List of Ten Key Steps to Take During the Corporation’s First Two Years
The first two years are often the most important years in the life of a condominium corporation.
Here’s a list of ten key steps to take during the corporation’s first two years:
- Arrange for the corporation’s first reserve fund study before the corporation’s first anniversary (section 94.(4) of the Condominium Act). Then prepare the corporation’s first reserve fund plan.
- Arrange for proper turnover from the Declarant (section 43 of the Condominium Act).
- If the corporation includes one or more units for residential purposes (and also in the case of common elements condominiums) arrange for the first-year performance audit and for claims to Tarion (section 44 of the Condominium Act). [NOTE: Consider a second-year update to the performance audit, to be submitted to Tarion as a second-year claim. Also consider whether or not ordinary Court claims should be launched, in addition to claims to Tarion.]
- Check for any required amendments to the Declaration, Description, By-laws and Rules.
- Takes steps to recover any first-year budget deficit from the Declarant (section 75 of the Condominium Act).
- Consider any agreements arranged by Declarant. Should steps be taken to terminate or amend any such Agreements (sections 111 to 114 of the Condominium Act)?
- Did the Declarant fulfill all of its commitments set out in the Disclosure Statement? Also consider any required claims for false or misleading disclosure.
- Has the Declarant paid all condominium fees on units owned by the Declarant (from the date of Declaration to the date of transfer)? Be sure to lien within the 90-day lien period.
- Consider any Conflict of Interest Issues – if any representative of the Declarant remains on the Board.
- Is there any need to make changes to the status certificates? Note in particular paragraph 12 of the status certificates. [Is the corporation aware of any circumstances that MAY result in an increase in common expenses?]