Amalgamation
Also see: About Condo memo on Amalgamation
Short Answer
The Condominium Act, 1998, (the "Act") permits two or more existing condominium corporations of the same type to amalgamate and become a single condominium. Currently, this right is restricted to Standard Condominiums.
Definition
Amalgamation is the process by which a single new condominium corporation is created by combining two or more existing condominium corporations.
Amalgamation can only occur after a series of steps have been fulfilled, including (this is not an exhaustive or detailed list): the amalgamating corporations must enter into an interim agreement; each corporation must have recently completed a comprehensive reserve fund study; a new declaration and description are to be created; each amalgamating corporation must call and hold a meeting of owners the notice for which must include copies of the proposed new declaration and description; and, the owners of at least 90% of the units within each amalgamating corporation must provide written consent to the amalgamation. It is also necessary to obtain municipal approval (or exemption from the approval requirement) for the amalgamation, and the Land Registry Office will need to review and approve the forms of the description and declaration.
It is strongly recommended that when pursuing amalgamation the condominium corporations obtain the assistance of competent and experienced legal counsel.
Currently, only Standard Condominium Corporations can amalgamate. A Phased Condominium can amalgamate only after all phases have been completed or no sooner than 10 years after the initial registration.
Amalgamation can only occur after a series of steps have been fulfilled, including (this is not an exhaustive or detailed list): the amalgamating corporations must enter into an interim agreement; each corporation must have recently completed a comprehensive reserve fund study; a new declaration and description are to be created; each amalgamating corporation must call and hold a meeting of owners the notice for which must include copies of the proposed new declaration and description; and, the owners of at least 90% of the units within each amalgamating corporation must provide written consent to the amalgamation. It is also necessary to obtain municipal approval (or exemption from the approval requirement) for the amalgamation, and the Land Registry Office will need to review and approve the forms of the description and declaration.
It is strongly recommended that when pursuing amalgamation the condominium corporations obtain the assistance of competent and experienced legal counsel.
Currently, only Standard Condominium Corporations can amalgamate. A Phased Condominium can amalgamate only after all phases have been completed or no sooner than 10 years after the initial registration.
What you need to know…
|
…as a Unit Owner
In the amalgamation process, the unit boundaries are not permitted to be changed. However, the proportion of the common interest and the proportionate contribution to the common expenses attributed to each unit likely would change since the total number of units in the new corporation will be greater than in any of the amalgamating corporations. |
…as a Board Member
In the amalgamation process, the unit boundaries are not permitted to be changed. However, the proportion of the common interest and the proportionate contribution to the common expenses attributed to each unit likely would change since the total number of units in the new corporation will be greater than in any of the amalgamating corporations. |
…as a Declarant
The disclosure statement to be given to purchasers of new or proposed units in a condominium plan must include a statement as to whether, to the knowledge of the declarant, the new condominium corporation intends to amalgamate with another corporation or whether the declarant intends to cause such an amalgamation within 60 days of the date of registration of the new condominium. |