Guidelines for insurance for condominium unit owners.
This memorandum is intended to provide you with some basic guidelines and information. Your insurance requirements should be determined in consultation with your insurance agent.
Betterments and Improvements
The insurance the Condominium Corporation maintains on your unit will only cover the unit as it was originallybuilt by the developer, excluding any extras or improvements acquired at the expense of the original purchaser. It does not cover the contents of your individual unit or locker, nor any betterments and improvements made to the unit by you, a previous owner of the unit or the developer. For example, these betterments could include wall-to-wall carpeting, mirrored walls, other wall coverings, remodelled kitchen or bathroom finishings or improved light fixtures and appliances.
If changes have been made to the condominium unit (apartment or townhouse) as originally supplied by the builder, you should ensure that these items are covered and your insurance increased by the amount of each improvement. There is no provision in the condominium’s policy for cost sharing. If you have replaced the kitchen cupboards, you must insure the incremental value of the replacement if you expect to have the damaged cupboards replaced by a like kind. The condominiums policy will only replace the cupboards in a similar quality to those originally supplied by the builder.
Liability Insurance
Your insurance program should include personal liability coverage to protect you against any actions by third parties for personal injury or property damage caused by any personal act or omission or failure to repair or maintain your unit. You should discuss the appropriate amount of insurance to carry with your insurance agent.
Living Allowance
If your unit is damaged to the extent that it is uninhabitable, your insurance policy should provide coverage for any living expenses you may incur as a result of not being able to reside in your suite as repairs are being made. Again, discuss the amount of coverage with your insurance agent. This coverage is not provided in the Condominium Corporation’s policy.
Sewer Backup Rider
If you have purchased a condominium townhouse you should confirm with your insurance agent that your policy of insurance provides protection in the event the sewers back up into your basement or other area of your home.
Contingent Building and Liability Insurance
This provision covers damage to your unit when the Corporation’s policy cannot respond or is insufficient. It is, in effect, excess coverage beyond that of the Corporation. The Corporation’s policy will always be primary because it will respond first. If the cause of the loss is not covered by the condominium, or if the extent of the coverage is insufficient (depending on the event) this contingent building insurance may help you out. It very rarely applies but it may be useful and is typically fairly inexpensive.
Land Transfer Tax or “sales tax” levied by the Province of Ontario. The amount of the tax increases as the purchase price increases. Tax is payable in connection with the purchase of any real estate (including condominiums, cooperative apartments and vacant land) in Ontario Land Transfer Tax (L.T.) is calculated as follows:
Land Transfer is paid at the time of closing with a real estate lawyer Toronto. When you co for your appointment to sign the closing document, the bank draft or certified check that you will be asked to bring with you will include the balance of your down payment, your Ie I fees and out-of-pocket expenses, any money deducted by the mortgagee from the advance of mortgage proceeds and the Land Transfer Tax.
If you are buying a new home from a Builder you can usually obtain the keys at the site office immediately after closing. Generally speaking, you should not plan on obtaining the keys until mid-afternoon on the day of closing.
If you are purchasing a resale property, the keys will be delivered to my office by the Vendors Solicitor at some point during the day of closing. Again, generally speaking, the’ keys will be available to be picked-up from my office at some point during the afternoon of closing. Naturally, the keys can not be released by my office to you until the closing has been completed. The closing is completed when the balance of the purchase price has been delivered to the seller’s lawyer, the vendor’s closing documentation has been delivered to my office and the Deed and Mortgage have been registered. This process is usually completed electronically by 3:30 p.m. on the day of closing. However, if you look at the form of Agreement of Purchase and Sale that is commonly used in Ontario you will find that paragraph 7 of the Agreement provides for the closing to be no later that 6:00 p. m. on the day of closing. Accordingly, there are occasions when keys will not be available until quite late in the afternoon. When arranging your movers you should keep in mind that you may not have the keys until later in the afternoon.
Although we endeavour to have the key available to my purchasing clients by 3:30 p.m. on the day of closing there are circumstances that can delay the release of keys. For instance, if you are selling as well as buying on the same date (see bridge financing) then naturally we can not complete your purchase until we have the funds from your sale. If there is a delay by the person or lawyer for the person, purchasing your home then this will result in a delay in the closing of your purchase. Similarly, if you have arranged a mortgage with respect to your purchase the closing funds can not be delivered to the seller’s lawyer until I have received from your mortgage company or bank the proceeds of your new mortgage.
Read also
What is the difference between a Power of Attorney and a Will?
What is Land Transfer Tax and how is it calculated?
New Home Cost
Moving Numbers
Condo Insurance
Power of Sale
When a homeowner is in default with their mortgage payments, a lender can rely upon a power of sale provision in their standard charge document to lease or sell the property on default. If there is no provision in the charge document, the lender may rely on the Mortgages Act which authorizes Power of Sale.
Steps of a Power of Sale
A homeowner, spouse, and encumbrancers after the lender may be served with a Notice of Sale after 15 days of default. The mortgagor is provided a minimum of 37 days of redemption period to pay off the principal and interest amount owing. During the notice period, the lender cannot negotiate or accept any payment, otherwise the Notice becomes void.
Once the notice period expires and payment is not received, the lender may issue a Statement of Claim with the Superior Court of Justice to take possession of the property. However, Statement of Claim may be served in conjunction with the Notice of Sale.
Once the Statement of Claim is issued, the borrower is provided a minimum of 20 days to file a Statement of Defence with the Court. It is important to note that the lender may provide an extension to the borrower to file a Statement of Defence.
If a Statement of Defence has not been made by the borrower the lender can note the defendant in default, then file a motion to get an order for a writ of possession. The writ of possession is then provided to the Sherriff’s office in order to issue an eviction notice.
If the property is listed for sale, the lender has an obligation to the mortgagor to conduct an appraisal of the property and list the property at true market value through a brokerage. However, the property is sold in “As Is” condition.
Based on the Ontario Court of Appeal decision in Logozzo v Toronto-Dominion Bank (1999), the borrower cannot negotiate or pay off the arrears once the lender has entered an unconditional Agreement of Purchase and Sale with a third party. However, it is important to note that if an Agreement of Purchase and Sale contains a redemption clause, the lender may terminate the transaction upon receipt of redemption funds from the borrower.