O. Reg. 160/12: WARRANTY FOR DELAYED CLOSING OR DELAYED OCCUPANCY

 

ontario regulation 160/12

made under the

ontario new home warranties plan act

Made: June 12, 2012
Filed: June 21, 2012
Published on e-Laws: June 21, 2012
Printed in The Ontario Gazette: July 7, 2012

Amending O. Reg. 165/08

(Warranty for Delayed Closing or Delayed Occupancy)

1. (1) Section 1 of Ontario Regulation 165/08 is amended by adding the following definitions:

“common elements condominium corporation”, “phased condominium corporation” and “vacant land condominium corporation” have the same meaning as in subsection 1 (1) of the Condominium Act, 1998;

“parcel of tied land” means a parcel of land described in clause 139 (1) (a) of the Condominium Act, 1998 to which a common interest of an owner in a common elements condominium corporation attaches under clause 139 (2) (a) of that Act;

(2) The definition of ““phased condominium corporation” and “vacant land condominium corporation”” in section 1 of the Regulation is revoked.

2. The Regulation is amended by adding the following section:

Non-Application of Regulation

Contracted homes

1.1 This Regulation does not apply to a contracted home within the meaning of Regulation 892 of the Revised Regulations of Ontario, 1990 (Administration of Plan) made under the Act.

3. (1) The heading immediately before subsection 5 (1) of the Regulation is revoked and the following substituted:

Purchase Agreements Entered into Between July 1, 2008 and October 1, 2012

(2) Subsection 5 (1) of the Regulation is amended by adding “and before October 1, 2012” after “July 1, 2008”.

(3) Subsection 5 (2) of the Regulation is revoked and the following substituted:

(2) If parties enter into a purchase agreement for a freehold home or a vacant land condominium home on or after July 1, 2008 and before October 1, 2012, the vendor warrants to the purchaser that the vendor will comply with the requirements applicable to the home that are imposed by section 9 of the applicable Addendum that paragraph 1 of subsection (1) requires form part of the purchase agreement, even if the vendor has not complied with that paragraph.

4. (1) Subsection 6 (1) of the Regulation is amended by adding “and before October 1, 2012” after “July 1, 2008”.

(2) Subsection 6 (2) of the Regulation is amended by adding “and before October 1, 2012” after “July 1, 2008”.

5. The Regulation is amended by adding the following sections:

Purchase Agreements Entered into On or After October 1, 2012

Delayed closing

7. (1) If parties enter into a purchase agreement for a freehold home or a vacant land condominium home on or after October 1, 2012, the following are conditions of registration under the Plan:

1. The vendor shall ensure that the parties complete the applicable one of the following documents, for which the form is available for inspection at the offices of the Corporation during normal business hours, and that the completed document forms part of the purchase agreement:

i. The Freehold Home Addendum (Tentative Closing Date) dated October 1, 2012.

ii. The Freehold Home Addendum (Firm Closing Date) dated October 1, 2012.

2. Upon request, the vendor shall furnish to the Registrar proof that the applicable document described in paragraph 1, as completed by the parties, forms part of the purchase agreement.

(2) If parties enter into a purchase agreement for a freehold home or a vacant land condominium home on or after October 1, 2012, the vendor warrants to the purchaser that the vendor will comply with the requirements applicable to the home that are imposed by section 7 of the applicable Addendum that paragraph 1 of subsection (1) requires form part of the purchase agreement, even if the vendor has not complied with that paragraph.

Delayed occupancy

8. (1) Subject to subsections (3) to (6), if, on or after October 1, 2012, parties enter into a purchase agreement for a condominium home in a condominium project for which the description has been registered or is proposed to be registered under the Condominium Act, 1998 or a purchase agreement for a freehold home on a parcel of tied land for a common elements condominium corporation, the following are conditions of registration under the Plan:

1. The vendor shall ensure that the parties complete the applicable one of the following documents, for which the form is available for inspection at the offices of the Corporation during normal business hours, and that the completed document forms part of the purchase agreement:

i. The Condominium Home Addendum (Tentative Occupancy Date) dated October 1, 2012 if the agreement is not for a freehold home on a parcel of tied land for a common elements condominium corporation.

ii. The Condominium Home Addendum (Firm Occupancy Date) dated October 1, 2012 if the agreement is not for a freehold home on a parcel of tied land for a common elements condominium corporation.

iii. The Limited Use Freehold Addendum (Tentative Occupancy Date) dated October 1, 2012 if the agreement is for a freehold home on a parcel of tied land for a common elements condominium corporation.

iv. The Limited Use Freehold Addendum (Firm Occupancy Date) dated October 1, 2012 if the agreement is for a freehold home on a parcel of tied land for a common elements condominium corporation.

2. Upon request, the vendor shall furnish to the Registrar proof that the applicable document described in paragraph 1, as completed by the parties, forms part of the purchase agreement.

(2) If, on or after October 1, 2012, parties enter into a purchase agreement for a condominium home in a condominium project for which the description has been registered or is proposed to be registered under the Condominium Act, 1998 or a purchase agreement for a freehold home on a parcel of tied land for a common elements condominium corporation, the vendor warrants to the purchaser that the vendor will comply with the requirements applicable to the home that are imposed by section 7 of the applicable Addendum, that paragraph 1 of subsection (1) requires form part of the purchase agreement, even if the vendor has not complied with that paragraph.

(3) If, before October 1, 2012, parties have entered into one or more arm’s length purchase agreements in good faith for condominium homes in a condominium project, other than one involving a phased condominium corporation or vacant land condominium corporation, then section 6 applies to all purchase agreements for all condominium homes in the condominium project and this section does not apply to those purchase agreements.

(4) If, before October 1, 2012, parties have entered into one or more arm’s length purchase agreements in good faith for a freehold home on a parcel of tied land for a common elements condominium corporation, then section 5 applies to all purchase agreements for all parcels of tied land for the condominium corporation and this section does not apply to those purchase agreements.

(5) If, before October 1, 2012, parties have entered into one or more arm’s length purchase agreements in good faith for condominium homes in a phase as defined in subsection 145 (3) of the Condominium Act, 1998, other than in a vacant land condominium corporation, then section 6 applies to all purchase agreements for all condominium homes in the phase and this section does not apply to those purchase agreements.

(6) Despite subsection (3), (4) or (5), a vendor may elect to use the otherwise applicable form specified in subsection (1) for any purchase agreement signed on or after July 1, 2012.

Commencement

6. This Regulation comes into force on the later of July 1, 2012 and the day it is filed.

Made by:

Tarion Warranty Corporation:

Harry Herskowitz

Chairman

Tim Schumacher

Corporate Secretary

Date made by the directors: June 12, 2012.

Date confirmed by the members in accordance with the Corporations Act: June 12, 2012.

Tim Schumacher

Corporate Secretary

Date certified: June 12, 2012.