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:

  1. 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.
  2. Arrange for proper turnover from the Declarant (section 43 of the Condominium Act).
  3. 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.]
  4. Check for any required amendments to the Declaration, Description, By-laws and Rules.
  5. Takes steps to recover any first-year budget deficit from the Declarant (section 75 of the Condominium Act).
  6. 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)?
  7. Did the Declarant fulfill all of its commitments set out in the Disclosure Statement? Also consider any required claims for false or misleading disclosure.
  8. 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.
  9. Consider any Conflict of Interest Issues – if any representative of the Declarant remains on the Board.
  10. 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?]