As of January 2018, residential condominium conversion projects qualify for warranty coverage. The warranty applies to projects where the first purchase agreement is signed on or afterJanuary 1, 2018.
A residential condominium conversion project is when an existing non-residential building (e.g., warehouse, church) is converted into a condominium and pre-existing elements of the building, such as the foundation or frame, are incorporated into the new design and construction of the project. Buildings that were originally built for residential use – like rental apartment buildings – will not qualify for coverage unless otherwise specifically permitted.
Builders who wish to construct residential condominium conversion projects and vendors who wish to sell units in these projects must be registered with Tarion.
In addition to the usual requirements for registration, builders and vendors of residential conversion projects must comply with Builder Bulletin 51, which requires that the vendor and builder provide a Property Assessment Report, Capital Replacement Plan, and a Pre-Existing Elements Fund Study before any sale of units and at least 90 days before commencement of construction. Tarion must approve these documents before the project will be enrolled.
For more details about the builder and vendor requirements related to residential condominium conversion projects, please refer to Builder Bulletin 51.
Vendors and builders of residential condominium conversion projects must also comply with the design and site review requirements of Builder Bulletin 19R.
The enrolment fee for a unit in a residential condominium conversion project is currently double the standard enrolment fee, as set out in Builder Bulletin 27.
Pre-Existing Elements Fund
Upon the enrolment of the units in a residential condominium conversion project, the vendor must provide evidence satisfactory to Tarion that the Pre-Existing Elements Fund has been established with an escrow agent authorized by Tarion and that the required amount is in the Fund.