A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?
Correct Answer
A) Major repair and replacement of common elements and assets
Section 93(2) of the Condominium Act, 1998 says a reserve fund shall be used solely for the major repair and replacement of the common elements and assets of the corporation, and s. 95(1) forbids any other use.
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- → A buyer's lawyer requests a status certificate and pays the fee on May 1. The corporation never delivers it. After closing, the corporation claims the seller owed $3,000 in common expense arrears and demands it from the buyer, who relied on the silence. What is the effect under s. 76 of the Condominium Act, 1998?
- → A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
- → A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?
- → An investor buyer wants to know how many units in a condominium building were rented last year before making an offer. Which document must state the number of units for which the corporation received lease notices during the preceding fiscal year?
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- → An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?
- → A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?
- → The seller of a condominium unit got board approval and signed a registered s. 98 agreement with the corporation to install a hot tub on her exclusive-use terrace, taking on its repair and insurance costs. How does that agreement affect the buyer?
- → A seller is $6,000 behind in common expenses, and the corporation has registered a certificate of lien after giving proper notice to the seller's bank. How does the lien rank against the bank's first mortgage, which was registered years earlier?
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A buyer representation agreement expires, but the buyer purchases a property they were first shown by their former agent within the holdover period. What are the commission implications?
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A buyer's deposits on a proposed condominium unit are held until the unit is available for occupancy. Under s. 82 of the Condominium Act, 1998 and O. Reg. 48/01, at what rate must the declarant pay interest on those deposits?