Bill 185 2007

An Act to amend the Condominium Act, 1998

Note: This Act amends the Condominium Act, 1998.  For the legislative history of the Act, see Public Statutes – Detailed Legislative History on www.e-Laws.gov.on.ca.

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

   1.  Subsections 7 (2) to (5) of the Condominium Act, 1998 are repealed and the following substituted:

Standard declaration

   (2)  The declaration shall contain the standard provisions set out in the regulations.

Transition

   (3)  Any declaration that is registered on the day the Condominium Amendment Act, 2007 comes into force is deemed to include the standard provisions and if any provision in the registered declaration conflicts with a standard provision, the standard provision prevails.

   2.  (1)  Subsection 131 (1) of the Act is amended by striking out "the Superior Court of Justice" and substituting "the review board designated under Part XIII.1".

   (2)  Subsection 131 (2) of the Act is amended by striking out "the court" wherever it appears and substituting in each case "the review board".

   (3)  Clause 131 (3) (c) of the Act is amended by striking out "the court" and substituting "the review board".

   (4)  Subsection 131 (4) of the Act is amended by striking out "the court" wherever it appears and substituting in each case "the review board".

   3.  Section 132 of the Act is repealed.

   4.  Section 133 of the Act is amended by adding the following subsection:

Deemed reliance on misrepresentation

   (3)  An owner who makes an application under subsection (2) is deemed to have relied on any false, deceptive or misleading material statement or material information that the declarant is required to provide under this Act, unless it is proven that the owner purchased the unit with the knowledge that the material statement or material information is false, deceptive or misleading.

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

PART Xiii.1
REVIEW BOARd

Review board

   175.1  (1)  The Lieutenant Governor in Council shall designate a non-profit corporation incorporated without share capital under the Corporations Act to be the review board for the purposes of this Act.

Board of directors

   (2)  No corporation shall be designated under subsection (1) whose by-laws do not provide for representation of owners of units on the board of directors.

Objects

   (3)  Upon its designation, the objects of the corporation include,

  (a)  advising and assisting the public in matters relating to condominiums;

  (b)  establishing a panel to mediate or arbitrate disputes between,

           (i)  a declarant and a corporation,

          (ii)  two or more corporations,

         (iii)  a corporation and a unit owner,

         (iv)  two or more unit owners, and

          (v)  a corporation and a person for the management of the property;

   (c)  disseminating information for the purpose of educating and advising corporations and unit owners concerning condominium matters and the financial, operating and management practices of corporations; and

  (d)  assisting in the formulation and conduct of educational courses for property management.

Review officers

   (4)  The review board shall appoint review officers who shall perform the duties and exercise the powers given to them by this Act and the regulations under the supervision of the review board and shall perform such other duties as are assigned to them by the review board.

Annual report

   (5)  The review board shall submit an annual report on its affairs to the Minister, who shall submit the report to the Lieutenant Governor in Council and shall then lay the report before the Assembly if it is in session or, if not, at the next session.

Material for filing

   (6)  Every declarant shall file with the review board the material set out in clauses 43 (5) (b) to (f) prior to the meeting required under subsection 43 (1).

Not a Crown agency

   (7)  The review board is not an agent of Her Majesty nor a Crown agent for the purposes of the Crown Agency Act.

   6.  Section 176 of the Act is amended by adding the following subsection:

No derogation of other rights

   (2)  The rights conferred by this Act are in addition to and do not derogate from any other right or remedy an owner or purchaser may have at law.

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

Fair dealing

   176.1  (1)  A duty of fair dealing is imposed on,

  (a)  every declarant in its dealings with a corporation, owner or purchaser; and

  (b)  every corporation in its dealings with an owner or purchaser.

Right of action

   (2)  A corporation, owner or purchaser has a right of action for damages against a person who breaches the duty of fair dealing.

Interpretation

   (3)  For the purpose of this section, the duty of fair dealing includes the duty to act in good faith and in accordance with reasonable commercial standards.

   8.  Subsection 177 (1) of the Act is amended by adding the following paragraph:

24.1 providing for transitional matters which, in the opinion of the Lieutenant Governor in Council, are necessary or desirable in connection with the implementation of the amendments to this Act made by the Condominium Amendment Act, 2007;

Commencement

   9.  This Act comes into force six months after the day it receives Royal Assent.

Short title

   10.  The short title of this Act is the Condominium Amendment Act, 2007.

 

EXPLANATORY NOTE

Several amendments are made to the Condominium Act, 1998. The Act is amended to require that every declaration contain the standard provisions set out in the regulations.

A review board is established under Part XIII.1. The review board's objects include advising the public on matters relating to condominiums, assisting in resolving disputes and providing information to condominium corporations and owners of condominium units on matters of concern to them. The Bill provides that an administrator for a corporation may be appointed by the review board.

A duty of fair dealing is imposed on all declarants and condominium corporations in their dealings with owners and purchasers of condominium units.