What legislation and regulations govern condominiums in Yukon?
Do territorial legislation and/or regulations require that developers of new condominiums provide a new home warranty to buyers?
Taxes & Additional Costs
What territorial and federal taxes do condominium buyers pay on their units?
Territorial tax: There is no territorial sales tax in Yukon.
Federal tax: Buyers pay Goods and Services Tax (GST) on the price of new units but not on previously owned condominiums.
If you are purchasing a re-sale condo, GST will apply to your purchase if:
- You are buying the unit from someone who acquired and used the unit primarily (more than 50 percent) for business purposes (unless this was to earn long-term rental income);
- You are buying the unit from someone who has claimed input tax credits for improvements to the unit; or
- The unit has been substantially renovated. To find out what qualifies as a substantial renovation, see Substantial Renovations and the GST/HST New Housing Rebate, Canada Revenue Agency.
Be sure to enquire about the above before putting an offer on a re-sale condominium.
Are there any GST/HST rebate programs for condominium buyers?
Yes. Like other homebuyers, purchasers of condominiums can apply for a GST/HST New Housing Rebate. This rebate reduces the GST and the federal part of the HST on a declining scale, depending on the purchase price of their new home. For eligibility information, see GST/HST New Housing Rebate, Canada Revenue Agency.
Are buyers of new and re-sale condominiums responsible for any charges levied by Yukon?
Yes, there is a transfer fee based on the value of the property. For properties valued at more than $25,000, the fee is $0.25 for every $1,000 in value or fraction thereof.
There is also an assurance fund fee and a fee to register a mortgage. For details, contact the Land Titles Office, Yukon.
Reserve Fund Requirements
Do territorial legislation/regulations require that all condominiums in Yukon have a reserve fund?
How is a new condominium corporation registered?
A developer must deposit a valid declaration and plan of survey of the entire condominium property with the Land Titles Office. The declaration describes, among other things, how the condominium is organized and governed, including the percentage of ownership of each unit and the proportion in which owners are to contribute to the common expenses. The plan shows the layout and location of the development, identifies the common elements and delineates the boundaries of each unit.
Once these documents are registered, a title is issued for each unit. The condominium corporation is created, which is now a legal entity responsible for all of the common areas and facilities.
Sale of Units
What rules does the developer have to follow when selling units?
The Condominium Act does not set out rules. Other legislation (such as municipal bylaws) may apply.
What documents is the developer obliged to provide to a buyer?
What documents must a condominium corporation provide a purchaser of a re-sale unit?
Upon request, the condominium corporation must provide a certificate that gives details about any liens or rights of lien the corporation has against that unit and the common interests of the current owner.
Estimating Operating Costs
Are there legislation/regulations that stipulate what happens if a developer has inaccurately estimated the operational costs of a condo?
Rules for Initial Reserve Fund Savings
Is the developer of a new condominium obligated to put aside reserves as soon as the condominium is registered?
Does Yukon require a condominium to impose any bylaws and rules?
The Condominium Act does not require a condominium corporation to make bylaws or rules. However, a condominium may make bylaws if there is a vote to do so by members who own at least 66 2/3 percent of the common elements. A condominium’s bylaws can allow for the making of rules.
Does condominium legislation authorize the condominium corporation to borrow money?
Yes, the Condominium Act allows condominium corporations to borrow money required by the performance of its duties or in the exercise of its powers.
Can a condominium corporation place a lien on an individual unit?
Yes, it can if the owner of the unit owes the corporation money.
This might happen if the owner has not paid his or her contribution to an assessment for unexpected repairs to the common areas. It might also occur if the corporation has carried out work on the unit because the owner has failed to comply with a work order from a local authority, such as the fire marshal.
The condominium corporation has the right to enforce the lien in the same manner as a mortgage.
Elections & Meetings
What are the requirements for electing the board of directors and for its meetings?
These are outlined in the declaration or bylaws of individual condominium corporations.
Changing the Governing Documents
How does a condominium corporation change its governing documents?
To change a condominium’s declaration or plan requires the consent of all of the condominium’s owners and anyone else who has a mortgage or other legal interest registered against any of the units or common elements.
Bylaws can be changed by a vote of members who own 66 2/3 per cent (or a greater percentage if specified in the corporation’s declaration) of the common elements.
Copies of changes to the declaration, plan and bylaws must be registered to take effect.
Can an owner stop paying condominium fees if he/she is unhappy with the condominium’s board of directors and/or property management?
Rules About Special Assessments
Do Yukon legislation/regulations have rules regarding special assessments. If so, what are they?
The Condominium Act specifies that a condominium corporation’s declaration may provide for special assessments.
If damage to the units and common elements occurs, the board of directors must determine within 30 days whether there has been substantial damage to the extent that the cost of repair would be 25 per cent, or any greater percentage specified in the corporation’s declaration, of the value of the units and common elements immediately before the occurrence. If the determination finds this to be the case and owners who own at least 66 2/3 per cent of the units and common elements vote for repairs within 60 days of the determination, the corporation must repair the damage.
Expanding the Scope of the Condominium's Assets and Services
What about additional recreational facilities/services? Could a condominium corporation buy a golf course, for example? Could it change the services an owner expects to receive?
Yes, a condominium corporation can make substantial changes to its common elements and assets. Substantial changes include adding to, altering, improving or renovating the common elements. These changes must be approved by members who own at least 66 2/3 percent of the common elements.
If an owner disagrees with these changes, the condominium corporation may be obligated to purchase that person’s unit and interest in the common elements, depending on the corporation’s declaration.
The corporation can make less than substantial changes to the condominium’s common elements or assets if these changes are approved by a vote of the majority of members.
Other Important Things About Buying a Condominium in Yukon
Do provincial legislation/regulations govern renting or leasing a condominium unit?
The Condominium Act does not address this. However, the declaration may place limits on a unit owner’s ability to rent out his or her unit. The leasing/renting of condominiums, like other real property, falls under the Landlord and Tenant Act. For information on landlords’ and tenants’ rights and responsibilities in Yukon, see Your Guide to Renting a Home, Territorial Fact Sheet — Yukon.
What other constraints do territorial legislation/regulations put on condominium corporations, their boards of directors, bylaws and management?
Is There a Process for Handling Complaints or Disputes?
Follow the process set out in the declaration or bylaws if the dispute involves the Condominium Act, the declaration, the bylaws or the corporation. If no such process is identified, complaints should be put in writing to the board of directors. If the board is unable to resolve the matter, it may be appropriate to get legal advice.
If the matter involves improper conduct by the developer, a corporation, an employee of a corporation, a director or an owner, follow the process set out in the declaration or bylaws for addressing such concerns. If no such process is identified, it may be appropriate to seek legal redress to resolve the problem.
Canadian Condominium Institute, contact North Alberta Chapter
An independent organization that deals exclusively with condominium issues and represents all participants in the condominium community.