Condominiums in Canada

One in eight Canadian households lived in condominium dwellings, mostly located in a few census metropolitan areas according to Statistics Canada[1] Condominiums exist throughout Canada, although condominiums are most frequently found in the larger cities. "Condominium" is a legal term used in most provinces of Canada. in British Columbia, it is referred to as "strata title"m and in Quebec, the term "divided co-property" (French: copropriété divisée) is used, although the colloquial name remains "condominium".

With regular condominiums, the unit owner usually owns the internal unit space and a share of the corporation; the corporation owns the exterior of the building land and common area; in the case of a freehold condominium the owner owns the land and building and the corporation owns common shared roadways and amenities.[2] The Canadian Condominium Institute is a non-profit association of condominium owners and corporations with chapters in each province and territory.[2] The Condo Owners Association COA Ontario is a non-profit association representing condominium owners with divisions across the province and districts within the various municipalities.[3]

History

Before 1981 condominiums made up less than ten percent of homes built in Canada.[4]

British Columbia Strata Housing

Over a million people live in strata housing in British Columbia. Strata properties are a popular housing choice in B.C. because it is convenient, provides security and added amenities and is usually less costly than buying a single-family home.[5]

As the price of single-family housing has soared to unprecedented levels in Vancouver, the number of new condominium sales has increased, along with prices. According to the Real Estate Board of Greater Vancouver, the benchmark price for a condo in July, 2016 was $510,600 in the region, up 27.4 per cent from the same month in 2015.[6]

Insurance under the Strata Property Act

The Strata Property Act requires all stratas to maintain an insurance policy for a minimum of $2 million (property and liability) that covers the common elements and the units as originally buïlt. [7]

Ontario

There are over 1.3 million condo owners and/or residents living in more than 587,000 condominium units in Ontario. One-half of new construction in 2013 was condominium-related.[8] In recent years, the condominium industry has been booming in Canada, with dozens of new towers being erected each year. Toronto is the centre of this boom, with 17,000 new units being sold in 2005, more than double second place Miami's 7,500 units.[9] Outside of Toronto, the most common forms of condominium have been townhomes rather than highrises, although that trend may be altered as limitations are placed on "Greenfields" (see Greenfield land) developments in those areas (in turn, forcing developers to expand upward rather than outward and to consider more condominium conversions instead of new housing). Particular growth areas are in Kitchener/Waterloo, Barrie, and London. In fact, after Toronto, the Golden Horseshoe Chapter of the Canadian Condominium Institute is one of that organization's most thriving chapters.

Ontario Condominium Act

Ontario Condominium Act, 1998

Until December 2015, condominiums in Ontario were governed by the Ontario Condominium Act, 1998[10] with each development establishing a corporation to deal with day-to-day functions (maintenance, repairs, etc.). A board of directors is elected by the owners of units (or, in the case of a common elements condominium corporation, the owners of the common interest in the common elements) in the development on at least a yearly basis. A general meeting is held annually to deal with board elections and the appointment of an auditor (or waiving of audit). Other matters can also be dealt with at the Annual General Meeting, but special meetings of the owners can be called by the board and, in some cases, by the owners themselves, at any time.[11]

The Ontario Condominium Act, 1998 provided an effectively wide range of development options, including Standard, Phased, Vacant Land, Common Element and Leasehold condominiums. Certain existing condominiums can amalgamate, and existing properties can be converted to condominium (provided municipal requirements for the same are met). Accordingly, the expanded and expanding use of the condominium concept is permitting developers and municipalities to consider newer and more interesting forms of development to meet social needs.

On this issue, Ontario condominium lawyer Michael Clifton writes, "Condominium development has steadily increased in Ontario for several years. While condominiums typically represent attractive lifestyle and home-ownership alternatives for buyers, they also, importantly, introduce a new approach to community planning for home builders and municipal approval authorities in Ontario. ...[There are] opportunities for developers to be both creative and profitable in building, and municipalities more flexible and imaginative in planning and approving, developments that will become sustainable communities."[12]

Contrary to other jurisdictions such as Alberta, Ontario does not provide flexibility for small condo corporations to conduct their own reserve fund study, or to update it less frequently than required for large corporations. Managers of small condominium corporations have asked the Ontario Ministry of Consumer Services to review this requirement as it becomes burdensome for the management of smaller buildings.

Ontario - Condo Owners Association & Condo Act Review

To assist the public to know more about condominiums and condominium operations, the Condo Owners Association provides information for condo owners, buyers and the general public.[13] In Ontario, the provincial Condominium Act 1998 was under review, as of August, 2015, and the Condo Owners Association (COA Ontario) was a stakeholder in the process. COA Ontario[14] had been working with the Ministry of Consumer Services of the provincial government to help build a better Condo Act as announced by the Dalton McGuinty Government in June 2012.[15] COA represents and advocates for condominium owners and buyers. They are a growing force in Ontario with divisions across the province. The new Act has passed first reading.

The Association of Condominium Managers of Ontario is the association of Professional Condominium Managers across Ontario.[16]

Protecting Condominium Owners Act, 2015

On May 27, 2015, David Orazietti, Ontario's Minister of Government and Consumer Services, introduced a new bill called Protecting Condominium Owners Act, 2015. The bill called for the creation of a new Condominium Authority, which would be funded by a $1 a month fee on individual condo owners and by condo developers, that would provide advice for condo owners, facilitate dispute resolution between owners and boards regarding issues such as noise complaints, bylaw infractions or an inability to get financial statements from the board of directors.> Critics of the bill said that the bill would result in increased fees and more special assessments. The aim of the Act is to make it less expensive to resolve disputes. The Act will require boards to issue reports to owners on things such as insurance or legal proceedings. Clear language will spell out the amount of an adequate reserve fund and help eliminate surprise hikes in confdo fees or special assessments levied against each unit. [17][18]On December 2, 2015 Third Reading of this Act was Carried on division and on December 3, 2015 Royal Assent was received,[19]

Condo Manager Licensing Authority

The Act introduces a new body, the Condo Manager Licensing Authority. There will be training and licensing of condominium management companies and individuals to ensure those hired to to run multi-million dollar condominium corporations are adequately trained to reduce the risk of fraud and mismanagement.The Act also introduces a code of ethics for condo managers.There were 2,500 people managing 10,000 condominium developments in Ontario, with 700,000 individual units.[20] [21]

Saskatchewan

In Saskatchewan, condominiums are registered as a special type of non-profit corporation that is owned by the unit owners; the owners elect a board of directors; the operation of the corporation is governed by The Condominium Property Act, 1993.[22]

Criticism and controversy

According to Maclean’s:

Canadian condos are rife with internal politics, neighbour infighting and power struggles stemming from the complicated network of condo boards, owners, investors, tenants and property managers[23]

See also

Categories

References

  1. ↑ "Condominium dwellings in Canada".
  2. 1 2 "Condominium Buyers Guide ISBN 0-662-33517-1" (PDF). Canadian Mortgage and Housing Corporation. Retrieved 2011-02-26.
  3. ↑ "Ontario moves to license condo managers". Rem online. Retrieved 2013-08-26.
  4. ↑ "Condo hell". 22 April 2014.
  5. ↑ http://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing
  6. ↑ "Financial fault lines: The earthquake risk of Vancouver's condo boom".
  7. ↑ http://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/finances-and-insurance/insurance#for
  8. ↑ In, Condo Owners Association, COA Toronto, March 10, 2010
  9. ↑
  10. ↑ "Condominium Act, 1998, S.O. 1998, c. 19". Queen's Printer for Ontario. Version in force as of access date. Retrieved 2009-10-06. Check date values in: |date= (help)
  11. ↑ Video on YouTube
  12. ↑ In, A Comment about Condominiums, Community Planning and Sustainability, Forum Magazine, Dec 06/Jan 07, p. 28.
  13. ↑ In Condominium Information, , December 15, 2012
  14. ↑ In, Condo Owners Association, [COA Ontario, March 10, 2010/.March 10, 2010
  15. ↑ In Building a Better Condo Act, Province of Ontario, June 8, 2012
  16. ↑ https://www.acmo.org
  17. ↑ Pigg, Susan (May 27, 2015). "Ontario condo owners to get cheaper way to resolve disputes". Toronto Star.
  18. ↑ http://www.cbc.ca/news/canada/toronto/toronto-daystarter-wednesday-may-27-2015-1.3088981
  19. ↑ "Legislative Assembly of Ontario - Bills & Lawmaking - Current Parliament - Bill 106, Protecting Condominium Owners Act, 2015". line feed character in |title= at position 34 (help)
  20. ↑ http://business.financialpost.com/personal-finance/mortgages-real-estate/condo-disputes-in-ontario-will-be-less-costly-to-resolve-under-a-new-provincial-plan
  21. ↑ https://www.thestar.com/business/real_estate/2015/05/27/ontario-condo-owners-to-get-cheaper-way-to-resolve-disputes.html
  22. ↑ "The Condominium Property Act, 1993 being Chapter C-26.1* of the Statutes of Saskatchewan, 1993" (PDF). Queen's Printer. Retrieved 2011-02-26.
  23. ↑ http://www.macleans.ca/society/life/condo-hell/

External links

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