RESIDENTIAL CONDOMINIUM CONVERSION PROJECTS - INITIAL PERIOD AND HOLDING PRE-EXISTING ELEMENTS FUND

Definitions 1. In this Regulation, “condominium corporation” means a corporation as defined in subsection 1 (1) of the Condominium Act, 1998; (“association condominiale”) “expected major repairs”, “expected major repair schedule” and “major repairs” have the same meaning as in Ontario Regulation 522/17 (Residential Condominium Conversion Projects — General) made under the Act; (“réparations majeures prévues”) “project registration date” means, in relation to a residential condominium conversion project, (a) the date that the declaration and description of the condominium corporation in relation to the project are registered in accordance with section 2 of the Condominium Act, 1998, if the project is not a phase, or (b) the date that the amendment to both the declaration and description that creates the phase is registered in accordance with section 146 of the Condominium Act, 1998, if the project is a phase; (“date d’enregistrement du projet”) “trustee” means a corporation registered under the Loan and Trust Corporations Act, a person who is entitled to practise law in Ontario as a solicitor or a partnership of such persons, where the Registrar has approved the corporation, person or persons to act as a trustee for the purposes of Ontario Regulation 522/17. (“fiduciaire”) Initial period 2. (1) For the purpose of subsection 17.1 (2) of the Act, the date on which the initial period mentioned in the definition of capital replacement plan in subsection 17.1 (1) of the Act begins, in relation to a residential condominium conversion project, is the project registration date. (2) For the purpose of subsection 17.1 (2) of the Act, the initial period described in subsection (1) ends on the seventh anniversary of the date on which the initial period begins. Holding pre-existing elements fund 3. (1) The trustee shall hold the pre-existing elements fund in the trust escrow account created in accordance with section 7 of Ontario Regulation 522/17 (Residential Condominium Conversion Projects — General) made under the Act, except if any subsection of this section requires the trustee to release money from the fund. (2) The trustee shall release money from the pre-existing elements fund to any person permitted to receive it under Ontario Regulation 522/17, if the trustee receives a certificate from the person stating that the person will use the money to pay for expected major repairs, (a) to the units, common elements or the condominium corporation’s assets, if any; (b) in relation to a residential condominium conversion project; and (c) described in the expected major repair schedule for the project. (3) On or after the project registration date, the trustee shall release the portion of the pre-existing elements fund in relation to common elements or to the condominium corporation’s assets, if any, in relation to a residential condominium conversion project if the trustee receives, (a) a written request from the corporation for the release of the money; and (b) a certificate from the corporation, confirming that a new board of directors of the corporation has been elected in accordance with section 43 of the Condominium Act, 1998. (4) The trustee shall release money from the pre-existing elements fund under subsection (2) or (3) within 30 days of receiving the certificate described in subsection (2) or the request and certificate described in subsection (3), as the case may be. (5) Subsections (6) and (7) apply to a unit of a residential condominium conversion project if, (a) the declaration and description of the condominium corporation in respect of the project have been registered in accordance with section 2 of the Condominium Act, 1998, if the project is not a phase; or (b) the amendment to both the declaration and description that creates the phase has been registered in accordance with section 146 of the Condominium Act, 1998, if the project is a phase. (6) If the portion of the pre-existing elements fund in relation to a unit described in subsection (5) is less than $10,000 on the project registration date, the trustee shall release that portion to the owner of the unit within 30 days of receiving a written request from the owner for the release of the money and, (a) a certificate from the vendor in relation to the project, confirming that the owner is the first purchaser in good faith who has received a transfer of title to the unit and who paid fair market value for the unit; or (b) a certificate from the owner, confirming that the owner is the first purchaser in good faith who has received a transfer of title to the unit and who paid fair market value for the unit. (7) The trustee shall, in accordance with subsection (8), release the portion of the pre-existing elements fund in relation to a unit described in subsection (5) to an owner of the unit who, (a) on or after the day seven years after the project registration date, requests the release of the money under this subsection; and (b) is the first person in relation to the unit who has requested the release of the money under this subsection. (8) The trustee shall release the money under subsection (7) within 30 days of receiving, (a) a written request from the person entitled to the release of the money under that subsection; and (b) a certificate from the person requesting the release of the money, confirming that the person is entitled to the release of the money under that subsection. (9) A certificate that this section requires a person to provide shall be in the form that the Registrar specifies and that the Corporation has posted on its website. 4. Omitted (provides for coming into force of provisions of this Regulation).