Condominium Regulations
Regulation- Registration
- R-098-2008
- Source
- Unofficial consolidation PDF (justice.gov.nt.ca)
- Under
- Condominium Act
This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.
- None.
The Commissioner, on the recommendation of the Minister, under section 31 of the Condominium Act and every enabling power, makes the Condominium Regulations.
INTERPRETATION
In these regulations,
"common expenses fund" means one or more funds established by a corporation under sections 19.9 and
of the Act; (fonds de dépenses communes)
"special resolution" means a special resolution as defined under subsection 17(1) of the Act. (résolution spéciale)
AMALGAMATION
Registration
Each amended plan submitted to the Registrar for registration of an amalgamation of two or more corporations must
(a) include a table setting out the previous unit numbers and the current unit numbers; and
(b) set out such other information as may be required by the Registrar.
Amalgamation Disclosure Requirements
(1) In this section, "amalgamating corporation" means a corporation that is amalgamated, or is proposed to be amalgamated, with one or more other corporations to create an amalgamated corporation.
(2) The following information and documents are prescribed for the purposes of paragraph 6.2(4)(d) of the Act:
(a) the most recent financial statements required under section 16.2 of the Act for each of the amalgamating corporations;
(b) a description of the capital reserve funds of each of the amalgamating corporations;
(c) the proposed amount of the capital reserve fund of the proposed amalgamated corporation;
(d) the proposed contributions of the owners to each common expenses fund of the proposed amalgamated corporation;
(e) the most recent capital reserve fund study and capital reserve fund plan for each of the amalgamating corporations;
(f) a summary of the differences between the declaration and bylaws of each of the amalgamating corporations and the proposed declaration and bylaws of the proposed amalgamated corporation.
SALE OF UNITS BY DEVELOPER
Developer’s Purchase Agreement
A developer who enters into a purchase agreement shall include the following in the purchase agreement:
(a) a notification that is at least as prominent as the rest of the contents of the purchase agreement and that is printed on the outside front cover or on the first page of the purchase agreement in bold face, in upper case and in larger print than the rest of the purchase agreement stating as follows:
"The purchaser may rescind this agreement within 10 days after the day on which the parties sign it without incurring liability for rescinding this agreement unless all of the documents referred to in subsection 6.4(1) of the Act are delivered to the purchaser not less than 10 days before the parties sign this agreement."
(b) where the units and the common elements are not substantially complete at the time that the purchase agreement is entered into, a description, drawing or photograph showing all of the following as they will exist when the developer has fulfilled the developer’s obligations under the purchase agreement:
(i) the interior finishing of, and all major improvements to, the common elements located within any building,
(ii) all major improvements to the common elements, other than those to which subparagraph (i) applies,
(iii) any significant utility installations, major easement areas, retaining walls and other similar significant features,
(iv) the recreational facilities, equipment and other amenities to be used by the persons residing in or on the residential units,
(v) the equipment to be used for the maintenance of the common elements,
(vi) the location of roadways, walkways, fences, parking areas and recreational facilities,
(vii) the landscaping,
(viii) the exterior finishing of any building;
(c) the amount or estimated amount of the monthly unit contributions to each common expenses fund.
BUDGET AND FINANCIAL
STATEMENTS
Budget Requirements
The annual budget required under paragraph 16.2(3)(a) of the Act must include the following information:
(a) the opening balance in each common expenses fund;
(b) the estimated income from all sources other than contributions towards the common expenses, itemized by source;
(c) the estimated expenditures out of each common expenses fund, itemized by category of expenditure and by fund;
(d) the total of all contributions to the common expenses funds;
(e) the monthly contribution to each common expenses fund for each unit and common interest;
(f) the estimated balance in each common expenses fund at the end of the fiscal year.
Financial Statement Requirements
(1) A corporation shall, within eight weeks after the end of its fiscal year, prepare the financial statements required under section 16.2 of the Act for that fiscal year.
(2) The financial statements under subsection (1) must include
(a) a balance sheet;
(b) the opening balance and current balance in each common expenses fund;
(c) a statement of income and expenditures from all sources, including with respect to each common expenses fund; and
(d) the details of any remuneration paid to any director by the corporation.
(3) A corporation shall provide a copy of the financial statements to an owner, on request, where the owner makes the request between the date of the notice of the annual general meeting and the date of the annual general meeting.
CAPITAL RESERVE FUND
Qualified Persons
(1) In this section, "component" means an individual item that is included in the physical analysis portion of a capital reserve fund study and includes items
(a) that are the responsibility of the corporation;
(b) for which major repair or replacement costs are anticipated to be incurred during their useful lives; and
(c) for which the costs of repair or replacement will not be covered as part of the annual operating or maintenance budget of the corporation.
(2) An individual is a qualified person under these regulations if, based on reasonable and objective criteria, he or she is knowledgeable with respect to
(a) a particular type of component;
(b) the operation and maintenance of the particular type of component; and
(c) the costs of replacement of or repairs to the particular type of component.
(3) Each of the following is considered to be a qualified person:
(a) an individual to whom the Minister has issued a certificate of qualification in a trade under section 11 of the Apprenticeship, Trade and Occupation Certification Act to the extent that the certificate relates to a particular type of component;
(b) an individual who is a member of the Appraisal Institute of Canada holding the designation Accredited Appraiser Canadian Institute (AACI);
(c) an individual who holds a certificate of registration within the meaning of the Architects Act;
(d) an individual who is a member of the Real Estate Institute of Canada holding the designation Certified Reserve Planner (CRP);
(e) a professional engineer who holds a certificate of registration within the meaning of the Engineering and Geoscience Professions Act;
(f) a person who employs or otherwise retains the services of an individual who is qualified under paragraphs (a) to (e) and who is employed or otherwise retained to conduct the study.
Capital Reserve Fund Report
Additional Information
The following information is prescribed, for the purposes of paragraph 19.11(9)(d) of the Act:
(a) name of the corporation;
(b) date of the report;
(c) name of the person conducting the capital reserve fund study;
(d) minimum capital reserve fund balance during the projected period;
(e) projected annual inflation rate for capital reserve fund expenditures;
(f) projected annual interest rate for interest earned on the capital reserve fund;
(g) any other assumptions that were necessary in order to support the statements made in the report.
Condominiums With Fewer Than 13 Units
If a condominium plan has fewer than 13 units, the corporation may, in respect of that plan, carry out the functions of a qualified person if it is authorized to do so by a special resolution.
Exemption For Condominiums
With Fewer Than Seven Units
A corporation is exempt from the requirements of section 19.11 of the Act if
(a) the condominium plan has fewer than seven units; and
(b) the exemption is authorized by a special resolution.
Exemption For One-Owner Condominiums
(1) A corporation is exempt from the requirements of section 19.11 of the Act if
(a) the certificate of title to each of the units included in a plan is registered in the name of the same owner; and
(b) the units referred to in paragraph (a) have not been sold or offered for sale.
(2) If the owner of units to which subsection (1) applies offers those units for sale and if, as a result of the sale of any of those units, subsection (1) would no longer apply, the owner shall not sell any of those units until a capital reserve fund study is conducted and a capital reserve fund report is prepared.
ADMINISTRATION OF FUNDS
Authorized Investments
A corporation may invest money, for the purposes of subsection 19.14(1) of the Act, in any of the following:
(a) securities of Canada, a province or territory, the United Kingdom, the United States of America or a municipal corporation in a province or territory;
(b) securities, the payment of the principal and interest of which is guaranteed by Canada, a province or territory, the United Kingdom, the United States of America or a municipal corporation in a province or territory;
(c) securities issued for school, hospital, irrigation, drainage or other similar purposes that are secured by or payable out of rates or taxes levied under the law of a province or territory on property in that province or territory;
(d) bonds, debentures or other evidence of indebtedness of a corporation that are secured by the assignment to a trustee, of payments that Canada or a province or territory has agreed to make, if those payments are sufficient to meet the interest on all bonds, debentures or other evidence of indebtedness outstanding as it becomes due and also to meet the principal amount of all bonds, debentures or other evidence of indebtedness on maturity;
(e) bonds, debentures or other evidence of indebtedness of a corporation incorporated under the laws of Canada or of a province or territory, that are fully secured by a mortgage, charge or hypothec to a trustee on any one or combination of the following assets:
(i) land,
(ii) the plant or equipment of a corporation that is used in the transaction of its business,
(iii) bonds, debentures or other evidence of indebtedness or shares of a class or classes authorized by this section;
(f) bonds, debentures or other evidence of indebtedness of a corporation incorporated under the laws of Canada or of a province or territory, if the corporation has earned and paid a dividend
(i) in each of the five years immediately preceding the date of investment, at least equal to the specified annual rate on all of its preferred shares, or
(ii) in each year of a period of five years ending less than one year before the date of investment, on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid;
(g) guaranteed trust or investment certificates of
(i) a bank, or
(ii) a corporation that is incorporated under the laws of Canada or of a province or territory and that is authorized to carry on trust business or deposit business;
(h) bonds, debentures or other evidence of indebtedness of a loan corporation or similar corporation
(i) that, at the time of investment, has
(A) power to lend money on mortgages, charges or hypothecs of real estate,
(B) a paid-up nonreturnable capital stock of not less than $500,000, and
(C) a reserve fund amounting to not less than 25% of its paid-up capital, and
(ii) the stock of which has a market value that is not less than 7% in excess of its par value;
(i) preferred shares of a corporation incorporated under the laws of Canada or of a province or territory, if the corporation has paid a dividend
(i) in each of the five years immediately preceding the date of investment, at least equal to the specified annual rate on all of its preferred shares, or
(ii) in each year of a period of five years ending less than one year before the date of investment, on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid;
(j) first mortgages, charges or hypothecs on land in Canada, but only if the loan does not exceed 75% of the value of the property at the time of the loan as established by a valuator whom the corporation believes on reasonable grounds to be competent and independent;
(k) securities issued or guaranteed by the International Bank for Reconstruction and Development established by the Articles of Agreement of the International Bank for Reconstruction and Development, that was opened for signature at Bretton Woods on December 27, 1945, the English and French text of which is set out in Schedule II of the Bretton Woods and Related Agreements Act (Canada), but only if the bonds, debentures or other securities are payable in the currency of Canada, the United Kingdom, a member of the British Commonwealth or the United States of America;
(l) fully paid common shares of a corporation incorporated under the laws of Canada or of a province or territory that, in each year of a period of seven years ending less than one year before the date of investment, has paid a dividend on its common shares of at least 4% of the average value at which the shares were carried in the capital stock account of the corporation during the year in which the dividend was paid;
(m) deposits in, or non-equity or membership shares or other evidence of indebtedness of, a credit union.
Interest For Late Contributions
To Corporation
For the purpose of subsection 19.15(2) of the Act, the interest rate must not exceed 24% per annum. R-002-2016,s.7.
BOARD
Additional Disclosure Requirements
For Corporations
The following information and documents are prescribed for the purposes of paragraph 19.17(1)(t) of the Act:
(a) any bylaw instrument that has not been registered;
(b) any resolution
(i) passed by a vote of persons who own 66b% of the common elements, or such greater percentage as may be specified in the declaration,
(ii) that is required to be submitted to the Registrar, and
(iii) that has not yet been submitted to the Registrar;
(c) any notice that has been given for a resolution that has not been voted on, if the resolution
(i) requires a vote of persons who own 66b% of the common elements, or such greater percentage as may be specified in the declaration, or
(ii) proposes to make, amend or repeal a bylaw.
COMMENCEMENT
These regulations come into force February 1, 2009.