The revised Condominium Act, effective May 5, 2001, creates new concepts for future condominium projects. For example:
1) COMMON ELEMENT CONDOMINIUM CORPORATIONS:
- No residential units are created. The developer can sell shares (for example) in a recreational facility to owners of properties within the same Land Registry division in which the condominium is registered.
- The most common example are freehold townhouse projects with the internal roadways and walkways (including their maintenance and outdoor lighting), as well as any recreational activities are condominiumized.
2) PHASED CONDOMINIUM CORPORATIONS:
- Instead of three different condo corporations being registered in a three tower (three phased) condo project, the developer can establish a condo corporation which has the ability to add each phase of the building to the original registered condo corporation, once the phase is complete.
- The benefits will be to avoid much unnecessary expense flowing from creating different corporations for each phase of the same project, with different management companies, agreements, easements etc.
- In order to take advantage of this concept, all phases must be completed within a 10 year period.
3) VACANT LAND CONDOMINIUM CORPORATIONS:
- The units are vacant lots, although common elements are available for use. Common elements include recreational facilities, clubhouses, golf courses etc.
- The developer can establish restrictions regulating the type of housing to be built on the lots.
4) LEASEHOLD CONDOMINIUM CORPORATIONS:
- An institution with excess land can establish a lease term of 40 to 99 years so that unit owners will own a leasehold right for a certain period of time, with such leasehold right being capable of mortgaging, selling etc.
- The same lease term must be established for all units being built in the project.
- At least 5 years before the lease term expires, there must be a written notice by the lessor regarding a lease renewal, for a minimum of ten years.