The Condominium Property Act, 1993

The Condominium Property Act, 1993 governs the formation of condominiums and defines the rights and responsibilities of condominium developers, owners and boards. A condominium is created by titles being issued pursuant to an approved condominium plan in the appropriate Land Titles Registry office.

A condominium consists of units of real estate with titles given to individual unit owners. It includes common property, such as roads, parking spaces, recreational facilities, elevators and lawns. Each owner owns a proportionate share of the common property. The amount of an owner's share is based on the unit factor assigned to that owner's unit on the unit factor schedule attached to the condominium plan.

The Act specifies how boundaries for the units within a condominium are determined, the information that developers must provide and the required approvals for condominium plan approval, such as local authority approval.

The responsibilities of the condominium developer toward prospective purchasers and condominium owners include:

• providing prospective purchasers with the required information respecting the development;
• turning over documents relating to the condominium corporation to the board of directors within the time specified in the Act;
• holding the first annual meeting at which the board of directors is elected within the time specified in the Act; and
• where required, obtaining financial security to ensure the completion of the project.

When the titles to units are issued, a condominium corporation is created. The individual owners are the members of the corporation with voting rights based on unit factors. The condominium corporation manages the common property. The corporation levies charges against each unit owner to pay for the management of the common property on a daily basis (common expenses fund) and to pay for major repair and replacement of common property and common facilities (reserve fund). These charges are based on unit factors unless the corporation uses the procedure in The Condominium Property Regulations to determine contribution levels. Provisions in the Act set out some general principles for insurance and taxation of condominiums.

The Act sets out rules respecting the operation of condominium corporations. The Act allows condominium corporations to pass bylaws and provides procedures for settling disputes. It also sets out the functions, powers and responsibilities of boards of directors, elected by the owners, to administer the affairs of the corporation.

As well, the Act provides procedures for the subdivision of units, amendment of condominium plans, rental of residential units, termination of condominium status and other special circumstances, such as when a unit is a homestead under The Exemptions Act.

The Condominium Property Regulations include additional provisions respecting the administration of the Act. They provide the condominium plan format that developers must follow for the plan to be accepted for land titles registration.

The regulations set out the rules and procedures relating to the type and amount of financial security developers must obtain when developing phased or bare-land condominiums. The regulations include the rules for determining each owner's proportionate contribution to the common expense fund and the reserve fund, and establish procedures for reapportioning property taxes for certain condominiums.

The regulations prescribe bylaws that apply to condominium corporations created after January 1, 1995 where the developers do not provide specific bylaws for the corporation. Condominium corporations can amend and replace these bylaws by following the procedure in the Act.