ONTARIO REGULATION 48/01 Parts I, II, III, IV, X and XI only, made under the CONDOMINIUM ACT, 1998 Made: March 5, 2001,     Filed: March 5, 2001
I	Definitions and Application
II	Declaration and Description
III	General
IV	Reserve Fund Studies
X	Transitional
XI	Revocations and Commencement

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PART I
DEFINITIONS AND APPLICATION

Section 1. Definitions

"amalgamation" means an amalgamation under Part VII of the Act and "amalgamate" has a corresponding meaning;

"beneficiary" means a person on whose behalf a payment described in subsection 81 (1) of the Act has been made in respect of a proposed unit or a proposed common interest in a common elements condominium corporation and includes the person's successors and assigns;

"Condominium Corporations Index" means the Condominium Corporations Index mentioned in subsection 3 (3) of the Act;

"Condominium Register" means the Condominium Register mentioned in subsection 3 (4) of the Act;

"deposit receipt" means a deposit receipt described in paragraph 20 (2) [2];

"easement" means an easement, right of way, right or licence in the nature of an easement, profit à prendre or other incorporeal hereditament, but does not include any of those that arise by operation of law;

"insurer" means the insurer under a policy;

"land registrar" means the land registrar in whose registry or land titles division, as the case may be, the property is situated;

"parcel of tied land" means a parcel of land described in clause 139 (1) (a) of the Act in the case of a common elements condominium corporation and to which a common interest of an owner in the corporation attaches under clause 139 (2) (a) of the Act;

"phase" means the additional units and common elements in a phased condominium corporation that are created in accordance with Part XI of the Act upon the registration of an amendment to both the declaration and description;

"policy" means a policy described in paragraph 20 (2) [1];

"standard condominium corporation" means a freehold condominium corporation that is not a common elements condominium corporation or a vacant land condominium corporation;

"warranty corporation" means the corporation designated under section 2 of the Ontario New Home Warranties Plan Act.

Section 2. Non-application of Corporations Information Act

Section 3. Standard condominium corporations

Section 4. Place of registration

• (a) the property described in Schedule A to the declaration, is situated entirely within the boundaries of one land titles division, the Land Titles Act applies to all the property and the declarant is the registered owner of the property with an absolute title under that Act; or

• (b) the property described in Schedule A to the declaration, is situated entirely within the boundaries of one registry division, the Registry Act applies to all the property and the declarant holds a certificate of title to the property issued under Part I of the Certification of Titles Act within 10 years before the registration.

Section 5. Contents

• (a) it is executed by the declarant;

• (b) it meets the execution requirements for registration of a transfer/deed of land under the Land Titles Act or the Registry Act, as the case may be;

• (c) the first page of the declaration contains a statement that the registration of the declaration and description will create a standard condominium corporation;

• (d) it contains schedules known as Schedules A, B, C, D, E, F and G;

• (e) the land registrar has received the description for the property and it is capable of being registered; and

• (f) the declaration complies with this Regulation and all other legal requirements.

(2) Schedule A shall include,

• (a) a description of the land and interests appurtenant to the land intended to be governed by the Act, including a description of every easement, as shown on
   he description that, upon the registration of the declaration and description, will be appurtenant to the land or to which the land will be subject; and

• (b) a statement signed by the solicitor registering the declaration that, in his or her opinion, based on the parcel register or abstract index and the plans and documents recorded in them,

  • (i) the legal description is correct,

  • (ii) the easements mentioned in clause (a) will exist in law upon the registration of the declaration and description, and

  • (iii) the declarant is the registered owner of the land and appurtenant interests.

(3) Schedule B shall contain the consent under clause 7 (2) (b) of the Act, in Form 1, of every person having a registered mortgage against the land or interests appurtenant to the land, as the land and the interests are described in the description.

(4) Schedule C shall,

• (a) specify the boundaries of each unit by reference to the buildings or monuments mentioned in subsections 6 (4), (5) and (6) of Ontario Regulation 49/01;

• (b) fully describe the monuments mentioned in subsections 6 (4), (5) and (6) of Ontario Regulation 49/01 and the relationship of the boundaries of the units to them;

• (c) contain a statement signed by an Ontario land surveyor licensed under the Surveyors Act certifying that the written description of the monuments and boundaries of the units accurately corresponds with the diagrams of the units described in clause 8 (1) (d) of the Act and shown on the plans of survey of the description prepared in accordance with Ontario Regulation 49/01;

(5) Schedule D shall contain,

• (a) a statement of the proportions, expressed in percentages totalling 100 per cent, of the common interests appurtenant to the units; and

• (b) a statement of the proportions, expressed in percentages totalling 100 per cent, allocated to the units, in which the owners are to contribute to the common expenses.

(6) Schedule E shall contain a statement specifying the common expenses of the corporation or may be left blank if the declarant so elects.

(7) Schedule F shall contain a specification of all parts of the common elements that are to be used by the owners of one or more designated units and not by all the owners or shall indicate that there are no such parts if that is the case.

(8) Schedule G shall contain,

• (a) a certificate, in Form 2, of an architect certifying that all buildings on the property have been constructed in accordance with the regulations made under the Act, with respect to all or some matters listed in the paragraphs of the definition of "has been constructed" in subsection 6 (1); or

• (b) one or more certificates of an engineer, in Form 2, certifying that all buildings on the property have been constructed in accordance with the regulations made under the Act, with respect to all or some matters listed in the paragraphs of the definition of "has been constructed" in subsection 6 (1).

(9) Every matter listed in the paragraphs of the definition of "has been constructed" in subsection 6 (1) shall be certified to in the certificates in Form 2 that are contained in Schedule G.

(10) A declaration may contain schedules in addition to the schedules that it is required to contain under this Regulation.

Section 6. Construction complete

"has been constructed" means, with respect to each building on the property, constructed at least to the following state:

• [1] The exterior building envelope, including roofing assembly, exterior wall cladding, doors and windows, caulking and sealants, is weather resistant if required by the construction documents and has been completed in general conformity with the construction documents.

• [2] Floor assemblies are constructed to the sub-floor.

• [3] Walls and ceilings of the common elements, excluding interior structural walls and columns in a unit, are completed to the drywall (including taping and sanding), plaster or other final covering.

• [4] All underground garages, if any, have walls and floor assemblies in place.

• [5] All elevating devices, if any, as defined in the Elevating Devices Act, are licensed under that Act if it requires a licence, except for elevating devices contained wholly in a unit and designed for use only within the unit.

• [6] All installations with respect to the provision of water and sewage services are in place.

• [7] All installations with respect to the provision of heat and ventilation are in place and heat and ventilation can be provided.

• [8] All installations with respect to the provision of air conditioning, if any, are in place.

• [9] All installations with respect to the provision of electricity are in place.

• [10] All indoor and outdoor swimming pools, if any, are roughed in to the extent that they are ready to receive finishes, equipment and accessories

• [11] Subject to paragraphs [2] and [3], the boundaries of the units are completed to the drywall (not including taping and sanding), plaster or other final covering, and perimeter doors are in place.

(2) Despite paragraph (1) [2], with respect to units intended for non-residential purposes that are not ancillary to units intended for residential purposes, the lowermost floor does not have to be in place if it is at grade.

(3) Despite paragraphs (1) [3] and [11], with respect to units intended for non-residential purposes that are not ancillary to units intended for residential purposes, wall or ceiling coverings, interior perimeter doors, interior partitions or walls between units or between units and common elements do not have to be in place.

Section 7. Restrictions: amalgamation

• (a) it contains provisions requiring an owner, a future owner or anyone on the owner's or future owner's behalf to consent in writing to an amalgamation; or

• (b) it contains provisions relating to an amalgamation.

(2) If a declaration contains a provision that is inconsistent with subsection (1), the declaration shall be deemed to contain another provision stating that the inconsistent provision is void.

Section 8. Amendments

Section 9. Contents

• (a) it complies with all legal requirements; and

• (b) the land registrar has received the declaration for the property and it is capable of being registered.

(2) Despite clause 8 (1) (b) of the Act, a description of a corporation shall not contain the architectural plans described in that clause if,

• (a) it contains the structural plans described in that clause; and

• (b) Schedule G to the declaration does not contain the certificate of an architect described in clause 5 (8) (a).

(3) Despite clause 8 (1) (e) of the Act, a description of a corporation shall not contain the certificates described in that clause.

(4) In addition to all other material that it is required to contain, a description shall contain a description of all easements and similar interests to which the property is subject.

(5) The description of the easements and similar interests to which the property is subject and the description of the interests appurtenant to the property required by clause 8 (1) (g) of the Act shall be combined and shall be in Form 3.

Section 10. Forms

(2) The surveyor's certificate that clause 11 (1) (c) of Ontario Regulation 49/01 requires to be on the description shall be in Form 5.

(3) The certificate that clause 11 (1) (e) or (f) or subsection 21 (2) of Ontario Regulation 49/01 requires to be on the description and that is made by the declarant or, if the description is being registered to effect an amalgamation, the persons authorized to bind each of the amalgamating corporations, shall be in Form 6.

(4) The surveyor's certificate that clause 11 (3) (b) of Ontario Regulation 49/01 requires to be on the description shall be in Form 7.

Section 11. Amendments

Section 12. Performance audit

"telecommunications" means the emission, transmission or reception of any combination of signs, signals, writing, images, sound, data, alphanumeric characters or intelligence of any nature by wire, cable, radio or an optical, electromagnetic or any similar technical system.

(2) For the purpose of clause 44 (5) (a) of the Act, the person who conducts the performance audit shall inspect the elevating devices, as defined in the Elevating Devices Act, if any, of the buildings on the property and the telecommunications systems, if any, that service the buildings.

(3) For the purpose of clause 44 (5) (b) of the Act, the person who conducts the performance audit shall inspect the sprinkler systems, if any, and the outside parking areas, if any.

(4) In addition to the material specified in subsection 44 (8) of the Act, the written report mentioned in that subsection shall also include a copy of the current declaration and description registered in respect of the corporation, including all amendments to that declaration and description.

Section 13. Proxies

• (a) Form 8, in the case of a proxy, other than for the election or removal of a director;

• (b) Form 9, in the case of a proxy that includes a proxy for the election of a director, other than for the election of a director for the remainder of
• the term of a director who has been removed; or

  (c) Form 10, in the case of a proxy that includes a proxy for the removal of a director or the election of a director for the remainder of the term of a director who has been removed.

Section 14. By-laws

Section 15. Records

Section 16. Financial statements

(2) The auditor's report mentioned in subsection 67 (1) of the Act shall be prepared in the manner and in accordance with the auditing standards specified in the Handbook of the Canadian Institute of Chartered Accountants.

(3) In addition to the material specified in subsection 66 (2) of the Act, the financial statements shall also include,

• (a) a comparison between,
  • (i) the amount of contributions to the reserve fund that the corporation has collected, and

  • (ii) the amount that, according to the board's plan for funding of the reserve fund under subsection 94 (8) of the Act, the corporation was required to collect as contributions to the reserve fund; and

• (b) a comparison between,
  • (i) the amount of expenditures from the reserve fund that the corporation has made, and

  • (ii) the amount of proposed expenditures that, according to the board's plan for funding of the reserve fund under subsection 94 (8) of the Act, the corporation was to have made from the reserve fund.

(4) If a director makes a disclosure of an interest in a contract or transaction under section 40 of the Act and the corporation has entered into the contract or transaction, whether before or after the disclosure, the financial statements shall also include a brief description of the nature of the contract or transaction, the amount of money involved in it and the nature and extent of the director's interest in it.

(5) If an officer makes a disclosure of an interest in a contract or transaction under section 41 of the Act and the corporation has entered into the contract or transaction, whether before or after the disclosure, the financial statements shall also include a brief description of the nature of the contract or transaction, the amount of money involved in it and the nature and extent of the officer's interest in it.

Section 17. Disclosure statement

• (a) a copy of sections 73 and 74 of the Act;

• (b) a statement that, under subsection 82 (8) of the Act, the declarant is entitled to retain the excess of all interest earned on money held in trust over the interest that it is required to pay to the purchaser under section 82 of the Act;

• (c) a statement whether a part of the common elements may be used for commercial or other purposes not ancillary to residential purposes;

• (d) if there is no by-law or proposed by-law of the corporation establishing what constitutes a standard unit, a copy of the schedule that the declarant intends to deliver to the board under clause 43 (5) (h) of the Act;

• (e) a statement,
  • (i) indicating whether visitors must pay for parking and what the anticipated costs are,

  • (ii) indicating whether there is visitor parking on the property, and

  • (iii) if there is no visitor parking on the property, indicating whether visitor parking is available elsewhere and if so, describing where;

• (f) an identification of the major assets and property that the declarant has indicated that it may provide, even though it is not required to do so;

• (g) an indication of the units and assets that the corporation is required to purchase, the services that it is required to acquire and the agreements and leases that it is required to enter into with the declarant or a subsidiary body corporate, holding body corporate or affiliated body corporate of the declarant; and

• (h) with respect to land that is owned by the declarant, or by a subsidiary body corporate, holding body corporate or affiliated body corporate of the declarant, and that is adjacent to the land described in the description, a statement indicating,
  • (i) the current use of the land,

  • (ii) the representations, if any, that the declarant has made respecting the future use of the land, and

  • (iii) a summary of the applications, if any, respecting the use of the land that have been submitted to an approval authority.

(2) In subsection (1),

"affiliated body corporate" means a body corporate that is deemed to be affiliated with another body corporate under subsection 1 (4) of the Business Corporations Act;

"body corporate" means a body corporate with or without share capital;

"holding body corporate" means a body corporate that is deemed to be the holding body of another body corporate under subsection 1 (3) of the Business Corporations Act;

"subsidiary body corporate" means a body corporate that is deemed to be a subsidiary of another body corporate under subsection 1 (2) of the Business Corporations Act.

(3) The table of contents in the disclosure statement mentioned in subsection 72 (4) of the Act shall be in Form 12.

Section 18. Status certificate

(2) The fee that a corporation may charge for providing a status certificate, including all material that is required to be included in it, shall not exceed $100, inclusive of all applicable taxes.

Section 19. Sale of units

(2) In subsection (3),

"bank rate" means the bank rate established by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association.

(3) The prescribed rate of interest for the purpose of subsections 73 (3), 74 (9) and 82 (1), (5) and (7) of the Act shall be,

• (a) for the period from April 1 to September 30 of each year, 2 per cent per annum below the bank rate at the end of March 31 of that year; and

• (b) for the period from October 1 of each year to March 31 in the following year, 2 per cent per annum below the bank rate at the end of September 30 immediately before that October.

Section 20. Trustees and security

• [1] Persons, other than the declarant's solicitor, who are entitled to practise law in Ontario as solicitors.

• [2] A partnership, other than the declarant's solicitor, of persons who are entitled to practise law in Ontario as solicitors.

• [3] Escrow agents for deposits with respect to a project who have entered into a deposit trust agreement with the declarant and either the warranty corporation or an insurer to govern money to be held in trust under section 81 of the Act with respect to the project.

(2) The following classes are prescribed as security for the purpose of clause 81 (7) (b) of the Act:

• [1] Policies that insure against the loss of payments described in subsection 81 (1) of the Act and the interest payable by the declarant on the payments, that meet the requirements of section 21 and that are in effect.

• [2] Deposit receipts executed by the warranty corporation that provide for compensation to a beneficiary in accordance with section 22, that meet the requirements of that section and that are in effect.

Section 21. Insurance policies

(2) The trustee or the declarant's solicitor, as the case may be, shall hold the policy in trust for the beneficiary until the insurer is no longer liable under it in accordance with subsection (8).

(3) The declarant shall pay the premiums in respect of a policy and shall not directly or indirectly transfer the cost of the premiums to the beneficiary.

(4) The obligations of the insurer to the beneficiary under a policy shall not be affected by,

• (a) failure of the declarant to pay any premiums owing under the policy;

• (b) failure of the declarant to notify the insurer of the receipt of payments described in subsection 81 (1) of the Act; or

• (c) breach of any term or condition of the policy.

(6) Immediately upon receiving written notice of a claim by the beneficiary under a policy, the insurer shall provide the beneficiary with forms upon whi ch to make proof of loss.

(7) An insurer that receives written notice of a claim under subsection (6) shall pay the beneficiary within 60 days after the right of the beneficiary to payment under the policy has been established.

(8) An insurer shall remain liable under a policy until,

• (a) the declarant delivers to the beneficiary a deed in registerable form to the unit, in respect of which the beneficiary or a person on the beneficiary's behalf has made a payment described in subsection 81 (1) of the Act;

• (b) the declarant pays the beneficiary all money paid under subsection 81 (1) of the Act and interest on it payable by the declarant under the Act;

• (c) the insurer pays the beneficiary the amount of the loss;

• (d) the beneficiary acknowledges in writing that,
  • (i) the beneficiary is not entitled to the payments made by or on behalf of the beneficiary under subsection 81 (1) of the Act in respect of a proposed unit in the corporation and the interest payable on the payments by the declarant, and

  • (ii) the insurer is no longer liable under the policy; or

• (e) a court of competent jurisdiction has made a final determination that thebeneficiary is not entitled to the payments made by or on behalf of the beneficiary under subsection 81 (1) of the Act in respect of a proposed unit in the corporation and the interest payable on the payments by the declarant.

(10) A provision in a policy that derogates in any manner from any right or benefit that this section confers on a beneficiary is void to the extent that it derogates from the right or benefit.

Section 22. Deposit receipts

(2) A deposit receipt shall contain a statement that payments described in clause 81 (1) (a) or (c) of the Act are not covered by a deposit receipt and that they must be held in trust in accordance with section 81 of the Act.

(3) A deposit receipt shall not constitute prescribed security for the purposes of paragraph 20 (2) [2] unless, by the terms of the deposit receipt, the amount of compensation that the warranty corporation is liable to pay to a beneficiary under it is,

• (a) if the amount of the payments described in clause 81 (1) (b) of the Act made by or on behalf of the beneficiary is $20,000 or less, the amount so paid; or

• (b) if the amount of the payments described in clause 81 (1) (b) of the Act made by or on behalf of the beneficiary is more than $20,000, $20,000 or such greater amount that may be provided under the deposit receipt.

(4) A deposit receipt that establishes a limit on the liability of the warranty corporation shall not constitute prescribed security for the purposes of paragraph 20 (2) [2] unless it contains a statement that whatever amount is paid by or on behalf of the beneficiary to the declarant in excess of the limit is subject to section 81 of the Act.

(5) The beneficiary is not liable for the payment to an insurer of any premium payable in respect of a policy of insurance that the warranty corporation takes out to insure its obligation to pay under a deposit receipt.

(6) The declarant shall not directly or indirectly charge the beneficiary for any costs relating to the deposit receipt.

(7) The obligations of the warranty corporation to the beneficiary under a deposit receipt shall not be affected by,

• (a) failure of the declarant to comply with any term or condition of the declarant's agreement with the warranty corporation;

• (b) failure of the declarant to notify the warranty corporation or its insurer or insurers of the receipt of payments described in clause 81 (1) (b) of the Act;

• (c) failure of the warranty corporation to notify its insurer or insurers of the receipt of payments described in clause 81 (1) (b) of the Act;

• (d) breach of any term or condition of the deposit receipt; or

• (e) breach by the beneficiary or the declarant of any term or condition of a policy of insurance that the warranty corporation takes out to insure its obligation to pay under a deposit receipt.

(9) If the warranty corporation receives written notice of a claim under subsection (8), it shall pay the beneficiary within 60 days after the right of the beneficiary to payment under the deposit receipt has been established.

(10) The warranty corporation shall remain liable under a deposit receipt until,

• (a) the declarant delivers to the beneficiary a deed in registerable form to the unit in respect of which the beneficiary or a person on the beneficiary's behalf has made a payment described in clause 81 (1) (b) of the Act

• (b) the declarant pays the beneficiary all money paid under clause 81 (1) (b) of the Act and interest on it payable by the declarant under the Act;

• (c) the warranty corporation pays to the beneficiary the amount of the loss to the extent of the warranty corporation's liability under the deposit receipt;

• (d) the beneficiary acknowledges in writing that,
  • (i) the beneficiary is not entitled to the payments made by or on behalf of the beneficiary under subsection 81 (1) of the Act in respect of a proposed unit in the corporation and the interest payable on the payments by the declarant, and

  • (ii) the insurer is no longer liable under the policy; or

• (e) a court of competent jurisdiction has made a final determination that the beneficiary is not entitled to the payments made by or on behalf of the beneficiary under subsection 81 (1) of the Act in respect of a proposed unit in the corporation and the interest payable on the payments by the declarant.

(12) A provision in a deposit receipt that derogates in any manner from any right or benefit that this section confers on a beneficiary is void to the extent that it derogates from the right or benefit.

Section 23. Lease of units

"lease" includes a sublease or assignment of lease.

Section 24. Notice of lien

Section 25. Changes to common elements

(2) For the purpose of clause 98 (2) (e) of the Act, the board must be satisfied that the proposed addition, alteration or improvement to the common elements under subsection 98 (2) of the Act will not contravene the by-laws or rules of the corporation and will not have an adverse effect on the rest of the common elements.

Section 26. Termination

Section 27. Definitions

"component inventory" means an inventory, in a reserve fund study of a corporation, of each item of the common elements and assets of the corporation that requires, or is expected to require within at least 30 years of the date of the study, major repair or replacement where the cost of replacement is not less than $500;

"comprehensive study" means a comprehensive reserve fund study that meets the requirements of this Regulation;

"updated study based on a site inspection" means a comprehensive study that has been revised so that it is current as of the date of the revision, where the revision is based on a site inspection of the property and where the revision has been conducted in accordance with the requirements of this Regulation;

"updated study not based on a site inspection" means a comprehensive study that has been revised so that it is current as of the date of the revision, where the revision is not based on a site inspection of the property and where the revision has been conducted in accordance with the requirements of this Regulation.

Section 28. Classes

• [1] Comprehensive study.

• [2] Updated study based on a site inspection.

• [3] Updated study not based on a site inspection.

Section 29. Contents of studies

(2) The physical analysis shall consist of,

• (a) the component inventory of the corporation; and

• (b) an assessment of each item in the component inventory that states its actual or estimated year of acquisition, its present or estimated age, its normal expected life, its remaining life expectancy, the estimated year for its major repair or replacement, its estimated cost of major repair or replacement as of the date of the study, the percentage of that cost of major repair or replacement to be covered by the reserve fund and the adjusted cost resulting from the application of that percentage.

(3) The financial analysis shall consist of,

• (a) a description of the financial status of the reserve fund as of the date of the study; and

• (b) a recommended funding plan projected over a period of at least 30 consecutive years, beginning with the current fiscal year of the corporation, that shows the minimum balance of the reserve fund during the period and, for each projected year,
  • (i) the estimated cost of major repair or replacement of the common elements and assets of the corporation based on current costs for the year in which the study is conducted,

  • (ii) the estimated cost of major repair or replacement of the common elements and assets of the corporation at the estimated time of the repair or replacement based on an assumed annual inflation rate,

  • (iii) the annual inflation rate described in subclause (ii),

  • (iv) the estimated opening balance of the reserve fund,

  • (v) the recommended amount of contributions to the reserve fund, determined on a cash flow basis, that are required to offset adequately the expected cost in the year of the expected major repair or replacement of each item in the component inventory,

  • (vi) the estimated interest that will be earned on the reserve fund based on an assumed annual interest rate,

  • (vii) the annual interest rate described in subclause (vi),

  • (viii) the total of the amounts described in subclauses (v) and (vi),

  • (ix) the increase, if any, expressed as a percentage, in the recommended amount of contributions to the reserve fund over the recommended amount of contributions for the immediately preceding year, and

  • (x) the estimated closing balance of the reserve fund.

(4) In preparing or updating the component inventory of the corporation, the person conducting the study shall review,

• (a) the declaration and description;

• (b) if any, the current by-laws or proposed by-laws of the corporation establishing what constitutes a standard unit; and

• (c) if there is no by-law described in clause (b), a copy of the schedule that the declarant intends to deliver or has delivered to the board under clause 43 (5) (h) of the Act.

(5) In preparing or updating the financial analysis described in subsection (3), the person conducting the study shall review,

• (a) the most recent audited financial statements of the corporation or, if section 60 of the Act does not require the corporation to appoint auditors, the most recent financial statements of the corporation;

• (b) all reciprocal cost sharing agreements, if any, of the corporation;

• (c) the most recent reserve fund study of the corporation; and

• (d) the most recent notice, if any, of future funding of the reserve fund sent to the owners under clause 94 (9) (a) of the Act.

Section 30. Method of conducting studies

(2) A comprehensive study or an updated study based on a site inspection shall be based on,

• (a) a visual site inspection of the property, including a visual inspection of each item in the component inventory where practicable;

• (b) all other inspections of each item in the component inventory that the person conducting the study considers appropriate or necessary;

• (c) a verification of records of the corporation; and

• (d) interviews with those of the corporation's directors, officers, employees and agents that the person conducting the study considers appropriate.

(3) As part of preparing the assessment described in clause 29 (2) (b) in a comprehensive study or updating the assessment in an updated study based on a site inspection, the person conducting the study shall review,

• (a) all existing warranties, guarantees and service contracts for each item in the component inventory;

• (b) the as-built architectural, structural, engineering, mechanical, electrical and plumbing plans for the property that are in the custody or under the control of
   the corporation;

• (c) the as-built specifications for the buildings that are in the custody or under the control of the corporation;

• (d) the plans for underground site services, site grading, drainage and landscaping, and television, radio or other communications services for the property that are in the custody or under the control of the corporation;

• (e) the repair and maintenance records and schedules in the custody or under the control of the corporation; and

• (f) all other records of the corporation that the person conducting the study requires in order to prepare the assessment.

(4) An updated study not based on a site inspection shall be based on a verification of records of the corporation and interviews with those of its directors, officers, employees and agents that the person conducting the study considers appropriate.

(5) In addition to the material that a reserve fund study is required to contain, the study may contain all further information and analysis that the person conducting the study or the board considers appropriate or necessary.

Section 31. Time for studies

• (a) on that day it has a comprehensive study that meets the requirements of this Regulation; and

• (b) it conducts an updated study based on a site inspection within three years of that day.

(2) The reserve fund study that subsection 94 (4) of the Act requires a corporation created on or after the day section 94 of the Act comes into force to conduct within the year following the registration of the declaration and description shall be a comprehensive study.

(3) A corporation shall conduct a reserve fund study within three years of completing the reserve fund study that it is required to conduct under subsection (1) or (2), as the case may be, and after that, within every three years after completing the immediately preceding reserve fund study.

(4) A reserve fund study that a corporation is required to conduct under subsection (3) shall be,

• (a) a comprehensive study;

• (b) an updated study not based on a site inspection, if the immediately preceding reserve fund study for the corporation was a comprehensive study or an updated study based on a site inspection; or

• (c) an updated study based on a site inspection, if the immediately preceding reserve fund study for the corporation was an updated study not based on a site inspection.

Section 32. Person conducting studies

• [1] Members of the Appraisal Institute of Canada holding the designation of Accredited Appraiser Canadian Institute.

• [2] Persons who hold a certificate of practice within the meaning of the Architects Act.

• [3] Members of the Ontario Association of Certified Engineering Technicians and Technologists who are registered as certified engineering technologists under the Ontario Association of Certified Engineering Technicians and Technologists Act, 1998.

• [4] Members of the Real Estate Institute of Canada holding the designation of certified reserve planner.

• [5] Persons who hold a certificate of authorization within the meaning of the Professional Engineers Act.

• [6] Graduates of Ryerson Polytechnic University with a Bachelor of Technology (Architectural Science) - Building Science Option or Architecture Option.

• [7] Members of the Canadian Institute of Quantity Surveyors holding the designation of professional quantity surveyor.

• [8] Members of the Association of Architectural Technologists of Ontario holding the designation of architectural technologist, architecte-technologue or registered building technologist under the Association of Architectural Technologists of Ontario Act, 1996.

(2) A person who conducts a reserve fund study shall not,

• (a) be a director, officer or property manager of the corporation;

• (b) directly or indirectly, have an interest in,
  • (i) a contract or transaction to which a director or officer of the corporation is a party in a capacity other than as a director or officer of the corporation, or

  • (ii) a proposed contract or transaction to which a director or officer of the corporation will be a party in a capacity other than as a director or officer of the corporation;

• (c) be the spouse, same-sex partner, son or daughter of a director or officer of the corporation or son or daughter of the spouse or same-sex partner of a director or officer of the corporation;

• (d) be an owner as defined in the Act in relation to the corporation; or

• (e) be a person who lives on the property managed by the corporation under section 17 of the Act.

(3) In subsection (2),

"same-sex partner" means either of two persons of the same sex who live together in a conjugal relationship outside marriage;

"spouse" means,

• (a) a spouse as defined in section 1 of the Family Law Act, or

• (b) either of two persons of the opposite sex who live together in a conjugal relationship outside marriage.

(4) A person who conducts a reserve fund study shall be insured under a policy of liability insurance that includes,

• (a) coverage for liability for errors, omissions and negligent acts arising out of conducting or not conducting a reserve fund study, subject to the exclusions, conditions and terms that are consistent with normal insurance industry practice;

• (b) a policy limit for each single claim of not less than $1 million per occurrence;

• (c) an aggregate policy limit in the amount of not less than $2 million per year for all claims in the year or an automatic policy limit reinstatement feature; and

• (d) a maximum deductible amount of $3,500 per occurrence.

(6) Upon request, the person shall provide to the corporation a certificate of the policy of liability insurance.

Section 33. Plan for future funding

(2) In the case of all reserve fund studies that a corporation created before the day section 94 of the Act comes into force is required to conduct after that date under subsection 31 (1) and within 10 years after the date of the first reserve fund study that it is required to conduct after that coming into force date, the prescribed period of time for the purpose of subsection 94 (8) of the Act shall be 10 years from the date of that first reserve fund study.

(3) The notice that the board is required to send under subsection 94 (9) of the Act shall be in Form 15.

Section 63. Declaration and description

• (a) sections 5, 6, 8, 9, 10 and 11 and Forms 1 to 7 do not apply to the description, including the amendment to the description, and the declaration, including the amendment to the declaration, that is required to accompany the description; and

• (b) despite section 63 of this Regulation, sections 2, 8 and 9, subsections 15 (1), (2) and (3) and Forms 7, 8 and 9 of Regulation 96 of the Revised Regulations of Ontario, 1990 and Regulation 97 of the Revised Regulations of Ontario, 1990, as they read immediately before that day, continue to apply to the description, including the amendment to the description, and the declaration, including the amendment to the declaration, that is required to accompany the description.

Section 64. Disclosure and sale of units

• (a) sections 12, 17 and 19 to 22 do not apply; and

• (b) despite subsection 63 (1) of this Regulation, sections 34 to 37 of Regulation 96 of the Revised Regulations of Ontario, 1990, as those sections existed immediately before the revocation of that Regulation, continue to apply.

Section 65. Revocations

(2) Regulation 97 of the Revised Regulations of Ontario, 1990 and Ontario Regulation 180/91 are revoked.

Section 66. Commencement