) The description of the unit referred to in subsection (1) shall include a reference to the land registry office in which the plan is registered, and may include a reference to the appurtenant common interest with or without a specification of the percentage stated in the declaration.

(3) An encumbrance to which subsection 7 (8) of the Act applies, a transfer or deed of the property and a release or discharge affecting all units and common elements under subsection 44 (2) of the Act, a notice of termination under section 43 or 45 of the Act, an order under section 46 of the Act and any other instrument purporting to affect the title of all units and common elements comprising a condominium property may describe the property as “all the units and common elements comprising the property included in” followed by the identification of the plan, a reference to the land registry office for the land titles or registry division in which the plan is registered and, where the condominium is in a part of Ontario designated under Part II of the Land Registration Reform Act, a reference to the property identifiers of all the units. R.R.O. 1990, Reg. 96, s. 19.

20. Where a land registrar is requested to furnish a certificate of search or an abstract in respect of a unit, the certificate or abstract shall include references to,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, every instrument entered in the Unit Index; and

(b) in all other cases, the instruments recorded in the Unit Register or Unit Index, the Constitution Index and the Common Elements and General Index, and, in the case of an abstract, the instruments recorded in the Property Abstract Index commencing with the certificate of title under the Certification of Titles Act. R.R.O. 1990, Reg. 96, s. 20.

21. Where, at the time of registration of a declaration and description, the land comprising the condominium property is in an area to which the Land Titles Act did not apply, but the application of that Act is subsequently extended to that area, and,

(a) the land registry office for the land titles division is combined with the land registry office for the registry division, a new Condominium Register shall be established when the first declaration and description are registered in the land registry office for the land titles division and the Condominium Corporations Index previously established shall be continued; or

(b) the land registry office for the land titles division is not combined with the land registry office for the registry division, no further entry shall be made in the Condominium Corporations Index in that land registry office for that registry division. R.R.O. 1990, Reg. 96, s. 21.

22. The provisions of the Land Titles Act and the Registry Act and the regulations made thereunder with respect to the dimensions of instruments apply to instruments under the Condominium Act except that, a declaration or an amendment thereof or a by-law of a condominium corporation may be prepared on paper not less than eight inches by 10½ inches, and the sheets may be printed on both sides. R.R.O. 1990, Reg. 96, s. 22.

23. Where land or an easement over land is or has been transferred to or acquired by a condominium corporation, and the corporation intends the land or easement to be added to the common elements, the addition may be effected by the registration of a dedication in Form 10, either as a part of the deed, transfer or other instrument, or as a separate instrument and shall be accompanied by a Declaration in Form 11. R.R.O. 1990, Reg. 96, s. 23.

24. A discharge of a portion of an encumbrance, under subsection 7 (10) of the Act, shall be in a form, having regard to the nature of the encumbrance, sufficient for registration under the Land Titles Act or the Registry Act, as the case may be, and shall describe the land in accordance with section 19. R.R.O. 1990, Reg. 96, s. 24.

25. (1) A notice of termination under section 43 of the Act shall be in Form 14.

(2) Where a notice of termination in Form 8 is received for registration, it shall be recorded,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index; and

(b) in all other cases, in the Constitution Index the Common Elements and General Index, the Unit Register or Unit Index for each of the units included in the condominium property,

and in the new parcel register or new abstract index under section 29 or 30.

(3) In recording a notice in Form 14 it shall be sufficient to describe the co-owners in the tenancy in common arising on the registration of the notice as, “all the former unit owners as tenants in common”. R.R.O. 1990, Reg. 96, s. 25.

26. (1) Where the instruments mentioned in subsection 44 (2) of the Act are tendered for registration, the land registrar shall not receive the transfer or deed for registration unless,

(a) it appears to be executed by the authorized officers of the corporation under its seal;

(b) it is accompanied by a release or discharge that appears to be executed by all persons having registered claims against the units and common elements created after the registration of the declaration and description;

(c) the transfer or deed and every release or discharge is accompanied by such proof as to the execution by, and the age and spousal status of every such owner and person, as is required by or under the Land Titles Act or the Registry Act in the case of a transfer or deed, with respect to the owners, and in the case of a cessation of charge or certificate of discharge of mortgage, with respect to the persons having registered claims; and

(d) the transfer or deed is accompanied by a certificate signed by the authorized officers of and under the seal of the corporation stating that the sale was authorized by a vote of the owners who at the time of the vote owned 80 per cent of the units.

(2) A release or discharge under subsection 44 (2) of the Act shall be in Form 15.

(3) Where a release or discharge to which subsection (1) applies is received for registration,

(a) where it mentions one or more, but not all, units included in the condominium property, it shall be recorded only in the Unit Register or Unit Index for the unit or units mentioned; or

(b) where it mentions or applies to all units included in the condominium property, it shall be recorded,

(i) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index, and

(ii) in all other cases, only in the Common Elements and General Index.

(4) Where a transfer or deed to which subsection (1) applies is received for registration it shall be recorded,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index; and

(b) in all other cases,

(i) where it relates to a sale of the property, in the Constitution Index, the Common Elements and General Index, the Unit Register or Unit Index for each of the units included in the condominium property and in the new parcel register or new abstract index under section 29 or 30, or

(ii) where it relates to a sale of a part of the common elements, only in the Common Elements and General Index and in the new parcel register or new abstract index under section 30. R.R.O. 1990, Reg. 96, s. 26.

27. (1) A notice of termination under subsection 45 (2) of the Act shall be in Form 16.

(2) A land registrar shall not receive a notice of termination in Form 16 for registration unless,

(a) it appears to be executed by the authorized officers of the corporation under its seal, and all the persons having registered claims against the units and common elements created after the registration of the declaration and description; and

(b) it is accompanied by such proof as to the execution by, and the age and spousal status of, every such owner or person as is required by or under the Land Titles Act or the Registry Act in the case of a transfer or deed, with respect to the owners, and in the case of a cessation of charge or certificate of discharge of mortgage, with respect to the persons having registered claims.

(3) Where a notice in Form 16 is received for registration, it shall be recorded,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index; and

(b) in all other cases, in the Constitution Index, the Common Elements and General Index, the Unit Register or Unit Index for each of the units included in the condominium property,

and in the new parcel register or new abstract index under section 29 or 30.

(4) In recording a notice in Form 16 it shall be sufficient to describe the executing parties as being the corporation, described by its full name, and owners and claimants as “all the owners and registered claimants”, and to describe the co-owners in the tenancy in common arising on the registration of the notice as “all the former unit owners as tenants in common”. R.R.O. 1990, Reg. 96, s. 27.

28. (1) Where an order is made under section 46 of the Act terminating the government of the property by the Act, the order is inoperative in that respect until it is registered.

(2) Where an order of termination is tendered for registration, the registrar shall not receive the order for registration unless the conditions, if any, as to its registration as are contained in the order have been complied with, or until proof thereof is furnished to the land registrar.

(3) Where an order for termination is received for registration, the registrar shall record it,

(a) where the condominium property is in a part of Ontario designated under Part II of the Land Registration Reform Act, in each Unit Index; and

(b) in all other cases, in the Constitution Index, the Common Elements and General Index, the Unit Register or Unit Index for each unit included in the condominium property,

and in the new parcel register or new abstract index under section 29 or 30. R.R.O. 1990, Reg. 96, s. 28.

29. Where a notice of termination under section 43 or 45 of the Act, a transfer of the property under section 44 of the Act or an order for termination under section 46 of the Act is received for registration under the Land Titles Act, the land registrar shall open a new parcel register for the property, describing the land as it was described in the Property Parcel Register or, in the case of a condominium property in a part of Ontario designated under Part II of the Land Registration Reform Act, in the Unit Indexes taking into account any intervening additions to or sale of part of the common elements and,

(a) in the case of a transfer, describing the owner by his, her or its name;

(b) in the case of a notice, describing the owners as “all the former owners of units included in” the condominium plan;

(c) in the case of an order, describing the owner or owners by the method that seems most suitable, having regard to the order; and

(d) referring to such claims as apply, in accordance with subsection 43 (2) of the Act, subsection 44 (3) of the Act, or subsection 45 (3) of the Act, or in accordance with the order, as the case may be. R.R.O. 1990, Reg. 96, s. 29.

30. Where a notice of termination under section 43 or 45 of the Act, a deed of the property under section 44 of the Act or an order for termination under section 46 of the Act is received for registration under the Registry Act, the land registrar shall open under section 83 of that Act a new abstract index for the property, taking into account any addition to or sale of part of the common elements, and shall record therein the notice, deed or order, and shall note in the abstract that the land was previously subject to the Condominium Act, noting the identification of the condominium plan. R.R.O. 1990, Reg. 96, s. 30.

31. Where a deed or transfer in respect of a sale of part of the common elements is received for registration,

(a) under the Land Titles Act, the land registrar shall open a new parcel for the part, having regard to subsection 44 (3) of the Condominium Act; or

(b) under the Registry Act, the land registrar shall open a new abstract index under section 83 of that Act for the part and shall record therein the deed and shall note therein that the land was previously subject to the Condominium Act, noting the identification of the condominium plan. R.R.O. 1990, Reg. 96, s. 31.

32. A notice of lien under subsection 32 (5) of the Act shall be in Form 17. R.R.O. 1990, Reg. 96, s. 32.

PART II
GENERAL

33. (1) A certificate under subsection 32 (8) of the Act shall be in Form 18 and shall be accompanied by the following statements and information:

1. A copy of the last annual financial statements of the corporation (audited if available).

2. A copy of the corporation’s current budget.

3. A copy of the corporation’s declaration.

4. A copy of the corporation’s by-laws.

5. A copy of the corporation’s rules.

6. A copy of any management agreement.

7. A copy of all current insurance certificates.

(2) A discharge of a lien under subsection 32 (7) of the Act shall be in Form 19. R.R.O. 1990, Reg. 96, s. 33 (1, 2).

(3) The fee that a corporation may charge for the certificate, statements and information referred to in subsection 32 (8) of the Act shall not exceed $50. O. Reg. 148/92, s. 1.

34. Pursuant to subsection 52 (6) of the Act, a declarant shall provide the following documents with the disclosure statement:

1. A copy of the corporation’s declaration or proposed declaration.

2. A copy of the corporation’s by-laws or proposed by-laws.

3. A copy of the corporation’s rules or proposed rules.

4. A copy of any insurance trust agreement or proposed insurance trust agreement. R.R.O. 1990, Reg. 96, s. 34.

35. (1) In this section,

“bank rate” means the bank rate established by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to banks listed in Schedule I to the Bank Act (Canada).

(2) The rate of interest under subsections 53 (2) and (3) of the Act on money held in trust under subsection 53 (1) of the Act shall,

(a) for the six months immediately following the last day of March of each year, be 2 per cent per annum below the bank rate at the end of the last day of March of that year; and

(b) for the six months immediately following the last day of September of each year, be 2 per cent per annum below the bank rate at the end of the last day of September of that year. O. Reg. 148/92, s. 2.

36. (1) In this Regulation,

“insured” means a purchaser under an agreement of purchase and sale of a proposed condominium unit who has paid money to which section 53 of the Act applies, to a declarant and the purchaser’s successors and assigns.

(2) A policy that insures against loss of any money paid by an insured to a declarant to which section 53 of the Act applies and to loss of any interest payable by a declarant to an insured under that section and that is in accordance with this Regulation is prescribed security for the purposes of clause 53 (1) (b) of the Act.

(3) The premiums payable in respect of a policy shall be paid by the declarant.

(4) A policy shall take effect when it has been executed by the insured and by or on behalf of the insurer and the declarant.

(5) The obligations of an insurer to an insured under a policy shall not be affected by,

(a) failure of the declarant to pay any premiums owing under the policy;

(b) failure of the declarant to notify the insurer of the receipt of money to which section 53 of the Act applies from the insured; or

(6) An insurer shall, immediately upon receipt of written notice of a claim by an insured under a policy, provide the insured with forms upon which to make proof of loss.

(7) Where an insurer receives written notice of a claim under subsection (6) it shall pay the insured within sixty days after the right of the insured to payment under the policy has been established.

(8) An insurer shall remain liable under a policy until,

(a) a deed or transfer of the unit acceptable for registration is delivered to the insured;

(b) the declarant pays to the insured all money to which section 53 of the Act applies and all interest payable by the declarant to the insured under that section; or

(9) Where an insurer is required to make a payment under a policy, interest at the rate prescribed under section 35 shall be paid to the insured to the date of payment of the loss.

(10) Where a policy contains a provision that derogates in any manner from any right or benefit conferred on an insured by this Regulation such provision is void to the extent that it derogates from such right or benefit. R.R.O. 1990, Reg. 96, s. 36.

37. (1) In this section,

“purchaser” means a purchaser, the purchaser’s successors and assigns under an agreement of purchase and sale of a proposed condominium unit who has paid money, to which section 53 of the Act applies, to a declarant;

“warranty corporation” means the corporation designated under section 2 of the Ontario New Home Warranties Plan Act.

(2) A deposit receipt executed by the warranty corporation providing for compensation to a purchaser is prescribed security for the purposes of clause 53 (1) (b) of the Act.

(3) A deposit receipt shall constitute prescribed security only if, by the terms of the deposit receipt, the amount which the warranty corporation is liable to pay to a purchaser thereunder is,

(a) where the amount of money paid by a purchaser to a declarant to which section 53 of the Act applies is $20,000 or less, the amount so paid; or

(b) where the amount of money paid by a purchaser to a declarant to which section 53 of the Act applies is greater than $20,000, $20,000 or such greater amount as may be provided under the deposit receipt.

(4) Despite subsection (2), where a deposit receipt establishes a limit on the liability of the warranty corporation, such deposit receipt shall not constitute prescribed security unless it contains a statement to the effect that any amount paid by a purchaser to a declarant in excess of such limit is subject to subsection 53 (1) of the Act.

(5) A purchaser is not liable for the payment to any insurer of any premium payable in respect of a policy of insurance that the warranty corporation takes out to insure its obligation to pay under the deposit receipt.

(6) A deposit receipt shall take effect when it has been executed by a purchaser and by or on behalf of the warranty corporation and by or on behalf of a declarant.

(7) The obligations of the warranty corporation to a purchaser under a deposit receipt shall not be affected by,

(a) failure of the declarant to comply with any term or condition of the declarant’s agreement with the corporation;

(b) failure of a declarant to notify the corporation or its insurer or insurers of the receipt from the purchaser of money to which section 53 of the Act applies;

(c) failure of the corporation to notify its insurer or insurers of the receipt from the purchaser of money to which section 53 of the Act applies;

(d) breach of any term or condition of the deposit receipt; or

(e) breach by a purchaser or declarant of any term or condition of any policy of insurance taken out by the corporation.

(8) The warranty corporation shall, immediately upon receipt of written notice of a claim by a purchaser under a deposit receipt, provide the purchaser with forms upon which to make proof of loss.

(9) Where the warranty corporation receives written notice of a claim under subsection 8, it shall pay the purchaser within sixty days after the right of the purchaser to payment under the deposit receipt has been established.

(10) The warranty corporation shall remain liable under a deposit receipt until,

(a) a deed or transfer of the unit acceptable for registration is delivered to the purchaser;

(b) the declarant pays to the purchaser all money to which section 53 of the Act applies; or

(11) Where the warranty corporation is required to make a payment under a deposit receipt, interest at the rate prescribed by section 35 shall be paid to the purchaser to the date of payment of the loss.

(12) Where a deposit receipt contains a provision that derogates in any manner from any right or benefit conferred on a purchaser by this Regulation such provision is void to the extent that it derogates from such right or benefit. R.R.O. 1990, Reg. 96, s. 37.

38. The following are exempted from the provisions of section 59 of the Act:

1. Co-operative housing corporations incorporated under the Co-operative Corporations Act or any predecessor thereof or under any other similar legislation of Canada or any province of Canada, the main purpose and activity of which is the provision of housing for its members.

2. Any person offering for sale any interest in land together with a grant of exclusive occupancy or use for residential purposes of part of a building where the interest and grant constitute a security under the Securities Act, and,

i. a preliminary prospectus and a prospectus have been filed with respect to the offering and receipts therefor obtained from the Director under the Securities Act, or

ii. the offering is exempt from the prospectus requirements of the Securities Act. R.R.O. 1990, Reg. 96, s. 38.

FORM 1

Condominium Act

CONDOMINIUM CORPORATIONS INDEX