For more information on sections 122 and 123 of the Condo Act, please see below.

Section 122 (termination: consent of the owners)

• A condominium corporation may terminate under section 122 of the Condo Act if:
  • At least 80 per cent of unit owners vote in favour of its termination; and
  • At least 80 per cent of those who have registered claims against the property consent to the termination in writing. The claims must have been created after the property was registered as a condominium corporation.

Note: A registered claim is an interest in property, such as a lien, that a third party has registered with the Land Registry Office (LRO).

• The condominium corporation must then register a notice of termination signed by the authorized officers of the condominium corporation, terminating the government of the property by the Condo Act, with the LRO. The notice must be in the mandatory form, which can be found here.

Section 123 (termination: substantial damage)

• When a condominium corporation terminates under section 123 of the Condo Act, it means that there was substantial damage to the property of the condominium corporation which initiated the termination of the government of the property by the Condo Act.
• For this type of termination to occur:
  • The condominium board first must have at least two unaffiliated and qualified persons estimate the damage caused to the property within 30 days of the damage occurring;
  • The board must then make a determination based on the resulting estimates as to whether or not the damage is “substantial”;
  • The board must then give the owners a notice of their determination. The notice must also specify that the owners have the right to requisition an owners’ meeting under section 46 of the Condo Act;
  • The owners of at least 80 per cent of the units must vote in favour of the termination; and
  • The condominium board must register a notice terminating the government of the property by the Condo Act.
• “Substantial damage” is defined in section 123 (2) of the Condo Act as damage where:
  • The cost of repairing the damage is estimated to be equal to OR greater than 25 per cent of the cost of replacing all the buildings and structures located on the condominium’s property.

For more information on section 124 of the Condo Act, please see below.

Section 124 (termination: sale of the property)

• If a condominium corporation sells its property or a part thereof in accordance with section 124 of the Condo Act, that property ceases to be governed under the Condo Act.
• For termination to occur in this way:
  • At least 80 per cent of unit owners must have voted in favour of the sale; and
  • At least 80 per cent of those who have registered claims against the property, where the claims were created after the property was registered as a condominium corporation, must consent to the termination in writing.
  • A claim is a legal right against the value of a piece of property, where the claim belongs to someone other than the actual owner of the property. Common examples of claims are a mortgage on a home or a lien against a condominium unit.
• If exclusive use common elements are to be sold, then the owners who have designated use of those common elements must consent in writing.
• Section 124 (3) establishes that when a sale takes place, the condominium board must deliver certain documents to the purchaser. These documents must be signed by authorized officers of the condominium corporation, and include:
  • A deed (a legal document which transfers ownership of the property to the new owner); and
  • A certificate in a mandatory form which states that the persons (described above) who are required to vote in favour of the sale, or consent to the sale in writing, have done so.

For more information on expropriation, please see below.

What is expropriation?

• Expropriation under section 1 of the Expropriations Act  means an expropriating authority (e.g., a municipality) has taken land without the consent of the owner in the exercise of the expropriating authority’s statutory powers.
• Example: A municipality seeks to build a road on land occupied by residential properties and/or other private land. In this scenario, the municipality may seek to expropriate the land (take ownership of the land) without the consent of the owners.

What is a “notice of intention to expropriate”?

• For an expropriation to occur under section 6 and section 4 of the Expropriations Act, the “expropriating authority” must apply for the expropriation and provide notice by:
  • Serving a notice of its intention to expropriate on the owner of the land; and
  • Publishing the notice in a newspaper for three consecutive weeks.
• In addition, the owner of the land may seek a hearing at the Ontario Land Tribunal (OLT) under section 6 and section 7 of the Expropriations Act.
  • After the hearing, the OLT produces a report respecting the hearing and the approving authority makes a decision to either approve the expropriation, not approve the expropriation, or approve the expropriation with modifications under section 8 of the Expropriations Act.

For more information on section 128 of the Condo Act, please see below.

This question refers to a situation where the condominium corporation itself has applied to the Superior Court of Justice ( SCJ) for an order to terminate the government of the property by the Condo Act.

Section 128 (termination: court order)

• Under section 128 of the Condo Act, the following may make an application to the SCJ for an order to terminate the government of the property by the Condo Act:
  • The condominium corporation itself;
  • An owner in the condominium corporation; or
  • A person having an encumbrance against a unit and common interest.

Note: An encumbrance is a right to, or interest in, land which is held by third persons and not by the owner of the land. Examples include a mortgage or lien.

• The SCJ may make an order to terminate a condominium corporation if the court is of the opinion that the termination would be just and equitable, having regard to:
  • the scheme and intent of the Condo Act;
  • the probability of unfairness to the owners if the court does not order termination;
  • the probability of confusion and uncertainty in the affairs of the condominium corporation or of the owners if the court does not order termination; and
  • the best interests of the owners.

For more information on section 173 of the Condo Act, please see below.

• Leasehold condominiums may also terminate. However, under section 173 of the Condo Act, the lessor (landowner) may only terminate a leasehold interest in all the units of the condominium if they are granted a court order to do so.
• To terminate the leasehold interests, the lessor first must apply to the Superior Court of Justice (SCJ) for an order terminating all the leasehold interests, which the condominium corporation must receive notice of from the lessor.

For more information on section 174 (1) of the Condo Act, please see below.

• As described above, leasehold condominium corporations do not own the land they exist on but have a leasehold interest in the land for a term ranging between 40 to 99 years.
• The leasehold interests in the units of the condominium corporation expire at the end of the term.
• At least five years before the end of this term, the lessor must give the condominium corporation notice under section 174 (1) of the Condo Act:
  • A written notice of intention to renew all the leasehold interests; or
  • A written notice of intention not to renew all the leasehold interests.
• The condominium corporation must give all unit owners a copy of the notice sent by the lessor.