New Condominium Act Proclaimed

Important changes aimed at modernizing and enhancing condominium legislation in the province come into effect today (Thursday, December 1) through the proclamation of the Condominium Act, 2009 and the Condominium Regulations, 2011

“Condominium developments are becoming an increasingly important part of the housing landscape in this province,” said the Honourable Paul Davis, Minister of Service NL. “Through feedback obtained in recent years, it was recognized that the act required modernization in order to meet the needs of all stakeholders involved including current owners, potential owners and condominium developers.”

Effective today the act more clearly reflects the current needs of the province’s marketplace and provides potential and current owners with modernized legislation. It provides protection for first-time condo buyers and present owners, improves the day-to-day operation of condominium corporations and reflects different types of condominium developments.

The act delivers enhanced consumer protection through the requirement for appropriate disclosure which will enable purchasers to make more informed purchase decisions. Also, a prescribed 10 day cooling off period has been added which allows the purchaser to rescind the agreement of purchase and sale.

For current owners, the act now requires the establishment of reserve funds to offset major condominium repair or replacement activities. In addition, it provides for new dispute resolution mechanisms of mediation or arbitration.

The act also paves the way for the creation of new types of condominium developments, namely common elements condominium corporations, phased-development condominium corporations and vacant land condominium corporations which are common in other parts of the country.

“This proclamation is an important step to ensure the continued development of the condominium market in this province,” said Minister Davis. “With the new act in place, the industry has a framework which will allow for successful growth opportunities, greater consumer protection and a mechanism for the fair and just resolution of any issues which may arise.”

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Media contact:
Hugh Donnan
Director of Communications
Service NL
709-729-4860, 725-6511
hughdonnan@gov.nl.ca 

2011 12 01             9:55 a.m.