Michael Power Contact Update

 

CONTACT UPDATE

Michael Power Place Phone List update

1 Michael Power Power Place M9A 0A1
Toronto Standard Condo Corp # 2457

Concierge 647 350 5518
Management 647 350 5523

Pets One dog< 20 lbs, 2 cats


3 Michael Power Power Place M9A 0A2
Toronto Standard Condo Corp # 2226

Concierge 416 792 8461
Management 647 340 7676

Pets One dog< 20 lbs, 1 cats


5 Michael Power Power Place M9A 0A3
Toronto Standard Condo Corp # 2013

Concierge
Management 416 645 3755 x505 Jessica

Pets One dog< 20 lbs, 1 cats


7 Michael Power Power Place M9A 0A4
Toronto Standard Condo Corp # 1793

Concierge
Management 416 637 7700 Icon

Pets One dog< 20 lbs, 1 cats

9 Michael Power Power Place M9A 0A5
Toronto Standard Condo Corp # 1808

Concierge
Management 416 236-7979 Icon

Pets One dog< 20 lbs, 1 cats


11 Michael Power Power Place M9A 5G3
Toronto Standard Condo Corp # 1576

Concierge
Management 416 231 4948

Pets One dog< 20 lbs, 1 cats



15 Michael Power Power Place M9A 5C4
Toronto Standard Condo Corp # 1544

Concierge
Management 416 231 4948

Pets One dog< 20 lbs, 1 cats


17 Michael Power Power Place M9A 5G5
Toronto Standard Condo Corp # 1518

Concierge
Management 416 901 8622

Pets One dog< 20 lbs, 1 cats

Condo Buyers generally uninformed about Maintenance Fees in NEW Building

 https://www.thestar.com/news/gta/2020/12/11/this-toronto-homeowner-was-shocked-when-her-condo-fees-jumped-over-30-per-cent-within-two-years-the-provinces-auditor-general-wants-better-disclosure-rules-for-developers.html  

Dear Victoria Gibson

Budget is prepared by Developer for future year ( first year of condo board at turn over) 
Reserve fund amount is only 10 % in First Year  (10% of OPERATING BUDGET)

Any shortfall in Budget; the Developer is responsible

This permits the NEWLY installed condo board to look at 

a) DID we get what we bought

b) Is the Budget enough

c) Condo reserve Fund Study and 

d) Performance Audit

e) Examine sweetheart deals 

OFTEN first Owners of a condo pay first and last to the condo fund to give the condo funds to pay gas electric water service etc. (BUFFER in the chequing acct)

SO let's recap with simple numbers

Your condo fee at $300 per month quoted by the builder is at 50 cent psf

Added to that is the RESERVE FUND Contribution of 10 cents PSF

So in reality its 60 cents PSF 
you paid first and last 

SO YOUR 600 square foot unit is projected to cost ( 50 ) is really 60 cent psf

Now at move in you  paid 360 X 2   

720 is buried in the documents where you cannot explain PHANTOM RENT 

Lets move forward  
Your maintenance fee of $360  

You actually paid $360 X 13   <<<  Remember the top up?

Year Two 

The Performance audit says that you need to ; Create a Table of Repairs over the 30 year remaining economic life of major components  IE elevator Hot water tank heaters elevators, the BIG STUFF

This will add 25 cents per square foot to your new maintenance fee;

PLUS hydro rates and garbage have increased so the building is paying an extra 10 cents, not to mention staffing and concierge.

Now the developer paid the lowest quoted price for every appliance installed.

Cheapest bid right?  Fridge stove washer dryer Heat Pump are having dramatic failure rates outside the new, warranty period and the natives are sure the Board of Directors is personally profiting.

Lawyers are wracking up 25 - 30 thousand per condo board to smooth out rules and regulations,  AVOID / BAN  Airbnb and install Condo standard Bylaws

(because the builder wants it registered and is not focused on UNIFORM BYLAWS for the new owners.....    There's a story )

Your unaware uniformed condo buyer now gets a 15 % increase in fees...
But was it ?

Given the first year is padded with an extra payment 

360 x 13 = $468

The extra $40 per month on the 360 is huge

$40 on the $468 is not so much. 

It may actually be 7 - 8 % 

Very much reflective of actual expenses.

Talk to informed EXPERIENCE Realtors when making these purchases

PLEASE Take your documents to a Lawyer to explain what you have purchased. 

( 80% of buyers do not bcos they feel all builders are standard.  They are not)

If you flip   YOU PAY HST 

That's a different conversation.

List With Dave 

Renoviction or Own Use? Which one?

Landlords are moving back in or taking control of their properties;

The first are evictions for an "own-use" claim by a landlord, such as a landlord saying that they or an immediate family member are moving into the property. There were 323 of these applications at the LTB in 2015, and the number has steadily risen each year since, with 595 in the 2018-2019 fiscal year.The second type of no-fault eviction is for for renovations, repairs or conversions that require the tenant to move out. These are often called renovictions by housing advocates. There were 18 of these applications in Toronto in 2015. The number has increased each year since, with 71 in the 2018-2019 fiscal year.  https://www.cbc.ca/news/canada/toronto/toronto-rental-evictions-report-1.5369521

I actually wonder how they are tracking these applications given that the filing system is by property address.

Buy a Rental with less than 20% down

Would you?

Seems that many are buying with less than 20% down and purchasing CMHC Insurance on the mortgage debt.

In its latest market report, Canada Mortgage and Housing Corporation stated that the number of rental housing units it insured grew by 35% annually during the quarter ending September 30, 2019.
“We’ve seen increased demand in rental housing, which remains an important housing solution for many Canadians. We have continued to provide support for this option through our commercial activities and National Housing Strategy initiatives,” CMHC chief financial officer Lisa Williams said. https://www.mortgagebrokernews.ca/news/insurance/cmhc-reports-notable-increase-in-the-number-of-insured-rental-homes-323420.aspx#.XeUdZZe_LB0.twitter

The market appears unabated...

What do you think?  

Lets book a time to talk 

http://Calendly.com/davidpylyp 

Will you continue to Airbnb your Condo?

Will you continue to rent your condo as an #AIRBNB

It’s been a two-year fight. Landlords and the booking site have resisted every step of the way, and refused to voluntarily comply with municipal regs. For more than 20 months the issue has been before a tribunal, and now the decision’s been made. City, 1. Airbnb, 0.
All those units bought to rent out by the night (usually against condo board rules) are now illegal. Short-term rentals will be allowed only inside a landlord’s principal residence, and for no more than 180 nights s year. Homeowners can rent a max of three bedrooms, and not for more than 28 days at a time. No rentals will be allowed in basement or secondary suites. Landlords need to register and pay a fee plus a 4% accommodation (hotel) tax on revenues.
Of course by registering, landlords also join a database which is shared with the CRA – so anyone not declaring Airbnb (or VRBO) income is probably asking for an audit.  https://www.greaterfool.ca/2019/11/20/shared-stupidity/

No confusion there. 

The question is will you continue renting as Airbnb? 

Learn How to Get Closing Cost Credits.

Attention Home Buyers, Learn How to Get Closing Cost Credits.

Closing Costs Credit

Are you a first time home buyer?  Are you using 95% Financing  or low down payment Financing, i.e. 5.0% or 10.0%  down payment programs?

Do you need to preserve some of your savings and need options?

One way to do this is to get some or all of your closing costs covered as part of negotiating your purchase with closing cost credits.  This is not automatic, it is not guaranteed to happen if you write your offer with another real estate agent. 

Take advantage of our expertise in assisting home buyers navigate through the home buying process.  Get into the right house for the right price.

Those enrolled in my FREE Home Buyer Program can get up to $2,500.00 in closing costs

GUARANTEED!

Enroll NOW! in my FREE Home Buyer Program and lock down your closing cost credit. In order to qualify for this program please fill out the form below.  This information will not be shared with anyone.  We will contact you for an initial no obligation free consultation.

Click Here

*some conditions apply
*requires purchase of resale property on the Toronto MLS system with 2.5% CB commission
*Minimum Purchase Price $500,000. CDN $
*Toronto GTA
*Offer Expires March 31st 2020 *Not intended to solicit Buyers under contract

How can you see inside?

Five days on the market. That’s how long it took David of RE/MAX realty specialists Inc., to put 1910 Lake Shore LPH04, a pretty split plan 2 bed condo, under contract in the peak month of June in Toronto. .

Pylyp attributed the swift and successful sale to his agency’s marketing expertise – specifically, the #Matterport 3D tour and the high-definition photography that so perfectly conveyed the condo’s interior and exterior appeal.

“The National Association of REALTORS® found that 93 percent of buyers overall, and 99 percent of Millennials, used the Internet in their home searches,” Pylyp said, citing the NAR’s 2018 “Real Estate in a Digital Age” report.

“That’s a huge percentage. More and more people first see their future home online. It is their introduction and all-important first impression.

“So doing our best for sellers means using the latest technology – Matterport 3D tours, professional photography, and drone aerials – to create immediately compelling visuals,”

Not every agency offers these services. Some who do charge an extra fee, but with David Pylyp of RE/MAX realty specialists inc., Brokerage, there is no additional cost to the seller. All the photographic work is expertly produced by David Pylyp, in collaboration with other REALTORs® at RE/MAX Realty Specialists Inc.

http://Bit.Ly/PenthouseView

Call today.

Shared Equity Mortgage

Government of Canada offers Home-ownership Incentives


The First-Time Home Buyer Incentive launches September 2, 2019*.

* The program will be ready to receive Incentive applications on September 2, 2019 (barring any unforeseen circumstances). The first closing will take effect on November 1, 2019.

There are a few qualifiers to apply for this incentive:

• you need to have the minimum down payment to be eligible
• your maximum qualifying income is no more than $120,000
• your total borrowing is limited to 4 times the qualifying income

If you meet these criteria, you can then apply for a 5% or 10% shared equity mortgage with the Government of Canada. A shared equity mortgage is where the government shares in the upside and downside of the property value.

How does it work?
The Incentive enables first-time homebuyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments.
Through the First-Time Home Buyer Incentive, the Government of Canada will offer:
• 5% for a first-time buyer’s purchase of a re-sale home
• 5% or 10% for a first-time buyer’s purchase of a new construction

How do I know how much I have to pay back?
You can repay the Incentive at any time in full without a pre-payment penalty. You have to repay the Incentive after 25 years or if the property is sold, whichever happens first. The repayment of the Incentive is based on the property’s fair market value.

• You receive a 5% incentive of the home’s purchase price of $200,000, or $10,000.
• If your home value increases to $300,000 your payback would be 5% of the current value or $15,000.
• You receive a 10% incentive of the home’s purchase price of $200,000, or $20,000 and your home value decreases to $150,000, your repayment value will be 10% of the current value or $15,000.

NOTE: If your property value goes down, you are still responsible for repaying the shared equity mortgage based on the current home value at time of repayment.

This has so many reasons to avoid the whole program. Let's talk about it  You will be glad we did

You are entitled to every condo document except priviledged

Can you ask for Condo Documents?

Condo Authority Tribunal-Tips

The 2017 amendments to the Condominium Act, 1998 (the “Act”) created the Condominium Authority Tribunal (“CAT”), an online tribunal that helps settle and decide condominium-related disputes in Ontario. Since its inception CAT has exclusively handled record related disputes between owners and condo corporations. It is expected that CAT will handle other owner-condo related disputes sometime in the future.

Our office had the pleasure of representing a few of our condo clients in CAT proceedings. So we thought we’d share some tips and “tricks” for managers and boards to avoid and handle record-related CAT disputes.

TIP 1: Don’t fur-get to respond!. Do not ignore a records request, even if the forms aren’t correctly completed. A corporation has 30 days to respond to a records request using the standardized board response form, outline the estimated fees for preparing the records (if applicable), and indicate any records that the Corporation will not disclose. Responding to a records request on the prescribed form and within the prescribed timeline may entirely avoid a CAT proceeding!

TIP 2: Purr-haps production? The 2017 amendments to the Act enhanced the “open-book” principle for corporation’s records. What does this mean for corporations? An owner is likely (not always) entitled to most records of the Corporation unless they are exempt from production pursuant to section 55(4) of the Act or for instance, solicitor-client privilege. Of course every case is different and there may be other instances where records could be reasonably withheld from an owner. When in doubt, consult your legal counsel.

TIP 3: Fur-ward to CAT: If an owner submits a dispute to CAT, the corporation will receive a “Notice of Case”. Once you receive the notice, the corporation must respond by joining the case on the CAT’s online system within seven days. If you fail to join the case, CAT may make an order without the corporation’s input or participation, which as evidenced in numerous CAT decisions, can lead to costs implications against the corporation, upwards of $5000. Moral of the story, join the case!

TIP 4: The CAT’s meow: The CAT process has three stages: negotiation, mediation and adjudication. In the negotiation phase, users will work collaboratively to try to resolve the issues in dispute, including providing settlement offers and exchanging messages. In the mediation stage, a CAT member is assigned as mediator to assist in clarifying the issues in dispute, help users understand their rights and responsibilities and suggest settlements to the parties. If the parties are unable to reach a settlement, the owner has an opportunity to move the matter onto the third stage, adjudication. At the adjudication phase, a CAT member is assigned to consider and render a decision based on all the evidence before it. Just like any type of litigation, settling in the early stages of the CAT process will help avoid corporations incurring avoidable costs.

TIP 5: Meta-fur-kitty speaking: The CAT Rules of Practice provide that every user or representative must check the CAT online system and their emails for communication related to their case at least once every business day, or as often as directed by CAT. The CAT member assigned to your case will also dictate deadlines for the submission of items in the adjudication phase. Failure to meet these deadlines can lead to costs implications against the corporation. Whoever is representing the corporation should keep a close eye on their emails and frequently access CAT for new updates.

http://www.lashcondolaw.com/condo-authority-tribunal-tips

HST on Condo Purchase 2019

Obtain Clearance Certificate

The recent court decision has profound chilling effects on the entire real estate and legal community;

REALTORS® are obligated in Ontario to complete a Fintrac Report on your purchase or sale (rental)  This consists of two valid pieces of ID used to IDENTIFY the transaction participant.

No where do I have access to verify if the seller of a property is a Resident or Non Resident for the purposes of Revenue Canada.

THE STORY
This is the case of Kau v. the Queen (2018 TCC 156). In June, 2011, Mr. Kau purchased a condo in Toronto from Mr. Y for $368,000. Mr. Y might have been a non-resident for Canadian tax purposes (he had a California address), although Mr. Y himself said that he was “not a non-resident.”
Why does this matter? Well, Section 116 of our tax law will require a purchaser of Canadian real estate to withhold 25 per cent of the purchase price and send it to the taxman if buying the property from a non-resident person. This is meant to ensure that non-residents who own and then sell Canadian real estate pay their share of taxes on any capital gains.
Section 116 requires the buyer to make a “reasonable inquiry” and have “no reason to believe that the seller is a non-resident of Canada.” Without this reasonable inquiry and belief about the seller, the buyer is supposed to withhold 25 per cent of the purchase price and send it to the taxman.
In our story, Mr. Kau didn’t withhold 25 per cent when paying Mr. Y. You see, Mr. Kau’s lawyer did ask about Mr. Y’s residency status. The response received was a signed affidavit that read “I am not a non-resident of Canada within the meaning of Section 116 of the Income Tax Act (Canada) and nor will I be a non-resident of Canada at the time of closing.”
This “declaration” by the seller wasn’t good enough for the Tax Court judge, because it wasn’t a “solemn declaration” (which carries the weight of an oath). He concluded that Mr. Kau did not undertake “reasonable inquiry” and should have had reason to believe that Mr. Y was a non-resident.
The result? Mr. Kau lost his case, and must now fork over $92,000 (25 per cent of $368,000) to the CRA, representing the withholding tax that should have been deducted from the purchase price paid to Mr. Y.
THE NONSENSE
So, the onus is now on the buyer of real estate to not only collect taxes on behalf of the CRA when a non-resident is selling a property, but to also make a judgment on when to investigate further the tax residency of the seller – as though a layperson is qualified to know when and how to make that inquiry.    https://www.theglobeandmail.com/investing/personal-finance/taxes/article-ensure-youre-in-the-clear-tax-court-decision-serves-as-warning-to/

So, in addition to collecting your fintrac data  I am now required / should to protect my buyer make enquiries about Residency Provisions of the Home / Condo Sellers.  This form is called the Individual Identification Information Record.   See for yourself 

Asking for your Drivers License with your home address is not sufficient.   I followed this story 3 if not 4 years ago with this enquiry with Stan Gelman  https://youtu.be/VP4wlqELB5g

DID you agree to receive Notices via Electronic Transmission

We all agree E Mail is convenient

But sometimes a written letter; weighty in its importance will make you observe and deal with the contents.

If you agree to receive notice by email the importance may be missed or the JUNK folder filled.

RE:          New Lien Instruction Form  We attach here our new Notice of Lien/Lien Instruction Form. As you know, there have been some recent changes to the Condominium Act, 1998. One particular change which may affect the way lien notices are communicated to owners is the section governing Service on an Owner, Section 47(4). We will require you to complete the "Consent to Electronic Delivery" section of the instruction form, in the following cases:

• where a unit owner has indicated, in writing, that they agree to receive service electronically; and/or

• where the corporation has, on record, a duly completed "Agreement to Electronic Delivery".  (Must comply with Section 47(4), 47(6) of the Condominium Act, 1998, and 12.7 of O. Reg. 48/01.)

... office will send all notices by both mail and email, where an email address is provided.

 It is more convenient, but have you ever missed something important?  

What do you think? 

Court refuses to Amend Declaration of Condo Corporation

Do you have a unit at Toronto Standard Condo Corp 1556 Also Known As Skymark Center at Avondale - West Structure. Toronto Standard Condominium Corporation #1556. Address 78 Harrison Garden Boulevard?

Do you have a unit at Toronto Standard Condo Corporation 1600 Also known as  SKYMARK AT AVONDALE II, 80 HARRISON GARDEN BLVD, Toronto, Ontario?

Should you have known about this before your purchase? 

In a recent case, (TSCC No. 1556 and No. 1600 v. Owners of TSCC No. 1556, et al), the Ontario Superior Court of Justice refused to grant a court order to amend the declarations of two corporations to eliminate provisions in their declarations which specifically permitted transient, short-term rentals in the condominiums.

The two corporations were developed by the same builder and contained identical provisions in their declarations dealing with short-term rentals. The declarations specifically stated that transient short-term rentals were permitted in accordance with the applicable zoning by-laws. In addition, there were also numerous provisions in the declarations that any restrictions in the declarations were not to be construed to prohibit or restrict short-term rentals.

The condominium corporations took the position that the short-term rental provisions:

§ were inconsistent with the Condominium Act, 1998 (the “Act”) because they impermissibly granted rights relating to occupancy and use (when the Act only allows declarations to contain conditions or restrictions with respect to occupancy and use), and because they interfered with the ability of the board of directors to make rules;

§ were inconsistent with the City zoning by-laws; and

§ were inconsistent with a restrictive covenant registered against the condominium properties which prohibited the construction of commercial space.

All three of these arguments failed on the following basis:

§ The declarations did not grant any rights as the right to lease property is a right of ownership. The declarations merely confirmed that any provisions in the declarations which restricted uses, did not restrict the right to lease, and thus there was no inconsistency with the Act.

§ As section 58(2) of the Act specifically states that rules must be consistent with the declaration, the condominium boards clearly could not make any rules prohibiting or restricting short-term rentals, as this would be inconsistent with the declarations.

§ The wording in the declarations specifically stated that short-term rentals must be in compliance with the applicable City zoning by-laws in effect from time to time.

§ While short-term rentals of residential units may be a commercial use, this was not contrary to the restrictive covenant, as there was no construction of commercial space in the condominiums and the restrictive covenant did not prohibit leasing residential units for a commercial purpose.

§ The disclosure documents delivered to purchasers when they entered into their agreements of purchase and sale specifically stated that short-term rentals were permitted and some purchasers relied on the ability to lease their unit on a short-term basis when making their purchase decision.

As the court application failed, the only avenue to amend the declarations would be to obtain the written consent of the owners of 80% of the units in accordance with section 107 of the Act. Eighty per cent consent is a high threshold and often difficult to obtain. In this case, as the disclosure documents and the declarations clearly stated that there were no restrictions on the leasing of units, many of the owners may have relied on this when making their purchase decision, and thus would not consent to amending the declarations to prohibit or restrict short-term rentals. http://www.lashcondolaw.com/court-refuses-to-amend-condo-declaration-to-ban-short-term-rentals/ 



So these BUYERS who acted in good faith to purchase a suite for occupancy or investment;

a) Did they take the condo status documents to a lawyer to have it things explained?
     ....... 80 % do not  assuming that all condo documents are the same
b) Are you content to remain in your purchase?
c) Has your investment been soured by this experience?

Add your comments below 

A Guide to the New Condominium Act Forms

Nov 1,  2017

As of yesterday, many changes to the Condominium Act came into effect that affect the day-to-day responsibilities of condo corporations.

Some of the changes require corporations to use Ministry forms where they weren’t previously required.

The Ministry released the new forms corporations will have to use for: proxies, to provide notice of meeting, and the three types of information certificates, among others. Here is a list of the new forms:

Information Certificates

1. Periodic Information Certificate

This “mini status certificate” provides owners with updates on finances, insurance, reserve fund, board, and other matters throughout the year.
Tip: This must be sent out twice per year – within 60 days after the last day of the first and third fiscal quarter.

2. Information Certificate Update

This certificate is triggered on certain events, such as a change in the directors, or change of the corporation’s address for service.
Tip: There are different time periods for sending out the Information Certificate Update depending on the type of triggering event. For example, if the board loses quorum, this must be sent out within 5 days of losing quorum, whereas a corporation has 30 days to send out the notice for a mere change in the number of directors.

3. New Owner Information Certificate

This notice contains the most recent Periodic Information Certificate and Information Certificate Update.

4. Notice of Online Posting of Information Certificate

A corporation must send this notice to owners if it decides to post any of the information certificates online (such as through property management’s web portal)

Proxies

1. Proxy Form

This form must be used by owners or mortgagees voting by proxy at a meeting of owners.
Tip: Proxy forms can be used at an adjournment of a meeting of owners. If, for example, there weren’t sufficient owners present at an AGM to pass a by-law, proxies submitted for the purpose of passing a by-law at that AGM can be used at a subsequent meeting of owners.

Notices

1. Preliminary Notice of Meeting of Owners

This notice is meant to give owners an advance notice of the purpose of the meeting of owners.
Tip: This must be sent out at least 35 days before the meeting date.

2. Notice of Meeting of Owners

This form is required for sending owners notice of an upcoming meeting of owners.
Tip: This must be sent out 15-20 days before the meeting date.

Record Requests

1. Request for Records

This form must be used when an owner, mortgagee or purchaser requests records.

2. Board’s Response to Request for Records

This form must be used by the board of directors when responding to a record request from an owner, mortgagee or purchaser.
Tip: The board must respond to the request within 30 days.

3. Waiver by Requester of Records

This is an agreement between the requester and the corporation that allows the requester to waive certain rights with respect to the corporation’s response to the record request.

Other Forms for Owners

1. Notice of Meeting of Owners under s.34(5) of the                                   Condominium Act

This must be used by owners who wish to call a meeting to fill vacancies on the board if the board loses quorum and the remaining directors do not call within 15 days of losing quorum, or if there are no directors in office.

2. Submission to Include Material in the Notice of Meeting of Owners

This form must be used by owners if they wish to submit material to the board to be included in the upcoming Notice of Meeting of Owners
Tip: Although owners can request material to be included in the notice of meeting, the board is not obligated to include this material unless the submission is made on behalf of owners of 15% of the units (or more), and the submission would not add anything that is contrary to the Condominium Act or the regulations.

C/O Lash Condo Law 

Tax on Flipping 50%

David Rotfleisch, a tax lawyer with taxpage.com, said there are two ways in which a condo transaction could be taxable, either as capital gains or income.

“If you buy a condo and you live in it and you subsequently sell it, there is an argument that it is a capital transaction. You bought something and sold something,” he said. “But if you are buying paper and selling paper, there is no other argument than it is a debenture in the nature of trade and therefore fully taxable as income and therefore has to be fully reported. So anybody who has been involved in flipping condos or paper and who has not reported the transaction, is technically committing tax evasion.”

Denise Lash of Lash Condo Law noted the practice is common in the condominium industry.

Denise Lash, Lash Condo Law

“A lot of real estate agents or developers hold preliminary open houses for family and friends,” she said. “They get special pricing, hold on to it for three years and that’s when the assignment flip occurs. People will continue to assign, but the question is if they declaring that income.”

Lash said the CRA’s probe “makes sense” because of the issues in the marketplace.

“I would think no developer would take the position that anybody who’s making a profit on any resale shouldn’t pay tax. It should be handled the same way anybody else pays tax,” she said. “From the point of view of an investor who wants to assign, this shouldn’t discourage them — they should be disclosing and filing their taxes anyway.”

Both the Ontario and B.C. governments have given preliminary thoughts to creating some sort of registry system to track assignments in their provinces. But Rotfleisch said assignment sales have been a significant issue for years and feels any oversight should be done at a federal level due to the number of tax transaction reporting requirements involved.

“It is grossly overdue,” he said. “It is almost negligible on the part of CRA because it’s a well-known problem, it’s been a problem for years and it’s an easy fix.”

Csepregi said if there is reason to believe that a taxpayer has been noncompliant, their file will be referred for audit and may be reassessed based on the result.

“The CRA will apply a penalty equal to 50 per cent of the additional tax payable if a taxpayer knowingly makes a false statement when filing a return,” he said.

Flipping 

Do you have a condo you want to sell?

http://DavidPylyp.com 

CRA chases flippers

“The profits from flipping real estate are generally considered to be fully taxable as business income,” CRA spokesperson Zoltan Csepregi told The Canadian Press via email. “The facts of each case determine whether such profits should be reported as business income or as a capital gain.” Real estate deals in the Greater Toronto Area and Vancouver have been the subject of greater scrutiny....


Didn't declare that flip?  

Time for a voluntary disclosure.

The Canada Revenue Agency is analyzing 2,810 transactions involving cases of pre-construction condominium flipping in Toronto to determine whether audits need to be carried out to find tax evaders.

In the Toronto area, audit work has picked up accelerated on what are called “assignment sales” or “shadow flipping”, in which a condo is purchased from a developer and sold to another buyer before the unit is completed.


http://www.mortgagebrokernews.ca/news/cra-analyzing-nearly-3000-condo-flipping-cases-in-toronto-232980.aspx

Fair or Foul? 

Implementing Bill 160 Condominium Authority of Ontario (COA)

Laura McKeen

The condominium industry will be undergoing significant changes in the next few weeks. On Dec. 3, 2015, the Protecting Condominium Owners Act, also known as Bill 106, received royal assent by the Ontario Legislature. Bill 106 is important because it marked the first overhaul of the province’s condominium law in over 16 years. When it comes into force It will:

• amend significant parts of the Condominium Act,1998 (the Condo Act);  
• enact the Condominium Management Services Act (the CMSA);
• make amendments to other relevant acts, including the Ontario New Home Warranties Plan Act.

Many important aspects of the reforms are being implemented through regulations, some of which have been released. Many of the changes to the Condo Act will come into force on Nov. 1, 2017. This includes those provisions dealing with the new dispute resolution tribunal, but will also likely include any provision addressed by the regulations released so far. The licensing provisions of the CMSA will also come into force. Importantly, Bill 106 also creates two new administrative authorities: the Condominium Authority of Ontario (CAO) and the Condominium Management Regulatory Authority of Ontario (CMRAO).

The CAO 

The CAO was designated on Sept. 1, 2017, and is responsible for the administration of certain parts of the Condo Act.  

Currently, there are no educational requirements to become a director of a condominium board. This is changing. The CAO will implement mandatory training for condo directors to ensure smoother operation of condo corporations. The CAO’s website provides information and training about: rights and responsibilities of condo owners; the roles and responsibilities of the board of directors and condo management; and changes to the Condo Act. Information is also available about common issues and disputes that arise in the condominium communities to assist owners and corporations in proactively resolving issues.

The CAO provides services and resources for condo corporations and condo owners. These include:

• information to help owners and residents understand their rights and responsibilities;
• mandatory training for condo directors;
• resources to help condo owners and residents resolve common issues; and
• dispute resolution services through the Condominium Authority Tribunal (CAT).

Starting on Nov. 1, 2017, the CAT will offer a new, online dispute resolution process. The CAT can only adjudicate the types of disputes identified in the regulations. Currently the only types of disputes identified are disputes about records (Section 55 of the Condo Act), but the CAT’s scope is expected to expand in the near future. Certain disputes are excluded from the jurisdiction of the CAT, including: disputes involving Part III of the Condo Act (ownership); liens; and the determination of title to real property. Where the CAT does have jurisdiction, it will have exclusive jurisdiction to exercise its powers. Appeals on questions of law will go to the Divisional Court.

It is expected that in early 2018 the CAO will also provide a publicly available, searchable, online registry of all condominium corporations in the province. In order to fund its services, the CAO will charge user fees and monthly fees to condo owners (currently $1 per voting unit). This fee will be payable through the condo corporation. All condominium corporations in Ontario are required to register with the CAO and pay their initial assessment fees by Dec. 31, 2017. The initial assessment fees will cover the period from Sept. 1, 2017, to March 31, 2018.  

The CMRAO 

On Nov. 1, 2017, the CMRAO will be designated as the condo management authority. The CMRAO will be responsible for administering the CMSA, including regulating and licensing managers.  

The CMRAO will be responsible for administering the CMSA, including:

• a compulsory licensing system for condominium managers and condominium management providers; training, education and other requirements for condominium management licences;
• a code of ethics;
• regulation of the conduct of licensees; and
• the handling of complaints about condominium management services.

Currently, Ontario has no minimum requirements for condominium property management companies or property managers. This will change on Nov. 1, 2017. Individuals and companies who provide condominium management services on or after that date will need to apply for a licence. As of Jan. 30, 2018, it will be illegal for any person or firm to provide condominium management services unless they have applied for or hold a condominium management licence. Illegal condominium management practice may jeopardize future licence applications.

Over the next few weeks, the condo industry will be adjusting to the new regulatory regime, including mandatory training, licensing and new dispute resolution systems. Even when these changes are made, Bill 106 will not be fully implemented. More changes will be coming as new regulations, guides and forms are released.

Laura McKeen is a partner with Cohen Highley LLP in London, Ont. Cohen Highley has offices in London, Kitchener, Chatham and Sarnia. She provides risk management and regulatory compliance advice to housing providers and property management companies. She can be reached at mckeen@cohenhighley.com or 519-672-9330 x 427.    https://www.thelawyersdaily.ca/realestate/articles/4919/implementing-bill-106-big-shake-up-for-the-condominium-industry-?nl_pk=d95c6284-5ba7-4473-8d78-cd2edd904169&utm_source=newsletter&utm_medium=email&utm_campaign=realestate

Laura McKeen