Condominium Act Merry-go-round

It was only a short 10 years ago that a new Condominium Act was enacted and implemented in the Province of Ontario after 3 years of intense discussions and negotiations between all affected players being consumers, lenders, developers, condominium corporations and condominium property managers.  Those of you who were familiar with the original Condominium Act may recall that it had only 60-70 sections which was increased to almost 180 sections in the latest edition.  The Act was substantially changed by raising the level of disclosure requirements and deposit protection for purchasers, as well as creating 3 new types of condominium corporations that would benefit consumers and developers alike.  The number of condominium corporations established in the Province of Ontario has escalated dramatically, particularly in the GTA, both as a result of the intensification efforts of the Province through its provincial growth plan, recent lifestyles of urban dwellers and the variety of condominiums that can now be created.   The Canadian Condominium Institute ("CCI") has been the driving force behind a new piece of legislation which was brought forward by NDP MPP Rosario Marchese at the beginning of 2011, known as the Condominium Owners Protection Act.  (See article by Robyn Doolittle in Toronto Star, August 29, 2011 at http://bit.ly/nIPq4u ) The Liberal government fortunately did not proceed with any public consultation on the Bill and it died a quick death.  Revival will depend greatly upon the outcome of the next election.   The proponents of the new legislation seem to feel that a major overhaul of an already complex and detailed Act is warranted.  Certainly, changes are probably in order for both developers and consumers based on the experience over the last 10 years with the new Act.  However, the scope of new legislation insofar as it relates to the sale of new condominiums attempts to substantially increase consumer protection at the cost of flexibility, pricing and consumer choice.  The current Act has substantially enhanced disclosure and consumer protection beyond anything else in North America.  Stay tuned to a more detailed analysis to come if and when the legislation and timing is revised.