The Condominium Act, 1998

PART VI, Sections 99 to 119

OPERATION

(1) The corporation shall obtain and maintain insurance, on its own behalf and on behalf of the owners, for damage to the units and common elements that is caused by major perils or the other perils that the declaration or the by-laws specify.

Definition

(2) In subsection (1), "major perils" means the perils of fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes, riots or civil commotion, impact by aircraft or vehicles, vandalism or malicious acts.

Exclusion ineffective

(3) An exclusion in the insurance required by this section is not effective with respect to damage resulting from faulty or improper material, workmanship or design that would be insured, but for the exclusion.

Improvements not included

(4) The obligation to insure under subsection (1) does not include insurance for damage to improvements made to a unit.

Determination of improvements

(5) For the purpose of this section, the question of what constitutes an improvement to a unit shall be determined by reference to a standard unit for the class of unit to which the unit belongs.

Standard unit

(6) A standard unit for the class of unit to which the unit belongs shall be,

(a) the standard unit described in a by-law made under clause 56 (1) (h), if the board has made a by-law under that clause;

(b) the standard unit described in the schedule mentioned in clause 43 (5) (h), if the board has not made a by-law under clause 56 (1) (h).

(7) Subject to a reasonable deductible, the insurance required under this section shall cover the replacement cost of the property damaged by the perils to which the insurance applies.

Breach of policy

(8) Despite anything in an insurance policy issued under this section, no act of any person shall be deemed to be a breach of the conditions of the policy if the act is prejudicial to the interests of the corporation or the owners.

Termination

(9) An insurance policy issued under this section shall be deemed to include a clause that the insurer shall not terminate the insurance contract unless the insurer gives the corporation and the insurance trustee, if any, at least 60 days notice by registered mail.

Section 100.

(1) Despite anything contained in an insurance trust agreement that the corporation has entered into with an insurance trustee, if the proceeds of an insurance policy issued under section 99 are less than 15 per cent of the replacement cost of the property covered by the policy, the insurer shall pay the proceeds to the corporation or the person whom the corporation specifies.

Use of insurance proceeds

(2) Upon the proceeds being available, the corporation shall promptly use them for the repair or replacement of the damaged units and common elements, unless the owners have voted to terminate because of substantial damage in accordance with section 123.

Payment from Ontario New Home Warranties Plan

(3) A corporation that receives a payment out of the guarantee fund under subsection 14 (3) or (4) of the Ontario New Home Warranties Plan Act for remedial work to the common elements shall promptly use the payment for the remedial work, unless,

(a) the owners have voted to terminate because of substantial damage in accordance with section 123; or

(b) the corporation has already completed and paid for the remedial work.

(4) Despite any provision in a mortgage or subsection 6 (2) of the Mortgages Act, a mortgagee may not require that proceeds received under an insurance policy on the property or on a part of the property or a payment received out of the guarantee fund under subsection 14 (3) or (4) of the Ontario New Home Warranties Plan Act be applied towards the discharge of the mortgage; a requirement that contravenes this subsection is void.

Section 101.

(1) Insurance that a corporation obtains and maintains under section 99 shall be deemed not to be other insurance for the purpose of any prohibition of or condition against other insurance in a policy of an owner insuring against loss of or damage to the owner's unit or the owner's interest in the common elements and covering only to the extent that the insurance placed by the corporation is inapplicable, inadequate or ineffective.

No reciprocal contribution

(2) Despite section 150 of the Insurance Act, an insurance policy issued under section 99 and any other insurance policy, except another policy under section 99, are not liable to be brought into contribution with each other.

Section 102.

The corporation shall obtain and maintain,

(a) insurance against its liability resulting from a breach of duty as occupier of the common elements or land that the corporation holds as an asset; and

(b) insurance against its liability arising from the ownership, use or operation, by or on its behalf, of boilers, machinery, pressure vessels and motor vehicles.

Section 103.

(1) Nothing in this Act shall be construed to restrict the capacity of a corporation, an owner or any other person to obtain and maintain insurance in respect of an insurable interest.

(2) For the purposes of sections 99 and 102, the corporation shall be deemed to have an insurable interest in the units and common elements.

Section 104.

An insurer under an insurance policy required by this Act shall provide the corporation with a certificate or memorandum of insurance declaring the coverage carried by the corporation on behalf of all owners.

Section 105.

(1) Subject to subsection (2) and (3), if an insurance policy obtained by the corporation in accordance with this Act contains a deductible clause that limits the amount payable by the insurer, the portion of a loss that is excluded from coverage shall be a common expense.

Owner's responsibility

(2) If an owner, a lessee of an owner or a person residing in the owner's unit with the permission or knowledge of the owner through an act or omission causes damage to the owner's unit, the amount that is the lesser of the cost of repairing the damage and the deductible limit of the insurance policy obtained by the corporation shall be added to the common expenses payable for the owner's unit.

Same, by-law

(3) The corporation may pass a by-law to extend the circumstances in subsection (2) under which an amount shall be added to the common expenses payable for an owner's unit if the damage to the unit was not caused by an act or omission of the corporation or its directors, officers, agents or employees.

Owner's insurable interest

(4) The amount payable by an owner under this section or as a result of a by-law passed under this section constitutes an insurable interest of the owner.

Section 106.

If any provision of an insurance policy required by section 99 or 102 or any part of the Insurance Act conflicts with anything in this Act, the provisions of this Act apply.

(1) The corporation shall not amend the declaration or the description except in accordance with this section.

Conditions

(2) The corporation may amend the declaration or the description if,

(a) the board, by resolution, has approved the proposed amendment;

(b) the declarant has consented to the proposed amendment in writing if,

(i) at the time the board approved the proposed amendment, the declarant had not transferred all of the units except for the part of the property described in subsection 22 (5), and

(ii) less than three years have elapsed from the later of the date of registration of the declaration and description and the date that the declarant first entered into an agreement of purchase and sale for a unit in the corporation;

(c) the board has held a meeting of owners in accordance with subsections (3) and (4);

(d) the owners of at least 90 per cent of the units at the time the board approved the proposed amendment have consented to it in writing, if it makes a change in a matter described in clause 7 (2) (c), (d) or (f) or 7 (4) (e);

(e) the owners of at least 80 per cent of the units at the time the board approved the proposed amendment have consented to it in writing, in all cases apart from a case described in clause (d); and

(f) the corporation has, in accordance with subsection 47 (8), sent a notice of the proposed amendment to all mortgagees whose names appeared in the record of the corporation maintained under subsection 47 (2) at the time the board approved the proposed amendment.

(3) The board shall call a meeting of owners for the purpose of considering the proposed amendment.

Notice of meeting

(4) The board shall give the owners a notice of the meeting which shall include a copy of the proposed amendment.

Registration

(5) The corporation shall register a copy of an amendment made under this section but shall not register the copy until after the expiration of 30 days following the time at which it gave the notice described in clause (2) (f).

Form of registration

(6) The registered copy of the amendment shall include a certificate, in the form prescribed by the Minister, made by the officers authorized to act on behalf of the corporation that certifies that the amendment complies with the requirements of this section.

When amendment effective

(7) An amendment made under this section is ineffective until the copy of the amendment has been registered.

Section 108.

Despite section 107, the board may change the address for service or the mailing address of the corporation by registering a notice of change of address in the form prescribed by the Minister.

Section 109.

(1) The corporation or an owner may make an application to the Ontario Court (General Division) for an order to amend the declaration or description.

Notice of application

(2) The applicant shall give at least 15 days notice of an application to the corporation and to every owner and mortgagee who, on the 30th day before the application is made, is listed in the record of the corporation maintained under subsection 47 (2), but the applicant is not required to give notice to the applicant.

Grounds for order

(3) The court may make an order to amend the declaration or description if satisfied that the amendment is necessary or desirable to correct an error or inconsistency that appears in the declaration or description or that arises out of the carrying out of the intent and purpose of the declaration or description.

Registration

(4) An amendment under this section is ineffective until a certified copy of the order has been registered.

Section 110.

(1) The corporation or an interested person may apply to the Director of Titles appointed under section 9 of the Land Titles Act for an order to amend the declaration or description to correct an error or inconsistency that is apparent on the face of the declaration or description, as the case may be.

Notice of application

(2) The applicant shall give notice of the application in the form and manner that the Director of Titles directs to the corporation and to every owner and mortgagee listed in the record of the corporation maintained under subsection 47 (2) whose interest would be affected by the amendment, but the applicant is not required to give notice to the applicant.

Grounds for order

(3) The Director of Titles shall make an order to amend the declaration or description if satisfied that the amendment will correct an error or inconsistency that is apparent on the face of the declaration or description, as the case may be.

Registration

(4) An amendment under this section is ineffective until a certified copy of the order has been registered.

(1) Subject to subsection (2), a corporation may, by resolution of the board, terminate an agreement for the management of the property that it has entered into with a person before the owners elected a new board at a meeting held in accordance with subsection 43 (1).

Notice

(2) To terminate an agreement, the board shall give at least 60 days notice in writing of the date of termination to the person with whom the corporation entered into the agreement.

Section 112.

(1) Subject to subsection (3), a corporation may, by resolution of the board within 12 months following the election of a new board at a meeting held in accordance with subsection 43 (1), terminate an agreement mentioned in subsection (2) that the corporation has entered into with a person other than another corporation before the election of the new board.

Application

(2) Subsection (1) applies to the following agreements:

1. An agreement for the provision of goods or services on a continuing basis.

2. An agreement for the provision of facilities to the corporation on other than a non-profit basis.

3. A lease of all or part of the common elements for business purposes.

(2.1) Subsection (1) does not apply to a telecommunications agreement within the meaning of section 22.

Notice

(3) To terminate an agreement, the board shall give at least 60 days notice in writing of the date of termination to the person with whom the corporation entered into the agreement.

Exception, easements

(4) Nothing in this section permits the termination of an easement created by an instrument in writing except in accordance with the instrument.

Section 113.

(1) If a corporation and a person have entered into an agreement for the mutual use, provision or maintenance or the cost-sharing of facilities or services before the owners elected a new board at a meeting held in accordance with subsection 43 (1), any party to the agreement may, within 12 months following the election, make an application to the Ontario Court (General Division) for an order under subsection (2).

Non-application

(2) Subsection (1) does not apply to a telecommunications agreement within the meaning of section 22.

Court order

(3) The court may make an order amending or terminating the agreement or any of its provisions or may make any other order that the court deems necessary if it is satisfied that,

(a) the disclosure statement did not clearly and adequately disclose the provisions of the agreement; and

(b) the agreement or any of its provisions produces a result that is oppressive or unconscionably prejudicial to the corporation or any of the owners.

Section 114.

Despite anything contained in an insurance trust agreement that a corporation has entered into with an insurance trustee and anything in the declaration, the corporation may terminate the agreement by giving at least 60 days notice in writing of the termination date to the trustee.

(1) A person who receives money on behalf of or for the benefit of the corporation, including money received from owners as contributions to the common expenses or the reserve fund, shall hold the money, together with interest and other proceeds earned from investing it, in trust for the performance by the corporation of its duties and obligations.

Corporation's accounts

(2) A corporation shall maintain one or more accounts in its name designated as general accounts and one or more accounts in its name designated as reserve fund accounts.

Location of accounts

(3) Each of the accounts shall be located in Ontario at a bank listed under Schedule I or II to the Bank Act (Canada), a trust corporation, a loan corporation, a credit union authorized by law to receive money on deposit or a Province of Ontario Savings Office.

Deposit of money

(4) Subject to subsections (6) and (7), the person who receives money on behalf of or for the benefit of the corporation shall pay the money, together with interest and other proceeds earned from investing it, into,

(a) a general account of the corporation, if the money was not received as contributions from owners to the reserve fund; or

(b) a reserve fund account of the corporation, if the money was received as contributions from owners to the reserve fund.

(5) In subsections (6) and (7), "eligible security" means a bond, debenture, guaranteed investment certificate, deposit receipt, deposit note, certificate of deposit, term deposit or other similar instrument that,

(a) is issued or guaranteed by the government of Canada or the government of any province of Canada;

(b) is issued by an institution located in Ontario insured by the Canada Deposit Insurance Corporation; or

(c) is a security of a prescribed class.

(6) The board may invest all or any part of the money in the corporation's general accounts in eligible securities if,

(a) they are convertible to cash within 90 days following a request by the board; and

(b) they are,

(i) registered in the name of the corporation; or

(ii) held in a segregated account under the name of the corporation by a member of the Investment Dealers Association of Canada and insured by the Canadian Investor Protection Fund.

(7) Subject to subsection (8), the board may invest all or any part of the money in the corporation's reserve fund accounts in eligible securities if they are,

(a) registered in the name of the corporation; or

(b) held in a segregated account under the name of the corporation by a member of the Canadian Investment Dealers Association and insured by the Canadian Investor Protection Fund.

(8) Before investing any part of the money in the corporation's reserve fund accounts, the board shall develop an investment plan based on the anticipated cash requirements of the reserve fund as set out in the most recent reserve fund study.

Records

(9) A person who receives money under subsection (1) shall keep records relating to the receipt and disposition of all money under this section and shall, upon reasonable notice and at all reasonable times, make the records available for examination by the corporation, an owner or a mortgagee.

Section 116.

An owner may make reasonable use of the common elements subject to this Act, the declaration, the by-laws and the rules.

Section 117.

No person shall permit a condition to exist or carry on an activity in a unit or in the common elements if the condition or the activity is likely to damage the property or cause injury to an individual.

Section 118.

No corporation or employee or agent of a corporation shall restrict reasonable access to the property by candidates, or their authorized representatives, for election to the House of Commons, the Legislative Assembly or an office in a municipal government or school board if access is necessary for the purpose of canvassing or distributing election material.

Section 119.

(1) A corporation, the directors, officers and employees of a corporation, a declarant, the lessor of a leasehold condominium corporation, an owner, an occupier of a unit and a person having an encumbrance against a unit and its appurtenant common interest shall comply with this Act, the declaration, the by-laws and the rules.

Responsibility for occupier

(2) An owner shall take all reasonable steps to ensure that an occupier of the owner's unit and all invitees, agents and employees of the owner or occupier comply with this Act, the declaration, the by-laws and the rules.

Right against owner

(3) A corporation, an owner and every person having a registered mortgage against a unit and its appurtenant common interest have the right to require the owners and the occupiers of units to comply with this Act, the declaration, the by-laws and the rules.

Proposed unit

(4) Until the declarant registers a declaration and description and the by-laws and rules of the corporation come into force, an occupier of a proposed unit shall comply with this Act, the declaration and the by-laws and rules proposed by the declarant; the declarant shall take all reasonable steps to ensure that the occupier complies with this section.

Right against occupier

(5) Until the declarant registers a declaration and description and the by-laws and rules of the corporation come into force, an occupier of a proposed unit has the right to require the occupiers of the other units in the proposed corporation to comply with this Act, the declaration and the by-laws and rules proposed by the declarant.