Thursday, September 26, 2013

Condo Corp applies the money you owe where it likes first

If you are behind and have other claim or insurance items outstanding with a Condo Corporation in Ontario;  Case law is clearly on their side.

Owner had set up a pre-authorized payment plan for her common expense payments. In addition to falling behind in the payment of several monthly common expense payments, the owner also was indebted to the Corporation for two chargebacks. One was for plumbing services relating to a leak which the Corporation claimed emanated from the owner’s unit, and the other related to damage caused by the owner to the common element garage door. A lien was then registered against the unit, a notice of sale was issued and the Corporation subsequently commenced an action for possession of the unit. By this time, the Corporation claimed that the total amount owing was in excess of $42,000. This included arrears of common expenses, the two chargebacks, legal costs relating to the lien and the sale proceedings, plus interest. 

This case  is reassuring for condominium corporations as it upheld the practice of most condominium corporations: allocating common expense payments to the oldest indebtedness, including chargebacks.

What's the moral of this story? 

Tuesday, September 24, 2013

Controlling the Condo Inventory

Growth of Condo Units sales has slowed appreciable but has not stopped.  The Rental Price Index has actually increased by 4.6%.  Toronto continues it's stride to become a world class city and destination for money, education and health care. 

Now that the Toronto TTC will receive Federal Funding, the provincial Government, that has had its own spending problem, will increase taxes of its own to raise money for subway construction.

Development charges are only permitted to fund 90 per cent of the capital cost of new transit services, Miller noted. But the charges can be used to fund 100 per cent of the cost of other municipal services, including roads.“Transit is not treated fairly,” says Ontario’ s environment commissioner Gord Miller.
Development charges are fees paid by developers in recognition of the fact that new housing and commercial development increases the strain on municipal services.

Toronto City Council is meeting to decide the fate of the additional taxes for the portion they need to Co -Fund the TTC Subway Dig.

The Provincial Development Charges Act requires municipalities to adopt a development charges bylaw every five years, if not sooner, in order to implement its development charges rates. The City's development charges bylaw will expire in early 2014. The review is being conducted in order to adjust the development charges rates to reflect updates to the City's growth related capital expenditure plans, including the recently adopted 2013-2022 Capital Budget & Plan.Executive Committee Meeting – September 24, 2013

So if you are condo shopping and want to secure your purchase you will CAP your Closing Costs confirm the final square footage, ensure all development charges are included in the contract so the Purchaser's are not shocked by the fees to close.

Lets get you started on your way to living debt free.

Tuesday, September 10, 2013

Coverage for Special Assessments

Why Should you be Scared?
Why should you be afraid of Special Assessments? You can have coverage.

You can indeed get coverage for Special Assessments in a Condominium
1) You are covered; If through the Title Insurance it was OMITTED from the Status Certificate 
2) You are covered; Through your Home Insurance Coverage 

 II.  SPECIAL ASSESSMENT INSURANCEA unit owner can also obtain insurance coverage specifically for special assessments. This coverage will benefit a unit owner in circumstances where a condominium corporation suffers an insured loss, the insurance proceeds are inadequate to cover the costs, and the corporation levies a special assessment for the difference. This would only occur in very unusual circumstances.
A real life example involves a condominium corporation that incurred environmental clean-up costs because of a heating oil leak into the common elements. The town home units in this condominium had oil tanks that were buried in the common elements, which serviced each individual unit’s furnace. Pipes ran through the concrete basement floors of the units from the heaters to the oil tanks. As a result of a pipe break, oil seeped into the ground and the resulting environmental clean-up cost was over $300,000.
- See more at:

If you have not requested this coverage from your Independant Insurance Broker  I suggest you pick up the phone immediately and call someone who knows.

Coverage Chart – Condominium

Condominium Protection
Insured Perils
All Risks
Unit Improvements and Betterments
Unit Additional Protection
Common Elements Loss Assessment
$500,000 Single Limit
Limit is per occurrence for any one or combination of these coverages
$1 million condominium protection available
Building Fixtures and Fittings
10% of single limit
Will ChanB.A., FCIP, CRM   Branch Manager (Mississauga)  Pacific Insurance Broker Inc. 

Contact Will at William Chan <>

If you are looking for professional representation in the Toronto Condo Market call David 
Pylyp    647.218.2414