Blog PostMay 28, 2020 - Updates for Members
Condo Q & A: Changes at the Tribunal and Tarion
Q: Will the Condominium Authority Tribunal of Ontario broaden the type of disputes it hears?
A: Yes, the Ontario government has recently released a plan for expanding the scope of disputes that can be heard by the Condominium Authority Tribunal of Ontario (“CAT”). Since the CAT was created in 2017, it has only been able to hear and adjudicate disputes related to record access and retention. Now, the government proposes expanding the CAT’s jurisdiction to hear disputes on the following additional topics:
- Prohibited nuisances, annoyances, and disruptions on condominium property and assets of the condominium corporation (including noise, odour, smoke, vapour, light, vibration, and infestation);
- Provisions in declarations, by-laws, or rules that prohibit, restrict, or otherwise govern other nuisances, annoyances, or disruption;
- Provisions in declarations, by-laws, or rules that prohibit, restrict, or otherwise govern pets, vehicles, parking, and storage;
- Provisions in declarations, by-laws, or rules that govern indemnification or compensation of a condominium corporation, owner, or mortgagee regarding the above-mentioned disputes.
The government anticipates that the amendments to the Condominium Act, 1998 and its regulations will come into force on July 1, 2020.
Q: Tarion now requires an information sheet be provided with pre-construction condominium purchase agreements – what is this new information sheet and why do we have it?
A: Tarion Warranty Corporation created a new information sheet which, starting January 1, 2020, must be completed by vendors and included at the front of all purchase agreements for condominium units in new projects or new phases of an existing project where the project has early termination conditions that may result in its cancellation. You can view this new standard form here.
The information sheet informs purchasers about the risks of buying pre-construction residential condominium units and the circumstances under which their purchase agreements could be terminated. As clearly stated on the information sheet, one of these significant risks is that the condominium unit “may never be completed.”
The information sheet complements the Tarion Condominium Addendum (which is still a required schedule to pre-construction purchase agreements) by directing the purchaser’s attention to details in the Addendum that may otherwise be overlooked or buried in a lengthy purchase agreement.
As stated by Tarion, other benefits of the new information sheet include enabling purchasers to make more informed decisions and emphasizing the importance of having a lawyer familiar with condominium transactions review the purchase agreement.
McCARTER GRESPAN LAWYERS
Our thanks to Annie Bailey for submitting this article! If you have a blog article you would like to submit get started here!