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SNL2009 CHAPTER C-29.1

CONDOMINIUM ACT, 2009

Amended:

2010 c31 s4

CHAPTER C-29.1

AN ACT RESPECTING CONDOMINIUMS

(Assented to December 22, 2009 )

Analysis


       
1.   Short title

       
2.   Interpretation

              PART I
ADMINISTRATION

       
3.   Registrar of condominiums

       
4.   Deputy registrar of condominiums

       
5.   Protection of the registrar

       
6.   Duties of the registrar

       
7.   Condominium registry

              PART II
REGISTRATION OF DECLARATION AND DESCRIPTION

       
8.   Requirements for registration

       
9.   Contents of the declaration

     
10.   Amendment of declaration

     
11.   Contents of description

     
12.   Amendment of description

     
13.   Notification of encumbrancers

     
14.   Agreement on prior encumbrances

     
15.   Effect of registration of an encumbrance agreement

              PART III
OWNERSHIP

     
16.   Ownership of property

              PART IV
CORPORATION

     
17.   Condominium corporation

     
18.   Objects and powers

     
19.   Duties and powers of the corporation

     
20.   Quorum

     
21.   Voting

     
22.   Declarant no longer owning majority of units

     
23.   Duties of the corporation to maintain records

     
24.   Sharing in assets of corporation

     
25.   Corporation may bring action

     
26.   Judgment against corporation

     
27.   Board of directors

     
28.   Qualifications of directors

     
29.   Designate

     
30.   Removal of director

     
31.   Effect of defect in election or appointment

     
32.   Duties of directors

     
33.   Indemnification of directors and officers

     
34.   Duty to disclose

     
35.   By-laws

     
36.   Rules for use of common elements

     
37.   Annual financial statements

     
38.   Duties of the owners respecting an audit

     
39.   Duties and powers of auditors

              PART V
SALE OF UNITS

     
40.   Agreements of purchase and sale

     
41.   Disclosure statement

     
42.   Estoppel certificate

     
43.   Cancellation of agreement of purchase and sale

     
44.   Budget statement

     
45.   Accountability for budget statement

              PART VI
OPERATION

     
46.   Taxation

     
47.   Easements

     
48.   Common expenses fund

     
49.   Reserve fund and reserve fund study

     
50.   Contingency fund

     
51.   Lien

     
52.   Changes in common elements and assets

     
53.   Considered covenant

     
54.   Repair after damage

     
55.   Maintenance

     
56.   Insurance

     
57.   Capacity to maintain insurance

     
58.   Deductible

     
59.   Where property destroyed

     
60.   Expropriation of property

     
61.   Sale of property

     
62.   Substantial damage

     
63.   Withdrawal from this Act

     
64.   Resolution of disputes

              PART VII
AMALGAMATION

     
65.   Amalgamation

     
66.   Registration of amalgamation documents

     
67.   Effect of registration

              PART VIII
COMMON ELEMENTS CONDOMINIUM CORPORATION

     
68.   Common elements condominium corporation

     
69.   Owners' land

     
70.   Contents of declaration

     
71.   Contents of description

     
72.   Disclosure statement

     
73.   Repair after damage and insurance

              PART IX
PHASED-DEVELOPMENT CONDOMINIUM CORPORATION

     
74.   Phased-development condominium

     
75.   Disclosure statement

     
76.   Contents of the declaration

     
77.   Amendments to declaration and description

     
78.   Disclosure of documents

              PART X
VACANT LAND CONDOMINIUM CORPORATION

     
79.   Vacant land condominium corporation

     
80.   Contents of declaration

     
81.   Contents of description

     
82.   Status of buildings in corporation

     
83.   By-laws

     
84.   Disclosure statement

     
85.   Repair and maintenance

     
86.   Substantial damage

     
87.   Limitation

              PART XI
GENERAL

     
88.   Regulations

     
89.   Fees and forms

              PART XII
OFFENCE

     
90.   Offence

              PART XIII
TRANSITIONAL, REPEAL, COMMENCEMENT

     
91.   Transitional

     
92.   RSNL1990 cC-29 Rep.

     
93.   Commencement


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

        1. This Act may be cited as the Condominium Act, 2009.

2009 cC-29.1 s1

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Interpretation

        2. (1) In this Act

             (a)  "board" means the board of directors of a corporation;

             (b)  "buildings" means buildings and structures included in a property;

             (c)  "by-laws" means the by-laws of a corporation;

             (d)  "claim" includes a right, title, interest, encumbrance or demand affecting land but does not include the interest of an owner in the owner's unit or common interest;

             (e)  "common elements" means the whole property with the exception of the units;

              (f)  "common elements condominium corporation" means a common elements condominium corporation to which Part VIII applies;

             (g)  "common expenses" means the expenses related to the performance of the objects and duties of a corporation and all expenses specified as common expenses in this Act or in a declaration;

             (h)  "common interest" means the interest in the common elements appurtenant to

                      (i )  a unit, in the case of all corporations except a common elements condominium corporation, or

                     (ii)  an owner's parcel of land to which the common interest is attached and which is described in the declaration, in the case of a common elements condominium corporation;

              (i)  "corporation" means a corporation created or continued under this Act;

              (j)  "court" means the Trial Division of the Supreme Court of Newfoundland and Labrador ;

             (k)  "declarant" means a person who owns the freehold estate in the land described in the description and who submits for registration under this Act a declaration and description that are registered under this Act, and includes a successor or assignee of that person, but does not include a purchaser in good faith of a unit who pays fair market value or a successor or assignee of the purchaser;

              (l)  "declaration" means a declaration specified in section 9 , and includes amendments to the declaration;

            (m)  "deputy registrar" means the Deputy Registrar of Condominiums referred to in section 4 ;

             (n)  "description" means a description as specified in section 11 and includes all amendments to the description that comply with section 12 ;

             (o)  "disclosure statement" means a disclosure statement as specified in section 41 ;

             (p)  "encumbrance" means a claim that secures the payment of money or the performance of another obligation, and includes a mortgage and a lien;

             (q)  "estoppel certificate" means an estoppel certificate as specified in section 42 ;

              (r)  "law society" means the Law Society of Newfoundland and Labrador referred to in the Law Society Act, 1999 ;

             (s)  "minister" means the minister appointed under the Executive Council Act to administer this Act;

              (t)  "owner" means in relation to

                      (i)  a corporation, other than a common elements condominium corporation, a person who owns a freehold interest in a unit and its appurtenant common interest and who is shown as the owner in the Registry of Deeds, and includes a mortgagee in possession and a declarant with respect to a unit that the declarant has not transferred to another person, or

                     (ii)  a common elements condominium corporation, a person, including the declarant, who owns a common interest in the common elements and a freehold interest in the parcel of land to which the common interest is attached as described in the declaration and who is shown as the owner in the Registry of Deeds;

             (u)  "phased-development condominium corporation" means a phased-development condominium corporation to which Part IX applies;

             (v)  "property" means the land, including the buildings on it, and interests appurtenant to the land, as the land and interests are described in the description and includes all land and interests appurtenant to land that are added to the common elements;

            (w)  "registrar" means the Registrar of Condominiums referred to in section 3 ;

             (x)  "registry" means the Registry of Condominiums referred to in section 7 ;

             (y)  "reserve fund" means a fund established under section 49 ;

             (z)  "reserve fund study" means a periodic study to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the projected costs of major repair and replacement of the common elements and assets of the corporation;

           (aa)  "surveyor" means a person registered as a surveyor under the Land Surveyors Act, 1991 ;

          (bb)  "unit" means a part of the property designated as a unit by the description and includes the space enclosed by its boundaries and all of the land, structures and fixtures within this space in accordance with the declaration and description; and

           (cc)  "vacant land condominium corporation" means a vacant land condominium corporation to which Part X applies.

             (2)  In this Act, the ownership of land includes the ownership of space.

2009 cC-29.1 s2

PART I
ADMINISTRATION

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Registrar of condominiums

        3. (1) The Registrar of Deeds, appointed under the authority of the Registration of Deeds Act, shall be the Registrar of Condominiums and shall perform the duties and functions and exercise the powers that are imposed or conferred under this Act or prescribed by the regulations.

             (2)  The registrar may assign those officers and employees appointed or employed under the Registration of Deeds Act to perform the duties or exercise the powers imposed on the registrar under this Act.

2009 cC-29.1 s3

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Deputy registrar of condominiums

        4. The Deputy Registrar of Deeds shall be the Deputy Registrar of Condominiums and shall

             (a)  when the registrar is absent or unable to act,

             (b)  when the registrar considers it necessary to delegate his or her authority, or

             (c)  when the office of the registrar is vacant

perform the functions of and have all the powers and authority of the registrar.

2009 cC-29.1 s4

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Protection of the registrar

        5. The registrar or the deputy registrar is not, nor is a person acting under his or her authority, personally liable in an action or proceeding for or in respect of an act or a matter done or omitted to be done in good faith in the exercise or purported exercise of the powers conferred upon the registrar or the deputy registrar in the performance of duties under this Act or a regulation made under this Act, or for the costs in connection with an action or proceeding.

2009 cC-29.1 s5

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Duties of the registrar

        6. The registrar shall examine all documents, plans and other materials submitted to the registrar in accordance with this Act or the regulations.

2009 cC-29.1 s6

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Condominium registry

        7. (1) The registrar shall maintain a Registry of Condominiums where all declarations, amended declarations, descriptions, amended descriptions, court orders, by-laws, notices of liens and other documents presented for registration under this Act shall be registered in the manner provided by this section.

             (2)  The registrar shall maintain in the registry a record of the time when the documents referred to in subsection (1) are presented for registration, the location of the property, the number of units, the name of the corporation, the type of document, the date of the declaration and description, an amendment to the declaration or description or withdrawal of the declaration, and those other matters or things that may be prescribed by the regulations.

             (3)  Upon the registration of a declaration and description in the registry, the registrar shall

             (a)  maintain in the registry the declaration and description and all other documents related to the declaration and description that are registered under this Act; and

             (b)  issue in the name of the corporation a certificate of registration signed by the registrar showing the date of registration, the location of the property, the registration number and those other matters that may be prescribed by the regulations.

2009 cC-29.1 s7

PART II
REGISTRATION OF DECLARATION AND DESCRIPTION

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Requirements for registration

        8. (1) A property shall comprise only freehold land and interests appurtenant to that land.

             (2)  A declaration and description may be submitted for registration by or on behalf of the declarant.

             (3)  Upon submitting the declaration and description for registration, the declarant shall submit

             (a)  a survey of the property;

             (b)  a statutory declaration from a practicing member of the law society which states

                      (i)  that the person whose name appears in and who executes the declaration as owner is the owner of the freehold estate in the property,

                     (ii)  that a person who holds an encumbrance over the property has received the notification with a copy of the declaration and description required by section 13 , and

                    (iii)  that all rates, real property taxes, assessments, charges and taxes levied or imposed upon the owner and occupier of the property, or in respect of the property have been paid;

             (c)  a copy of the proposed by-laws of the corporation;

             (d)  a notice of the registered office of the corporation and a notice of directors in accordance with subsection 17 (3); and

             (e)  other information the registrar considers necessary.

             (4)  Upon acceptance of a declaration and description for registration, the land and the interests appurtenant to the land described in the description are governed by this Act.

2009 cC-29.1 s8

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Contents of the declaration

        9. (1) A declaration shall be executed by the declarant and shall contain

             (a)  a statement of intention that the land and interests appurtenant to the land described in the description be governed by this Act;

             (b)  the consent of all persons having registered encumbrances against the land or interests appurtenant to the land described in the description or proof that 30 days has elapsed since notification was given under section 13 ;

             (c)  the number of units;

             (d)  a statement, expressed in percentages allocated to the units, of the proportions of the common interests;

             (e)  a statement, expressed in percentages allocated to the units, of the proportions in which the owners are to contribute to the common expenses;

              (f)  provisions relating to limitations on use or special restrictions or obligations to be imposed on the owner of a unit or with respect to the unit or common elements;

             (g)  a specification of common expenses;

             (h)  a specification of the 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;

              (i)  provisions respecting the occupation and use of the units and common elements;

              (j)  provisions restricting gifts, leases and sales of the units and common interests;

             (k)  an address for service of all documents served or to be served on the corporation;

              (l)  a specification of the voting majority required to make substantial changes in the common elements and the assets of the corporation;

            (m)  a specification of an allocation of the obligations to repair and to maintain the units and common elements;

             (n)  a specification of the percentage of the value of the building that constitutes substantial damage to the building under section 62 ;

             (o)  a specification of the majority required to authorize repairs under section 62 ;

             (p)  a specification of the voting majority required to permit the corporation to lease part of the common elements;

             (q)  a definition of a standard unit; and

              (r)  those other matters or things that may be required by the regulations.

             (2)  A declaration may contain a provision that divides the units into 2 or more classes and, where the declaration divides the units into 2 or more classes,

             (a)  the declaration may contain more than one provision under one or more of paragraphs (1)(a) to (r) and limit the application of each of the provisions to one or more of the classes; and

             (b)  the corporation may make more than one set of by-laws and limit the application of each set of by-laws to one or more of the classes.

2009 cC-29.1 s9

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Amendment of declaration

      10. (1) The declaration may be amended with the consent of the owners of at least 80% of the common elements.

             (2)  When a declaration is amended, the corporation shall

             (a)  provide proof to the satisfaction of the registrar, that 80% of the owners of the common elements consented to the amendment; and

             (b)  submit for registration a copy of the amendment in a form acceptable to the registrar.

             (3)  Notwithstanding subsection (1), the declarant or the board may amend the declaration without the consent referred to in that subsection in order to correct a grammatical, clerical, typographical or printing error or an error in mathematics and shall file that amendment in the registry.

             (4)  Where an amendment is made under subsection (3), it is considered to have been accepted for registration at the time of registration of the original documentation.

             (5)  The amendment referred to in subsection (3) is not effective until it has been registered in the registry.

2009 cC-29.1 s10

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Contents of description

      11. (1) A description shall contain the following:

             (a)  a written description and plan showing the perimeter of the horizontal surface of the land and the perimeter of the buildings;

             (b)  architectural or structural plans of the buildings;

             (c)  a specification of the boundaries of each unit by reference to the buildings, or if there are no buildings, by reference to the appropriate co-ordinate monument;

             (d)  diagrams showing the shape and dimensions of each unit and the approximate location of each unit in relation to the other units and the buildings;

             (e)  a certificate of a person who is authorized to practise architecture in the province that all buildings have been constructed in accordance with the architectural plans and, if there are structural plans, a certificate of a person who is authorized to practise engineering, as defined in the Engineers and Geoscientists Act, 2008 , that all buildings have been constructed in accordance with the structural plans;

              (f)  if no buildings are included in a property, a certificate of a surveyor that the horizontal boundaries of the units have been monumented on the ground in the required manner and that the diagrams of the units are accurate and in accordance with the monuments so placed;

             (g)  a description of interests appurtenant to the land that are included in the property; and

             (h)  those other matters or things that may be required by the regulations.

             (2)  Notwithstanding paragraph (1)(b), the registrar may, upon proof satisfactory to the registrar, waive the requirement for architectural or structural plans.

2009 cC-29.1 s11

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Amendment of description

      12. (1) The description may be amended with the consent of the owners of at least 80% of the common elements.

             (2)  When a description is amended, the corporation shall

             (a)  provide proof to the satisfaction of the registrar that 80% of the owners of the common elements consented to the amendment; and

             (b)  submit for registration a copy of the amendment in a form acceptable to the registrar.

             (3)  Notwithstanding subsection (1), the declarant or the board may amend a description that is registered without the consent referred to in that subsection in order to correct a grammatical, clerical, typographical or printing error or an error in mathematics and shall file that amendment in the registry.

             (4)  Where an amendment is made under subsection (3), it is considered to have been accepted for registration at the time of registration of the original documentation.

             (5)  An amendment is not effective until it has been registered in the registry.

2009 cC-29.1 s12

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Notification of encumbrancers

      13. (1) Not less than 30 days before the presentation for registration of the declaration and description, the owner shall notify in writing the holder of an encumbrance over the property of his or her intention to present the declaration and description for registration and send to the holder at the time of notification a copy of the declaration and description.

             (2)  Where a holder of an encumbrance to whom notice is required to be given under subsection (1) objects to the registration of the declaration and description by filing in the registry a written notice of objection before registration is effected, the declaration and description shall not be accepted for registration until the objection has been withdrawn.

             (3)  Upon presentation for registration of a declaration and description, a certified copy of the notification required to be given under subsection (1) shall be filed with the registrar.

             (4)  The registrar shall not register a declaration and description until the expiry of 30 days from the date of the notification required to be given under subsection (1) unless the holder of the encumbrance provides written consent to an earlier registration.

2009 cC-29.1 s13

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Agreement on prior encumbrances

      14. (1) Before the registration of a declaration and description under this Act, the owner of the property and the holder of an encumbrance affecting the property may enter into an agreement as to how the encumbrance is to be divided among the units and common elements or is otherwise to be dealt with, and following the registration of the declaration and description, the holder of the encumbrance may register the agreement.

             (2)  An agreement shall not be registered under subsection (1) unless it is presented for registration within 30 days after the registration of the declaration and description.

             (3)  Upon the registration of an agreement under subsection (1), the encumbrance against the property shall be released and the encumbrances created by the agreement over the individual units and common elements or otherwise shall take effect.

             (4)  An agreement registered under subsection (1) may provide that an encumbrance created by the agreement shall be considered to have been registered at a time not earlier than the time when the encumbrance in respect of the property was registered and, notwithstanding the Registration of Deeds Act, the encumbrances created by the agreement shall be considered to have been registered at the time specified in the agreement.

2009 cC-29.1 s14

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Effect of registration of an encumbrance agreement

      15. (1) In the absence of the registration of an agreement under section 14 an encumbrance affecting the property before the registration of the declaration and description shall, without the necessity of registration of an instrument giving effect to it, be considered to attach proportionately to each unit and the common elements pertaining to each unit in the proportion that is specified, in the declaration by virtue of the requirement of paragraph 9 (1)(d), as being the percentage which all the common elements relate to the unit.

             (2)  The encumbrances considered to attach proportionately to each unit under this section shall release the encumbrance existing over the property before the registration of the declaration and description and, notwithstanding theRegistration of Deeds Act, the encumbrances shall be considered to have been registered at the time when the encumbrance over the property was registered.

2009 cC-29.1 s15

PART III
OWNERSHIP

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Ownership of property

      16. (1) Units and common interests are real property for the purpose of this Act.

             (2)  Subject to this Act, the declaration and the by-laws, each owner is entitled to exclusive ownership and use of the owner's unit.

             (3)  The owners are tenants in common of the common elements and own an undivided interest in the common elements appurtenant to each owner's unit.

             (4)  The proportions of the common interests are those expressed in the declaration.

             (5)  The ownership of a unit shall not be separated from the ownership of the common interest and an instrument that purports to separate the ownership of a unit from a common interest is void.

             (6)  Except as provided by this Act, the common elements shall not be partitioned or divided.

2009 cC-29.1 s16

PART IV
CORPORATION

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Condominium corporation

      17. (1) The registration of a declaration and description under this Act creates a corporation without share capital the members of which are the owners of the units.

             (2)  A corporation shall have a name which

             (a)  shall end with the words "condominium corporation"; and

             (b)  is approved by the registrar.

             (3)  The corporation shall, at the time of filing the declaration and, where there is a change in the registered office or a change in the directors, file at the registry a notice of the registered office of the corporation and a notice of directors listing the directors of the corporation.

2009 cC-29.1 s17

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Objects and powers

      18. (1) The objects of the corporation are to manage the property and assets of the corporation.

             (2)  The corporation shall have all corporate powers and all corporate capacities necessary to enable it to do all acts and things that are incidental or conducive to or consequential upon the attainment of its objects.

             (3)  A corporation may, with the consent of the owners of at least 66% of the common elements,

             (a)  acquire by purchase, gift, devise, bequest or another means, real or personal property and sell, mortgage, convey or otherwise deal with the property;

             (b)  borrow money;

             (c)  mortgage or pledge its property or rights, including a future right to be paid money as a result of a levy made under this Act, in order to secure repayment of money borrowed by it or the payment or performance of obligations;

             (d)  grant easements affecting the common elements;

             (e)  grant leases of the common elements;

              (f)  make capital expenditures;

             (g)  consolidate into one unit 2 or more adjacent units that are included in the property that is managed by the corporation; and

             (h)  levy special assessments for extraordinary common element expenses.

             (4)  An easement or lease granted under paragraph (3)(d) or (e) has the same effect as if it were granted by all the owners of the common elements to which the grant of easement or lease relates.

             (5)  Where units are consolidated under paragraph (3)(g),

             (a)  the proportions of the common interests with respect to the consolidated unit is equal to the proportions of the common interest with respect to all the units that were consolidated; and

             (b)  the proportion in which the owner of the consolidated unit is to contribute to the common expenses is equal to the proportion in which all the owners of the units that were consolidated were to contribute to the common expenses

and the consolidation takes effect when the amended declaration is filed with and accepted by the registrar.

             (6)  Subject to the terms of the by-laws, the affairs of the corporation shall be administered and managed by the board, with power to appoint agents, solicitors and other persons to help it in the administration and management of the property and the assets.

             (7)  TheCorporations Act, paragraph 19(c) of theInterpretation Act and, where consistent with the by-laws, paragraph 19(b) of the Interpretation Act, shall not apply to a corporation created under this Act.

2009 cC-29.1 s18

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Duties and powers of the corporation

      19. (1) The corporation has the duty to

             (a)  control, manage and administer the common elements and the assets of the corporation;

             (b)  maintain, repair and where necessary renew the common elements; and

             (c)  take all reasonable steps to ensure that the owners, the occupiers of units, the lessees of common elements and the agents and employees of the corporation comply with this Act, the regulations, the declaration, the bylaws and the rules.

             (2)  On giving reasonable notice, the corporation or a person authorized by the corporation may enter a part of the common elements including those of which an owner has exclusive use at any reasonable time to perform the objects and duties of the corporation or to exercise the powers of the corporation.

             (3)  Reasonable notice that is required to be given under subsection (2) may be dispensed with if the situation is considered by the corporation, or a person authorized by the corporation, to be an emergency.

             (4)  Upon entering under subsection (2) or (3) a part of the common elements including those of which the owner has exclusive use, the corporation has the power to inspect and to carry out repairs or make the replacements to or within the common elements that are, in the opinion of the corporation, necessary to keep the property or common elements in a good state of repair.

2009 cC-29.1 s19

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Quorum

      20. (1) A quorum for the transaction of business at a meeting of the members of the corporation is the presence, either in person or by proxy, of the owners of at least 30% of the common elements.

             (2)  Where a quorum is not present at the opening of, or during, a meeting of members, the owners present shall adjourn the meeting to a fixed time and place.

2009 cC-29.1 s20

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Voting

      21. (1) All voting by owners shall be on the basis of one vote per unit and voting may be done by proxy.

             (2)  Where units are consolidated under paragraph 18 (3)(g) the owners of the consolidated unit are only entitled to one vote.

          (2.1)  Notwithstanding an authorization, including a provision in an agreement, mortgage or charge that is made on, before or after the commencement of this subsection, the holder of a mortgage or charge on a unit may not exercise a right that another person has, by reason of being the owner of a unit, to vote or consent, unless the holder of the mortgage or charge is a mortgagee in possession.

             (3)  Nothing in subsection (1) or (2) invalidates a vote that was cast or consent that was given before the commencement of this subsection.

             (4)  Powers of voting conferred by, or consent required to be given or document required to be executed under this Act, the declaration or the by-laws by an owner may be exercised, given or executed

             (a)  in the case of an owner who is under 19 years of age by that owner's guardian;

             (b)  in the case of an owner who has named a designate under section 29 , by that designate; or

             (c)  in another case, by the person who for the time being is authorized by law to control the owner's property.

             (5)  Where the court, upon application of the corporation or of an owner, is satisfied that there is no person capable or willing or reasonably available to exercise the power of voting, giving consent or executing a document, in respect of a unit, the court,

             (a)  in cases where unanimous vote or unanimous consent is required by this Act, the declaration or the by-laws, shall; and

             (b)  in another case, may

authorize another proper person to exercise the power of voting, to give the consent or to execute the document, in respect of the unit.

2009 cC-29.1 s21; 2010 c31 s4

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Declarant no longer owning majority of units

      22. (1) Within 30 days of the declarant no longer owning a majority of the units in the property, the declarant shall provide to the corporation without charge, and for the purposes of paragraphs (e),(f),(g) and (j) where available,

             (a)  the seal of the corporation;

             (b)  the minute book for the corporation, containing the most current copies of the declaration, by-laws, rules, regulations and amendments;

             (c)  a copy of agreements entered into by the corporation or the declarant or the representatives of the declarant on behalf of the corporation, including a management contract, deed, service agreement, lease or licence;

             (d)  existing warranties or guarantees for equipment, fixtures or chattels included in the sale of either the units or common elements that is not protected by a warranty or guarantee given directly to a unit purchaser;

             (e)  as-built architectural, structural, engineering, mechanical, electrical and plumbing plans;

              (f)  original specifications indicating all material changes;

             (g)  plans for underground site service, site grading, drainage and landscaping, together with cable-television drawings;

             (h)  copies of all policies of insurance and the related certificates or memoranda of insurance and all insurance trust agreements;

              (i)  all records that it has related to the units or to employees of the corporation;

              (j)  plans and information not mentioned in paragraphs (e), (f) and (g) but relevant to the future repair or maintenance of the property;

             (k)  all financial records of the corporation and of the declarant relating to the operation of the corporation from the date of registration of the declaration and the description;

              (l)  a copy of the reserve fund study; and

            (m)  other items that may be prescribed by regulation.

             (2)  Where the declarant no longer owns a majority of the units in the phase, the corporation may, upon providing 60 days notice, terminate management agreements entered into by the declarant in relation to the phase.

2009 cC-29.1 s22

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Duties of the corporation to maintain records

      23. (1) The corporation shall keep adequate records, and a member of the corporation may, upon giving reasonable notice, inspect the records at any reasonable time.

             (2)  In this section, "records" includes

             (a)  financial records;

             (b)  minutes of meetings of the members of the corporation and its board;

             (c)  the declaration, by-laws and rules;

             (d)  all items referred to in section 22 ;

             (e)  all agreements entered into by the corporation;

              (f)  disclosures of conflicts of interest; and

             (g)  all other records that are specified in the by-laws of the corporation.

             (3)  The corporation shall keep all financial records for at least 7 years from the end of the last fiscal period to which they relate.

             (4)  The corporation shall, within a reasonable time, provide, when requested, a copy of a record to a person upon the person paying a reasonable fee to compensate the corporation for the labour and copying charges.

2009 cC-29.1 s23

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Sharing in assets of corporation

      24. The members of the corporation share the assets of the corporation in the same proportions as the proportions of their common interests in accordance with this Act, the declaration and the by-laws.

2009 cC-29.1 s24

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Corporation may bring action

      25. An action with respect to, arising from, or relating to a common element shall be brought by or against the corporation in its own name.

2009 cC-29.1 s25

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Judgment against corporation

      26. (1) A judgment for the payment of money against the corporation is also a judgment against each owner at the time the cause of action arose for a portion of the judgment determined by the proportions specified in the declaration for sharing the common expenses.

             (2)  An owner may be discharged from that judgment by paying to the claimant a portion of the judgment debt and costs determined by the proportions specified in the declaration for sharing the common expenses, and upon that payment being made, the holder of the judgment shall give to the owner a discharge in accordance with the regulations.

2009 cC-29.1 s26

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Board of directors

      27. (1) The affairs of the corporation shall be managed by a board of directors, consisting of 3 persons or a greater number as the declaration or by-laws may provide, elected by the members of the corporation.

             (2)  Notwithstanding subsection (1), where the declarant has not ceased to own all the units, the board of directors shall be chosen in the following manner:

             (a)  the declarant shall appoint that proportion of the total number of directors that the number of units still owned by the declarant bears to the total number of units in the property, but where the number so arrived at is not a whole number, the declarant shall appoint that number of directors that is equal to the lower of the nearest 2 whole numbers; and

             (b)  the members of the corporation, other than the declarant, shall elect the remaining directors.

             (3)  Subsection (2) does not apply where

             (a)  at a meeting of the members of the corporation at which a board of directors is chosen, a resolution is passed by the affirmative vote of at least 66% of the members present in person or by proxy, that the entire board be elected by the members of the corporation; or

             (b)  the number arrived at by multiplying the total number of directors by the percentage of the units that the declarant has not ceased to own is less than one half.

             (4)  The term of the members of the board shall be 3 years or a lesser period as the declaration or by-laws may provide, but the members of the board may continue to act until their successors are elected, and members are eligible for re-election.

             (5)  Where a vacancy in the membership of the board occurs, the board may appoint a person to serve on the board until the next meeting of members when a confirmation of that member or an election for a new member shall take place.

             (6)  Notwithstanding subsection (5), where a vacancy in the membership of the board occurs and, at the time the vacancy is filled, subsection (2) applies, the vacancy shall be filled in a manner that would result in the proportion of the members of the board who are appointed by the declarant being the same as the proportion of members of the board who would have been appointed by the declarant where a new board had been chosen in accordance with subsection (2) at the time the vacancy was filled.

             (7)  A quorum for the transaction of business is a majority of the members of the board or a greater number as the declaration or by-laws may provide.

             (8)  The declaration or the by-laws may specify and regulate the qualifications, nomination, election, compensation and removal of members of the board, and the meetings, functions and officers of the board.

2009 cC-29.1 s27

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Qualifications of directors

      28. (1) A person shall not be elected or hold office as a director where that person

             (a)  has not attained 19 years of age; or

             (b)  is not an owner.

             (2)  Where the declarant is entitled to appoint a person as a director, paragraph (1)(b) does not apply with respect to that appointment.

2009 cC-29.1 s28

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Designate

      29. (1) A unit owner may name a person as designate for that person to act on his or her behalf in matters relating to the functioning of the condominium corporation.

             (2)  The designate shall be at least 19 years of age at the time of appointment.

             (3)  Notwithstanding paragraph 28 (1)(b), the designate is eligible to be nominated for election to the office of director.

             (4)  Where the unit owner ceases to own the unit, the rights of the designate to act on behalf of that owner in matters relating to the functioning of the corporation are terminated.

             (5)  Where a designate has been elected to the office of director and the unit owner ceases to own the unit, the designate's tenure as a director is terminated.

2009 cC-29.1 s29

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Removal of director

      30. (1) A person may be removed from the office of director by a majority of the votes cast in favour of the removal at a meeting of the members.

             (2)  Where a vote is being taken under subsection (1), the declarant as a member has one vote.

2009 cC-29.1 s30

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Effect of defect in election or appointment

      31. An act of a person is not invalid by reason only of a defect in the election or appointment of that person as a director or officer or the lack of a qualification for that office.

2009 cC-29.1 s31

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Duties of directors

      32. (1) Every director and officer of the corporation shall, in exercising the powers and discharging the duties of office,

             (a)  act honestly and in good faith; and

             (b)  exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

             (2)  A director is not liable when exercising the powers and discharging the duties of office if the director relies in good faith upon

             (a)  financial statements of the corporation that the auditor, in a written report, an officer of the corporation or a manager under an agreement for the management of the property, represents to the director as presenting fairly the financial position of the corporation in accordance with generally accepted accounting principles; or

             (b)  the report or opinion of a person whose profession lends credibility to the report or opinion.

2009 cC-29.1 s32

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Indemnification of directors and officers

      33. The by-laws of the corporation may provide that every director and officer of the corporation and that person's heirs, executors, administrators and other legal personal representatives may be indemnified by the corporation from and against

             (a)  liability and all costs, charges and expenses that the director or officer sustains or incurs in respect of an action, suit or proceeding that is proposed or commenced against that person for or in respect of anything done or permitted by that person in respect of the execution of the duties of office; and

             (b)  all other costs, charges and expenses that person sustains or incurs in respect of the affairs of the corporation.

2009 cC-29.1 s33

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Duty to disclose

      34. (1) A director of the corporation who has, directly or indirectly, an interest in a contract or transaction to which the corporation is a party or a proposed contract or transaction to which the corporation may be a party, shall disclose in writing to the corporation the nature and extent of the interest.

             (2)  A disclosure of an interest in a contract or transaction or a proposed contract or transaction is sufficient if it is a general notice disclosing that the director

             (a)  is also a director or officer of a party to a contract or transaction or a proposed contract or transaction with the corporation; or

             (b)  has a material interest in a party to a contract or transaction or a proposed contract or transaction with the corporation.

             (3)  Subsection (1) does not apply to a contract or transaction unless both it and the director's interest are material.

             (4)  Notwithstanding subsection (2), if the contract or transaction or proposed contract or transaction to which subsection (1) applies involves the purchase or sale of real or personal property by or to the corporation, the director shall disclose

             (a)  the cost of the property to the purchaser; and

             (b)  if acquired by the seller within 5 years before the date of the contract or transaction or the proposed contract or transaction, the cost of the property to the seller, to the extent to which the interest or information is within the director's knowledge or control.

             (5)  The disclosure required by this section shall be made

             (a)  at the meeting of the directors at which the contract or transaction or the proposed contract or transaction is first considered;

             (b)  where the director is not, at the date of the meeting, interested in the contract or transaction or the proposed contract or transaction, at the next meeting of the directors held after the director became interested;

             (c)  where the director becomes interested in the contract or transaction after it is entered into, at the first meeting of the directors held after the director becomes so interested; or

             (d)  where the contract or transaction or the proposed contract or transaction is one that, in the ordinary course of the business of the corporation, would not require approval by the directors or owners, at the first meeting of the directors held after the director becomes aware of the contract or transaction or the proposed contract or transaction.

             (6)  The board shall enter the disclosure made by a director under this section in the minutes of the meeting of the board at which the disclosure was made.

             (7)  The director shall not vote or be counted in the quorum on a vote with respect to a contract or transaction or a proposed contract or transaction to which subsection (1) applies unless the interest of the director in it

             (a)  is or would be limited solely to liability insurance against liability incurred as a result of acting as a director or officer of the corporation or remuneration as a director, officer or employee of the corporation; or

             (b)  arises or would arise solely because the director is a director, officer or employee of the corporation, if the director has been appointed to the first board by the declarant.

             (8)  A director who complies with this section and who is acting honestly and in good faith at the time the contract or transaction is entered into is not accountable to the corporation or the owners for profit or gain realized from the contract or transaction by reason only of holding the office of director and the contract or transaction is not voidable by reason only of the interest of the director in it if

             (a)  the contract or transaction is confirmed or approved by at least 66% of the votes cast at a meeting of the owners called for that purpose; and

             (b)  the nature and extent of the interest of the director in the contract or transaction are declared and disclosed in reasonable detail in the notice calling the meeting.

2009 cC-29.1 s34

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By-laws

      35. (1) The corporation may, on a resolution of not less than 66% of its members, make by-laws not inconsistent with this Act, the regulations or the declaration

             (a)  governing the use, maintenance, management and administration of the property and assets of the corporation;

             (b)  respecting the use of units for the purposes of preventing unreasonable interference with the use and enjoyment of the common elements and other units;

             (c)  respecting the composition and appointment of a board of directors, fixing the quorum, the terms of appointment and establishing rules of procedure and other matters considered necessary for the proper functioning of the board;

             (d)  respecting the voting rights of the members of the corporation;

             (e)  specifying the functions and duties of the corporation and the board of directors;

              (f)  providing for the assessment, collection and disbursement of contributions from owners of the units relating to the common elements;

             (g)  to establish what constitutes a standard unit for each class of unit specified in the declaration for the purpose of determining the responsibility for repairing improvements after damage and insuring them;

             (h)  respecting the use of the contingency fund;

              (i)  respecting mutual insurance coverage on the property, units and common elements and the application of the proceeds of insurance; and

              (j)  covering other matters respecting the conduct and affairs of the corporation.

             (2)  When the by-laws are made by the corporation, they shall be registered with the registrar together with a certificate signed by not less than 66% of the members of the corporation

             (a)  stating that the resolution referred to in subsection (1) has been made and that the persons signing the certificate concur with the by-laws as filed; and

             (b)  specifying members of the corporation.

             (3)  The by-laws shall, upon receipt of the approval of members, be immediately forwarded to the registrar and shall take effect immediately upon receipt of the approval by the registrar unless the by-laws state a later date from which the by-laws are to have effect.

             (4)  By-laws made under this section may be amended or revoked by the corporation on a resolution of not less than 66% of its members and subsection (3) shall apply to the amendment or revocation of the by-laws as it applies to the by-laws.

2009 cC-29.1 s35

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Rules for use of common elements

      36. (1) The by-laws may provide for the making of rules by the corporation respecting the use of the common elements for the purpose of preventing unreasonable interference with the use and enjoyment of the units and common elements.

             (2)  The rules shall be reasonable and consistent with this Act, the declaration and the by-laws and shall be approved by 66% of the members of the corporation.

             (3)  The rules shall be complied with and enforced in the same manner as the by-laws.

             (4)  The rules made under this section may be amended or revoked by the corporation on a resolution of not less that 66% of its members.

2009 cC-29.1 s36

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Annual financial statements

      37. (1) The corporation shall prepare annual financial statements showing its assets and liabilities and its income and expenses and containing other information that may be prescribed.

             (2)  The financial statements shall be in the required form and shall, upon request, be made available to the registrar.

             (3)  In the case of a corporation that has as one of its objects, the management of a property consisting of less than 10 units, the corporation shall, 10 days or more before the annual meeting of owners, send by prepaid mail or deliver to each owner at that owner's latest address as shown on the records of the corporation, a copy of the financial statement.

2009 cC-29.1 s37

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Duties of the owners respecting an audit

      38. (1) This section does not apply with respect to a corporation that has, as one of its objects, the management of a property consisting of less than 10 units.

             (2)  At each annual meeting held after this section comes into force, the owners shall

             (a)  set the fiscal year of the corporation; and

             (b)  appoint an auditor of the corporation to hold office until the close of the next annual meeting.

             (3)  Where the owners do not set the fiscal year or appoint an auditor, the board may do so.

             (4)  A person shall not be appointed or act as auditor of a corporation who is a director, officer, employee or manager of the corporation, has an interest in contracts of the corporation, or is a partner, employer or employee of a director, officer, employee or manager of the corporation.

             (5)  A person shall not be appointed or hold office as auditor of a corporation unless that person is licensed as a public accountant under the Public Accountancy Act .

             (6)  Where an auditor is not appointed at an annual meeting, the auditor in office continues in office until a successor is appointed.

             (7)  Notwithstanding anything contained in this section, the owners may remove an auditor in accordance with a contract of employment made between the corporation and the auditor or a provision of law respecting the employment.

             (8)  The remuneration of an auditor appointed by the owners shall be fixed by the owners, or by the board if it is authorized to do so by the owners, and the remuneration of an auditor appointed by the board shall be fixed by the board.

             (9)  Where an auditor is not appointed, the court may, on the application of an owner, appoint an auditor to hold office until the close of the next annual meeting and may fix the remuneration to be paid by the corporation for the services of that auditor.

           (10)  The corporation shall give a person appointed as auditor notice in writing of the appointment immediately after the appointment is made.

2009 cC-29.1 s38

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Duties and powers of auditors

      39. (1) The auditor shall make those examinations that enable a report to the owners as required by subsection (2).

             (2)  The auditor shall make a report to the owners on the comparative financial statements, including a balance sheet, statement of retained earnings, income statement, statement of changes in financial position and additional statements or information that may be required, to be laid before the corporation at each annual meeting during the term of office of the auditor, and shall state in the report whether, in the opinion of that auditor, the financial statements referred to present fairly the financial position of the corporation and the results of its operations for the period under review in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding period, if there was a preceding period.

             (3)  Where a report prepared under subsection (2) does not contain the unqualified opinion required, the auditor shall state in the report the reasons there is no unqualified opinion provided.

             (4)  The auditor of a corporation shall have access at all times to all records, documents, accounts and vouchers of the corporation and may require from the directors, officers and employees of the corporation the information and explanations that, in the opinion of that auditor, are necessary to enable that auditor to report under subsection (2).

             (5)  The auditor of a corporation may attend a meeting of owners and receive all notices and other communications related to a meeting that an owner is entitled to receive and be heard at a meeting that the auditor attends with respect to business of the meeting that concerns him or her as auditor.

             (6)  At a meeting of the owners, the auditor, if present, shall answer inquiries concerning the basis upon which that auditor formed the opinion given in the report made under subsection (2).

             (7)  The financial statement shall be approved by the board and the approval shall be evidenced by the signature at the foot of the balance sheet by 2 of the directors authorized to sign, and the auditor's report shall be attached to or accompany the financial statement.

             (8)  The corporation shall, 10 days or more before the annual meeting of owners, send by prepaid mail or deliver to each owner at that owner's latest address as shown on the records of the corporation a copy of the financial statement and a copy of the auditor's report.

             (9)  The board shall provide at each annual meeting of owners

             (a)  a financial statement made in accordance with generally accepted accounting principles;

             (b)  the report of the auditor to the owners; and

             (c)  further information respecting the financial position of the corporation that the by-laws of the corporation require.

2009 cC-29.1 s39

PART V
SALE OF UNITS

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Agreements of purchase and sale

      40. (1) Where a declarant enters into an agreement of purchase and sale with a purchaser, the declarant shall, where possible, attach a disclosure statement to that agreement of purchase and sale.

             (2)  Where an existing unit owner enters into an agreement of purchase and sale with a purchaser, the existing unit owner shall, where possible, attach an estoppel certificate that is dated within 60 days of the agreement of purchase and sale.

             (3)  Where the disclosure statement or estoppel certificate is not available at the time of entering into the agreement of purchase and sale, the declarant or unit owner shall provide it to the purchaser as soon as it is available and, at the latest, it shall be provided to the purchaser within 5 days of its receipt by the declarant or the unit owner.

2009 cC-29.1 s40

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Disclosure statement

      41. (1) A disclosure statement shall specify the date on which it was made and shall contain

             (a)  a statement of the name and municipal address of the declarant and the municipal address of the property;

             (b)  a general description of the property including the types and the number of buildings, units and recreational and other amenities, together with all conditions that apply to the provision of amenities;

             (c)  a statement whether a building on the property or a unit has been converted from a previous use;

             (d)  a statement whether one or more units may be used for commercial or other purposes not ancillary to residential purposes;

             (e)  a statement of the portion or number of units that the declarant intends to lease;

              (f)  a schedule of the proposed commencement and completion dates for amenities, if the construction is not completed;

             (g)  a copy of the existing or proposed declaration, by-laws or rules;

             (h)  a statement as to whether the by-laws of the corporation have been registered;

              (i)  a statement as to whether the common property of the condominium corporation has been mortgaged or transferred;

              (j)  a statement of all outstanding judgments against the corporation and the status of legal actions to which the corporation is a party;

             (k)  a statement of whether, to the knowledge of the declarant, the corporation intends to amalgamate with another corporation or whether the declarant intends to cause the corporation to amalgamate with another corporation within 60 days of the date of registration of the declaration and description for the corporation;

              (l)  if an amalgamation is intended under paragraph (k), a copy of the proposed declaration, description, by-laws and rules for the amalgamated corporation, if available;

            (m)  a copy of the budget statement described in section 44 ;

             (n)  a copy of the budget of the corporation for the current fiscal year if more than one year has passed since the conveyance of the first unit;

             (o)  a copy of the reserve fund study; and

             (p)  all other information that may be required by the regulations.

             (2)  The corporation may charge a reasonable fee for providing the disclosure statement.

             (3)  Where a disclosure statement that a corporation has given under subsection (1) omits material information that it is required to contain, it shall be considered to include a statement that there is no information.

             (4)  The disclosure statement binds the corporation, as of the date it is given or is considered to be given under subsection (3), with respect to the information that it contains or is considered to contain under subsection (3) against a purchaser or mortgagee of a unit who relies on the certificate.

2009 cC-29.1 s41

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Estoppel certificate

      42. (1) On the request of an owner of a unit the corporation shall issue an estoppel certificate with respect to a unit in the corporation that specifies the date on which it was made and that contains the following:

             (a)  a statement of the common expenses for the unit and the default in the payment of the common expenses where there is a default;

             (b)  a statement of the increase in the common expenses, where there is an increase, for the unit that the board has declared since the date of the budget of the corporation for the current fiscal year and the reason for the increase;

             (c)  a statement of the assessments that the board has levied, if there have been assessments, against the unit since the date of the budget of the corporation for the current fiscal year, to increase the contribution to the reserve fund and the reason for the assessments;

             (d)  a statement of the address for service for the corporation;

             (e)  a statement of the names and addresses for service of the directors and officers of the corporation;

              (f)  a statement of the name and address of the corporation's management company or manager;

             (g)  a copy of the management agreements;

             (h)  a copy of the current declaration, by-laws and rules;

              (i)  a copy of the certificate of registration of the corporation from the registry;

              (j)  a statement as to whether the by-laws of the corporation have been registered;

             (k)  a statement as to whether the common property of the condominium corporation has been mortgaged or transferred;

              (l)  a statement of all outstanding judgments against the corporation and the status of legal actions to which the corporation is a party;

            (m)  a copy of the budget of the corporation for the current fiscal year, the last annual financial statement and the auditor's report on the statements;

             (n)  a copy of the most recent reserve fund study and updates to it;

             (o)  a statement with respect to

                      (i)  the amount in the reserve fund no earlier than at the end of a month within 90 days of the date of the estoppel certificate, and

                     (ii)  current plans to increase the reserve fund where there are plans;

             (p)  a statement of those additions, alterations or improvements to the common elements, changes in the assets of the corporation and changes in a service of the corporation that are substantial, where there have been additions, alterations, improvements or changes, that the board has proposed but has not implemented, together with a statement of the purpose of them;

             (q)  a certificate or memorandum of insurance for each of the current insurance policies; and

              (r)  all other information that may be required by the regulations.

             (2)  The corporation may charge a reasonable fee for providing the estoppel certificate.

             (3)  Where an estoppel certificate that a corporation has given under subsection (1) omits material information that it is required to contain, it shall be considered to include a statement that there is no information.

             (4)  The estoppel certificate binds the corporation, as of the date it is given or is considered to be given under subsection (3), with respect to the information that it contains or is considered to contain under subsection (3) against a purchaser or mortgagee of a unit who relies on the certificate.

2009 cC-29.1 s42

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Cancellation of agreement of purchase and sale

      43. (1) A purchaser may, in accordance with this section, rescind the agreement of purchase and sale.

             (2)  To rescind an agreement of purchase and sale under this section a purchaser shall give a written notice of rescission to the declarant or the declarant's solicitor where subsection 40 (1) applies, or to the existing unit owner or the existing unit owner's solicitor where subsection 40 (2) applies, within 10 days of the later of,

             (a)  the date that the purchaser receives the disclosure statement or estoppel certificate required under section 40 ; and

             (b)  the date that the agreement of purchase and sale is executed by both parties.

             (3)  Where a notice of rescission is received from the purchaser under subsection (2), the declarant, where subsection 40 (1) applies, or the existing unit owner, where subsection 40 (2) applies, shall promptly refund, without penalty or charge, to the purchaser, all money received from the purchaser under the agreement.

2009 cC-29.1 s43

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Budget statement

      44. (1) The declarant shall prepare a budget statement for the corporation for the 12 month period beginning the first day of the month following the month in which the first conveyance of a unit to a purchaser occurs.

             (2)  The budget statement shall contain

             (a)  a statement of the common expenses of the corporation;

             (b)  a statement of the proposed amount of each expense of the corporation, including the cost of the reserve fund study required for the year and the cost of preparing audited financial statements;

             (c)  a statement of the projected monthly common expense contribution for each unit;

             (d)  a statement of the projected monthly reserve fund contribution for each unit;

             (e)  a statement of the amount of all current or expected fees, charges, rents or other revenue to be paid to or by the corporation or by the owners for the use of the common elements or other facilities related to the property;

              (f)  a statement of the projected amount of the reserve fund at the end of the current fiscal year; and

             (g)  all other information that may be required by the regulations.

             (3)  During the 12 month period referred to in subsection (1), the owners shall pay to the corporation, each month, their estimated monthly share of the common expenses and their contribution to the reserve fund that are set out in the budget statement.

             (4)  The declarant shall pay the monthly share of the common expenses and contributions to the reserve fund for unsold units.

2009 cC-29.1 s44

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Accountability for budget statement

      45. (1)  The declarant is accountable to the corporation as set out in this section for the budget statement prepared in accordance with section 44 that covers the one-year period immediately following the conveyance of the first unit.

             (2)  Immediately following the conveyance of the first unit, the solicitor for the declarant shall hold in trust from the proceeds of the sale of the first unit, or subsequent units if the required amount cannot be achieved from the sale of the first unit, an amount equal to at least 10% of the budget statement referred to in section 44 .

             (3)  The declarant shall pay to the corporation the amount by which the total actual amount of common expenses incurred for the period covered by the budget statement exceeds the total budgeted amount.

             (4)  The declarant shall pay to the corporation the amount by which the total actual amount of fees, charges, rents and other revenue paid or to be paid to the corporation, during the period covered by the budget statement, for the use of part of the common elements or assets or of other facilities related to the property, is less than the total budgeted amount.

             (5)  Where the total actual amount of revenue described in subsection (4) exceeds the total budgeted amount, the declarant may deduct the excess from the amount payable under subsection (3).

             (6)  After receiving the financial statements for the period covered by the budget statement, the board shall compare the actual amount of common expenses and revenue described in subsections (3) and (4) for the period covered by the budget statement with the budgeted amounts and shall, within 30 days of receiving the financial statements, give written notice to the declarant's solicitor of the amount that the declarant is required to pay to the corporation under this section.

             (7)  Where a notice is not given to the solicitor for the declarant within 30 days of the board's receipt of the financial statement, the solicitor may release the funds held in trust under subsection (2) to the declarant .

2009 cC-29.1 s45

PART VI
OPERATION

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Taxation

      46. (1) All rates, real property taxes, assessments, charges and taxes which may be levied or imposed by a body or authority under an Act upon the owner or occupier of, or in respect of property which has been subdivided into separate units with common elements under this Act, shall, from the date of registration of a declaration under this Act and during the time the property is subject to this Act, be levied and imposed upon the owner or occupier of or in respect of a unit in the property.

             (2)  An assessment or levy which is based upon the value of real property shall be assessed and levied on the basis of the value of a unit together with the value of the percentage which the common elements relate to that unit.

2009 cC-29.1 s46

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Easements

      47. (1) Upon the registration of a declaration and description there shall be implied by way of covenant in respect of each unit in favour of and against the owner of the unit

             (a)  an easement of shelter and support by or of the common elements and by or of every unit capable of enjoying or providing shelter and support;

             (b)  an easement for the provision and passage of wires, cables, pipes or ducts relating to water, drainage, sewage, electricity, heating, lighting and other services including telephone, radio and television services; and

             (c)  a right in favour of the owner of the benefit or advantage of the easement referred to in paragraphs (a) and (b) to enter and to permit a person acting for and on his or her behalf to enter upon the property upon which the easements referred to in paragraphs (a) and (b) are located, for the purposes of repairing, replacing, renewing or restoring a part of the property or services affecting or interfering with the easements referred to in paragraphs (a) and (b).

             (2)  An easement of restrictive covenant in the declaration or by-laws shall not defeat or be construed to defeat the covenants contained in subsection (1) or to affect the rights of a person or body entitled by law to enter the property or a unit for the purpose of inspection, maintenance, repair or renewal of a part of the property or services affecting the property, the units or the common elements, and a provision in the declaration or by-laws which purports to provide otherwise is void.

2009 cC-29.1 s47

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Common expenses fund

      48. The corporation

             (a)  shall establish an operating fund for the payment of the common expenses and the owners shall contribute to that fund in proportions specified in the declaration;

             (b)  shall assess and collect the owner's contributions towards the common expenses;

             (c)  shall pay the common expenses; and

             (d)  has the right to recover from an owner by an action for debt

                      (i)  the unpaid amount of an assessment,

                     (ii)  a sum of money expended by it for repairs to, or work done by it or at its direction in complying with a notice or order by a competent public or local authority in respect of that portion of the building comprising the unit of that owner , and

                    (iii)  the legal fees and costs incurred in the collection of the debt.

2009 cC-29.1 s48

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Reserve fund and reserve fund study

      49. (1)  The corporation shall establish and maintain a reserve fund for major repair and replacement of the common elements and assets of the corporation including, where applicable, roofs, exteriors of buildings, roads, sidewalks, sewers, heating, electrical and plumbing systems, elevators, laundry, recreational and parking facilities.

             (2)  Where a corporation has, as one of its objects, the management of a property consisting of less than 10 units, the corporation shall assess and collect the owners' contributions to the reserve fund in an amount that would result in the amount of the reserve fund becoming, and continuing to be, within 5 years after this subsection comes into force or, where the corporation is created after the commencement of this subsection, within 5 years after the corporation is created, 100% of the annual operating budget of the corporation.

             (3)  Where a corporation was created under the Condominium Act in force immediately before the commencement of this Act and has as one of its objects, the management of a property consisting of 10 or more units, the corporation shall, upon the commencement of this Act, complete a reserve-fund study respecting the corporation within 2 years of the coming into force of this Act in accordance with subsection (4) and provide it to the registrar upon request.

             (4)  A reserve-fund study respecting a corporation that is required by this Act shall be completed in accordance with the regulations, contain the information, opinions and recommendations and be prepared by the person or a member of the class of persons as prescribed by the regulations.

             (5)  Where this section requires that a reserve fund study respecting a corporation be completed, that corporation shall, within each 10-year period after the expiry of the time limit for filing a reserve fund study, complete a reserve-fund study in accordance with subsection (4) and provide it to the registrar upon request.

             (6)  Where a reserve-fund study respecting a corporation is completed in accordance with this section and the amount of the reserve fund of the corporation is less than the minimum amount that the reserve-fund study recommends that the fund ought to be, the corporation shall assess and collect contributions from the owners in an amount that shall result in the reserve-fund amount recommended by the study being achieved within the period of time recommended in the study and continuing to be at least the minimum amount recommended in the reserve-fund study.

             (7)  The cost of conducting a reserve fund study shall be a common expense that the board may charge to the common expense fund.

             (8)  All contributions collected for a reserve fund shall be paid into the reserve fund and used only for those purposes referred to in subsection (1) and the reserve fund shall be deposited and maintained in a chartered bank or a credit union in the province or invested in securities in which trustees are permitted by law to invest trust funds.

             (9)  The declarant shall contribute to the reserve fund in the amount set out in the declaration for all units he or she holds and for all units that are not sold .

           (10)  A fund set up for a purpose mentioned in subsection (1) is and is considered to be a reserve fund notwithstanding that it may not be so designated and shall only be used for the purpose for which the fund was established.

           (11)  The reserve fund constitutes an asset of the corporation and shall not be distributed to an owner except upon withdrawal of the property from this Act.

           (12)  The obligation of an owner to contribute towards the common expenses, the reserve fund and a contingency fund shall not be avoided by waiver of the right to use the common elements or by abandonment.

           (13)  Surplus in the operating budget of a corporation at the end of the fiscal year of the corporation shall be applied either against future common expenses or be paid into the reserve fund, but shall not, other than on withdrawal of the property from this Act, be distributed to the owners.

2009 cC-29.1 s49

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Contingency fund

      50. The corporation may establish a contingency fund to be used for the purpose provided in the by-laws.

2009 cC-29.1 s50

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Lien

      51. (1) Where the owner of a unit fails to pay the share imposed on him or her by the declaration or the by-laws in respect of the maintenance, repair and renewal of a common element or a sum that he or she is required to pay under the declaration or by-laws or is considered by this Act as a debt due by him or her, the amount unpaid together with all interest owing and all reasonable legal costs and reasonable costs incurred by the corporation in connection with the collection or attempted collection of the unpaid amount, shall constitute a lien on the interest of the owner, and the lien may be registered by the corporation as an encumbrance over the unit of the owner by the registration in the Registry of Deeds of an instrument in the required form and in the manner required by the registrar.

             (2)  The lien referred to in subsection (1) shall be payable in priority to all other liens, charges or mortgages in respect of the unit and the common interest, other than a lien for taxes .

             (3)  The lien referred to in subsection (1) is not a charge against the unit and the common interest of a unit registered under the Registration of Deeds Act until a certificate evidencing the lien has been recorded in the Registry of Deeds.

             (4)  Every mortgagee, judgment creditor or other person having a lien, charge or encumbrance upon or against a unit and the common interest subject to the lien mentioned in subsection (1) may, after the lien arises, pay to the corporation the amount of the lien, together with all interest and expenses and add the amount so paid to that person's mortgage, judgment or other security, and shall have in that respect the same rights, remedies and privileges against the unit and the common interest as the mortgagee, judgment creditor or other person has by virtue of or under the security held by the mortgagee, judgment creditor or other person and the mortgagee, judgment creditor or other person may also sue for and recover in an action for debt the amount so paid, together with interest, and expenses incurred in the collection of the debt, against the person primarily liable to pay the amount.

             (5)  The lien may be enforced in the same manner as a mortgage and those provisions of the Conveyancing Act respecting power of sale shall apply with the necessary changes.

             (6)  Upon payment of the unpaid amount, the corporation shall give the owner a discharge in the required form.

2009 cC-29.1 s51

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Changes in common elements and assets

      52. (1) The corporation, by a vote of members who own 80%, or a greater percentage that is specified in the declaration, of the common elements, may make a substantial addition, alteration or improvement to or renovation of the common elements or may make a substantial change in the assets of the corporation.

             (2)  The cost of an addition, alteration or improvement to or renovation of the common elements and the cost of a substantial change in the assets of the corporation are common expenses.

2009 cC-29.1 s52

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Considered covenant

      53. Notwithstanding an agreement, waiver, declaration or other statement to the contrary, every agreement under which the occupant of a unit is in possession of the unit is considered to include a covenant that the occupant agrees with the owner that the occupant shall comply with this Act, the regulations, declaration, by-laws and rules.

2009 cC-29.1 s53

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Repair after damage

      54. (1) The corporation shall repair the units and common elements after damage other than substantial damage dealt with under section 62 .

             (2)  The obligation to repair after damage includes the obligation to repair and replace after damage but does not include the obligation to repair after damage improvements made to a unit, or wilful damage caused to a unit by the unit owner.

             (3)  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.

             (4)  Notwithstanding subsection (2), a standard unit for the class of unit to which the unit belongs shall be the standard unit described in the declaration or a by-law made under paragraph 35 (1)(g).

             (5)  Notwithstanding subsection (2), a corporation that was created before the day this section comes into force and that had the obligation of repairing after damage improvements made to a unit before the registration of the declaration and description shall continue to have the obligation unless it has, by by-law, established what constitutes a standard unit for the class of unit to which the unit belongs.

2009 cC-29.1 s54

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Maintenance

      55. (1)  The corporation shall maintain the common elements and each owner shall maintain the owner's unit.

             (2)  The obligation to maintain includes the obligation to repair after normal wear and tear but does not include the obligation to repair after damage.

             (3)  A condition shall not be permitted to exist and an activity shall not be carried on in a unit or the common elements that is likely to damage the property.

2009 cC-29.1 s55

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Insurance

      56. (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.

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

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

             (4)  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.

             (5)  A standard unit for the class of unit to which the unit belongs shall be described in the declaration or a by-law made under paragraph 35 (1)(g), however, for a corporation created under the Condominium Act in force immediately before the commencement of this Act, where there is no by-law, in place the by-law shall be passed within 6 months of the commencement of this Act.

             (6)  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.

2009 cC-29.1 s56

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Capacity to maintain insurance

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

             (2)  For the purposes of section 56, the corporation shall be considered to have an insurable interest in the units and common elements.

2009 cC-29.1 s57

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Deductible

      58. (1) Where 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.

             (2)  Notwithstanding subsection (1), where 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.

             (3)  Notwithstanding subsection (1), 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 where the damage to the unit was not caused by an act or omission of the corporation or its directors, officers, agents or employees.

             (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.

2009 cC-29.1 s58

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Where property destroyed

      59. (1) Where a property is destroyed and the corporation decides under section 62 that it shall not rebuild, each owner shall provide the board with a certificate of title certified by a practicing member of the law society outlining the amount of all encumbrances on his or her unit and shall attach payout statements for encumbrances that shall be paid.

             (2)  The board shall provide, in trust for the owner, to the member of the law society who has certified the title, a cheque for the amount of the encumbrances that shall be made payable to the holders of the encumbrances and a cheque for the remaining amount to be paid to the owner.

2009 cC-29.1 s59

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Expropriation of property

      60. (1) Upon expropriation of the property or a part of the common elements under the Expropriations Act , this Act ceases to govern the property or the part of the common elements expropriated.

             (2)  Where part of the common elements is expropriated under the Expropriations Act , the owners shall share the proceeds in the same proportions as their common interests.

             (3)  Notwithstanding subsection (2), the portion of the proceeds received on expropriation under the Expropriations Act that is attributable to a portion of the common elements that is for the use of the owners of certain designated units, and not all the owners, shall be divided among the owners of the designated units in the proportions in which their interests are affected.

2009 cC-29.1 s60

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Sale of property

      61. (1) Sale of the property or a part of the common elements may be authorized by the consent of

             (a)  80% of the owners of the common elements; and

             (b)  the persons having registered claims against the property or the part of the common elements created after the acceptance for registration of the declaration and description.

             (2)  Where the sale is authorized under subsection (1), a conveyance shall be executed by all the owners and a release or discharge shall be given by all the persons having registered claims against the property or the part of the common elements created after the acceptance for registration of the declaration and description, and shall be submitted for registration together with a statutory declaration from a practicing member of the law society showing that the persons signing are all the owners and persons having registered claims.

             (3)  A conveyance referred to in subsection (2) shall be registered in the Registry of Deeds and a copy shall be filed in the registry.

             (4)  Upon the acceptance for registration of the instruments mentioned in subsection (2),

             (a)  the property or the part of the common elements sold are no longer governed by this Act;

             (b)  claims against the land and interests appurtenant to the land created before the acceptance for registration of the declaration and description are as effective as if the declaration and description had not been accepted for registration; and

             (c)  claims against the property or the part of the common elements created after the acceptance for registration of the declaration and description are extinguished.

             (5)  The owners share the proceeds of the sale in the same proportions as their common interests.

             (6)  Notwithstanding subsection (5), the portion of the proceeds of the sale that is attributable to a portion of the common elements that is for the use of the owners of certain designated units, and not all the owners, shall be divided among the owners of the designated units in the proportions in which their interests are affected.

             (7)  A corporation that has made a sale under this section and every owner in the corporation shall be considered to have made an agreement that an owner who has dissented on the vote authorizing the sale may, within 15 days of the vote, submit to mediation or arbitration a dispute over the fair market value of the property or the part of the common elements that has been sold, determined as of the time of the sale.

             (8)  Where an owner submits a dispute to mediation or arbitration, subsections 64 (2) and (5) apply to the dispute.

             (9)  An owner who submits a dispute to mediation or arbitration shall give the corporation notice of the submission within 24 hours of submitting the matter to mediation or arbitration.

           (10)  A dissenting owner who refers a matter to mediation or arbitration is entitled to receive from the proceeds of the sale the amount the owner would have received if the sale price had been the fair market value as agreed to in the mediation settlement or as determined by the arbitration and shall not be entitled to a further amount.

           (11)  The corporation shall pay to each of the owners who served a notice under subsection (9) the deficiency in the amount to which the owner is entitled where the proceeds of the sale are inadequate to pay the amount.

           (12)  The owners other than those who dissented on the vote authorizing the sale are liable for the amount of the deficiency payments determined by the proportions of their common interests.

           (13)  The corporation shall add the amount of the liability of each of the owners who voted in favour of the sale to the common expenses appurtenant to the units of those owners and may specify a time for payment by each of those owners.

2009 cC-29.1 s61

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Substantial damage

      62. (1) Where damage to the buildings occurs, the board shall determine within 30 days of the occurrence whether there has been substantial damage to the extent that the cost of repair would be 25%, or the greater percentage as specified in the declaration, of the value of the buildings immediately before the occurrence.

             (2)  Where there has been a determination that there has been substantial damage as provided in subsection (1) and owners who own 80% of the common elements, or the greater percentage as specified in the declaration, vote for repair within 60 days of the determination, the corporation shall repair.

             (3)  Where on a vote the owners do not vote for repair, the corporation shall, within 10 days of the vote, submit for registration a notice of withdrawal in the required form and the registrar shall accept the notice for registration.

             (4)  Where there has not been a vote within 60 days of the determination that there has been substantial damage under subsection (1), the corporation shall, within 10 days after the expiry of the 60 day period, submit for registration a notice of withdrawal in the required form and the registrar shall accept the notice for registration.

             (5)  Upon the acceptance for registration of a notice of withdrawal under subsection (3) or (4), section 59 applies.

             (6)  The obligation to repair after damage does not include the obligation to repair improvements made to a standard unit as defined in the declaration or the by-laws.

2009 cC-29.1 s62

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Withdrawal from this Act

      63. (1) Withdrawal of the government of the property by this Act may be authorized by the consent of

             (a)  all the owners of the common elements; and

             (b)  the persons having registered claims against the property or the part of the common elements created after the acceptance for registration of the declaration and description.

             (2)  Where the withdrawal of the property from this Act is authorized under subsection (1), the corporation shall submit for registration a notice of withdrawal in the required form, executed by all the owners and all the persons having registered claims against the property created after the acceptance for registration of the declaration and description together with a statutory declaration from a practicing member of the law society showing the persons signing the notice to be all the owners and persons having registered claims and that all rates, real property taxes, assessments, charges and other taxes levied or imposed upon the owner and occupier of every unit or in respect of every unit have been paid.

             (3)  Upon acceptance for registration of a notice of withdrawal under subsection (2), or subsection (3) or (4) of section 62 ,

             (a)  the property is no longer governed by this Act;

             (b)  the owners are tenants in common of the land and interests appurtenant to the land described in the description in the same proportions as their common interests;

             (c)  claims against the land and the interests appurtenant to the land described in the description created before the acceptance for registration of the declaration and description are as effective as if the declaration and description had not been accepted for registration;

             (d)  encumbrances against each unit and common interest created after the acceptance for registration of the declaration and description are claims against the interest of the owner in the land and interests appurtenant to the land described in the description and have the same priority as they had before the acceptance for registration of the notice of withdrawal; and

             (e)  all claims against the property created after the acceptance for registration of the declaration and description, other than the encumbrances mentioned in paragraph (d), are extinguished.

2009 cC-29.1 s63

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Resolution of disputes

      64. (1) Where a dispute arises between

             (a)  an owner and the corporation;

             (b)  2 or more owners;

             (c)  the declarant and the corporation;

             (d)  the declarant and the owner; or

             (e)  the owner of a unit and the occupier of another unit

and both parties consent, the dispute may be submitted to a certified mediator selected by the parties.

             (2)  Each party shall pay the share of the mediator's fees and expenses that,

             (a)  the settlement specifies, where a settlement is obtained; or

             (b)  the mediator specifies where the mediation fails.

             (3)  Where the parties referred to in subsection (1)

             (a)  do not agree to refer the matter to mediation;

             (b)  cannot agree on the appointment of a mediator; or

             (c)  referred the matter to mediation and the mediation was unsuccessful

the dispute may either be referred to an arbitrator under the Arbitration Act or the parties may make application to the court.

             (4)  A dispute under this section may only be referred to an arbitrator with the consent of both parties.

             (5)  When a matter is referred to arbitration under this section, each party shall pay the share of the arbitrator's fees and expenses that the award specifies.

             (6)  Nothing in this section restricts the legal remedies otherwise available for failure to perform a duty imposed by this Act.

2009 cC-29.1 s64

PART VII
AMALGAMATION

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Amalgamation

      65. In sections 66 and 67 ,

             (a)  "amalgamated corporation" means a corporation that is formed as a result of an amalgamation under sections 66 and 67 ; and

             (b)  "amalgamating corporation" means a corporation that is amalgamated with one or more other corporations under sections 66 and 67 .

2009 cC-29.1 s65

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Registration of amalgamation documents

      66. (1) Two or more corporations may amalgamate by registering a declaration and description where

             (a)  they have complied with subsections (2) and (3) and all requirements prescribed by the regulations; and

             (b)  the owners of at least 80% of the units of each corporation vote in favour of approving the declaration and description.

             (2)  The board of each amalgamating corporation shall call a meeting of the owners for the purpose of approving the declaration and description of the amalgamated corporation.

             (3)  The board shall give the owners a notice of the meeting which shall include

             (a)  a copy of the proposed declaration and description of the amalgamated corporation and a copy of the proposed budget for the first year of operations of the amalgamated corporation;

             (b)  a copy of all proposed by-laws and rules of the amalgamated corporation;

             (c)  a status certificate for each amalgamating corporation in the required form;

             (d)  the report of the accountant or accounting firm of each of the amalgamating corporations on the last annual financial statements of that corporation, where it is not included in the status certificate;

             (e)  reserve fund study; and

              (f)  additional statements or information prescribed by the regulations.

             (4)  The declaration and description of an amalgamated corporation shall not be registered unless there is attached a statutory declaration of a director or an officer of each amalgamating corporation that establishes to the satisfaction of the registrar that

             (a)  there are reasonable grounds for believing that

                      (i)  each amalgamating corporation is and the amalgamated corporation shall be able to pay their liabilities as they become due, and

                     (ii)  the realizable value of the amalgamated corporation's assets shall not be less than the aggregate of its liabilities and stated capital of all classes; and

             (b)  there are reasonable grounds for believing that

                      (i)  a creditor shall not be prejudiced by the amalgamation, or

                     (ii)  adequate notice has been given to all known creditors of the amalgamating corporations and a creditor does not object to the amalgamation otherwise than on grounds that are frivolous or vexatious.

             (5)  For the purposes of subsection (4), adequate notice is given where

             (a)  a written notice is sent to each known creditor having a claim against the corporation that exceeds $1,000;

             (b)  a notice is published once in a newspaper published or distributed in the place where the corporation has its registered office; and

             (c)  each notice states that the corporation intends to amalgamate with one or more specified corporations in accordance with this Act and that a creditor of the corporation may object to the amalgamation within 30 days from the date of the notice.

             (6)  The declaration of an amalgamated corporation shall not be registered unless it is executed by the officers of each of the amalgamating corporations authorized to sign on behalf of the amalgamating corporation.

             (7)  Section 63 does not apply to an amalgamation carried out under this section but does apply to an amalgamated corporation.

2009 cC-29.1 s66

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Effect of registration

      67. (1) On registration of a declaration and description for an amalgamated corporation,

             (a)  the amalgamating corporations are amalgamated and continue as one corporation;

             (b)  the units and common interests of the amalgamating corporations are continued as units and common interests in the amalgamated corporation;

             (c)  all encumbrances that affected the common elements of the amalgamating corporations are continued as encumbrances that affect the common elements of the amalgamated corporation;

             (d)  all declarations, descriptions, by-laws and rules of the amalgamating corporations cease to apply;

             (e)  the members of the amalgamating corporations are the first members of the amalgamated corporation;

              (f)  the directors of the amalgamating corporations are the first directors of the amalgamated corporation;

             (g)  all the property and rights of the amalgamating corporations are the property and rights of the amalgamated corporation and all the obligations and liabilities of the amalgamating corporations are the obligations and liabilities of the amalgamated corporation; and

             (h)  the amalgamated corporation replaces the amalgamating corporations as a party in an action or proceeding to which the amalgamating corporation is a party.

             (2)  Where the amalgamated corporation has, as one of its objects, the management of a property consisting of 10 or more units, the directors shall, immediately following the registration of the declaration and description for the corporation, appoint one or more auditors to hold office until the close of the meeting of owners held under subsection (4).

             (3)  An amalgamated corporation that has, as one of its objects, the management of a property consisting of 10 or more units, shall complete a reserve fund study within 2 years of the date of the amalgamation.

             (4)  The first directors of an amalgamated corporation hold office until the members elect their successors at a meeting which the first directors shall call and hold within 60 days following the registration of the declaration and description for the corporation.

             (5)  At the meeting referred to in subsection (2) the owners shall appoint successors to the auditors mentioned in subsection (2) and sections 38 and 39 apply to the successors.

2009 cC-29.1 s67

PART VIII
COMMON ELEMENTS CONDOMINIUM CORPORATION

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Common elements condominium corporation

      68. (1) A declarant may register a declaration and description that create common elements but do not divide the land into units.

             (2)   The type of corporation created by the registration of a declaration and description under subsection (1) shall be known as a common elements condominium corporation.

             (3)  A declaration and description for a common elements condominium corporation shall not be registered unless the registration would create a condominium corporation that is not a vacant land condominium corporation or a phased development condominium corporation.

             (4)  Subject to this Part, Parts I to VII and XI to XIII apply with the necessary changes to a common elements condominium corporation, except that,

             (a)  references to a unit shall be considered to be references to a common interest in the corporation;

             (b)  references to a mortgagee of a unit shall be considered to be references to a mortgagee of a common interest appurtenant to an owner's parcel of land mentioned in section 69 ; and

             (c)  references to a common interest appurtenant to a unit shall be considered to be references to a common interest appurtenant to an owner's parcel of land mentioned in section 69 .

             (5)  This Part does not apply to a corporation that is not a common elements condominium corporation.

2009 cC-29.1 s68

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Owners' land

      69. (1)  A declaration for a common elements condominium corporation shall not be registered unless each of the owners of a common interest in the corporation,

             (a)  also owns the freehold estate in a parcel of land,

                      (i)  that is not included in the land described in the description, and

                     (ii)  which has been registered in the Registry of Deeds; and

             (b)  has signed a certificate in the required form stating the owner consents to the registration of the declaration and the filing of the notice described in subparagraph (2)(b)(i).

             (2)  Upon the registration of a declaration and description for a common elements condominium corporation,

             (a)  the common interest of an owner in the corporation attaches to the owner's parcel of land; and

             (b)  the declarant shall register against each owner's parcel of land,

                      (i)  a notice in the form required by the minister, and

                     (ii)  a copy of the certificate described in paragraph (1)(b).

          (3)  Where an owner's parcel of land is divided into 2 or more new parcels, the owners of the new parcels are joint owners of the common interest attached to the original parcel.

             (4)  Notwithstanding another Act, upon the sale of the parcel of land of an owner in a common elements condominium corporation or the enforcement of an encumbrance registered against the parcel, the common interest of the owner in the corporation is not terminated or severed from the parcel, but continues to be attached to the parcel.

             (5)  Where an owner defaults in the obligation to contribute to the common expenses of a common elements condominium corporation, the corporation has a lien against the owner's parcel of land.

             (6)  The lien is a lien for the purposes of section 51 .

             (7)  Notwithstanding subsection 51 (2), the lien does not have priority over an encumbrance registered against an owner's parcel of land before the common interest of the owner attached to it unless the encumbrancer otherwise agrees in writing.

2009 cC-29.1 s69

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Contents of declaration

     70. In addition to the requirements of subsection 9 (1), a declaration for a common elements condominium corporation shall contain,

             (a)  a statement that the common elements are intended for the use and enjoyment of the owners;

             (b)  a legal description of the parcels of land mentioned in subsection 69 (1); and

             (c)  all other material that the regulations require.

2009 cC-29.1 s70

Contents of description

    71. Paragraphs 11 (1)(c), (d) and (f) do not apply to a description for a common elements condominium corporation.

2009 cC-29.1 s71

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Disclosure statement

      72. In addition to the requirements of section 41 , a disclosure statement for a common interest in a common elements condominium corporation shall contain

             (a)  a statement that the common interest attaches to the owner's parcel of land described in the declaration of the corporation and cannot be severed from the parcel upon the sale of the parcel or the enforcement of an encumbrance registered against the parcel; and

             (b)  all other material that the regulations require.

2009 cC-29.1 s72

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Repair after damage and insurance

      73. (1)  Sections 54 and 55 do not apply to a common elements condominium corporation.

             (2)  The corporation shall repair and replace the common elements after damage and shall maintain them, other than substantial damage dealt with under section 62 .

             (3)  References to a unit in section 56 shall be considered not to apply to a common elements condominium corporation.

2009 cC-29.1 s73

PART IX
PHASED-DEVELOPMENT CONDOMINIUM CORPORATION

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Phased-development condominium

      74. (1) A building or land that is subject to a condominium plan or proposed condominium plan, may in accordance with this Act and the regulations, be developed in phases.

             (2)  In the process of carrying out the development of a building or land in phases, additional units and additional common elements may, in accordance with this Act and the regulations, be created.

             (3)  Upon the acceptance for registration of each subsequent phase of a phased-development condominium, the subsequent phase is consolidated into one lot with all phases of the phased-development condominium previously accepted for registration.

2009 cC-29.1 s74

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Disclosure statement

      75. In addition to the requirements in section 41 , a disclosure statement for a unit in a phased development condominium corporation shall contain,

             (a)  a statement whether the declarant intends to create one or more phases after the creation of the unit;

             (b)  a statement that the declarant is not required to create a phase after the creation of the unit;

             (c)  a statement that sets out the projected year of registration of the amendments to the declaration and description required for creating each phase that the declarant intends to create after the creation of the unit;

             (d)  a statement that sets out, for each phase that the declarant intends to create after the creation of the unit,

                      (i)  the approximate number of the units included in the phase and a legal description of the land included in the phase,

                     (ii)  the approximate location of the buildings and structures to be contained in the phase and a description of the facilities and services to be contained in the phase,

                    (iii)  proportions, expressed in percentages, of the common interests and common expenses attributable to the units after the creation of the phase,

                    (iv)  facilities and services that the owners shall share after the creation of the phase, and

                     (v)  that there are no representations with respect to the quality of materials or appearance of buildings other than those specifically set out as representations in the disclosure statement; and

             (e)  all other information that is required by the regulations.

2009 cC-29.1 s75

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Contents of the declaration

      76. In addition to the requirements set out in section 9 , a declaration for a phased-development property shall include

             (a)  a statement that the condominium corporation created is a phased-development property;  

             (b)  a description of each phase and the approximate number of units included in each phase;  

             (c)  a statement of the approximate location of the buildings and structures included in each phase;  

             (d)  a statement expressed in percentages of the proportions of the common interests and common expenses attributable to the units after the creation of the phase and after the addition of each subsequent phase;

             (e)  a list of the facilities and services that the owners shall share after the creation of the phase;

              (f)  a statement that the declarant is not required to create a phase after the creation of the present phase;

             (g)  a statement that sets out the estimated registration dates of the amendments to the declaration and description required for creating each phase that the declarant intends to create after the creation of the present phase;

             (h)  a copy of the proposed or approved survey or design plans of the condominium showing

                      (i)  the perimeter of the horizontal surface of the land and the perimeter of the buildings, where applicable,

                     (ii)  the shape of the units, the boundaries of the units, the location of the units in relation to each other, and the location of the units in reference to the buildings and level numbers, where applicable, and

                    (iii)  the common elements, including those intended for the exclusive use of the owners;

              (i)  the by-laws and common element rules of the corporation; and

              (j)  a conceptual design of the entire development identifying the location, size, number and general style of the units or land in each phase.

2009 cC-29.1 s76

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Amendments to declaration and description

      77. (1) The declarant shall file with the registrar an amendment to both the declaration and description and, where the amendment is different from the documents filed with the initial declaration, proof of the approval of 80% of the unit owners to create a phase, in a form satisfactory to the registrar.

             (2)  A unit owner may not unreasonably withhold the approval required by subsection (1).

             (3)  The declarant shall give the corporation and all owners of units at least 14 days' notice of the intention to register a phase.

             (4)  Where the amendment to create the proposed phase is different from the documents filed with the initial declaration, the declarant shall provide the corporation and all owners of units at least 60 days' notice of the intention to register the phase, along with

             (a)  copies of the amendments to the declaration, description and the by-laws that shall be filed to register the new phase; and

             (b)  the location and times at which the plans for the new phase may be viewed.

             (5)  Where the statements required by paragraph 76 (d) for any 2 phases are the same, the declarant may substitute one phase for the other in the order in which they are created.

             (6)  Notwithstanding subsection (4), where the requirements of subsection (1) have been fulfilled, the amendment to the declaration may be filed with the registrar before the 60-day notice period has elapsed.

             (7)  The amendment to the description required to create a phase shall comply with section 11 .

             (8)  In addition to the requirements in subsection (4), the amendment to the declaration required to create a phase shall include

             (a)  the consent of every person having a registered mortgage against, or interest appurtenant to, the land included in the phase, as the land and the interests are described in the amendment to the description required to create a phase;

             (b)  a statement of the proportions of common interests, expressed in percentages, attributable to the units in the corporation after the creation of the phase;

             (c)  a statement of the proportions of common expenses, expressed in percentages, which shall be allocated to the units in the corporation after the creation of a phase; and

             (d)  a specification of all parts of the common elements included in the phase that are to be used by the owners of one or more designated units and not by all the owners.

2009 cC-29.1 s77

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Disclosure of documents

      78. When the declarant ceases to own a majority of the units in the phase, all documents relating to the phase shall be given to the corporation and the phase shall be considered part of the corporation.

2009 cC-29.1 s78

PART X
VACANT LAND CONDOMINIUM CORPORATION

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Vacant land condominium corporation

      79. (1) A declarant may register a declaration and description that create a corporation in which, at the time of the registration,

             (a)  one or more units are not part of a building or structure and do not include a part of a building or structure; and

             (b)  none of the units are located above or below another unit.

             (2)  The type of corporation created by the registration of a declaration and description under subsection (1) shall be known as a vacant land condominium corporation.

             (3)  A declaration and description for a vacant land condominium corporation shall not be registered unless the registration would create a condominium corporation that is not a common elements condominium corporation or, except as provided in the regulations made under this Act, a phased-development condominium corporation.

             (4)  Parts I to VII and XI to XIII apply with necessary modifications to a vacant land condominium corporation.

             (5)  This Part does not apply to a corporation that is not a vacant land condominium corporation.

2009 cC-29.1 s79

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Contents of declaration

      80. Where a unit in a vacant land condominium corporation is to include a building or structure constructed after the registration of the declaration and description, the declaration may contain restrictions with respect to,

             (a)  the size, location, construction standards, quality of materials and appearance of the building or structure;

             (b)  architectural standards and construction design standards of the building or structure;

             (c)  the time of commencement and completion of construction of the building or structure; and

             (d)  the minimum maintenance requirements for the building or structure.

2009 cC-29.1 s80

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Contents of description

    81. (1)  A description of a vacant land condominium corporation shall contain,

             (a)  a written description and plan showing the perimeter of the horizontal surface of the land, the perimeter of the buildings and structures on the common elements and the boundaries of each unit;

             (b)  architectural and structural plans of the buildings and structures included in the common elements;

             (c)  a certificate of a person who is authorized to practise architecture in the province that all buildings have been constructed in accordance with the architectural plans and, if there are structural plans, a certificate of a person who is authorized to practise engineering, as defined in the Engineers and Geoscientists Act, 2008 , that all buildings have been constructed in accordance with the structural plans;

             (d)  a description of all interests appurtenant to the land that are included in the property; and

             (e)  all other material that the regulations require.

             (2)  Notwithstanding subsection 79 (4), section 11 does not apply to vacant land condominium corporations.

             (3)  Notwithstanding paragraph (1)(b), the registrar may, upon proof satisfactory to the registrar, waive the requirement for architectural or structural plans.

2009 cC-29.1 s81

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Status of buildings in corporation

      82. (1)  The buildings and structures located on a unit or on the common elements of a vacant land condominium corporation, whether or not the buildings and structures had been constructed at the time of the registration of the declaration and description, are real property and form part of the unit or common elements respectively.

             (2)  The corporation is exempt from the obligation to obtain and maintain the insurance described in section 56 for buildings and structures located on a unit.

             (3)  The owner of a unit shall obtain and maintain the insurance for damage to the unit that, but for subsection (2), the corporation would have had to obtain with respect to the unit.

2009 cC-29.1 s82

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By-laws

      83. In addition to the power to make, amend or repeal by-laws under subsection 35 (1), the board of a vacant land condominium corporation may make, amend or repeal by-laws, not contrary to the declaration, specifying minimum maintenance requirements for a unit or a building or structure located on a unit.

2009 cC-29.1 s83

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Disclosure statement

      84. (1)  In addition to the material required under section 41 , a disclosure statement relating to the purchase of a unit in a vacant land condominium corporation shall include all other material that the regulations require.

             (2)  Where the declarant has not received a statement in response to a request within 30 days of making it, the disclosure statement shall contain a statement that the declarant has requested a statement under subsection (1) but has not received a statement in response to the request.

2009 cC-29.1 s84

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Repair and maintenance

      85. (1) S ections 54 and 55 do not apply to a vacant land condominium corporation.

            (2)  For the purpose of this section, the obligation to repair after damage includes the obligation to repair and replace after damage or failure and the obligation to maintain includes the obligation to repair after normal wear and tear but does not include the obligation to repair after damage.

             (3)  A vacant land condominium corporation shall maintain the common elements and repair them after damage.

             (4)  The owner of a unit in a vacant land condominium corporation shall maintain his or her unit and repair it after damage.

             (5)  Where an owner of a unit in a vacant land condominium corporation fails to maintain his or her unit within a reasonable time or to repair it within a reasonable time after damage, the corporation may maintain or repair the unit.

            (6)  An owner shall be considered to have consented to the repairs or maintenance carried out by the corporation and the cost of the work shall be added to the owner's contribution to the common expenses.

2009 cC-29.1 s85

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Substantial damage

      86. (1)  Where the board of a vacant land condominium corporation determines under section 62 that substantial damage has occurred to a building located on a unit and the owners do not vote for termination under that section, the owner of the unit may elect,

             (a)  not to repair the damage; or

             (b)  to replace the building with a different building, subject to this Act, the declaration and the by-laws.

             (2)  An owner of a unit who elects not to repair the damage shall, as closely as is reasonably possible, restore the land on which the building was located to the state that the land was in immediately before the construction of the building.

             (3)  Where the owner of the unit does not do the restoration within a reasonable time, the corporation may do it.

             (4)  The owner shall be considered to have consented to the restoration done by the corporation and the cost of the restoration shall be added to the owner's contribution to the common expenses.

2009 cC-29.1 s86

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Limitation

      87. Notwithstanding anything contained in this or another Act, a future encumbrance shall not be created or be effective against the property during the period that it remains subdivided into separate units with common elements under this Act.

2009 cC-29.1 s87

PART XI
GENERAL

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Regulations

      88. The Lieutenant-Governor in Council may make regulations

             (a)  prescribing duties, functions and powers of the registrar;

             (b)  respecting those matters or things that the registrar shall maintain in the registry;

             (c)  respecting those matters that may be required on the certificate of registration issued under section 7 ;

             (d)  prescribing contents of a declaration;

             (e)  prescribing contents of a description;

              (f)  prescribing items to be provided to the corporation when the declarant no longer owns a majority of the units in the property;

             (g)  prescribing contents of a disclosure statement;

             (h)  prescribing contents of an estoppel certificate;

              (i)  prescribing contents of a budget statement;

              (j)  prescribing the qualifications for persons or classes of persons who can prepare a reserve fund study;

             (k)  prescribing the form and manner of and the information, opinions and recommendations required in a reserve fund study;

              (l)  prescribing requirements an amalgamating corporation must comply with;

            (m)  prescribing statements or information required to be given by the board to owners in a notice of meeting under paragraph 66 (3)(f); and

             (n)  generally, to give effect to the purpose of this Act.

2009 cC-29.1 s88

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Fees and forms

      89. The minister may set the fees and approved forms for the purpose of this Act.

2009 cC-29.1 s89

PART XII
OFFENCE

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Offence

      90. An individual who

             (a)  knowingly makes a false statement in a certificate;

             (b)  sells as a condominium, individual units in a building that are not registered as a condominium under this Act; or

             (c)  contravenes a provision of this Act or the regulations;

commits an offence and is liable on summary conviction to a fine of not more than $10,000 or to imprisonment for not more than 6 months or to both.

2009 cC-29.1 s90

PART XIII
TRANSITIONAL, REPEAL, COMMENCEMENT

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Transitional

      91. (1) Corporations created under the Condominium Act are continued as corporations under this Act.

             (2)  A corporation's lien that was created under the Condominium Act for the default of an owner in the obligation to contribute to the common expenses is continued as a lien under section 51 .

             (3)  Part V does not apply to an agreement of purchase and sale signed before this Act comes into force.

             (4)  Section 56 does not apply if, at the time this Act comes into force, the corporation has entered into an insurance policy and that policy has not expired.

             (5)  Notwithstanding subsection (4), if the corporation renews an insurance policy described in section 56 after that section comes into force, section 56 applies.

2009 cC-29.1 s91

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RSNL1990 cC-29 Rep.

      92. The Condominium Act is repealed.

2009 cC-29.1 s92

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Commencement

      93. This Act comes into force on a date to be proclaimed by the Lieutenant-Governor in Council. (In force Dec. 1/11)

2009 cC-29.1 s93