TitlePLUS Times - Vol 7, no.2, June 2004

Products & Services

TitlePLUS Times
Vol 7. no. 2
June 2004

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Articles

Reserve Fund Studies and TitlePLUS Underwriting
Under the Condominium Act, 1998,¹ condominium corporations are now required to conduct Reserve Fund Studies² to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the expected costs of major repairs and replacement of the common elements and assets of the corporation.

Sub-sections 94(4) and (5) set out the time limits as to when the reserve fund studies must be completed depending upon whether the condominium corporation was created before or on/after the day s.94 came into force.

For condominium corporations created pre-proclamation, sub-sections 31(1), (3) and (4) of O.Reg. 48/01 set out that the corporation must have conducted a reserve fund study within 3 years of the day s.94 came into force. This means that May 4, 2004 was the deadline for such condominiums.

For condominium corporations created post-proclamation, sub-sections 31(2), (3) and (4) of O.Reg. 48/01 provide that the corporation must have conducted a reserve fund study within one year following the registration of the declaration and description.

Under ss.94(8), a corporation has 120 days after receiving the study to review it and propose a plan for adequate future funding. The reserve fund studies will provide more accurate and current information for a potential purchaser. As a result, you will likely begin to see more information in Status Certificates regarding reserve fund studies.

Due to the TitlePLUS Legal Service Coverage, you are required to input the following in your application, if applicable based on your review of the Status Certificate:

no Reserve Fund Study has been done and the deadline has passed;
if the Reserve Fund Study has been done and the reserve fund is stated to be inadequate; or
if the Reserve Fund Study has been done and there is an intent to increase the reserve fund.

TitlePLUS Underwriting for Registry Properties in e-reg™ Jurisdictions
Before electronic registration becomes mandatory in any jurisdiction, Registry properties will normally be converted to Land Titles Conversion Qualified ("LTCQ"). However, some properties will remain in Registry. These are commonly referred to as "Registry non-converts." Bulletin No. 2004-02 of the Ministry of Consumer and Business Services under the Land Titles Act ³ states:

When deficiencies or questions regarding the title in the Registry abstract are identified and ownership of the property cannot be guaranteed, the property is not converted … and remains under the governance of the Registry Act.⁴ ... The Land Registry Office may have information regarding the reason for the property not being converted and clients are encouraged to contact the Land Registrar prior to dealing with the property.

If you are dealing with this type of property, we recommend that you contact the Land Registrar as soon as you become aware that the property is still in Registry. You can then formulate a strategy for solving the problem, and/or decide whether the problem is a candidate for being "insured over." Please feel free to contact the TitlePLUS Underwriting Group at any time regarding these properties. We will be pleased to assist you with the problem, by suggesting methods of solving it, insuring it over, or a combination of the two. If we determine that the title is insurable under the law applicable to Registry properties, the fact that the property is a non-convert will not prevent us from insuring it.

As a result of the Bulletin noted above, members of the TitlePLUS Underwriting Group will now review all applications for policies involving Registry properties that are located in areas where e-reg™ is mandatory. If you submit a TitlePLUS application for one of these properties, and you have not previously discussed it with a TitlePLUS Underwriter, an Underwriter will contact you to discuss the non-conversion.

New Document Registration Agreement
The Law Society of Upper Canada posted a newly approved Document Registration Agreement on its Web site in April, 2004.

Please go to http://www.lsuc.on.ca/services/ dra_march04.pdf to access the new Document Registration Agreement.

ONHWP changes their name to Tarion Warranty Corporation
The Ontario New Home Warranty Program has changed its name to Tarion Warranty Corporation. Please see the Corporation's Web site at http://www.tarion.com/home for more information.

TitlePLUS News from LAWPRO

TitlePLUS Seminars 2004
The TitlePLUS Seminars have been a great success so far. The first seminar, which took place in Toronto on May 6, was attended by over 150 lawyers and staff. Subsequent seminars in London and Sudbury were also great successes.

The date and location of the final session is:

June 17 Ottawa

The agenda for all of the seminars is identical, with a focus on technology, fraud and underwriting.

For more information, please e-mail ForMost Events at formostevents@on.aibn.com or phone them at 416-383-0726 or 1-800-870-0008.

TitlePLUS Continues to Grow
Congratulations to the following TitlePLUS employees on their recent appointments:

Helen Antonopoulos, Consultant
Giselle Purcell, Senior Analyst
Monty Tayara, Senior Analyst

We are also pleased to welcome the following new employees to the TitlePLUS team:

Andrew Levin, Underwriter
Shawna Ramsay, Consultant

Tips for TitlePLUS Users

Got survey coverage AND an existing survey?
Do you already have survey coverage in your TitlePLUS application PLUS an existing survey? You DO NOT then need to have your client(s) review the existing survey for accuracy.

For more information, see our new Hotsheet on survey coverage at titleplus.ca.

TitlePLUS Communications
Please provide us with your e-mail address, so that we send communications, like the TitlePLUS Times, to you by e-mail.

If your e-mail address has changed recently, please send an update to titleplus@lawpro.ca with a subject line of "E-mail address update."

TitlePLUS Times updates real estate professionals about TitlePLUS developments and related changes in conveyancing. Comments and suggestions are welcome and should be forwarded to:

TitlePLUS
One Dundas Street West
Suite 2200, P.O. Box 75
Toronto, ON M5G 1Z3
Tel: 1-800-410-1013 or (416) 598-5899
Fax: 1-800-286-7639 or (416) 599-8341
E-mail: TitlePLUS@LAWPRO.ca
www.TitlePLUS.ca
titleplus.lawyerdonedeal.com

¹ S.O. 1998, c. 19.
² Ibid s.94 and relevant subsections.
³ R.S.O. 1990, Chapter L.5.
⁴ R.S.O. 1990, Chapter R.20.

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