Revised March 5, 2003

Since the passage of an updated Condominium Act by the Ontario Government in 2001, there has been an upsurge in condominium development. The new legislation allows for types of condominiums which have previously been unknown in the Province. An example is the vacant land condominium which permits the units in a condominium to consist of vacant lots on which the owners are free to build. Common elements of such a condominium corporation might consist of such things as a golf course, clubhouse, or recreational facilities.

The purchaser of a condominium buys a "unit", which he or she owns outright, plus an interest in the "common elements" of the condominium in which they share an ownership interest with the other unit owners. The definition of what constitutes the "unit" varies from condo to condo. In some, it is just the interior of the unit. In others, it may include the exterior as well. In the case of the new vacant land condominiums, it will consist of land only. The "common elements" also vary with the development. In an apartment building, they would usually include the grounds, the entrance areas, the exterior of the building, all hallways and access areas, the parking garage, and amenity areas such as party rooms, swimming pools, etc. At the other end of the spectrum would be the vacant land condominium where the common elements may consist of only the access roads.

Closing of the purchase of a new condominium is usually a two step process. With a non-condominium purchase, you will become the registered owner of the property on the day that you take possession of the house. With a new condo, you take possession of the unit on the "interim occupancy date". Registration happens on the "closing date". Between these two dates, you occupy the premises and pay monthly interim occupancy fees which are approximately equal to the estimated taxes for the unit, the estimated condominium fees, and the interest on the outstanding balance owed to the developer. The length of the interim occupancy period will vary from development to development, depending on many factors.

As with a new house, a new condominium is covered by the Ontario New Home Warranty Program The Program covers not only your unit but also the common elements. There may be rare exceptions to this where the condominium is located in a renovated or restored existing building.

After you become the registered owner of your unit, you will pay a monthly fee to cover "common expenses". They will include insurance and maintenance costs for common elements, and management fees. Depending on the development, they may also include other items such as water or, in some rare cases, all of the utilities used by the unit owners.

The details with respect to a new condominium will be spelled out in a "Disclosure Statement", a document which the developer of a new condo is obliged, by legislation, to provide to each purchaser. You should review this information very carefully. After you have read it, you should discuss it with your lawyer who will be pleased to answer your questions and explain your rights and liabilities as a unit owner.