Equity Refinance Mortgage Loans Canada - Equity Mortgage Loans Canada - Second Mortgage Loans Canada
Mortgage Loans Canada, Mortgage Refinance Canada, Equity Mortgage Loans CanadaOnline Mortgage Application Form Instant Mortgage Approval 1-866-573-3122 24 HOUR CUSTOMER SERVICEEQUITY REFINANCE MORTGAGE LOANS CANADA BLOGMortgage Canada Buying and selling a home cheat sheetMortgage Canada Words To Know When Buying A HomeImportant Mortgage Websites linksMortgage Canada Basics - Mortgage Canada GuideMortgage Canada CMHC Newcomers to Canada Buying your First HomeMortgage Canada CMHC Home Buying Step By StepMortgage Canada CMHC Condominium Buyers GuideMortgage Canada Compare all Canadian Credit CardsHow Credit Effects Your Canadian MortgageMortgage Canada CMHC Housing Market Outlook Canada Edition Page 1Mortgage Calculator - Mortgage calculators allow you to make informed mortgage decisions
Equity Refinance Mortgage Loans Canada, Home Equity Unlocking, 1st & 2nd Mortgages, Your Mortgage Experts. My right Mortgage, INSTANT APPROVAL 24/7 CUSTOMER SERVICE FAST MORTGAGE PAYOUTS IN CANADA HIGHEST MORTGAGE APPROVAL RATE IN CANADA 1-866-573-3122

October, 2015
November, 2015
December, 2015
January, 2016


Cannot execute a query to SQLite database.
Before you buy a condominium, it’s important that you be familiar with how laws related to condominiums work in your province or territory.

Ontario Fact Sheet

Governing Legislation

What legislation and regulations govern condominiums in Ontario?

Warranty Programs

Do provincial legislation and/or regulations require that developers of new condominiums provide a new home warranty to buyers?

Yes. The Ontario New Home Warranties Plan Act requires that developers of new residential condominiums provide a home warranty to buyers. These developers must be registered with Tarion Warranty Corporation, a private corporation that administers the Act.

Taxes & Additional Costs

What provincial and federal taxes do condominium buyers pay on their units?

The Harmonized Sales Tax (HST) was introduced in Ontario on July 1, 2010, combining the federal Goods and Services Tax (GST) with provincial sales tax into a single tax. Buyers pay HST on new units but not on previously owned units. There is no HST on condominium fees.

Buyer Beware:

If you are purchasing a re-sale condo, the federal portion of the HST 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. Buyers may be eligible to receive an Ontario new housing rebate that reduces the provincial part of the HST, regardless of the price of their new home. The maximum rebate is $24,000. With the rebate, purchasers of new homes priced up to $400,000 pay no more (and possibly less) tax than they would have before the HST was introduced.

Like other homebuyers, purchasers of condominiums can also 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 the 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 other charges levied by the Province?

Yes, a land transfer tax, which is calculated as a percentage of the sale price or the value of consideration*, whichever is higher.

Sale Price or Assessed Value of Consideration Land Transfer Tax Rate
Up to and including $55,000 0.5 percent
More than $55,000 and up to and including $250,000 1 percent
More than $250,000 1.5 percent
More than $400,000 for land that contains at least one and not more than two single family residences 2 percent

* In most instances, land transfer tax is calculated based on the sale price. Where the vendor and purchaser are unrelated, this price is typically indicative of the fair market value. “Value of consideration” ensures that tax will also be paid in situations where the payment of the purchase price is to be made, in full or in part, through the assumption of other liabilities or obligations that may not be included in the stated purchase price but are to be undertaken or assumed by the purchaser.

First-time homebuyers may qualify for a refund of all or part of the tax. See Land Transfer Tax Refund for First-time Homebuyers to find out if you qualify for this refund.

Reserve Fund Requirements

Do provincial legislation/regulations require that all condominiums in Ontario have a reserve fund?

Yes. Its amount is determined by a reserve fund study that projects how much is required by the fund for the next 30 years. This study must be done within one year of the condominium’s registration date by a qualified individual, such as an engineer, architect, architectural technologist or certified reserve planner. The fund must be fully funded within prescribed time periods.

After the initial study, a new reserve fund study must be completed within three years. After that, an updated reserve fund study must be completed within every three years of the last reserve fund study. In general, every other study must include a site inspection.

 A developer’s initial budget must include an annual contribution to the reserve fund that is based upon calculations of the estimated long-term repair and replacement costs and life expectancies of the common elements and assets of the corporation. The contribution must be the greater of the calculated amount or 10 percent of the other common expenses (i.e., other than contributions to the reserve fund) until such time as a reserve fund study has been carried out.

Condominium Registration

How is a new condominium corporation registered?

In order to register a new condominium, the developer submits a declaration and description of the property to a Land Registry Office. The declaration describes how the condominium is organized and operated, such as the proportion in which owners are to contribute to the common expenses. The description includes information such as a survey plan of the boundaries of each unit and the common elements.

Once the declaration and description are registered, individual unit titles are created for each unit and its corresponding interest in the common property. The condominium corporation is formed, which is a legal entity that controls and manages the common elements on behalf of the owners. 

Sale of Units

What rules does the developer have to follow when selling units?

Under the Condominium Act, developers must (among other things):

  • Take all reasonable steps to sell the property’s residential units without delay except for the units the developer intends to lease;
  • Take all reasonable steps to deliver to the purchaser without delay a deed to the unit that is in registerable form;
  • Hold in trust for the corporation the money, if any, that the developer collects from the purchaser on behalf of the corporation; and
  • Deliver to purchasers copies of certain documents.

What documents is the developer obliged to provide to the buyer?

The developer must provide the purchaser with a disclosure statement, which must have a table of contents and contain specific information about the unit and project including:

  • A general description of the property;
  • A budget for the first year;
  • The proportion of units the developer intends to lease to the nearest anticipated 25 percent;
  • The proposed completion date for the construction of amenities;
  • The existing or proposed declaration, bylaws and rules.

To provide an opportunity for the buyer to cancel the contract (and receive a refund of his or her deposit — with interest), the legislation gives a buyer a 10-day “cooling-off” period from the time he or she receives a copy of the signed purchase and sale agreement or the disclosure statement (whichever comes later). A buyer may have additional time to cancel the contract if there has been a material change as defined in the Condominium Act. The 10-day cooling-off period pertains only to the sale of new condos, not re-sales.

What documents must a condominium corporation provide a purchaser of a re-sale condominium?

If requested, the condominium corporation must provide a status certificate for the unit which includes key information such as:

  • Special assessments or increases to the common expenses (including reserve fund contributions) that have occurred since the corporation’s last budget;
  • Risks of increases, beyond inflation, known to the condominium corporation;
  • Whether the seller has defaulted in paying his or her common expenses;
  • A copy of the corporation’s budget and annual audited financial statements;
  • A copy of the current declaration, bylaws and rules; and
  • Outstanding judgments against the corporation.

Estimating Operating Costs

Are there legislation/regulations that stipulate(s) what happens if a developer inaccurately estimates the operational costs of a condominium?

Yes. A developer of a new condominium is accountable for any shortfall in the budget statement in the one-year period following registration and must pay the corporation the difference.

Because a condominium’s first reserve fund study may not be completed until towards the end of the condominium’s first year, a deficit (relating to the required reserve fund contributions) may not occur until the second year. Consequently, the builder won’t necessarily be held accountable for any inaccuracies in predicted contributions to the reserve fund (after the corporation’s first year).

However, there is a section in the Condominium Act that stipulates that developers must not make statements or provide material information that is false, deceptive or misleading or omit information they are required to provide.

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?


Governance Requirements

Does the Province require a condominium to impose any bylaws and rules?

No, the legislation doesn’t require this but a condominium corporation may make its own bylaws and rules.

Does condominium legislation authorize the condominium corporation to borrow money?

Yes, a condominium corporation may borrow to carry out its duties and objectives provided it passes a bylaw that permits this.

Can a condominium corporation place a lien on an individual unit?

Yes, if an owner has not paid the common expense fees, the corporation will automatically have a lien against the unit. The corporation must give the owner 10 days’ notice before registering the certificate of lien on the unit. A notice of lien must be registered within three months of the default, otherwise the lien expires.

The lien may be enforced in the same manner as a mortgage. In other words, the condominium corporation has all of the usual remedies available to a mortgagee — including power of sale, foreclosure, possession and collection of rents.

If the unit owner has a mortgage, the mortgagee (such as a bank) can pay what’s owing under the lien and add the amount to the mortgage.

The lien also allows the corporation to collect any interest and reasonable legal costs and expenses incurred by the corporation in collecting the debt.

Elections & Meetings

What are the requirements for electing the board of directors and for its meetings?

Each board of directors must have at least three directors. Directors must be at least 18 years old, be mentally competent  and not be an undischarged bankrupt or have an undischarged lien against their unit for 90 days. Other directors’ qualifications can be specified in the bylaws. Directors serve for terms of three years or less.

Annual general meetings must take place within six months of the end of the condominium corporation’s fiscal year. This ensures that unit owners can review the financial statements in a timely fashion.

If 15 percent of the owners make a written request for a special meeting, the board must call it within 35 days of receiving the request. The request must include what business will be discussed. If it includes removing a director, the director’s name and reason for removal must be specified.

If the board fails to call the special meeting, the person(s) requesting the meeting may call and hold the meeting within 45 days of calling the meeting. 

Changing the Governing Documents

How does a condominium corporation change its governing documents?

To change the declaration, approval of either 80 percent or 90 percent of owners is required, depending on the subject matter. For example, changes to certain ownership interests and financial liabilities require 90 per-cent approval, while matters such as pet restrictions require only 80 per cent. For more information on amending the declaration, see Section 107(2) of the Condominium Act.

By-laws may be changed by the board of directors with confirmation by the owners of a majority of the units in the corporation.

Making Payments

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 provincial legislation/regulations have rules regarding special assessments? If so, what are they?

No. These are typically governed by bylaws.

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. If the board wishes to change (as opposed to repair or maintain) the common elements, assets or services, this may require the involvement of the owners in the decision. The need to involve owners will depend on the nature of the proposed change and the cost to carry out the change. All changes must be in keeping with the objectives of the corporation. See sections 97 and 98 of the Condominium Act , Province of Ontario, for more information.

Other Important Things About Buying a Condominium in Ontario

Do provincial legislation/regulations govern renting or leasing a condo unit?

Yes. Within 30 days of entering into or renewing a lease, an owner must:

  • notify the condominium corporation that the unit has been leased;
  • provide the corporation with his or her address, the lessee’s name and a copy or summary of the lease; and
  • provide the tenant with a copy of the declaration, bylaws and rules of the corporation.

The owner must also notify the corporation in writing when the unit is no longer leased.

For more information on landlords’ and tenants’ rights and responsibilities in Ontario, see Your Guide to Renting a Home, Provincial Fact Sheet – Ontario.

What other constraints do provincial legislation/regulations put on condo corporations, their boards of directors, bylaws and management?

  • Bylaws and rules must be reasonable; and
  • Directors must act honestly and in good faith, and avoid negligence.

Is there a process for handling disputes or complaints?

  • Owners can speak with the board of directors about their concerns.
  • For some unresolved disputes, an owner can proceed to mediation where a facilitator tries to help the parties achieve a solution. If mediation fails, the next step is arbitration, where a third party hears both sides and makes a decision. For other disputes, the disputes can be resolved by court application.
  • Consult a lawyer.


Canadian Condominium Institute (CCI), National
An independent organization that deals exclusively with condominium issues and represents all participants in the condominium community.

Ottawa Chapter

Huronia Chapter

Northwestern Ontario Chapter

Toronto and Area Chapter

Golden Horseshoe Chapter
Toll-free: 1-877-444-2496
Phone: 905-631-0124
Email: inquiry@ghccci.org
London & Area Chapter

Windsor-Essex County Chapter

Ministry of Government and Consumer Services
Provides information regarding key things to know about buying a condominium and how condominiums are run.
6th Floor, Mowat Block, 900 Bay Street,Toronto, Ontario M7A 1L2
Toll-free: 1-800-889-9768TTY: 1-877-665-0662
Phone: 416-327-8300
Fax: 416-326-8665E-mail: infomcs@ontario.ca

<< Back Add New Comment
0 items total
Add New Comment
Please type the confirmation code you see on the image*
Reload image

Powered by 4GoodHosting