Life Leases Regulation

Life Leases Regulation, M.R. 143/99 The Life Leases Act , C.C.S.M. c. L130 Regulation 143/99 Registered September 21, 1999 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Barrister or solicitor may act as trustee 3 Release of funds 4 Non-profit landlord 5 Maximum pre-lease payment 6 Mortgage term INSURANCE 7 Insurance requirements FORMS AND SCHEDULES 8 Form of estimate 9 Right to cancel 10 Pre-lease disclosure by landlord 11 Further disclosure by landlord 12 Disclosure to assignee 13 Annual disclosure 14 Minimum font sizes 15 Conflict between forms and lease 16 Notice of life lease 17 Review and recommendation 18 Coming into force Schedule A Landlord's Estimate of Development Costs B Tenant's Right to Cancel C Assignee's Right to Cancel D Pre-Lease Information Form — Non-Profit Landlord E Pre-Lease Information Form — Other than Non-Profit Landlord F Entrance Fee Information Form — Non-Profit Landlord G Entrance Fee Information Form — Other than Non-Profit Landlord H New Complex — Pre-Occupancy Disclosure Form I Information Form — Life Lease Tenants in Occupancy J Entrance Fee Information Form K Financial Disclosure Form K.1 Reserve Fund Disclosure Form L Refund Fund Disclosure Form M Notice of Life Lease Definitions 1 In this regulation, "Act" means The Life Leases Act ; («  Loi  ») "landlord's estimate" means a landlord's estimate of the development costs of a residential complex. (« estimation faite par le locateur ») Barrister or solicitor may act as trustee 2 A person who is entitled to carry on in Manitoba the practice or profession of a barrister or solicitor, is required by The Legal Profession Act or the rules under that Act to pay an annual assessment in respect of the professional liability claims fund established under that Act and is providing legal services to a landlord in respect of the development of a residential complex may, in connection with those services, be appointed under subsection 19(1) of the Act to receive and administer entrance fees in respect of the complex. M.R. 115/2025 Release of funds for purchase of land 3(1) For the purpose of clause 21(4)⁠(a) of the Act, if the landlord requests funds from the trustee to purchase the land on which the residential complex is to be located, the trustee may release funds to or for the benefit of the landlord only to the extent necessary to purchase the land and only if the landlord has provided to the trustee one or more statutory declarations confirming that (a) the landlord has obtained a written opinion, dated not more than 90 days before the date of the landlord's first request for funds, from a member of the Appraisal Institute of Canada holding the accreditation AACI (Accredited Appraiser Canadian Institute) confirming that the costs shown in the landlord's estimate are reasonable costs for developing the complex in accordance with the architectural drawings and specifications for the complex; (b) the landlord has entered into one or more stipulated price contracts that the declarant believes on reasonable grounds will be sufficient, if performed in accordance with their terms, to complete the construction, rehabilitation or conversion of the complex in accordance with the architectural drawings and specifications for the complex; (c) the landlord has obtained, in respect of each stipulated price contract referred to in clause (b), a performance bond issued by a corporation authorized to carry on a suretyship business in Manitoba, or one or more irrevocable letters of credit in favour of the landlord, securing the performance of the contract, in an amount not less than 50% of the value of the contract; (d) the total of the amounts held by the landlord or the trustee for the development of the complex and the amount of any written mortgage commitment obtained by the landlord for the development from an approved lender under the National Housing Act (Canada) is not less than the total of (i) the amounts payable under the contracts referred to in clause (b), (ii) any additional development costs specified in the estimate referred to in clause (a), and (iii) any other costs incurred or reasonably expected to be incurred to complete the development of the complex, less the amount of money or value of property paid or contributed by the landlord for which the landlord has not been reimbursed and is not seeking reimbursement; (e) the Department of Environment and Climate Change has provided written confirmation to the landlord (i) on the basis of a site investigation report acceptable to the department, that the land has not been found to be contaminated at a level that would prevent or restrict the use of the land for the proposed complex, or (ii) if remedial work was required by the department in order for the land to be used for the complex, that the remedial work has been carried out to its satisfaction; (f) for each entrance fee received, the landlord has fulfilled the conditions of subsection 6(4) of the Act (entrance fees permitted); and (g) the declarant believes on reasonable grounds that (i) the landlord has entered into a binding agreement to purchase the land for a price consistent with the estimate referred to in clause (a) and the amount requested is required to complete the purchase, (ii) the proposed complex is permitted by the zoning on the land, (iii) insurance has been obtained as required by subsection 7(1), (iv) there is no condition precedent to the release of funds imposed under a life lease that has not been waived or fulfilled, (v) all professional legal work is covered by professional liability insurance, on a claims-made basis, with a minimum coverage of $1,000,000 per claim or occurrence and $2,000,000 in the aggregate, and (vi) any professional services provided by an architect or professional engineer are covered by a professional liability insurance policy that provides a minimum coverage, on a claims-made basis, of (A) $250,000. per claim, and $500,000. in the aggregate for the complex or for each year of the policy, if the total development cost as set out in the landlord's estimate is less than $1,000,000., and (B) $1,000,000. per claim, and $2,000,000. in the aggregate for the complex or for each year of the policy, in any other case, or any greater coverage required by the landlord, and the agreement between the landlord and the person providing the services or the contractor responsible for obtaining the services requires that the insurance coverage will be maintained for 24 months after the occupancy date of the complex or for any longer period required by the landlord. M.R. 187/2000 ; 115/2025 Release of funds for development 3(2) Subject to subsection (3), if the landlord is the registered owner of the land on which the residential complex is to be located, the trustee may release funds to pay for the development of the complex only if the landlord has provided to the trustee (a) before each release of funds under this subsection, a written request for payment signed by the landlord or, where the landlord is a corporation, an officer of the landlord; and (b) before the first release of funds under this subsection, one or more statutory declarations confirming (i) all of the matters set out in clauses (1)⁠(a) to (f) and subclauses (1)⁠(g)⁠(ii) to (vi), (ii) that the declarant believes on reasonable grounds that (A) the landlord is the registered owner of the lands on which the complex is or will be located, (B) the landlord's title to the lands is not subject to any mortage, other than a mortgage referred to in paragraph (iii)⁠(A) or in subsection 28(1) of the Act, or any registered encumbrance, claim or interest or to any other encumbrance, claim or interest known to the landlord that may prevent or restrict the completion of the proposed development or the occupancy of a rental unit in the complex by a tenant for the term of his or her life lease, and (C) the landlord has obtained all building permits required to complete the development of the complex or, if a permit will not be issued until one or more conditions have been met, a letter from the local authority responsible for the issuance of the permit confirming that the permit will be issued when the conditions have been met, and (D) insurance has been obtained as required by section 7, and (iii) where the landlord has obtained a written mortgage commitment referred to in clause (1)⁠(d), that (A) any mortgage required as a condition of the commitment has been registered, and (B) the declarant is not aware of any condition of the commitment that has not been and cannot be satisfied; (c) before each release of funds under this subsection, a statutory declaration confirming that the amount requested to be paid will be used to pay, or to reimburse the landlord for the payment of, (i) all or any part of an amount certified in a certificate of payment issued by a registered architect or other qualified payment certifier, with whom the landlord has contracted for the purpose of certifying payments to be made under the contract or contracts referred to in clause (1)⁠(b), or (ii) any other development cost of the complex that is supported by a bona fide invoice; (d) before the second and each subsequent release of funds to a landlord under this subsection, a statutory declaration confirming that, after payment of the amount requested, the total of the amounts then held by the landlord or trustee to pay for the development of the complex, together with all amounts remaining to be advanced under a written mortgage commitment referred to clause (1)⁠(d), will be sufficient to pay all remaining costs incurred or reasonably expected to be incurred to complete the development. Release of funds where development completed 3(3) Where a landlord has not requested the trustee to release funds before the occupancy date of the residential complex, the trustee may release funds to reimburse the landlord for the development costs of the complex only if the landlord has provided to the trustee (a) before each release of funds under this subsection, a written request for payment signed by the landlord or, where the landlord is a corporation, by an officer of the landlord; and (b) one or more statutory declarations confirming all of the matters set forth in clauses (1)⁠(e) and (f), subclauses (1)⁠(g)⁠(ii), (iv), (v) and (vi) and paragraphs (2)⁠(b)⁠(ii)⁠(A), (B) and (D). Reasonable belief 3(4) For the purpose of subsections (1) to (3), a person's belief is based on reasonable grounds if it is based on a written opinion or confirmation provided by a person qualified to provide that opinion or confirmation. Statutory declaration 3(5) Each statutory declaration referred to in subsections (1) to (3) must be signed by the landlord or, if the landlord is a corporation, by an officer of the landlord with the approval by resolution of its board of directors of the statements made in the declaration. Non-profit landlord 4(1) For the purpose of clause (b) of the definition "non-profit landlord" in subsection 1(1) of the Act, the articles of incorporation of the corporation must provide that (a) the corporation shall be carried on without the purpose of gain for its members and any profits or other accretions to the corporation shall be used in promoting its objects; (b) no part of the income of the corporation may be payable to or otherwise available for the personal benefit of any member of the corporation; (c) the directors shall serve as directors and officers without remuneration, and no director shall directly or indirectly receive any profit from a position as director or officer; provided that a director may be paid reasonable expenses incurred in the performance of duties; and (d) upon the dissolution of the corporation and after the payment of all debts and liabilities, its remaining property shall be distributed or disposed of to charitable organizations which carry on their work solely in Canada or non-profit organizations having similar objectives and being bound by similar restrictions. Application of subsection (1) 4(2) Subsection (1) does not apply to a landlord of a residential complex who, before the coming into force of the Act, has entered into a life lease in respect of the complex. Maximum pre-lease payment 5 For the purpose of subsection 6(3) of the Act, the total of the pre-lease payments that a landlord may receive or permit a trustee to receive from a tenant after the Act comes into force is $1,000. Mortgage term 6 A mortgage referred to in clause 28(1)⁠(a) of the Act must include the following provision in the box titled "Additional Provisions" on the mortgage form prescribed by the Real Property Act Forms Regulation , Manitoba Regulation 281/87: "This mortgage secures the refundable portions of tenants' entrance fees as required by clause 28(2)⁠(b) of The Life Leases Act ." INSURANCE General liability insurance 7(1) A landlord must obtain, before receiving any funds from the trustee for the development of a residential complex, and must maintain throughout the development and operation of the complex, general liability insurance for not less than $2,000,000. per claim or occurrence. Insurance during development 7(2) Before receiving any funds under subsection 3(2) from a trustee for the development of a residential complex, the landlord must obtain, or ensure that each contractor providing goods or services under a contract referred to in clause 3(1)⁠(b) obtains (a) general liability insurance for not less than $2,000,000. per claim or occurrence; (b) all risk builder's risk property insurance for not less than the total of the amounts payable to the contractor under the contract; and (c) comprehensive boiler and machinery insurance providing replacement cost coverage for the boilers, pressure vessels and other equipment and machinery supplied by the contractor. Duration of coverage 7(3) The landlord must ensure that insurance obtained to satisfy the requirements of subsection (2) is maintained until insurance meeting the requirements of subsection (4) comes into effect. Property and other insurance 7(4) The landlord of a residential complex must obtain, before the occupancy date of the complex, and must maintain throughout the operation of the complex by the landlord, (a) all risk property insurance providing replacement cost coverage for the complex; and (b) comprehensive boiler and machinery insurance providing replacement cost coverage for the boilers, pressure vessels and other equipment and machinery of the complex. Insurance to be obtained by existing landlords 7(5) Subsections (1) to (4) do not apply to a landlord of a residential complex who has entered into a life lease in respect of the complex before the coming into force of the Act, but such a landlord must obtain the insurance coverage described in subsections (1) and (4) by the end of the 18th month that follows the coming into force of the Act. Interest of tenants 7(6) The landlord of a residential complex must ensure that (a) the tenants of the complex who have paid an entrance fee are added as additional insured under the general liability insurance obtained to satisfy the requirements of subsection (1) and (5); (b) if there is a mortgage securing all or part of tenants' entrance fees, the mortgagee is added as a mortgagee, subject to the standard mortgage clause, to the property insurance required by clause (4)⁠(a) and subsection (5); (c) if the landlord has entered into a life lease in respect of the complex before the coming into force of the Act and there is no mortgage securing tenants' entrance fees, the tenants of the complex who have paid an entrance fee are named as loss payees under the property insurance required by subsection (5); and (d) the insurance coverage is provided by an insurer or insurers licensed to underwrite insurance in Manitoba. FORMS AND SCHEDULES Form of estimate 8 The landlord's estimate must be in the form set out in Schedule A to this regulation. Tenant's right to cancel 9(1) The statement of cancellation rights to be provided to a tenant under section 10 of the Act (a) if included in the life lease, must be located on the first page of the lease; (b) if not included in the life lease, must be given to the tenant after the tenant is given (i) the form of life lease or offer to lease, and (ii) the information required to be given to the tenant under section 11; (c) must contain the wording set out in Schedule B and the name, address and, if applicable, the fax number of the landlord to which the tenant may deliver or send a notice of cancellation; (d) must show the heading in not less than 12-point bold type and the remaining information in not less than 11-point type; and (e) if not included in the life lease, may include a provision for the tenant to acknowledge receipt of the statement of cancellation rights on a duplicate copy. Assignee's right to cancel 9(2) The statement of cancellation rights to be provided to the assignee of a life lease under subsection 11(7) of the Act (a) must be given to the tenant after the tenant is given the form of assignment together with a copy of the lease to be assigned and the information required to be given to him or her by section 12; (b) must include the wording set out in Schedule C and the name, address and, if applicable, the fax number of the landlord and of the assignor to which the tenant may deliver or send a notice of cancellation; (c) must show the heading in not less than 12-point bold type and the remaining information in not less than 11-point type; and (d) may include a provision for the tenant to acknowledge receipt of the statement of cancellation rights on a duplicate copy. Pre-lease disclosure by landlord 10 Before receiving or permitting a trustee to receive a pre-lease payment from a prospective tenant, the landlord must (a) complete the form set out in Schedule D and give it to the tenant, if the landlord is a non-profit landlord; and (b) complete the form set out in Schedule E and give it to the tenant, in any other case. Further disclosure by landlord 11(1) Before receiving a life lease or offer to lease signed by a tenant and before receiving or permitting a trustee to receive an entrance fee from a tenant, the landlord must (a) in the case of a non-profit landlord, complete the form set out in Schedule F and give it to the tenant; and (b) in any other case, complete the form set out in Schedule G and give it to the tenant. Additional information to be disclosed before occupancy date 11(2) If a form referred to in subsection (1) is required to be given to a tenant in respect of a residential complex before the occupancy date of the complex, the landlord must complete and include with that form the form set out in Schedule H. Application of subsection (1) 11(3) Subsection (1) does not apply to a landlord in respect of a life lease of a rental unit in a residential complex if the landlord has entered into a life lease in respect of any rental unit in the complex before the coming into force of the Act. Disclosure requirement where subsection 11(1) does not apply 11(4) Where subsection (1) does not apply to a life lease in respect of a residential complex because of subsection (3), the landlord must (a) for each life lease in respect of the complex entered into before the coming into force of the Act, (i) complete the form set out in Schedule I and give it to the tenant by the end of the third month following the coming into force of the Act, and (ii) if requested by the tenant, complete the form set out in Schedule J and give it to the tenant within 14 days after the request is made to the landlord; and (b) for each life lease in respect of the complex to be entered into after the coming into force of the Act, complete the form set out in Schedule J and give it to the tenant before entering into the lease or receiving or permitting a trustee to receive an entrance fee from the tenant. Disclosure to assignee 12 Before consenting to an assignment of a life lease, the landlord must ensure that the assignee is given the information that the landlord would, if the landlord were receiving a life lease or offer to lease signed by the assignee at the time of receiving the assignment agreement, have been required by section 11 to give to him or her. Annual disclosure 13 The notice of a meeting referred to in section 18 of the Act must include (a) a completed copy of the form set out in Schedule K; (b) a completed copy of the form set out in Schedule K.1 for each reserve fund maintained by a non-profit landlord; and (c) a completed copy of the form set out in Schedule L, if the landlord has established a refund fund. M.R. 155/2006 Minimum font sizes 14(1) Subject to subsection (2), all information on a form given to a tenant pursuant to the provisions of section 10, 11 or 13 must be shown in not less than 11-point type. Minimum font size — Schedule I 14(2) All information on a form given to a tenant pursuant to subclause 11(4)⁠(a)⁠(i) must be shown in not less than 12-point type. Conflict between forms and lease 15 Where information provided to a tenant on a form required by the Act or the regulation to be given to the tenant conflicts with any provision of the tenant's life lease, the information so provided prevails over the provision of the lease unless the tenant elects by written notice to the landlord to rely on the provision of the lease despite the conflict. Notice of life lease 16 The form of notice in Schedule M is prescribed for the purposes of sections 36 and 50 of the Act. Review and recommendation 17 Not later than December 31, 2002, the minister shall (a) review the effectiveness of the operation of this regulation, including consulting with such persons affected by it as the minister considers appropriate; and (b) if the minister deems it necessary, amend, continue or repeal the regulation. Coming into force 18 This regulation comes into force on the day The Life Leases and Consequential Amendments Act (S.M. 1998, c. 42) comes into force. SCHEDULES Schedule A Landlord's Estimate of Development Costs B Tenant's Right to Cancel C Assignee's Right to Cancel D Pre-Lease Information Form — Non-Profit Landlord E Pre-Lease Information Form — Other than Non-Profit Landlord F Entrance Fee Information Form — Non-Profit Landlord G Entrance Fee Information Form — Other than Non-Profit Landlord H New Complex — Pre-Occupancy Disclosure Form I Information Form — Life Lease Tenants in Occupancy J Entrance Fee Information Form K Financial Disclosure Form K.1 Reserve Fund Disclosure Form L Refund Fund Disclosure Form M Notice of Life Lease