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TABLE OF CONTENTS
VOLUME 1
TABLE OF CONTENTS ............................................................. 1-1
TABLE OF CASES .................................................................... 2-1
INDEX: SUBJECT...................................................................... 3-1
INDEX: AGREEMENTS, PRECEDENTS ANDCHECKLISTS ......................................................................... 4-1
TERMINOLOGY ......................................................................... 5-1
FINANCING
THE LAW OF MORTGAGESTHE LAW OF MORTGAGES.......................................................... 6-11
An Introduction to the Law of Mortgages ................................... 6-11
(a) Common Law Mortgages.................................................. 6-11
(b) Legal Mortgages.............................................................. 6-12
(c) Equitable Mortgages ........................................................ 6-13
(d) Short Forms Acts ............................................................ 6-14D
(e) Subject Matter of a Mortgage ............................................ 6-14D
Fixtures ......................................................................... 6-14D
(f) Rights and Liabilities of the Mortgagor................................. 6-15
(i) The Personal Covenant.......................................... 6-15
(ii) The Covenant to Pay Taxes.................................... 6-20
(iii) The Covenant for Insurance.................................... 6-21
(iv) The Covenant to Maintain Property in Good Repair ... 6-24
(v) Rescission............................................................ 6-24A
Detailed Analysis Of A Standard Form Mortgage Document ....... 6-24A
Property Description ............................................................. 6-24A
Dower and Spousal Consent.................................................. 6-24D(1)
The Defeasance Clause ........................................................ 6-24D(3)
Interest................................................................................ 6-24F
Bonus of Interest upon Default ............................................... 6-32F
Insurance ............................................................................ 6-36C
Prepayment Clause .............................................................. 6-36D
Compound Interest and Rests................................................ 6-38
No Obligation on Mortgage to Advance Funds ......................... 6-39
Extended Forms................................................................... 6-40.1
(CCREM)2016—Rel. 1
1-1
Power of Sale, Possession, and Power to Lease Provisions ...... 6-40A
Mortgagee’s Costs................................................................ 6-40B
Acceleration Clause .............................................................. 6-40E
Successors and Assigns ....................................................... 6-43
Special Privileges ................................................................. 6-43
Extinguishment of a Mortgage................................................... 6-44B
Chapter 23 Remedies of Foreclosure and Sale ........................ 6-46
Statutory Forms of Discharge................................................. 6-50
Forged Discharges ............................................................... 6-52A
Change of Ownership of a Mortgage ......................................... 6-52C
Change of Ownership of the Equity of Redemption .................... 6-55
Leases and Mortgaged Land ..................................................... 6-57
Priorities................................................................................... 6-60C
Covin .................................................................................. 6-66D
Distinction Between Land Titles and Registry Systems.............. 6-66D
Fraudulent Mortgages ........................................................... 6-66N
Executions........................................................................... 6-72I
Profit a Prendre.................................................................... 6-74.5
Real Estate Commissions...................................................... 6-74.10A
Construction Liens, Builders’ Liens or Mechanics’ Liens ............ 6-74.10J
Conditional Sale Contracts and Security Interests..................... 6-74D.4
Bankruptcy .......................................................................... 6-74E
Workers’ Compensation Act ................................................... 6-74F
Crown Judgments................................................................. 6-74F(1)
Tacking .................................................................................... 6-74F(1)
Consolidation ........................................................................... 6-74H
Marshalling and Subrogation..................................................... 6-74I
Subrogation.............................................................................. 6-74L
Close Connectedness ............................................................... 6-75
Regulations Affecting the Mortgage Broker................................ 6-75
Comparative Summary of Canadian Mortgage BrokerLegislation ............................................................................ 6-81
Ontario Mortgage Brokerages, Lenders and Administrators Act,2006 ...................................................................................... 6-94.27
Report of the Sub-Committee of the Professional ConductCommittee of the Law Society of Upper Canada in Respect ofthe Role of the Lawyers Acting as Mortgage Brokers.............. 6-95
Debentures ............................................................................... 6-97
Due Diligence in Mortgage or Loan Transactions ....................... 6-99
MORTGAGE LAW—THE PROVINCE OF QUEBECDefinition of Hypothec ........................................................... 6-201
1-2 Table of Contents (CCREM)2016—Rel. 1
The Forms of Hypothec......................................................... 6-201
Conventional Hypothec ......................................................... 6-201
The Formalities .................................................................... 6-201
The Recourses of the Hypothecary Creditory ........................... 6-202
Sheriff’s Sale ....................................................................... 6-203
Resolutory and Dation-en-Paiement (Giving-in-Payment)Clauses............................................................................ 6-204
Dation-en-Paiement (Giving-in-Payment) ................................. 6-204
The 60-Day Notice................................................................ 6-205
Construction Hypothec vs. Mortgages ..................................... 6-206
The Grant of Priority and Total Reunuciation to the Right ofPrivilege ........................................................................... 6-207
REMEDIESMORTGAGE REMEDIES IN ONTARIO......................................... 8-11
Preliminary Considerations ....................................................... 8-11
Land Registration in Ontario................................................... 8-11
Rules of Civil Procedure........................................................ 8-11
Jurisdiction of Courts ............................................................ 8-11
Mortgages Act...................................................................... 8-12
Condominium Act ................................................................. 8-12
Family Law Act .................................................................... 8-12
Construction Lien Act ............................................................ 8-13
The National Housing Act ...................................................... 8-13
Residential Tenancies Act...................................................... 8-13
The Language of Mortgage Remedy Law ................................ 8-13
Selecting The Appropriate Remedy ........................................... 8-14
The Collection Letter............................................................. 8-14
Transfers and Quit Claims ..................................................... 8-15
Merger of Interests ............................................................... 8-15
Legal Remedies ................................................................... 8-16A
Foreclosure vs. Power of Sale ............................................... 8-17
Advantages of Power of Sale ........................................... 8-17
Disadvantages of Power of Sale....................................... 8-17
Advantages of Foreclosure .............................................. 8-18
Disadvantages of Foreclosure .......................................... 8-18
Summary of Alternative Remedies .......................................... 8-19
Defences: Undue Influence—Independant Legal Advice ............. 8-20
Foreclosure And Judicial Sale ................................................... 8-22A
Preliminary Considerations .................................................... 8-22A
Mortgagees’ Claims ........................................................ 8-22C
Legal Costs ................................................................... 8-22F
Determining Defendants .................................................. 8-22F
(CCREM)2015—Rel. 4
Table of Contents 1-3
Right to a Certificate of Pending Litigation ......................... 8-23
Commencing and Defending the Action................................... 8-23
The Right of Redemption....................................................... 8-24
Right to Redeem ............................................................ 8-24
Right to a Judicial Sale ................................................... 8-26
Motions ............................................................................... 8-26A
Pre-Judgment Settlement ...................................................... 8-26A
Settlement Negotiations................................................... 8-26A
Partial Payments ............................................................ 8-26A
Judgment ............................................................................ 8-26B
Encumbrancer Not Named as Defendant................................. 8-26B
Reference............................................................................ 8-27
After Judgment and Before the Reference ......................... 8-27
The Reference ............................................................... 8-27
Proving the Plaintiff’s Claims and Taking Accounts ............. 8-27
Referee’s Report .................................................................. 8-28
Redemption ................................................................... 8-28
Extending the Redemption Period..................................... 8-29
Abridging the Redemption Period ..................................... 8-30
Judicial Sale ........................................................................ 8-30
Sale After The Redemption Period.................................... 8-31
Final Order of Foreclosure ..................................................... 8-32A
No Redemption .............................................................. 8-32A
Reopening Final Order of Foreclosure ............................... 8-32B
Power Of Sale........................................................................... 8-34B
Preliminary Considerations .................................................... 8-34B
Statutory Power of Sale................................................... 8-35
The Notice of Sale.......................................................... 8-36
Service of the Notice of Sale............................................ 8-38
The Notice (Redemption) Period............................................. 8-41
Partial Payments During the Notice Period ........................ 8-41
Curing Defective Notices ................................................. 8-42A
Other Proceedings.......................................................... 8-43
Sale of the Property.............................................................. 8-46
Conventional, Uninsured Mortgages.................................. 8-46
MICC Insured Mortgages................................................. 8-46
NHA Insured Mortgages .................................................. 8-46
Conveyance to CMHC .................................................... 8-46
New Home Warranty Obligations ...................................... 8-47
Conduct of Sale ............................................................. 8-47
Appraisals ..................................................................... 8-48D
Methods of Sale ............................................................. 8-48G
The Mortgagee Acting as Its Own Real Estate Agent .......... 8-48I
1-4 Table of Contents (CCREM)2015—Rel. 4
The Agreement of Purchase and Sale............................... 8-49
Sale Papers ................................................................... 8-49
Contents of the Deed or Transfer...................................... 8-50
Land Transfer Tax........................................................... 8-50
Undertakings.................................................................. 8-50
Re-Searching Title After Closing ....................................... 8-50A
Accounting for the Sale Proceeds........................................... 8-50A
The Mortgagee’s Liability to Account ................................. 8-51
Application of the Sale Proceeds ...................................... 8-52
Calculating the Mortgagee’s Account ................................ 8-52.1
Allowable Expenses........................................................ 8-53
The Right to Share in the Surplus..................................... 8-53
Conflicting Claims to the Surplus ...................................... 8-54
Holding the Surplus ........................................................ 8-54B
Appointment of Receiver........................................................... 8-56
The Right To Distrain ................................................................ 8-56.2
Possession............................................................................... 8-56C
Right to Possession .............................................................. 8-56C
Writ of Possession................................................................ 8-56D
Mortgagee-in-Possession....................................................... 8-56F
Rights and Liabilities ............................................................. 8-56F
Property Protection ......................................................... 8-57
Liability for Occupation Rent ............................................ 8-57
Liability for Waste ........................................................... 8-57
Liability to Account.......................................................... 8-58A
Staying in Possession ..................................................... 8-58A
Recovering On The Deficiency .................................................. 8-58A
Who may be Sued................................................................ 8-59
Default ................................................................................ 8-60
Acceleration of Payment........................................................ 8-60
Claim for Bonus ................................................................... 8-60
Assignment of Mortgage........................................................ 8-61
After Foreclosure.................................................................. 8-61
Land Transfer Tax Liability ..................................................... 8-62
After Power of Sale............................................................... 8-62
Collateral Mortgages ............................................................. 8-62A
Status of Claim Under Writ of Seizure and Sale ....................... 8-62B
Special Problem Areas.............................................................. 8-62B
Condominium Common Expense Liens ................................... 8-62B
Notice Provisions and Priorities ........................................ 8-62C
Lien Amount .................................................................. 8-63
CMHC Requirements ...................................................... 8-64
(CCREM)2015—Rel. 1
Table of Contents 1-5
Mortgage Insurance Corporation of CanadaRequirements (MICC) .................................................. 8-64
Corporation Taxes ................................................................ 8-64A
Guarantors .......................................................................... 8-64A
Construction Lien Claims....................................................... 8-68B.3
Municipal Taxes.................................................................... 8-68F
Public Utilities ...................................................................... 8-68H
Spousal Interests.................................................................. 8-72
Bankruptcy .......................................................................... 8-74C
Tax Arrears as a Default........................................................ 8-76A
Table of Concordance ..................................................... 8-101
STRUCTURING THE TRANSACTIONSTRUCTURING THE TRANSACTION ............................................. 10-11
Introduction ........................................................................ 10-11
Interest Rate .................................................................. 10-11
Amortization................................................................... 10-11
Mortgage Term............................................................... 10-11
Prepayment Privileges .................................................... 10-11
An Analysis of the Security for the Loan............................ 10-12
Partial Discharge Provisions ............................................ 10-12
Tenant Leases ............................................................... 10-12
Conditions of Disbursement ............................................. 10-13
Factors to be Reviewed by a Lender When Makinga Mortgage Loan.............................................................. 10-14
The Mortgage Commitment and the Disbursement ofFunds.............................................................................. 10-14
Structuring the Transaction: Considerations of the Lenders’Counsel ..................................................................... 10-15
Additional Considerations: Options to Purchasein Association With Mortgages ......................................... 10-18D
Review of Relevant Cases ................................................... 10-18D
Samuel v. Timber and Wood Paving Corporation ................... 10-18D
Kreglinger and New Patagonia Meat and Cold StorageCompany Limited ........................................................... 10-18E
Ottawa Construction Limited v. Barnhart-Cochrane ConstructionLimited .......................................................................... 10-20
Memramcook Transport Limited v. Irving Oil Co. Ltd. .............. 10-21
Lewis v. Frank Love Ltd...................................................... 10-22
Re Moore and Texaco Canada Ltd. ..................................... 10-23
Athabasca Realty Co. Ltd. v. Lee......................................... 10-24
Laurin v. Iron Ore Co. of Canada ......................................... 10-24
Lender’s Considerations ..................................................... 10-26A
Current Procedures ............................................................ 10-26B
1-6 Table of Contents (CCREM)2015—Rel. 1
Optionee’s Interest Valued by an Appraisal ........................... 10-26B
Legislative Approach.......................................................... 10-26B
Optionee is Different Party.................................................. 10-27
Lender Obtains Participating Leasehold Mortgage with Option toAcquire Undivided Interest in Reversionary Freehold .......... 10-27
Fully Convertible Mortgage ................................................. 10-27
ADVANCED MORTGAGE LENDING ............................................ 10-101
A Review of Selected Techniques In Order to Achieve MaximumMortgage Financing ...................................................... 10-101
Mortgage Bonds................................................................ 10-101
Leasehold Mortgages......................................................... 10-101
Sale-Leasebacks ............................................................... 10-104
Participation Mortgages ...................................................... 10-105
Joint Ventures ................................................................... 10-105
Syndicates........................................................................ 10-106A
Credit Mortgages............................................................... 10-107
Variable Interest Rate Mortgages......................................... 10-107
Drafting Suggestions for VRMs ........................................... 10-109
Alternatives to the VRM...................................................... 10-110
Permanent Mortgage with Option to Purchase....................... 10-110
Wrap Around Mortgages..................................................... 10-111
Additional Funds Wrap Around Mortgage —Alternative Number One ............................................ 10-112
Additional Funds Wrap Around Mortgage —Alternative Number Two ............................................ 10-112
Extended Term Wrap Around Mortgage .......................... 10-112
Simultaneous Wrap Around Mortgage ............................ 10-112
Graduated Payment Mortgages ........................................... 10-114
Reverse Mortgage Loan ..................................................... 10-114
Origination and Processing ........................................... 10-117
Age of the Borrower..................................................... 10-117
Appraisal .................................................................... 10-117
Intervening Indebtedness.............................................. 10-117
Periodic Inspections ..................................................... 10-117
Sale Clause ................................................................ 10-117
Service of Loans ......................................................... 10-117
Flip Mortgages .................................................................. 10-118
Shared Appreciation Mortgage (SAM) or AppreciationParticipation Mortgage (APM) .......................................... 10-118
Price Level Adjustment Mortgage (PLAM)............................. 10-119
A Review of Mortgage Financing Techniques to beConsidered in a Tight Money Market................................. 10-119
Cash Purchase ........................................................... 10-119
(CCREM)2014—Rel. 1
Table of Contents 1-7
Long-Term Mortgage with Prepayment ........................... 10-119
Vendor Take Back Mortgage ......................................... 10-119
Bridge Financing ......................................................... 10-120
Standby Loan Commitment Financing ............................ 10-120
Consider Combinations of Flexible Payment Mortgages ... 10-120
Variable Payment Mortgage .......................................... 10-120
Variable Principle Loan Mortgage .................................. 10-120
Intermediate Term Commercial Loan .............................. 10-121
Convertible Mortgage Financing .................................... 10-121
Deferred Interest Mortgages.......................................... 10-121
Pension Trust Investments in Realty Joint Ventures ............ 10-121
The U.S. Experience.................................................... 10-122
Analysis by Type of Property......................................... 10-122
(a) Office Buildings ................................................. 10-122
(b) Shopping Centres.............................................. 10-123
(c) Hotels .............................................................. 10-123
(d) Industrial Properties ........................................... 10-123
CREATIVE REAL ESTATE FINANCING ....................................... 10-201
Changing Trends In Real Estate Financing........................... 10-201
Prior to 1980..................................................................... 10-201
Impact of Inflation .............................................................. 10-201
Equity Participation Financing ............................................. 10-202
Interim Financing ............................................................... 10-204
Return on Investment......................................................... 10-205
Current Situation ............................................................... 10-205
Creative Types Of Real Estate Financing .......................... 10-206
Real Estate Mortgage Bonds .............................................. 10-206
Leasehold Mortgages......................................................... 10-208
Credit Mortgages............................................................... 10-216
Wrap-Around Mortgages..................................................... 10-217
Income Participation Mortgages........................................... 10-221
Sale and Leaseback .......................................................... 10-227
Shared Appreciation Mortgages........................................... 10-232
Mortgage/Equity Financing.................................................. 10-235
Mortgage/Equity Option Financing ....................................... 10-237
Convertible Mortgages ....................................................... 10-242
Equity Joint Ventures ......................................................... 10-246
SHOPPING CENTRE FINANCING TODAY ................................... 10-251
Introduction....................................................................... 10-251
Shopping Centre Financing: Some Considerations................. 10-251
The Lender’s Perspective ................................................... 10-254
Securitization of Real Estate ............................................... 10-257
1-8 Table of Contents (CCREM)2014—Rel. 1
LOAN SUBMISSIONS ................................................................ 10-301
Mortgage Application ......................................................... 10-301
Detailed Credit Analysis ..................................................... 10-302
Appraisal .......................................................................... 10-302
Review of Selected Matters to be Considered in thePresentation of a Commercial Mortgage Application ........... 10-303
Total Debt Service Ratio and Gross Debt Ratio ..................... 10-303
Total Debt Service Ratio ............................................... 10-303
Gross Debt Service Ratio ............................................. 10-303
The Cash Flow Analysis Approach ...................................... 10-304
Stabilized Income and Expenses ......................................... 10-304
Deferred Maintenance .................................................. 10-304
Extent of the Vacancy Allowance................................... 10-304
Requirement for Substantial Capital Improvement ............ 10-305
Provision for Adequate Replacement Reserves ............... 10-305
Improper Capitalization of Expenses .............................. 10-305
Lease Concessions ..................................................... 10-305
Verification that all Tenants are Bona Fide and QualityTenants ................................................................... 10-305
Summary of the Procedure Relating to OperatingExpenses ................................................................ 10-306
Net Income Calculation ................................................ 10-306
Feasibility Analysis ......................................................... 10-306
Loan Submissions And Feasibility Analysis In A Nutshell .... 10-307
COMMERCIAL LOAN AGREEMENTS ......................................... 10-401
Interpretation..................................................................... 10-401
Currency Options .............................................................. 10-402
Interest............................................................................. 10-402
Loan Facilities and Accommodations ................................... 10-403
Purpose of Facility ............................................................. 10-403
Borrower’s Entitlement to Repay.......................................... 10-403
Notice of Drawdown........................................................... 10-403
Representations and Warranties by the Borrower .................. 10-404
Covenants ........................................................................ 10-404
Security............................................................................ 10-404
Default and Remedies........................................................ 10-405
Rights of Lender in the Event of Default ............................... 10-405
Judgment Currency............................................................ 10-405
Precedent Credit Agreement ............................................... 10-407
INTERIM FINANCINGINTERIM FINANCING................................................................. 12-11
Introduction .............................................................................. 12-11
(CCREM)2014—Rel. 3
Table of Contents 1-9
Types Of Loans ........................................................................ 12-11
Development Loans ........................................................... 12-11
Construction Loans............................................................ 12-11
Bridge Loans .................................................................... 12-12
Gap Loans........................................................................ 12-13
Stand-by Commitments or Stand-by Loans ........................... 12-13
Intermediate Term Loans .................................................... 12-14
Construction Loans without a Prior Permanent MortgageCommitment .................................................................. 12-14
Construction Financing Based on Pre-Sale Arrangements ...... 12-14
Summary of the Steps Involved in the Construction LendingProcess......................................................................... 12-15
Personal Guarantees of the Developer................................. 12-16
Bonding............................................................................ 12-16
Short Term or Interim Financing of Raw Land ....................... 12-16
How a Stand-by Mortgage Loan Commitment may be Used forPermanent Financing at a Time of High Interest Rates........ 12-17
CONDOMINIUMSCONDOMINIUM MORTGAGES ................................................... 14-11
THE PURCHASE OF NEW CONDOMINIUM UNITS INONTARIO............................................................................... 14-53
Introduction.......................................................................... 14-53
Buying a New Condominium—What the Purchaser Needs toKnow ............................................................................... 14-53
The “Cooling-Off” Period and the Disclosure Statement ............. 14-53
Agreement of Purchase and Sale ..................................... 14-57
Title Closing............................................................ 14-57
Designation of Units................................................. 14-57
Payments on Account of Purchase Price .................... 14-57
Financial Information re Purchaser............................. 14-58
Extension of Date Set for Title Closing ....................... 14-58
Time Limit on Registration of Declaration/Description ... 14-58
Occupancy Agreement ............................................. 14-58A
Releases of Agreements .......................................... 14-58A
Transfer of Interest in Agreement............................... 14-58A
Inclusions in the Purchase Price................................ 14-58A
Miscellaneous ......................................................... 14-58A
Interim Occupancy.......................................................... 14-58I
The Declaration.............................................................. 14-59
Statement that Act Governs ...................................... 14-60
Consent of Encumbrancers....................................... 14-60
Unit Boundary Description ........................................ 14-60
1-10 Table of Contents (CCREM)2014—Rel. 3
Common Interest Allocation ...................................... 14-60
Common Expense Allocation .................................... 14-60
Exclusive Use Common Elements ............................. 14-60
Mailing Address and Address for Service ................... 14-61
Reserve Fund ......................................................... 14-61
Use of the Common Elements .................................. 14-61
Ownership and Leasing of Parking Units .................... 14-61
Occupation and Use of Units .................................... 14-61
Repairs and Maintenance ......................................... 14-62
Insurance ............................................................... 14-62
General Matters ...................................................... 14-62
By-laws and Rules.......................................................... 14-64I
Turnover Meeting ........................................................... 14-64L.7
Right to Sue on Behalf of Unit Owner ............................... 14-64P
Ontario New Home Warranties Plan Act ............................ 14-64Q
Types of Condominiums ........................................................ 14-68.1
Vacant Land Condominiums ............................................ 14-68.1
Phased Condominiums ................................................... 14-69
Common Elements Condominiums ................................... 14-69
Leasehold Condominiums................................................ 14-69
Summary............................................................................. 14-69
Disclosure Statement ...................................................... 14-70
Agreement of Purchase and Sale ..................................... 14-70
Declaration .................................................................... 14-70
THE ONTARIO NEW HOME WARRANTIES PLAN ACT ANDINVESTMENT CONDOMINIUMS .............................................. 14-101
Introduction.......................................................................... 14-101
Application of the Act ............................................................ 14-101
Coverage Provided by the Act................................................ 14-103
Other Coverage.................................................................... 14-105
Recent Developments ........................................................... 14-106A
Delayed Occupancy Warranty .......................................... 14-106A
New Customer Service Standard...................................... 14-106C
New Monetary Cap for Claims from Guarantee Fund .......... 14-106D
Procedure for Registration ..................................................... 14-106E
Ontario Consumer Protection Act............................................ 14-106.1
Builder Bulletin 25 ................................................................ 14-106.2B
Builder Bulletin 28 ................................................................ 14-106.11
Builder Bulletin 27 ................................................................ 14-107
Builder Bulletin 19 ................................................................ 14-111
CONDOMINIUM UNIT TITLE SYNDICATIONS IN CANADA ........... 14-151
Introduction.......................................................................... 14-151
(CCREM)2015—Rel. 3
Table of Contents 1-11
Investment Contracts ............................................................ 14-151
The U.S. Position ........................................................... 14-151
The Canadian Position .................................................... 14-157
Real Estate and Business Brokers Act .............................. 14-159
Sources......................................................................... 14-161
APPENDIX I: NEWS RELEASE, ONTARIOSECURITIES COMMISSION, RESIDENTIALREAL ESTATE SYNDICATIONS ............................................... 14-163
ONTARIO SECURITIES COMMISSION NOTICEAPPLICATION OF SECURITIES ACT TOCERTAIN RESIDENTIAL REAL ESTATE OFFERINGS ............... 14-165
Summary............................................................................. 14-165
Interim Relief for Certain Offerings of Residential Real EstateSecurities ......................................................................... 14-166
Scope .............................................................................. 14-166
Applications to the Commission for Relief ............................. 14-166
Conditions for Relief .......................................................... 14-167
Disclosure ........................................................................... 14-167
Advertising........................................................................... 14-168
Sales Activities..................................................................... 14-169
Compliance Timetable........................................................... 14-170
SCHEDULE A: CONTRACTUAL RIGHTS OF ACTION FORDAMAGES ORRESCISSION AND RIGHT OF WITHDRAWAL ..... 14-171
Application........................................................................... 14-171
Interpretation........................................................................ 14-171
Parties ................................................................................ 14-171
Defences............................................................................. 14-172
MORTGAGE SERVICINGMORTGAGE SERVICING ........................................................ 16-11
Documentation And Solicitors’ Final Report On Title............... 16-11
Documentation Required ....................................................... 16-11
Mortgage Document ....................................................... 16-11
Survey .......................................................................... 16-11
Sheriff’s Certificate.......................................................... 16-12
Tax Certificates .............................................................. 16-12
Certificate of Encumbrances ............................................ 16-12
Certificate of Charge ....................................................... 16-12
General Register Certificate ............................................. 16-12
Proof of Insurance .......................................................... 16-12
Borrowing By-Law .......................................................... 16-12
Director’s Resolution ....................................................... 16-13
1-12 Table of Contents (CCREM)2015—Rel. 3
Assumption or Amending Agreement ................................ 16-13
Assumption Agreement ................................................ 16-13
Amending Agreement................................................... 16-13
Estoppel Certificates (Condominium Loans Only)................ 16-13
Chattel Mortgage ............................................................ 16-14
Assignment of Rental ...................................................... 16-14
Land Lease ................................................................... 16-14
Solicitors’ Report on Title....................................................... 16-14
Insurance .............................................................................. 16-15
The Standard Fire Insurance Policy ........................................ 16-15
Name of Insured............................................................. 16-15
The Property Insured ...................................................... 16-15
The Sum Insured by a Policy ........................................... 16-15
Loss Payable Clause ...................................................... 16-15
The Mortgage Clause...................................................... 16-16
The Term of the Policy .................................................... 16-17
Copy of Policy................................................................ 16-17
Extended Coverage Endorsement .................................... 16-18
Replacement Cost Endorsement ...................................... 16-18
Deductible ..................................................................... 16-18
Cancellation ................................................................... 16-18
Rental Insurance .................................................................. 16-19
Boiler Insurance ................................................................... 16-19
Liability Insurance................................................................. 16-19
Percentage Co-Insurance Clause ........................................... 16-19
The Nature of Co-Insurance............................................. 16-19
Problems Caused by Co-Insurance................................... 16-20
Stated Amount Co-Insurance ........................................... 16-20
Fluctuating Value Endorsement ........................................ 16-21
Builder’s Risk Policy ............................................................. 16-21
Subrogation ......................................................................... 16-21
Condominiums ..................................................................... 16-22
Condominium Declaration or By-Laws ............................... 16-21
Insurance Trust Agreement .............................................. 16-22
The Actual Policy ........................................................... 16-22
Mortgage Impairment Insurance Coverage............................... 16-23
Loss Drafts — Fire Claims..................................................... 16-23
Status of Payments and Taxes ......................................... 16-24
NHA Loans .................................................................... 16-24
Conventional Loans ........................................................ 16-24
Placing of Insurance by Mortgagee......................................... 16-24
A Glossary of Some Common Insurance Terms........................ 16-25
Taxes .................................................................................... 16-26
(CCREM)2014—Rel. 1
Table of Contents 1-13
Blended Repayment Plan ...................................................... 16-27
Flat-Rate Repayment Plan..................................................... 16-27
Payment Methods .................................................................. 16-28
Pre-Authorized Cheques........................................................ 16-29
Post-Dated Cheques............................................................. 16-30
Individual Cheque or Money Order ......................................... 16-30
Amortization And Mortgage Prepayment Considerations......... 16-30
Legislation ........................................................................... 16-31
Mortgage Document Provisions Relating to Prepayment............ 16-32
Renewals .............................................................................. 16-33
Collection Procedures ........................................................... 16-34
Small Arrears — Occasional Delinquent .................................. 16-34
Small Arrears — Chronic Delinquent....................................... 16-36
Large Arrears — Income Producing Properties......................... 16-36
First Telephone Contact................................................... 16-37
Further Follow Ups ......................................................... 16-37
Referring to Solicitors ...................................................... 16-37
Past Unfavourable Payment Record ................................. 16-37
Quit Claim Deeds................................................................... 16-38
Dishonoured Cheques ........................................................... 16-38
History of N.S.F. Cheques ..................................................... 16-39
Initial Non-Payment Of Solicitor’s Costs ................................. 16-39
Second Mortgage Card System .............................................. 16-40
Resales To New Owners ........................................................ 16-40
Need For Cooperation Of Appointed Solicitors ....................... 16-40
Computerization .................................................................... 16-40
Display................................................................................ 16-41
Up-date ............................................................................... 16-41
Error Messages.................................................................... 16-41
Terminal — T ................................................................. 16-42
Error — E ...................................................................... 16-42
Warning — 2 ................................................................. 16-42
Decentralization.................................................................... 16-42
VOLUME 2
TAXATION AND INVESTMENT ANALYSIS
APPRAISALREAL ESTATE APPRAISAL FOR MORTGAGE
PURPOSES......................................................................... 20-11
Introduction ........................................................................ 20-11
Description of Property ....................................................... 20-12
1-14 Table of Contents (CCREM)2014—Rel. 1
Other Interest in Land ........................................................ 20-12
Definions Of Terms Used In Appraisal Theory...................... 20-12
Some Basic Principles Affecting Real Property Value........... 20-13
Cost Approach — Estimate of Value by the Cost Approach .... 20-13
Advantages of the Cost Approach ................................. 20-14
Disadvantages of the Cost Approach ............................. 20-14
Methods of Estimating Reproduction Cost ...................... 20-14
Market Approach — Estimate of the Value by the Market DataApproach ...................................................................... 20-15
Definition of Market Value ............................................. 20-15
Advantages of Market Data Approach ............................ 20-16
Disadvantages of Market Data Approach ........................ 20-16
Income Multipliers........................................................ 20-16
Gross Rent Multiplier ................................................... 20-16
Monthly Rental Factor .................................................. 20-17
Income Approach — Estimate of Value by the IncomeApproach ...................................................................... 20-17
Income Approach to Value.................................................. 20-17
The Capitalization Process ................................................. 20-18
Capitalization Rate....................................................... 20-18
Interest Rate ............................................................... 20-19
Recapture Rate ................................................................. 20-19
Formula for Converting Net Income Stream into Indication ofValue ...................................................................... 20-19
Selection of Capitalization Rate ..................................... 20-19
Correlation Analysis and Final Estimate of Value ............. 20-19
Income And Expense Statement For A 30-Unit ApartmentBuilding ....................................................................... 20-20
THE NATURE OF ASSESSMENT IN ONTARIO ............................ 21-1
Introduction ........................................................................ 21-1
Provincial Function ......................................................... 21-1
Contents of the Assessment Roll ...................................... 21-1
Time for Return of the Roll and Appeal ............................. 21-2
Defining land.................................................................. 21-2
The Frozen Roll ............................................................. 21-3
Reassessment ............................................................... 21-4
Assessment Notice ......................................................... 21-4
Increase in Value to be Added to the Roll .......................... 21-5
Rights of the Assessors to Obtain Information and to Be GivenAccess to Property ...................................................... 21-6
INVESTMENT ANALYSISMORTGAGE MATHEMATICS AND INVESTMENT ANALYSIS ........ 22-11
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Table of Contents 1-15
Interest................................................................................ 22-11
Nominal and Effective Interest Rates ...................................... 22-11
Annuities ............................................................................. 22-12
Discounted Cash-Flow Analysis.............................................. 22-13
Using Mortgage Tables.......................................................... 22-14
Calculations Involving Gross Debt Service Ratio andTotal Debt Service Ratio ..................................................... 22-14
How to Calculate the Interest Component of aMortgage Payment ............................................................ 22-16
How to Calculate the Outstanding Principal Balanceof a Loan Using Mortgage Tables ........................................ 22-17
Using Mortgage Value Tables to Calculate the Yieldor Discount ....................................................................... 22-18
Calculation of the Yield with a Bonus Mortgage........................ 22-19
Calculation of the Yield in a Bonus MortgageWhere the Term of the Mortgage and theAmortization Period of the Mortgage are the Same .......... 22-19
Calculation of the Yield In a Bonus MortgageWhere the Term of the Mortgage and theAmortization Period of the Mortgage arenot the Same .............................................................. 22-20
Mortgage Averaging Formula ................................................. 22-21
Quick Rule of Thumb for Mortgage DiscountingPurposes.......................................................................... 22-22
Quick Rule of Thumb for Determining the Yield on aWrap Around Mortgage ...................................................... 22-22
Calculating the Yield on the Sale of Mortgages in theSecondary Market ............................................................. 22-22
INVESTMENT ANALYSIS ........................................................... 22-27
The Components of Return on Investment............................... 22-27
Measuring Real Estate Investment Returns.............................. 22-28
The Free and Clear Run.................................................. 22-29
Cash on Cash Return ..................................................... 22-29
Before-Tax Cash Flow and First Year’s AmortizationReturn on Equity ......................................................... 22-30
The Payback Period ....................................................... 22-31
The Accounting Return.................................................... 22-31
Net Present Value .......................................................... 22-32
The Profitability Index...................................................... 22-33
The Internal Rate of Return ............................................. 22-34
Timing of Cash Flows .............................................. 22-34
Reinvestment Assumptions ....................................... 22-35
Positive and Negative Cash Flows............................. 22-35
The Adjusted Rate of Return............................................ 22-35
1-16 Table of Contents (CCREM)2014—Rel. 1
The Financial Management Rate of Return ........................ 22-36
Table of Investment Formulas and Operating Expense Ratios .... 22-36
Table of Annual Cash Flow from Operations ............................ 22-37
Summary Table of Investment Rules of Thumb ........................ 22-38
SYNDICATIONREAL ESTATE SYNDICATION IN CANADA ................................. 32-11
Introduction.................................................................... 32-11
The Participants in the Syndication Process....................... 32-11
The Objectives of Investing in a Real EstateSyndication................................................................. 32-12
The Tax Shelter Motivated Syndication........................... 32-12
The Tax Shelter Assisted Syndication ............................ 32-13
The Business Real Estate Syndication ........................... 32-13
Legal Structures for Real Estate Syndication............................ 32-13
Limited Partnership ......................................................... 32-14
Co-Tenancy or Co-ownership ........................................... 32-14
Direct Ownership............................................................ 32-15
Small Business Development Corporations........................ 32-15
Evaluating the Project and the Developer ................................ 32-16
Identifying and Mitigating Risk Factors in Real EstateSyndication....................................................................... 32-17
REGULATION OF REAL ESTATE SYNDICATIONS ....................... 32-51
Public Real Estate Offerings .................................................. 32-54
Exemption from Prospectus Requirements............................... 32-58
Offering Memoranda ............................................................. 32-62
Limited Market Dealer Registration ......................................... 32-63
Nature and Extent of a Lawyer’s Responsibility ........................ 32-64
Penal Consequences of Non-Compliance ................................ 32-73
Appendix 1 .................................................................... 32-77
Schedule A.................................................................... 32-79
SYNDICATING U.S. PROPERTY TO CANADIANS ........................ 32-91
A. Introduction.................................................................. 32-91
1. General Comment ................................................. 32-91
2. Scope of Paper ..................................................... 32-91
B. Key Differences............................................................ 32-92
1. Is it a Partnership? ................................................ 32-92
2. Fiscal Year End..................................................... 32-96
3. Personal Interest Expense...................................... 32-97
4. Allocation of Losses............................................... 32-97
5. Deductibility of Tax Losses ..................................... 32-98
6. Estate Tax ............................................................ 32-99
7. Soft Costs ............................................................ 32-100
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Table of Contents 1-17
8. Retroactive Allocations ........................................... 32-101
9. Non-Arm’s Length Loans ........................................ 32-102
10. Cash Basis Accounting .......................................... 32-103
11. Liquidity Options.................................................... 32-105
12. Information Filing ................................................... 32-105
13. Trustees ............................................................... 32-106
14. Other Differences .................................................. 32-106
C. Withholding Tax Issues.................................................. 32-107
1. The U.S. Code ...................................................... 32-107
(a) Partnerships .................................................... 32-107
(b) Corporations.................................................... 32-108
(c) Interest ........................................................... 32-109
2. The Canadian Tax Act............................................ 32-109
(a) Interest ........................................................... 32-109
D. FIRPTA ....................................................................... 32-109
1. Tax Liability........................................................... 32-109
(a) Information Returns .......................................... 32-110
E. Foreign Tax Credits....................................................... 32-110
F. Foreign Exchange ........................................................ 32-111
G. Structural Variations ...................................................... 32-112
1. Single United States Limited Partnership .................. 32-112
(a) Pros ............................................................... 32-112
(b) Cons .............................................................. 32-112
2. Two-Tier Structure (U.S. Partnership/CanadianPartnership) ....................................................... 32-114
(a) Pros ............................................................... 32-114
(b) Cons .............................................................. 32-116
3. Hybrid Structure .................................................... 32-117
(a) Pros ............................................................... 32-117
(b) Cons .............................................................. 32-118
H. Financing Issues .......................................................... 32-119
1. U.S. Lender .......................................................... 32-119
2. Canadian Lender................................................... 32-120
I. U.S. Securities Regulation ............................................. 32-120
1. Applicable Laws .................................................... 32-120
2. Jurisdiction ........................................................... 32-120
3. Exemptions........................................................... 32-121
(a) Securities Act of 1933....................................... 32-121
(b) Texas Securities Act ......................................... 32-122
CONSTRUCTION AND DEVELOPMENTA GUIDE TO PROJECT MANAGEMENT
The Project Management Concept.......................................... 36-11
1-18 Table of Contents (CCREM)2014—Rel. 1
The Definition of Project Management..................................... 36-11
Preliminary Requirements...................................................... 36-12
General Functions ................................................................ 36-12
Basic Requirements.............................................................. 36-12
Defining Client’s Requirements............................................... 36-13
Conceptual Design and Planning............................................ 36-13
Budgeting and Cost Controls ................................................. 36-13
Project Accounting................................................................ 36-14
Scheduling........................................................................... 36-14
Reporting ............................................................................ 36-14
Operational Procedures......................................................... 36-14
Design and Contract Documents ............................................ 36-15
Procedure and Expediting...................................................... 36-15
Construction ........................................................................ 36-16
Quality Control ..................................................................... 36-16
Commissioning..................................................................... 36-16
Scale of Fees for Project Management Services....................... 36-17
Expenses and Disbursements .......................................... 36-17
Definitions ..................................................................... 36-17
Time Expended .............................................................. 36-17
CONSTRUCTION AND DEVELOPMENTSITE PLAN CONTROL AGREEMENTS........................................ 36-18.1
Introduction.......................................................................... 36-19
History of Site Plan Control.................................................... 36-19
Site Plan Approval ................................................................ 36-21
Preconditions to Site Plan Approval .................................. 36-21
Approval of Plans or Drawings ......................................... 36-22C
Limitations on Scope....................................................... 36-22F
Conditions to Approval of Plans........................................ 36-22F
Precondition to Building Permit Issuance ........................... 36-24
Site Plan Agreements ........................................................... 36-27
Statutory Authority .......................................................... 36-27
Structure of Agreement ................................................... 36-28
Levies and the Provision of Services................................. 36-29
Parkland Dedication........................................................ 36-30
Security......................................................................... 36-30
Enforcement .................................................................. 36-31
Nature of Site Plan Agreements ....................................... 36-32
Parties .......................................................................... 36-33
Fees ........................................................................... 36-34
Appeals............................................................................... 36-34
Referral ......................................................................... 36-34
(CCREM)2015—Rel. 1
Table of Contents 1-19
Standing........................................................................ 36-34.1
Jurisdiction of O.M.B....................................................... 36-36
Conclusion........................................................................... 36-38
Schedule A: Sections 41 and 42 of the Planning Act, R.S.O.1990, c. P. 13, as amended ............................................. 36-39
Section 41
Definition ....................................................................... 36-39
Exception ...................................................................... 36-39
Establishment of site plan control area .............................. 36-39
Designation of site plan control area ................................. 36-39
Consultation................................................................... 36-40
Approval of plans or drawings .......................................... 36-40
Exclusions from site plan control ...................................... 36-40
Dispute about scope of site plan control ............................ 36-41
Final determination ......................................................... 36-41
Drawings for residential buildings...................................... 36-41
Proviso.......................................................................... 36-41
Conditions to approval of plans ........................................ 36-41
Where area is in upper-tier municipality ............................. 36-42
Widening must be described in official plan........................ 36-42.1
Limitation....................................................................... 36-43
Registration of agreements .............................................. 36-42.1
Application of Municipal Act, 2001 or City of Toronto Act,2006 .......................................................................... 36-42.1
Appeal to O.M.B............................................................. 36-42.1
Hearing ......................................................................... 36-42.1
Classes of development, delegation.................................. 36-42.1
Proviso.......................................................................... 36-42.2
Certain agreements declared valid and binding .................. 36-42.2
City of Toronto ............................................................... 36-42.2
Section 42
Conveyance of land for park purposes .............................. 36-42.3
Definition ....................................................................... 36-42.3
Alternative requirement.................................................... 36-42.3
Official plan requirement.................................................. 36-42.3
Use and sale of land....................................................... 36-42.3
Payment instead of conveyance ....................................... 36-42.3
No building without payment ............................................ 36-42.4
Redevelopment, reduction of payment............................... 36-42.4
Same ........................................................................... 36-42.4
Determination of value .................................................... 36-42.4
Where land conveyed ..................................................... 36-42.4
Non-Application .............................................................. 36-42.4
1-20 Table of Contents (CCREM)2015—Rel. 1
Changes ....................................................................... 36-42.5
Disputes........................................................................ 36-42.5
Same ........................................................................... 36-42.5
Payment under protest .................................................... 36-42.5
Notice ........................................................................... 36-42.5
Park purposes................................................................ 36-42.5
Special account.............................................................. 36-42.5
Investments ................................................................... 36-42.6
Schedule B: Short Form Site Plan Control Agreement............... 36-43
Schedule C: Long Form Site Plan Control Agreement ............... 36-49
DEVELOPMENT COST SHARING AGREEMENTS........................ 36-53
Introduction.......................................................................... 36-53
The Methodologies ............................................................... 36-54B
Part I — Community Land Compensation .......................... 36-54B
Compensation by Land ............................................ 36-55
Compensation in Cash ............................................. 36-56
Part II — Community Service Cost Sharing........................ 36-56
Front-Ending ........................................................... 36-57
Security.................................................................. 36-57
Part III — Other Provisions .............................................. 36-57
Default ................................................................... 36-57
Transfer of Interest .................................................. 36-58
Subsequent Signatories............................................ 36-58
Mortgagee Position .................................................. 36-59
FORM 1 Secondary Plan — Cost Sharing AgreementCondition.................................................................... 36-60
FORM 2 Draft Plan — Cost Sharing AgreementCondition.................................................................... 36-61
FORM 3 Subdivision Agreement — Cost SharingAgreement Condition ................................................... 36-62
FORM 4 Notice of Compliance......................................... 36-63
FORM 5 Cost Sharing Agreement Condition — StandardForm.......................................................................... 36-64
FORM 6 Assumption Agreement ...................................... 36-64.20
FORM 7 Letter of Credit .................................................. 36-64.21
FORM 8 Cost Sharing Checklist ....................................... 36-64.22
SUBDIVISION AGREEMENTS .................................................... 36-65
Contents ............................................................................. 36-65
Introduction.......................................................................... 36-67
History of Subdivision Control ................................................ 36-67
Subdivision Approval............................................................. 36-69
Scale of Subdivision ....................................................... 36-69
(CCREM)2016—Rel. 1
Table of Contents 1-21
Approval of Plans ........................................................... 36-70F
Application.............................................................. 36-70F
Contents of Draft Plan.............................................. 36-70F
Matters to be Considered ......................................... 36-71
Prematurity/Public Interest Considerations .................. 36-72
Draft Plan Approval.................................................. 36-73
Deregistration of Subdivision Plan ............................. 36-73
Conditions to Approval of Plans........................................ 36-73
Subdivision Agreements ........................................................ 36-76D
Statutory Authority .......................................................... 36-76D
Parties .......................................................................... 36-77
Structure of Agreement ................................................... 36-78
Provision of Municipal or Other Services ........................... 36-81
Security......................................................................... 36-82
Servicing and Maintenance....................................... 36-82
Performance Guarantee ........................................... 36-83
Security for Other Matters......................................... 36-83
Parkland Dedication........................................................ 36-83
Development Charges, Lot Levies and Front-EndPayments ................................................................... 36-84
Enforcement .................................................................. 36-86A
Release of Agreement .................................................... 36-88
Appeals............................................................................... 36-88A
Appeal Matters............................................................... 36-88A
Jurisdiction of the Ontario Municipal Board ........................ 36-89
Reconsidering or Appealing the O.M.B.’s Decisions ............ 36-90
Judicial Review .............................................................. 36-91
Conclusion........................................................................... 36-91
Appendix A.......................................................................... 36-93
Sections 51, 51.1 & 51.2 of the Planning Act ..................... 36-93
Appendix B.......................................................................... 36-105
Subdivision Agreement — Long Form ............................... 36-105
Schedules A-P ............................................................... 36-143
Appendix C.......................................................................... 36-146.17
Subdivision Agreement — Short Form............................... 36-146.17
Schedules A-I ................................................................ 36-146.25
DEVELOPMENT AGREEMENTS ................................................. 36-149
Introduction.......................................................................... 36-149
Development Agreements...................................................... 36-150
Judicial Recognition ........................................................ 36-150
Severance Agreements ................................................... 36-154D
Agreements to Rezone.................................................... 36-154E
Form of Development Agreements.......................................... 36-154I
1-22 Table of Contents (CCREM)2016—Rel. 1
Terms and Agreements of Development Agreements ................ 36-156
Municipal Services.......................................................... 36-156
Financial Payments & Guarantees .................................... 36-157
Development Standards .................................................. 36-158A
Enforcement of Development Agreements ............................... 36-158A
Conclusion........................................................................... 36-158D
Appendices “A” Development Agreement ................................ 36-159
“B” Combined Development/Site Plan Agreement ............... 36-179
“C” Assumption Agreement .............................................. 36-199
BONUSING AGREEMENTS ........................................................ 36-201
Introduction.......................................................................... 36-203
Bonusing Authority................................................................ 36-204
Official Plan Authorization...................................................... 36-206
Jurisdiction of Ontario Municipal Board.................................... 36-208
Bonusing Agreements ........................................................... 36-209
Statutory Authority .......................................................... 36-209
Parties .......................................................................... 36-209
Purpose and Scope of Agreement .................................... 36-209
Range of Facilities, Services or Matters............................. 36-210
Structure of Agreement ................................................... 36-211
Registration and Enforcement of Agreement ...................... 36-211
Conclusion ......................................................................... 36-212
Appendices “A” Section 37 of Planning Act .................................... 36-213
“B” Official Plan Bonusing Policies .............................. 36-214
“C” Bonusing Agreement (Daycare Facilities)................ 36-216
“D” Bonusing Agreement (Heritage Preservation andPublic Art) .......................................................... 36-225
“E” Bonusing Agreement (Public Park and OpenSpaces).............................................................. 36-244
DEVELOPMENT CHARGES ....................................................... 36-277
Introduction.......................................................................... 36-279
History ................................................................................ 36-279
Evolution of Lot Levies .................................................... 36-279
Evolution of Development Charges Legislation ................... 36-281
Development Charges........................................................... 36-284
Authority to Impose Development Charges ........................ 36-284
Increased Need for Services ..................................... 36-284
Exempt Entities ....................................................... 36-284B
Events Triggering Development Charges .................... 36-284C
Restrictions on the Imposition of Development Charges ...... 36-286B
Ineligible Services.................................................... 36-286E
Local Services ........................................................ 36-286E
Residential Development .......................................... 36-286E
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Table of Contents 1-23
Municipal or School Board Land................................ 36-286F
Expansion of Industrial Buildings ............................... 36-286F
Municipal Capital Facilities........................................ 36-287
Cost Containment of Services .......................................... 36-287
Capital Costs ................................................................. 36-288
Calculation of Development Charge .................................. 36-289
Challenges to Development Charges ................................ 36-292
Appeals.................................................................. 36-292
Complaints ............................................................. 36-292
Payment of Development Charges.................................... 36-294A
Credits .......................................................................... 36-296A
Local Services ............................................................... 36-296C
Front-End Financing ............................................................. 36-296D
Authority to Enter into Front-Ending Agreements ................ 36-296D
Contents of Agreements .................................................. 36-296E
Objections to Agreements................................................ 36-297
Transitional Provisions .......................................................... 36-297
Purpose of Transition Rules ............................................. 36-297
Transition Period and Sunset Clause ................................ 36-297
Reserve Funds............................................................... 36-297
Debts ........................................................................... 36-298
Early and Late Payments ................................................ 36-298
Regulations ................................................................... 36-298
Education Development Charges............................................ 36-298
Nature of Development Charges............................................. 36-300.2
Conclusion........................................................................... 36-305
Appendices “A” Development Charges Act, 1997 ..................... 36-307
“B” Education Act................................................ 36-333
“C” Model Form of Development Charges By-law.... 36-351
“D-1” Subdivision Agreement Clauses ................... 36-365
“D-2” Development Agreement Clauses ................. 36-367
“D-3” Upper-Tier Municipality Development ChargeCollection Agreement .................................. 36-369
“E-1” Development Charge Pre-PaymentAgreement ................................................. 36-377
“E-2” Development Charge Deferral/PhasingAgreement ................................................. 36-383
“E-3” Development Charge Late PaymentAgreement ................................................. 36-391
“F-1” Credit Agreement Under Special AreaDevelopment Charge By-Law....................... 36-397
“F-2” Credit Agreement Covering Specific WorksUnder Development Charge By-Law ............. 36-409
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FRONT-ENDING AGREEMENTS ................................................. 36-423
Introduction.......................................................................... 36-423
History ................................................................................ 36-424
Best Efforts.................................................................... 36-424
Front-Ending Under Original Development Charges Act....... 36-428
Front-Ending Under New Development Charges Act, 1997 .. 36-429
The Concept of Front-Ending .................................... 36-429
Limited Services...................................................... 36-430
Development Charge By-law Must Be in Force ........... 36-430
Tiering.................................................................... 36-430
Works Commenced ................................................. 36-430
Reimbursement Collection and Payment .................... 36-430
Front-Ending Agreements ...................................................... 36-431
Authority to Enter into Front-Ending Agreements ................ 36-431
Parties .......................................................................... 36-431
Commencement of Front-Ended Works ............................. 36-431
Restrictions on Services .................................................. 36-432
Restrictions on Reimbursement ........................................ 36-432
Tiering of Front-End Costs ............................................... 36-433
Associated Costs............................................................ 36-434
Contents of Agreements .................................................. 36-434
Objections to Agreements................................................ 36-434A
Notice .................................................................... 36-434A
Who Can Object...................................................... 36-435
Powers of Ontario Municipal Board ............................ 36-435
No Right to Petition.................................................. 36-436
General Provisions ............................................................... 36-436
Date Agreement in Force................................................. 36-436
Non-Parties Bound by Agreement and PaymentRequirements.............................................................. 36-437
Withholding of Building Permit.......................................... 36-437
Management of Front-Ending Funds ................................. 36-438
Credits .......................................................................... 36-438
Registration on Title ........................................................ 36-439
Transitional Rules ........................................................... 36-439
Conclusion..................................................................... 36-440
Appendix “A” Comparison of Front-Ending Agreement Provisions inFormer Act to New Development Charges Act,1997...................................................................... 36-441
Appendix “B” Front-Ending Agreement .......................................... 36-453
MISCELLANEOUS MUNICIPAL DEVELOPMENTAGREEMENTS....................................................................... 36-503
Introduction.......................................................................... 36-503
(CCREM)2014—Rel. 1
Table of Contents 1-25
Parking Exemption Agreements.............................................. 36-504
Parking Standards .......................................................... 36-504
Minor Variance and Rezoning .......................................... 36-504
Parking Exemption Agreements........................................ 36-504
Special Account ............................................................. 36-505
Registration of Agreement ............................................... 36-505
Certificate ...................................................................... 36-505
Appendices “A-1” Planning Act, s. 40................................ 36-507
“A-2” Installment Payment Agreement.............. 36-509
“A-3” Lump Sum Payment Agreement ............. 36-515
Conditional Building Permit Agreements .................................. 36-520
Permit Issuance ............................................................. 36-520
Pre-conditions to Issuance of Conditional Permit ................ 36-520
Unreasonable Delays...................................................... 36-521
Criteria .......................................................................... 36-521
Authorization for Agreement............................................. 36-521
Registration of Agreement ............................................... 36-521
Enforcement .................................................................. 36-522
Revocation .................................................................... 36-522
Conclusion..................................................................... 36-522
Appendices “B-1” Building Code Act, 1992, s. 8 ....................... 36-523
“B-2” O. Reg. 430/97 ........................................... 36-527
“B-3” Conditional Permit Agreement ...................... 36-529
Municipal Capital Facilities Agreement .................................... 36-533
Introduction.................................................................... 36-533
Statutory Authority .......................................................... 36-533
Meaning of Municipal Capital Facilities .............................. 36-533
Assistance by Municipality ............................................... 36-534
Tax Exemptions.............................................................. 36-534
Development Charge Exemptions..................................... 36-534
Appendices “C-1” Municipal Act, ss. 220.1, 111 ........................ 36-535
“C-2” O. Reg. 46/94............................................. 36-539
“C-3” Operation and Maintenance Agreement ......... 36-541
“C-4” Municipal Capital Facilities Agreement........... 36-557
Subdivision Pre-Servicing Agreement...................................... 36-567
Appendix “D-1” Pre-Servicing Agreement........................... 36-569
Heritage Easement Agreements ............................................. 36-575
Introduction.................................................................... 36-575
Statutory Authority .......................................................... 36-575
Registration on Title ........................................................ 36-575
Primacy of Agreement..................................................... 36-576
Heritage Agreements ...................................................... 36-576
Nature of Agreement....................................................... 36-576
1-26 Table of Contents (CCREM)2014—Rel. 1
Conclusion..................................................................... 36-577
Appendices “E-1” Ontario Heritage Act, s.37 ............................ 36-579
“E-2” Heritage Easement Agreement ..................... 36-581
Conservation Easement Agreements ...................................... 36-593
Introduction.................................................................... 36-593
Statutory Authority .......................................................... 36-593
Applicable Lands ............................................................ 36-593
Meaning of Conservation Body......................................... 36-594
Registration on Title ........................................................ 36-594
Assignment.................................................................... 36-594
Nature of Agreement....................................................... 36-594
Conservation Agreements................................................ 36-594
Tax Incentives ................................................................ 36-594.1
Agricultural Easements.................................................... 36-594.2
Conclusion..................................................................... 36-594.3
Appendices “F-1” Conservation Land Act................................. 36-595
“F-2” Conservation Easement Agreement............... 36-599
“F-3” Agricultural Easement Agreement.................. 36-609
Demolition and Construction Agreements ................................ 36-616.5
Introduction.................................................................... 36-616.5
Use of Demolition and Construction Agreement.................. 36-616.5
Registration of Agreement ............................................... 36-616.6
Penalty.......................................................................... 36-616.6
Conclusion..................................................................... 36-616.6
Appendix “G-1” Planning Act, s. 33 ......................................... 36-616.7
Appendix “G-2 Demolition and Construction Agreement............. 36-616.11
Encroachment Agreements .................................................... 36-617
Introduction.................................................................... 36-617
Adverse Possession and Prescriptive Rights...................... 36-617
Permitting Encroachments ............................................... 36-617
Encroachment Agreements .............................................. 36-618
Authority................................................................. 36-618
Form and Structure of Agreements ............................ 36-619
Conclusion..................................................................... 36-620
Appendices “H-1” Real Property Limitations Act, ss. 4,16, 31, 32 ......................................... 36-621
“H-2” Encroachment Agreement (Streets andHighways) ...................................... 36-623
“H-3” Encroachment Agreement(Easements) ................................... 36-631
“H-4” Encroachment Agreement (Parks)......... 36-639
ACQUISITIONS AND DISPOSITIONS .......................................... 38-11
Introduction.......................................................................... 38-11
(CCREM)2016—Rel. 1
Table of Contents 1-27
Acquisitions and Dispositions ................................................. 38-14J
Risks ........................................................................... 38-14J.1
Development risks ................................................... 38-14L
Speculation risks ..................................................... 38-14N
Investment risks ...................................................... 38-14N
Controls and cycles ........................................................ 38-14O
Mortgaging property ........................................................ 38-14O
Diversification................................................................. 38-14O
Value............................................................................. 38-14O
Interest rates.................................................................. 38-14P
Tax shelters ................................................................... 38-14P
Depreciation .................................................................. 38-15
Life of the investment...................................................... 38-15
Disadvantages of real estate investment............................ 38-15
Protecting the investment ................................................ 38-16
Zoning .......................................................................... 38-16
Soil tests ....................................................................... 38-18
Unzoned land ................................................................ 38-18
Pro Forma ..................................................................... 38-18
Commercial Land ........................................................... 38-18
Industrial Development .......................................................... 38-18.1
Industrial Parks .............................................................. 38-18.1
Shopping Centres................................................................. 38-18.1
Acquisition of Neighbourhood Shopping Centre Sites .......... 38-18.2
Convenience Centres...................................................... 38-19
Development of a Community Shopping Centre ................. 38-20
Regional Shopping Centres ............................................. 38-20A
Office Buildings .................................................................... 38-20A
Development Sites.......................................................... 38-20A
A Downtown Location .................................................. 38-20A
Pro forma-major considerations ................................. 38-21
Critical assumptions................................................. 38-21
Income of the project ............................................... 38-21
Tenant inducements................................................. 38-22
Time to lease-up property ......................................... 38-22
Post-construction leasing costs ................................. 38-22
Rewards to developers and investors......................... 38-23
Development of a suburban office building......................... 38-23
Acquisition of existing office buildings................................ 38-23
Evaluation of an existing office building ...................... 38-23
Existing income properties for long-term development .. 38-24
Strategies For Buying Up Land ........................................ 38-25
Long-Term Land Leases........................................................ 38-26B
1-28 Table of Contents (CCREM)2016—Rel. 1
Alternative Means of Acquisitions ........................................... 38-26B
Income and Investment Income Considerations........................ 38-26D
Growth of the income stream ........................................... 38-26D
Reasons for Selling .............................................................. 38-27
Reasons for an Investor to Sell Property ........................... 38-27
The Independent Appraiser.............................................. 38-27
TITLE OPINIONS IN COMMERCIAL REALESTATE TRANSACTIONS ....................................................... 38-101
Introduction.......................................................................... 38-101
What is an opinion? .............................................................. 38-101
Opinion vs Certificate ............................................................ 38-101
Essential Elements of the Title Opinion ................................... 38-102
Addressee ..................................................................... 38-102
Scope of Searches Forming Basis of Opinion .................... 38-102
Assumptions .................................................................. 38-103
Reliances ...................................................................... 38-103
Title Opinion .................................................................. 38-103
Title Qualifications .......................................................... 38-104
Specific Survey Problems ......................................... 38-104
Up-To-Date Survey .................................................. 38-106A
Registered Interests ................................................. 38-106B
Unregistered Easements .......................................... 38-106D
Reservations in Crown Patent ................................... 38-106E
Realty Taxes, Liens, etc ........................................... 38-106E
Construction Lien Act, R.S.O. 1990, C.30 ................... 38-106E
Land Titles Act, R.S.O. 1990, c. L.5,Registry Act, R.S.O. 1990, c. R.20 ......................... 38-106F
Municipal By-Laws................................................... 38-106F
Reporting Matters ................................................................. 38-107
Example Opinion Letter ......................................................... 38-107
Suggested References .......................................................... 38-108
Appendix I: Form of Opinion Letter to Purchaser ...................... 38-109
TITLE INSURANCE.................................................................... 38-121
Introduction to Title Insurance ................................................ 38-121
A Historical Look at Title Insurance................................... 38-121
An Overview .................................................................. 38-123
The Canadian Policies .................................................... 38-128.2
What is Title Insurance? ........................................... 38-128.2
The Loan Policy ...................................................... 38-129
The Owner’s Policy.................................................. 38-129
The Plain Language Policy ....................................... 38-129
The Schedules ........................................................ 38-130
An American Attorney’s View of Title Insurance.................. 38-130A
(CCREM)2015—Rel. 1
Table of Contents 1-29
About First American Title Insurance Company .................. 38-132
Corporate Structure ................................................. 38-133
Financial Review ..................................................... 38-133
Certificate of Registry............................................... 38-133
Provincial Licensing ................................................. 38-134
Trade Marks ........................................................... 38-134
Procedures .......................................................................... 38-134
Introducing Title Insurance to Clients................................. 38-134
By Lender............................................................... 38-134
By the Company ..................................................... 38-134
By Solicitor ............................................................. 38-134
The “Acknowledgement” .................................................. 38-134
Title Searching Procedures .............................................. 38-135
Registry Office Searches .......................................... 38-135
Other Searches ....................................................... 38-141
Transaction Closing Procedures ....................................... 38-143
Policy Issuance .............................................................. 38-143
When..................................................................... 38-144
To Whom................................................................ 38-144
What Policy Form .................................................... 38-144
Certificate of Title .................................................... 38-145
Commitment Preparation ....................................................... 38-146
Policy Preparation ................................................................ 38-150.3
Loan Policy-Form 1......................................................... 38-150.4
Owner’s Policy (Commercial)–Form 2 ............................... 38-150.8
Plain Language Policy (Residential)–Form 3 ...................... 38-150.11
Underwriting Practice ............................................................ 38-150.15
Form and Endorsement Samples............................................ 38-150.17
Rate Schedule ..................................................................... 38-150.47
Solicitor’s Agreement ............................................................ 38-150.49
Schedule “A”: TITLE INSURANCE RATES............................ 38-150.55
SAMPLE INSURANCE POLICIES ISSUED BY STEWART TITLE
Commercial Title Insurance.................................................... 38-151
Minimizing Lawyer/Notary Liability..................................... 38-151
Commercial Lender......................................................... 38-151
Sample Policies.................................................................... 38-153
VOLUME 3
ENVIRONMENTAL CONSIDERATIONS
ENVIRONMENTAL LIABILITIES AND DUE DILIGENCE IN LANDREDEVELOPMENT................................................................. 39-1
1 Introduction ..................................................................... 39-1
1-30 Table of Contents (CCREM)2015—Rel. 1
2 Acquisition of Lands by the Developer ............................. 39-1
3 Civil Liabilities ................................................................. 39-2
3.1 Spills.................................................................... 39-2
3.2 Tort ...................................................................... 39-2
3.2.1 Nuisance ..................................................... 39-2
3.2.2 Strict Liability ................................................ 39-4A
3.2.3 Trespass...................................................... 39-4A
3.2.4 Negligence................................................... 39-4A
3.2.5 Riparian Rights ............................................. 39-4B
3.2.6 Removal of Ground Water.............................. 39-4B
3.3 Directors and Officers ............................................ 39-5
3.4 Contract ............................................................... 39-5
3.4.1 Contract Rights and Obligations...................... 39-5
Land Purchase Agreements...................... 39-5
Leases ................................................... 39-6.6
3.4.2 Latent Hazards ............................................. 39-6.7
3.5 Limitation Periods .................................................. 39-6C
3.6 Offences/Prosecutions............................................ 39-7
4 Environmental Protection Act........................................... 39-8C
4.1 Waste Management-E.P.A. Pt. V ............................. 39-8C
4.1.1 Use of Former Waste Disposal SitesProhibited ................................................. 39-8C
4.1.2 Waste Removal Order ................................... 39-8D
4.2 Other Orders......................................................... 39-8D
4.2.1 Preventive Order........................................... 39-8D
4.2.2 Remedial Order ............................................ 39-8D
4.2.3 Control Order ............................................... 39-8E
4.2.4 Stop Order ................................................... 39-8E
4.3 Enforcing Orders ................................................... 39-9
4.3.1 Inspection .................................................... 39-9
4.3.2 Financial Assurance ...................................... 39-9
4.3.3 Ministry Performance and Recovery of Costs ... 39-9
4.3.4 Injunction ..................................................... 39-9
4.3.5 Orders Binding on Successors........................ 39-9
4.4 Decommissioning Guidelines .................................. 39-10
5 The Purchase of Land ...................................................... 39-11
5.1 Vendor Covenants/Conditions for Purchaser’sBenefit .............................................................. 39-11
5.1.1 Audit ........................................................... 39-11
5.2 Vendor Representations and Warranties................... 39-13
5.3 Survival of Warranties ............................................ 39-13
5.4 Limits on Liability ................................................... 39-14
5.5 Security for Surviving Warranties and Indemnities...... 39-14
(CCREM)2016—Rel. 1
Table of Contents 1-31
5.6 Purchaser’s Warranty and Indemnity ........................ 39-14
6 Site Development Approvals ............................................ 39-14
6.1 Planning Act ......................................................... 39-14
6.2 Environmental Assessment..................................... 39-15
6.2.1 Environmental Assessment Act....................... 39-15
6.2.2 Environmental Assessment and Review ProcessGuidelines Order........................................ 39-16
6.2.3 Assessment Conditions in Control Orders andApprovals ................................................. 39-16
6.3 Practical Consequences ......................................... 39-16
7 Waste Generation, Handling and Disposal ........................ 39-16
7.1 Waste Generator Reporting..................................... 39-17
7.2 Waste Management Systems.................................. 39-18
7.2.1 Prohibited Use/Operation of Waste ManagementSystems ................................................... 39-18
7.2.2 Manifests ..................................................... 39-18
7.3 Waste Disposal sites.............................................. 39-18
7.3.1 Prohibited Use/Operation of Waste DisposalSites ........................................................ 39-18
7.3.2 Manifests ..................................................... 39-19
7.4 Asbestos and PCBs............................................... 39-19
7.4.1 Asbestos...................................................... 39-19
7.4.2 PCB Wastes................................................. 39-19
7.5 Waste Categories .................................................. 39-20
Hazardous Waste .................................................... 39-20
Registrable Waste ................................................... 39-20
Non-Registrable Waste (Mildly Toxic) ......................... 39-20
Clean Fill ................................................................ 39-21
7.6 Municipal By-Laws................................................. 39-21
7.7 Practical Concerns................................................. 39-22
7.8 Contaminated Sites................................................ 39-22
Rationale for Site Condition Standards in O. Reg.153/04 ................................................................ 39-22
General Information ................................................. 39-22
Rationale for Site Condition Standards (SCS) inTables 1 to 5........................................................ 39-23
Petroleum Hydrocarbon Rationale ............................. 39-23
Full Depth Background Ground Water Site ConditionStandards............................................................ 39-23
Rationale for Site Condition Standards in Table 6 (SoilExtract and Ground Water Standards to
Determine Whether a Property is a “Shallow SoilProperty”) ............................................................ 39-24
Use of the Tables of Site Condition Standards ............ 39-24
1-32 Table of Contents (CCREM)2016—Rel. 1
Risk Assessment Requirements ....................................... 39-25
Comparison of the 1996 Guideline and the New Record ofSite Condition Regulation (153/04) ................................ 39-25
When to Use the New Regulated Requirements .......... 39-25
What Are the New Requirements?............................. 39-25
7a Landfill Standards............................................................ 39-22I
Ontario’s landfill standards............................................... 39-28I
Mandatory air emissions control ................................ 39-28I
Hydrogeology and surface water ............................... 39-28J
Hydrogeologic assessment ....................................... 39-28J
Surface water assessment........................................ 39-28J
Design report .......................................................... 39-28J
Site design for groundwater protection ....................... 39-28J
Site specific design.................................................. 39-28J
Generic design........................................................ 39-28J
Site operations and monitoring .................................. 39-28K
Reasonable Use Guideline ....................................... 39-28K
Closure and post-closure care................................... 39-28K
Financial assurance ................................................. 39-28K
8 Certificates of Approval ................................................... 39-28L
8.1 Equipment and Processes: Construct, Alter, Operateor Use .............................................................. 39-28L
8.2 OWRA (Ontario Water Resources Act) ..................... 39-28M
8.3 Approval Delays .................................................... 39-28M
9 EPA Offences .................................................................. 39-28M
9.1 Pollution ............................................................... 39-28M
9.2 Reporting ............................................................. 39-28M
9.3 Spills Clean-Up ..................................................... 39-28N
9.4 Injunction.............................................................. 39-28O
9.5 Offences............................................................... 39-28O
9.5.1 General ....................................................... 39-28O
9.5.2 Corporate Liability ......................................... 39-28O
9.5.3 Employee Liability ......................................... 39-28O
9.5.4 Officers and Directors .................................... 39-28P
9.6 Defences.............................................................. 39-28P
9.6.1 Compliance with Order/Approval ..................... 39-28P
9.6.2 Burden of Proof ............................................ 39-28P
9.6.3 Due Diligence............................................... 39-28Q
9.7 Limitation Period.................................................... 39-28Q
9.8 Penalties and Enforcement ..................................... 39-28Q
9.8.1 EPA and OWRA ........................................... 39-28S
9.8.2 Municipal By-Laws ........................................ 39-28T
(CCREM)2014—Rel. 1
Table of Contents 1-33
10 Occupational Health and Safety Act—Canada Labour Code .................................................. 39-29
10.1 Constructors........................................................... 39-29
10.2 Notification to Constructors and Contractors ............... 39-29
10.3 Workplace Hazardous Material Information Systems ... 39-29
10.4 Inventories Available ............................................... 39-30
10.5 Employer Liable for Employee Conduct ..................... 39-30
10.6 Directors and Officers.............................................. 39-30
10.7 Architects and Engineers ......................................... 39-31
11 Risk Management .......................................................... 39-31
11.1 Construction Documents .......................................... 39-31
11.2 Consultants ............................................................ 39-32
11.3 Incorporation .......................................................... 39-32
11.4 Insurance............................................................... 39-32
11.5 Contractual Indemnities............................................ 39-33
11.6 Due Diligence......................................................... 39-33
12 Lender Liability .............................................................. 39-34
12.1 Self-protection ........................................................ 39-34
12.2 Jurisprudence......................................................... 39-34A
13 Remediation Projects ..................................................... 39-34B
Environmental Protection Act.................................................... 39-80.1
Concordance ...................................................................... 39-80.3
THE IMPACT OF BILL 220 ON REAL ESTATE ANDCOMMERCIAL LENDERS .......................................................... 39-81
1 Introduction ..................................................................... 39-81
1.1 CERCLA ................................................................. 39-81
1.2 Present Owners ....................................................... 39-82
1.3 Prior Owners............................................................ 39-82
1.4 Secured Lenders ...................................................... 39-82
1.5 Innocent Landowners ................................................ 39-83
1.6 Liens....................................................................... 39-84
2 Bill 220 ............................................................................ 39-84
2.1 Appeals................................................................... 39-85
2.2 Accountability........................................................... 39-85
2.3 Regulatory Authority.................................................. 39-85
2.4 Secured Lenders and Trustees................................... 39-86
2.5 Property Transfer Audits ............................................ 39-86
2.6 Phase-One .............................................................. 39-87
2.7 Phase-Two .............................................................. 39-87
3 Loan Documentation ........................................................ 39-87
3.1 Representations and Warranties ................................. 39-87
3.2 Indemnification ......................................................... 39-88
1-34 Table of Contents (CCREM)2014—Rel. 1
3.3 Covenants ............................................................... 39-88
3.4 Environmental Due Diligence ..................................... 39-88
4 Conclusion ...................................................................... 39-88
REDUCING COSTS THROUGH REDUCTION OF REALPROPERTY TAXES ON CONTAMINATED PROPERTIES
Introduction ........................................................................ 39-91
Real Property Assessment in Ontario .................................. 39-91
Assessment is Distinct From Property Taxation .................. 39-91
Annual Assessments and Rights of Appeal........................ 39-92
Market Value, Comparables and Inequitable
Assessments .............................................................. 39-92
Different Types of Assessment Programs .......................... 39-93
Non-Reassessed Areas............................................ 39-93
Section 58 – Equalization Reassessment Areas .......... 39-93
Sections 63 – Market Value Reassessment Areas ....... 39-94
Routes of Appeal............................................................ 39-94
Impact of Contamination on Market Value ............................ 39-95
The U.F.F.I. Experience ................................................... 39-95
Contaminated Industrial Properties ................................... 39-96
Relationship of Clean-up Costs to Market Value ................. 39-96
Regulatory Compliance ............................................ 39-96
Continue Existing Use.............................................. 39-97
Change in Use ........................................................ 39-97
Nuisance ................................................................ 39-97
Assessment Cases Dealing With Contaminated Property ........... 39-98
New Jersey Supreme Court Decisions .................................... 39-98
Leading Quebec Tribunal Decision ......................................... 39-98
Recent Alberta Tribunal Decision............................................ 39-99
Disclosure of Information .......................................................... 39-99
Disclosure Provisions in the Assessment Act ........................... 39-100
Practical Steps to Safeguard Confidential Information ............... 39-100
Disclosure by Assessor of Information on Comparables ............ 39-101
Contesting Assessments of Contaminated Properties ................ 39-102
The Use of Experts............................................................... 39-102
Negotiations......................................................................... 39-102
Potential Disadvantages to Assessment Appeals...................... 39-103
Concluding Remarks: The Test of Equity ................................... 39-103
Appendix 1
Assessment Act ................................................................... 39-104
Appendix 2
Dominion Tar & Chemical v. Town of Cochrane ........................ 39-118.4
(CCREM)2014—Rel. 1
Table of Contents 1-35
WHEN SHOULD DIRECTORS AND OFFICERS BE PERSONALLYLIABLE FOR CLEAN-UP ORDERS? ........................................ 39-123
1 INTRODUCTION ............................................................... 39-123
2 Re 724597 Ontario Ltd...................................................... 39-124
2.1 Relief from Liability ................................................... 39-127
2.2 Application of Principles of Fairness............................ 39-128
2.3 Benefit from Participation........................................... 39-129
2.4 The Standard of Care ............................................... 39-129
2.5 Degree of Influence Over Underlying Factors ............... 39-130
2.6 The Steps Taken to Reduce the Risk .......................... 39-130
3 Re Valentine Developments Ltd. ....................................... 39-131
3.1 Evidence and Findings .............................................. 39-132
3.1.1 Due Diligence............................................... 39-132
4 Sheridan v. Director ......................................................... 39-135
5 A Few Concluding Remarks ............................................. 39-137
LIMITATION OF ENVIRONMENTAL LIABILITIES — RECEIVERS,RECEIVERS AND MANAGERS, TRUSTEES IN BANKRUPTCYAND EXECUTORS AND EXECUTORS ..................................... 39-139
I. Introduction .................................................................. 39-139
II. Environmental Liabilities — Overview of Legal Conceptsin Public and Private Law .......................................... 39-145
III. Duties and Responsibilities of Trustees in Bankruptcy,Receivers, Receivers and Managers and Executors .... 39-160
IV. Review of Canadian Case Law — Receivers andManagers and Trustees in Bankruptcy — EnvironmentalConditions and Issues of Personal Liability and PriorityClaims in the Estate................................................... 39-200
IV. Review of U.S. Case Law — Executors and OtherFiduciaries — Environmental Conditions and Issues ofPersonal Liability ....................................................... 39-221
VI. Statutory Exclusions of Personal Liability of a Trustee inBankruptcy — Subsections 14.06(2) and (3) of the BIA39-225
VII. Consideration of Alternatives to Receivership orBankruptcy................................................................ 39-231
VIII.Considerations Prior to Receivership, Bankruptcy orExecutorship ............................................................. 39-243
IX. Limitation of Liabilities — Receivers, Receivers andManagers, Trustees in Bankruptcy and Executors....... 39-250
X. Proposed Amendments to Subsections 14.06(2) and (3)of the BIA — Extension of Statutory Exclusions andIncorporation of Receivers and Receivers andManagers .................................................................. 39-273
Appendix 1
1-36 Table of Contents (CCREM)2014—Rel. 1
Standard Trust Co. (In Liquidation) v. Lindsay HoldingsLtd.......................................................................... 39-289
Appendix 2
Draft Agreement for Non-Intrusive EnvironmentalInspections ................................................................. 39-297
Appendix 3
Draft Agreement for Intrusive Environmental Inspections ..... 39-300
Appendix 4
Draft Comprehensive Agreement ...................................... 39-305
Appendix 5
Task Force on Environmental Issues................................. 39-310
Appendix 6
Working Group #6 .......................................................... 39-319
SHOULDERING THE RISK: COMING TO GRIPS WITHENVIRONMENTAL LIABILITY
GUARDING THE BANK: MINIMIZING LENDERS’ENVIRONMENTAL RISK
I. Introduction .................................................................. 39-323
II. Classes of Potentially Responsible Parties .................... 39-324
A. Ontario’s Environmental Protection Act ......................... 39-324
B. Ontario’s Gasoline Handling Act and Regulations........... 39-326
C. Canadian Environmental Protection Act ........................ 39-327
D. Fisheries Act ............................................................. 39-328
III. Risk to the Lender ........................................................ 39-328
IV. Update ......................................................................... 39-329
A. Significant Canadian Case Law and OtherDevelopments ........................................................ 39-329
B. U.S. Developments .................................................... 39-332
V. Realization upon Security ............................................. 39-332
A. Foreclosure ............................................................... 39-332
B. Power of Sale............................................................ 39-333
C. Receivership ............................................................. 39-333
D. Bankruptcy................................................................ 39-335
VI. Preventive Measures — What’s a Lender To Do? ........... 39-337
A. Prior to Financing....................................................... 39-337
B. During the Term of the Loan........................................ 39-340
C. At Loan Default ......................................................... 39-342
1. Loan Workout ..................................................... 39-343
2. Selective Realization............................................ 39-343
3. Court Application ................................................. 39-343
4. Agreements with the Ministry of the Environmentand Energy...................................................... 39-344
5. Abandonment...................................................... 39-344
(CCREM)2014—Rel. 1
Table of Contents 1-37
VII. Conclusion ................................................................... 39-346
APPENDIX A —CBAO Environmental Section (Application Form) .... 39-348
APPENDIX B —Extract from Bankruptcy and Insolvency Act ........... 39-350
APPENDIX C —Extract from Bill C-109, An Act to Amend theBankruptcy and Insolvency Act, the Companies’Creditors Arrangements Act and the Income TaxAct................................................................. 39-353
APPENDIX D —Discussion Paper—Clarifying the Liability ofSecured Creditors, from Lender Liability WorkingGroup to Assistant Deputy Minister, Policy Division,Ministry of Environment and Energy, March 17, 1995
........................................................................ 39-357
APPENDIX E —Extract from Draft Ministry of the Environment andEnergy Compliance Guideline F-2 re Field Orders
......................................................................... 39-374
APPENDIX F —MOEE News Release on Policy and Guideline onAccess to Environmental Evaluationsand Policy and Guideline document ................... 39-379
APPENDIX G —MOEE News Release on Standard AgreementConcerning Environmental Investigations andStandard Agreement precedent form.................. 39-386
DEALING WITH CONTAMINATED LANDS: ALLOCATING RISKSFOR ENVIRONMENTAL LIABILITY
I. INTRODUCTION ............................................................ 39-390
II. OVERVIEW OF ENVIRONMENTAL LIABILITY ................. 39-390
A. General — Statutory Liability ....................................... 39-390
B. Statutory Liability for Offences ..................................... 39-391
C. Statutory Liability for Administrative Orders ................... 39-392
1. General .............................................................. 39-392
2. Types of Administrative Orders.............................. 39-392
3. Appeals of Orders ............................................... 39-393
D. Liability at Common Law............................................. 39-394
III. CLEAN-UP OF CONTAMINATED LAND........................... 39-395
IV. ALLOCATING RISKS FOR ENVIRONMENTAL LIABILITY . 39-395
A. General .................................................................... 39-395
B. Assessing the Risks ................................................... 39-396
1. Due Diligence ................................................... 39-396
2. Environmental Assessments ............................... 39-396
C. The Agreement.......................................................... 39-398
1. Representations and Warranties.......................... 39-398
2. Covenants ........................................................ 39-398
3. Indemnities ....................................................... 39-399
4. Landlord/Tenant Situations.................................. 39-399
1-38 Table of Contents (CCREM)2014—Rel. 1
V. CONCLUSION ............................................................... 39-399
IS ENVIRONMENTAL INSURANCE THE ANSWER?
I. INTRODUCTION ............................................................ 39-401
II. COMPREHENSIVE GENERAL LIABILITY POLICIES ........ 39-401
III. INTERPRETING THE POLLUTION EXCLUSION CLAUSE:RULES OF CONSTRUCTION ...................................... 39-402
A. Contra Proferentum and Reasonable Expectations......... 39-402
IV. CASES FAVOURING INSURED ...................................... 39-402
V. CASES FAVOURING INSURER ...................................... 39-404
VI. CANADIAN CASES ....................................................... 39-405
VII. MEANING OF “DAMAGES”............................................ 39-406
VIII. THE ABSOLUTE EXCLUSION ........................................ 39-407
IX. WHAT IS AVAILABLE NOW............................................ 39-408
A. Environmental Impairment Liability Policy (“EIL”) ............ 39-408
B. Environmental Protection Program (“EPP”).................... 39-408
C. Contractors’ Pollution Liability Insurance (“CPL”)............ 39-408
D. Preferred Risk Pollution Liability Insurance (“PRPL”) ...... 39-409
E. Underground Storage Tank Pollution Insurance (“USTP”) 39-409
F. Environmental Remediation Insurance (“ERI”) ................ 39-409
G. Casualty Programs for Environmental Risks (“CPER”) .... 39-409
H. Owner-Controlled Insurance Programs for EnvironmentalRemediation and Abatements (“OCIP”)...................... 39-409
X. CONCLUSION ............................................................... 39-409
ALTERNATE RISK FINANCING: WHAT CAN YOU DO WHENENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE IS NOTA VIABLE OPTION?
INTRODUCTION ........................................................................ 39-411
TYPES OF ENVIRONMENTAL RISKS ......................................... 39-411
COMPREHENSIVE GENERAL LIABILITY .................................... 39-412
ENVIRONMENTAL IMPAIRMENT LIABILITY (EIL) POLICY ........... 39-413
ENVIRONMENTAL COVERAGE AND THE SALE OFCONTAMINATED PROPERTY TO THIRD PARTIES ................... 39-413
OTHER INSURANCE POLICIES.................................................. 39-413
CURRENT MARKET CONDITIONS ............................................. 39-414
ALTERNATIVE FINANCING BEGINS TO FILL THE GAP ............... 39-415
SOME SPECIFIC ADVANTAGES TO ALTERNATIVE RISKFINANCING ........................................................................... 39-416
POSSIBLE ALTERNATE STRUCTURES ...................................... 39-417
CONCLUSION ........................................................................... 39-417
GUIDELINE FOR USE AT CONTAMINATED SITES INONTARIO............................................................................... 39-419
EXECUTIVE SUMMARY ............................................................. 39-419
TABLE OF CONTENTS .............................................................. 39-423
(CCREM)2014—Rel. 1
Table of Contents 1-39
GLOSSARY .............................................................................. 39-425
FREQUENTLY ASKED QUESTIONS............................................ 39-428
SECTION 1—Introduction .......................................................... 39-431
SECTION 2—Principles ............................................................. 39-434
SECTION 3—Communication .................................................... 39-434
SECTION 4—Restoration approaches ........................................ 39-436
SECTION 5—Background approach........................................... 39-438
SECTION 6—Generic approach ................................................. 39-439
SECTION 7—SSRA approach .................................................... 39-457
SECTION 8—Site assessment ................................................... 39-461
SECTION 9—Land use planning ................................................ 39-476
ACKNOWLEDGEMENTS............................................................ 39-483
REFERENCES........................................................................... 39-485
APPENDIX 1: Table — Summary of approvals information ... 39-487
APPENDIX 2: Tables A–F — Summary of soil, groundwaterand sediment criteria .................................. 39-488
APPENDIX 3: Environmental Protection Act sections 18 &197............................................................. 39-512
APPENDIX 4: Ministry office listings .................................... 39-523
HOW LEAN IS CLEAN? ONTARIO’S NEW GUIDELINE FOR THECLEAN-UP OF CONTAMINATED SITES. THINGS YOU WILL NOTLEARN FROM A QUICK READ OF THE GUIDELINE: ANOTHERPERSPECTIVE ON CONTEXT ................................................. 39-525
INTRODUCTION ............................................................ 39-525
I. BUSINESS PLAN .......................................................... 39-525
A. What Insight Does This Provide? ................................. 39-527
II. COMPLIANCE GUIDELINE ............................................. 39-527
A. What Insight Does This Provide? ................................. 39-528
III. COMPLIANCE STRATEGY ............................................. 39-528
A. What Insight Does This Provide? ................................. 39-530
IV. AUDIT PROGRAM ......................................................... 39-531
A. What Insight Does This Provide? ................................. 39-532
V. LAND USE PLANNING .................................................. 39-532
A. What Insight Does This Provide? ................................. 39-533
CONCLUSIONS ......................................................................... 39-533
APPENDICES
1. References................................................................ 39-535
2. Decision Making at Fuel Outlets Chart .......................... 39-536
3. Performance and Accountability Table........................... 39-537
GUIDELINE FOR USE AT CONTAMINATED SITES IN ONTARIO — ALAWYER’S PERSPECTIVE ON HOW IT WILL WORK
I. INTRODUCTION ............................................................ 39-539
A. Background............................................................... 39-539
B. Overview .................................................................. 39-539
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II. GUIDELINE AND COMPANION DOCUMENTS ................. 39-540
III. GUIDELINE — EXECUTIVE SUMMARY........................... 39-541
IV. NEW TERMINOLOGY — GLOSSARY ............................. 39-541
V. ANSWERS TO FREQUENT QUESTIONS......................... 39-543
VI. GUIDELINE INTRODUCTION (SECTION 1) ...................... 39-543
VII. GUIDELINE PRINCIPLES (SECTION 2) ........................... 39-543
VIII. PUBLIC COMMUNICATION (SECTION 3) ........................ 39-544
IX. RESTORATION APPROACHES (SECTIONS 4 TO 7) ........ 39-544
X. SITE ASSESSMENT (SECTION 8) .................................. 39-544
A. Report Documentation ................................................ 39-544
B. Completion Documentation — Record of Site Condition.. 39-545
C. Registration on Title to Land........................................ 39-545
D. Use of the RSC Without MOEE Involvement ................. 39-546
XI. LAND USE PLANNING (SECTION 9) .............................. 39-546
A. Planning Approvals .................................................... 39-547
B. Municipalities Reviewing Reports ................................. 39-547
C. Nonpotable Groundwater ............................................ 39-547
D. Site Specific Risk Assessments — Municipal Agreements............................................................................... 39-548
E. Potentially Sensitive Sites ........................................... 39-548
XIII.APPENDIX 3 — DRAFT ORDERS AND SCHEDULE ARECORD OF SITE CONDITION ................................... 39-548
A. Draft Orders .............................................................. 39-548
B. Record of Site Condition ............................................. 39-548
XIII.ROLE OF LEGAL COUNSEL .......................................... 39-551
A. Understand the Deal .................................................. 39-551
B. Define and Implement Approaches Due Diligence .......... 39-551
C. Assist in Structuring and Negotiating the Contract.......... 39-552
D. Advise as to Post-Closing Matters................................ 39-552
XIV.CONCLUSIONS ............................................................. 39-552
A. Major Improvements and Innovations ........................... 39-553
B. Major Changes .......................................................... 39-553
C. Areas of Concern....................................................... 39-553
APPENDIX 1 — OUTLINE OF KEY ENVIRONMENTALPROVISIONS IN AGREEMENTS RELATING TOPURCHASE, SALE, LEASE OR LOANTRANSACTIONS............................................ 39-554
APPENDIX 2 — SPECIFIC ENVIRONMENTAL AGREEMENTS ...... 39-556
APPENDIX 3 — AGREEMENTS WITH ENVIRONMENTALCONSULTANTS AND CONTRACTORSRELATING TO ENVIRONMENTALASSESSMENTS ............................................. 39-558
(CCREM)2015—Rel. 4
Table of Contents 1-41
SPECIAL AGREEMENTSAN ANALYSIS OF GROUND LEASE PROVISIONS ...................... 40-1
A. Introduction ................................................................... 40-11
1. Advantages and Disadvantages to the Landlord............. 40-11
2. Advantages and Disadvantages to the Tenant................ 40-11
3. Advantages and Disadvantages to the LeaseholdMortgagee.............................................................. 40-12
B. Applicable Legislation.................................................... 40-14
C. Drafting Considerations ................................................. 40-16D
1. Quiet Enjoyment......................................................... 40-16.3
(a) Landlord’s Covenant ............................................ 40-16.3
(b) Title to the Freehold............................................. 40-16.3
(c) Registration of the Lease...................................... 40-16.4
(d) Subordination Agreement ..................................... 40-16.7
(e) Zoning ............................................................... 40-16.7
2. Term......................................................................... 40-16.8
3. Rent ......................................................................... 40-20
(a) Base Rent .......................................................... 40-20
(b) Percentage Rent ................................................. 40-20B
(c) Additional Rent.................................................... 40-21
4. Improvements ............................................................ 40-22
(a) Construction by Tenant......................................... 40-22
(b) Security to Landlord............................................. 40-22.3
(c) By-laws and Municipal Agreements........................ 40-23
(d) Ownership of Improvements.................................. 40-23
5. Use .......................................................................... 40-24
6. Repairs and Maintenance............................................ 40-26.3
7. Damage or Destruction ............................................... 40-26.3
(a) Right of Termination............................................. 40-26.3
(b) Obligation to Rebuild............................................ 40-26B
8. Insurance .................................................................. 40-26B
(a) Types of Insurance .............................................. 40-26B
(b) Named Insureds.................................................. 40-26C
(c) Disposition of Insurance Proceeds ......................... 40-26D
(d) Insurance Trustee................................................ 40-26D.1
(e) Release of Insurance Proceeds............................. 40-26D.1
9. Expropriation ............................................................. 40-26D.1
10. Estoppel Certificates ................................................. 40-26G
11. Dispositions ............................................................. 40-26G
(a) Dispositions by the Tenant .................................... 40-26G
(b) Space Leases ..................................................... 40-27
(c) Dispositions by Landlord ...................................... 40-28
1-42 Table of Contents (CCREM)2015—Rel. 4
12. Events of Default and Rights of the LeaseholdMortgages ............................................................ 40-30B.2
(a) Limitation of Events of Default............................... 40-30B.2
(b) Right to Notice .................................................... 40-30D.2
(c) Right to Cure ...................................................... 40-30D.2
(d) Right to Take Over Lease ..................................... 40-30D.2
(e) Limitation of Landlord’s Right of Termination ........... 40-30D.2
(f) Right to a New Lease .......................................... 40-30F
13. Other Special Covenants ........................................... 40-30H
14. Limited Recourse or Indemnities................................. 40-30H
D Financing Considerations ................................................ 40-30I
1. Form of Ground Lease................................................ 40-30J
2. Form of Leasehold Mortgage ....................................... 40-30J
(a) Assignment or Sublease....................................... 40-30J
(b) “Split Fee” Situations............................................ 40-31
(c) Assignment of Space Leases................................ 40-31
(d) Assignment of Ancillary Rights .............................. 40-31
(e) Purchase by Tenant of Fee................................... 40-32
(f) Covenants by Tenant ........................................... 40-32
(g) Appointment of Receiver ...................................... 40-32
(h) Attornment by Tenant to Lender ............................ 40-32
3. Registration(s)............................................................ 40-32
4. Documentation from the Landlord................................. 40-32
5. Space Leases............................................................ 40-33
6. Bankruptcy of Tenant .................................................. 40-33
AGREEMENTS, PRECEDENTS AND CHECKLISTS
AGREEMENTS, PRECEDENTS AND CHECKLISTS................ 49-1OFFER TO PURCHASE ............................................................. 49-11
MORTGAGE CLAUSES
Representations of the Mortgagor ........................................... 56-11
Covenant re Notice of Default under Leases ............................ 56-11
Covenant Prohibiting the Collection of Pre-paid Rents............... 56-11
Covenant of Mortgagor to Give Mortgagee Notice of Casualty ofLegal Claim ...................................................................... 56-11
Mortgagor to Comply with Laws etc ........................................ 56-11
Mortgage Clause for Insurance Policies................................... 56-12
Prepayment Privileges—Special Clauses................................. 56-13
Prepayment Clause (When Acting for Mortgagor) ..................... 56-14
Prepayment Clause (When Acting for Mortgagee)..................... 56-14
Restricted Payment Clause.................................................... 56-14
Guarantee Clause—Short Form ............................................. 56-15
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Table of Contents 1-43
Guarantee Clause—Expanded Form....................................... 56-15
Guarantor Clause—Alternate Forms........................................ 56-16
No-Recourse Mortgages........................................................ 56-20
Tax Clauses......................................................................... 56-20
Covenants of Mortgagor re Leased Premises........................... 56-24
Collateral Assignment of Leases and Rents ............................. 56-27
Assignment of Leases and Rents to Morgagee ........................ 56-29
Assignment of Rents and Profits to Mortgagee......................... 56-30
Partial Release or Discharge.................................................. 56-31
— Alternate Forms......................................................... 56-32
Sale Clause ......................................................................... 56-33
— Alternate Forms......................................................... 56-33
Collateral Mortgage Clause.................................................... 56-35
— Alternate Form .......................................................... 56-35
Management Clause and Liquidated Damages for ChequesNot Honoured ................................................................... 56-35
Financial Statements............................................................. 56-35
Right of Inspection................................................................ 56-37
Pre-Authorized Payment Plan Payment Authorization PlanRequest ........................................................................... 56-37
Post-dated Cheque Provision ................................................. 56-38
Renewal Provision ................................................................ 56-39
Spouse Clause (Ontario) ....................................................... 56-39
Demolition Clause ................................................................ 56-40
Cumulative Remedies ........................................................... 56-40
Appointment of Receiver ....................................................... 56-40
Postponement Clause ........................................................... 56-42
Absolute Priority Clause to be Inserted in a SubsequentMortgage.......................................................................... 56-42
Acceleration Clauses ............................................................ 56-43
Interest Clauses ................................................................... 56-71
Solicitor’s Final Report on Title ............................................... 56-85
Loan Participation Agreement ................................................ 58-11
Participation Provisions ......................................................... 58-51
Co-Ownership Agreement...................................................... 58-101
Co-Ownership Agreement between Developer and InsuranceCompany—Equal Participation ............................................ 58-113-2
Limited Partnership Agreement............................................... 58-114
Limited Partnership Agreement—Alternate Form....................... 58-149
Limited Partnership Agreement-Real Estate DevelopmentFund ................................................................................ 58-175
Limited Partnership Agreement-Residential CondominiumDevelopment..................................................................... 58-200.29
1-44 Table of Contents (CCREM)2016—Rel. 1
General Partnership Agreement-Commercial Real EstateDevelopment..................................................................... 58-200.60(1)
Partnership Agreement-Residential Real EstateDevelopment..................................................................... 58-200.86(1)
Joint Venture Agreement ....................................................... 58-201
Checklist for Negotiating Joint Venture DevelopmentAgreement........................................................................ 58-277
Construction Management Agreement..................................... 58-301
Project Management Agreement Between Co-owners andDeveloper as Project Manager ............................................ 58-315
VOLUME 4
Syndicate Mortgage Agreement.............................................. 58-377
Mortgage of Leasehold Land.................................................. 60-11
Tri-Party Agreement, Mortgagor, Mortgagee and Lessee ........... 60-51
Leasehold Mortgage Clauses................................................. 60-57
Ground Lease ...................................................................... 60-68
Operating Lease................................................................... 60-74
Sale and Leaseback Agreement............................................. 60-83
Ground Lease—Phased Mixed-use Development—Option toPurchase to Lessee ........................................................... 60-97
Whole Building Leases.......................................................... 60-171
Office Lease ........................................................................ 60-235
Gross Multi-Tenant Industrial Lease ........................................ 60-313
Subordination Agreements..................................................... 62-11
Nondisturbance Agreements .................................................. 62-21
Subrogation Agreements ....................................................... 62-31
Agreement Postponing Mortgage............................................ 62-41
Wrap Around Mortgage ......................................................... 64-11
Net Net Commercial Lease—Two-Stage Lease—Mixed UseDevelopment..................................................................... 68-16-1
Indemnity Agreement ............................................................ 68-17
Tenant Financing by Landlord—Loan Agreement andPromissory Note................................................................ 68-61
Tenant Financing by Third Party Lender .................................. 68-64
Landlord/Tenant Joint Venture Agreement................................ 68-68
Occupancy Agreement Under Landlord/Tenant Joint VentureAgreement........................................................................ 68-85
Lease Participation Provisions—Anchor Tenant IncomeParticipation in Net Cash Flow of Regional Shopping Centre .. 68-91
Lease Participation Provisions—Tenant Income Participation inOffice Building................................................................... 68-93
Lease Participation Provisions—Tenant Obtains Specified FeeInterest at Maturity of Lease in Office Building....................... 68-99
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Table of Contents 1-45
BROKERAGE AGREEMENTS AND LOAN SERVICING AGREEMENTS
Brokerage Agreements.......................................................... 72-11
Application for Mortgage Loan................................................ 72-12
Agreement to Purchase Mortgage .......................................... 72-14
Agreement for Sale of Mortgage............................................. 72-16
Agreement to Purchase Mortgage by Broker............................ 72-18
Option to Purchase Mortgage................................................. 72-20
Authorization to Mortgage Broker............................................ 72-22
Statement of Mortgage Form—Ontario .................................... 72-24
Disclosure Statement—Mortgage Brokers Act—BritishColumbia.......................................................................... 72-26
Borrower’s Right to Cancel—British Columbia .......................... 72-28
Borrower’s Notice of Rescission ............................................. 72-29
Mortgage Participation and Loan Servicing Agreement .............. 72-101
Mortgage Sale and Servicing Agreement ................................. 72-115
MORTGAGE REMEDIES—ONTARIO
Notice of Sale under Mortgage............................................... 74-201
General Heading of Documents — Actions .............................. 74-201
Statement of Claim (Mortgage Action) ..................................... 74-204
Statement of Claim — Action Commenced by Notice ofAction .............................................................................. 74-207
Order for Substituted Service by Advertising ............................ 74-213
Notice of Intent to Defend...................................................... 74-217
Default Judgment ................................................................. 74-217
Requisition for Default Judgment ............................................ 74-217
Notice of Appearance............................................................ 74-220
Request to Redeem.............................................................. 74-220
Default Judgment for Foreclosure with a Reference .................. 74-221
Default Judgment for Immediate Foreclosure ........................... 74-222
Default Judgment for Foreclosure without a Reference.............. 74-223
Final Order for Foreclosure .................................................... 74-224
Request for Sale .................................................................. 74-226
Default Judgment for Sale with a Redemption Period................ 74-227
Default Judgment for Immediate Sale...................................... 74-228
Default Judgment for Sale Conditional on Proof of Claim........... 74-230
Default Judgment for Immediate Sale...................................... 74-231
Default Judgment for Sale without a Redemption Period ........... 74-232
Final Order for Sale .............................................................. 74-233
Default Judgment for Redemption........................................... 74-234
Notice of Reference to Subsequent Encumbrancer added inReference......................................................................... 74-234
Notice of Reference to Subsequent Encumbrancer Named asOriginal Party .................................................................... 74-235
1-46 Table of Contents (CCREM)2014—Rel. 1
Notice of Reference to Original Defendants ............................. 74-236
Notice to Added Defendant Having Interest in Equity ................ 74-237
Density Transfer Agreement................................................... 76-11
Checklist for Purchasing Income Producing Property ................ 76-19
Checklist for Agreement of Purchase and Sale — ShoppingCentre Development .......................................................... 76-201
Conditional Agreement of Purchase and Sale — ShoppingCentre Development .......................................................... 76-209
CONSTRUCTION AND DEVELOPMENTCCDC2 Stipulated Price Contract ........................................... 84-1
Cost Plus Construction Contract ............................................. 84-101
Design-Build Stipulated Price Construction Contract.................. 84-151
Specimen for Construction Management Proposal .................... 84-201
ACQUISITIONS AND DISPOSITIONSPro-Forma Prospectus — Offering of Condominium Units
Located Outside of Ontario .................................................... 86-1
Table of Contents ........................................................... 86-3
Schedule “A”: Index of Exhibits ........................................ 86-11
Schedule “B”: Appointment of Resident Agent for Service ofProcess...................................................................... 86-13
Schedule “C”: Affidavit..................................................... 86-14
Schedule “D”: Bond of Indemnity ...................................... 86-15
Schedule “E”: Statement on Advertising ............................ 86-16
PROPERTY MANAGEMENTBuilt-in Property Management: The Basics............................... 88-3
Energy Conservation — Lighting ............................................ 88-3
Energy Conservation — HVAC — The Basics.......................... 88-4
Fire Protection — Life Safety ................................................. 88-5
Emergency Evacuation Checklist............................................ 88-5
Organization Chart of Emergency Action ................................. 88-7
Parking Signage................................................................... 88-8
Liability — Parking................................................................ 88-8
Claims Handling Procedures .................................................. 88-9
Security — Vigilance Pays..................................................... 88-10
Security — An Employee’s Duty............................................. 88-10
Physical maintenance of Chiller Evaporator ............................. 88-11
Chiller Equipment Overhaul ................................................... 88-11
Electric Motor Overhaul ......................................................... 88-12
Roof Inspections — A Check-list ............................................ 88-12
Waterproofing Window Troughs.............................................. 88-12
Window Draperies ................................................................ 88-13
(CCREM)2014—Rel. 1
Table of Contents 1-47
Preventive maintenance Inventory Check-list ........................... 88-13
Property Administration — Tenant Liaison................................ 88-14
Protecting Tenants’ Equipment ............................................... 88-15
Tenant Insurance Coverage ................................................... 88-16
Certificate of Insurance — Liability.......................................... 88-16
Certificate of Insurance — Property ........................................ 88-17
Property Administration—Terminations .................................... 88-18
Conflicting Moves ................................................................. 88-18
OPERATING AND MANAGEMENT AGREEMENTSFundamental Terms of Real Estate Operating andManagement Agreements................................................... 90-1
Checklist ....................................................................... 90-1
Scope of Retainer........................................................... 90-1
Authority of the Manager ................................................. 90-1
Term ........................................................................... 90-2
Termination.................................................................... 90-2
Turnover Provisions Upon Termination .............................. 90-3
Insurance ...................................................................... 90-3
Management Fees.......................................................... 90-4
Reserves....................................................................... 90-4
Responsibility for Employees ........................................... 90-5
The Use of Funds........................................................... 90-5
Segregation of Funds...................................................... 90-5
Annual Plan [Optional] .................................................... 90-5
Monthly Financial Reporting [Optional] .............................. 90-6
Annual Financial Reporting .............................................. 90-6
Manager’s Use of Own Funds.......................................... 90-6
Protection of Owner’s Proprietary Rights/Exercise of theManager’s Proprietary Rights on Behalf of the Owner ...... 90-7
Index of Agreements....................................................... 90-9
Residential Property Management Agreement (shortform).......................................................................... 90-13
Residential Property Management Agreement (long form).... 90-23
Commercial Property Management Agreement................... 90-43
Management and Guarantee Contract............................... 90-69
Hotel Consulting and Management Agreement (U.S.form).......................................................................... 90-81
Franchise and Management Agreement ............................ 90-101
Syndication Services Agreement ...................................... 90-123
1-48 Table of Contents (CCREM)2014—Rel. 1