Ontario Condo Law Blog : Toronto Condominium Lawyer & Attorney : Gardiner Miller Arnold Law Firm : Ontario, Ottawa, Hamilton, Kitchener

The Toronto Star reports that an ACMO luncheon panel to be held in September on the topic of the HST will feature a very brave parliamentary assistant to the minister of revenue.   The article also outlines ACMO and CCI's estimation of the impact the new tax will have on condo corporations and unit owners, which information has been submitted to the Ontario government.  (See ACMO's submission here.)

Update (Sept 27/09):   National Post reports on the above-mentioned ACMO luncheon here.

Unfortunately, it appears that arguments being made by the condo industry associations in support of exemptions or reductions of the HST  are falling on deaf ears, as are the pleas of every other industry association, social group and watchdog.   By all accounts the government has very clearly made up its mind on the HST and is now firmly focused on "selling" the tax to anyone who will listen.   The time for submissions and petitions has therefore passed -- Consumers and their condo corporations will be paying HST starting next July.   It now falls to condo boards to prepare themselves and their unit owners to deal with the coming new reality.

We wrote about the HST back in March when it appeared imminent that the province would introduce this new tax to help offset massive multi-year deficits.    We suggested back then that condo corporations begin budgeting for HST and establish a program of reducing expenses and increasing contributions to the common expenses and reserve funds.    See that piece here. 

With only ten months until the HST becomes effective, there is no time to lose.

What steps are you taking at your condo corporations?   

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The saga of the doomed luxury condo development at 1 Bloor in Toronto took an interesting turn earlier this month when the project was sold.

Great Gulf Homes announced that it had purchased the land at the corner of Yonge and Bloor Streets from developer Bazis International as part of a court-approved process to keep the project from falling into receivership. Bazis had initially purchased the land for $61 million but had defaulted on its loans before construction could begin.  

Despite the insolvency of the developer, those purchasers who braved the cold and lined up outside for days in late 2007 to buy units at 1 Bloor won’t lose a dime of their deposits (reportedly over $70 million). They can thank section 81 of the Condominium Act, 1998, which provides that deposits paid for the purchase of proposed condo units must be held in trust by a trustee or a law firm.  Section 82 provides that developers must pay interest on these deposits. 

Though their deposits are safe, those who purchased units at 1 Bloor are wondering what kind of condo they are going to get for their money.   The fate of the project won’t be known until after the sale to Great Gulf Homes closes in September but the new concept will probably be far less ambitious than the 80-storey, half-billion dollar skyscraper that was originally planned.  GMA's very own Gerry Miller shared his view on the project in this article in last Friday’s Globe and Mail.

Update (Sept 4/09):   Kris Scheuer of the Town Crier reports on her blog that 1 Bloor purchasers are now being refunded their deposits.

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Program details have been announced for the 13th annual ACMO / CCI Condo Conference, to be held November 6-7, 2009 at Hilton Suites Toronto/Markham.

Save the date now and plan to attend. Topics include:

• The ABCs of Tarion
• Working with challenging people
• Insurance
• Board conduct and ethics
• Annual condo lawyers update panel ... Not to be missed
• ...and more!

I am looking forward to speaking at the “Aging in Place” session where a property manager, interior decorator and I will focus on why your condominium should accommodate aging residents and how to do that effectively.

Visit www.condoconference.ca for program, speaker, exhibitor and sponsor information and on-line registration.

Register by September 30 for early bird pricing and to buy four registrations and get one free.

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Stark & Stark reports that the State of New York is considering legislation that will, if passed, require residential property managers to be certified by a state-approved certifying organization and then register with the state.

This approach may be an interesting hybrid between self-regulation and state regulation but, as with all legislative initiatives, the devil will be in the details (which can be seen here).

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Sections 132 and 134(2) of our Condominium Act make it mandatory for condo corporations and unit owners to mediate many types of disputes before proceeding to arbitration or commencing litigation. Among the disputes that must be mediated are disagreements over the declaration, by-laws or rules.

Despite the fact that mediation is mandatory in declaration, by-law and rule cases, this step is often by-passed where the parties don't agree on the selection of the mediator, as per section 132(1)(b) of the Condo Act.  This is a shame since the case will then proceed directly to arbitration and, in some instances, to court. The cost, complexity and level of animosity between the parties all increase sharply as the dispute progresses through the various stages. Early resolution  is almost always preferable.

In cases where mediation actually does take place, the likelihood of the dispute being resolved successfully depends heavily on a number of factors such as the skill of the mediator and counsel, the preparation and goodwill of the parties and, quite importantly, the ability of the parties to really listen to each other. Without proper preparation and anticipation of the likely concerns of the opposing party, mediation is often doomed to fail.

In a recent posting on the California HOA & Law Blog, attorney Beth Grimm shares her views on why mediation is the perfect way to solve condo disputes, why mediation often fails and what can be done to improve the odds of succeeding. Her comments are worth reading since they are perfectly applicable to condo disputes north of the 49th parallel.

Because mediation is mandatory for many condo disputes here in Ontario and since mediation represents an excellent opportunity to resolve disputes and heal divisions quickly and economically, board members, property managers and unit owners must equip themselves with the knowledge and tools to come to the mediation table to solve disputes.

Stay tuned in the coming weeks for more tips and insight into making the most of mediation.

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