What legislation and regulations govern condominiums in Nunavut?
There are no regulations.
Do Nunavut legislation and/or regulations require that developers of new condominiums provide a new home warranty to buyers?
Taxes & Additional Costs
What Nunavut and federal taxes do condominium buyers pay on their units?
Territorial tax: There is no territorial sales tax in Nunavut.
Federal tax: Buyers pay Goods and Services Tax (GST) on the price of new units but not on previously owned condominiums.
If you are purchasing a re-sale condo, GST will apply to your purchase if:
- You are buying the unit from someone who acquired and used the unit primarily (more than 50 percent) for business purposes (unless this was to earn long-term rental income);
- You are buying the unit from someone who has claimed input tax credits for improvements to the unit; and
- The unit has been substantially renovated. To find out what qualifies as a substantial renovation, see Substantial Renovations and the GST/HST New Housing Rebate, Canada Revenue Agency.
Be sure to enquire about the above before putting an offer on a re-sale condominium.
Are there any GST/HST rebate programs for condominium buyers?
Yes. Like other homebuyers, purchasers of condominiums can apply for a GST/HST New Housing Rebate. This rebate reduces the GST and the federal part of the HST on a declining scale, depending on the purchase price of your new home. For eligibility information, see GST/HST New Housing Rebate, Canada Revenue Agency.
Are buyers of new and re-sale condominiums responsible for any other charges levied by Nunavut?
There is a fee to register a leasehold interest, which is paid to the Legal Registries Office. (In Nunavut, all condominium units are “leasehold,” meaning that owners lease their land from the municipality and do not own it.) Registration fees for the lease range between $60 and $400, depending on how many years remain on the lease.
There is also a fee to register a mortgage, which is $1 for each $1,000 of the principal amount secured, with a minimum fee of $40.
Reserve Fund Requirements
Do territorial legislation/regulations require that all condominiums in Nunavut have a reserve fund?
How is a new condominium corporation registered?
The developer submits a declaration, bylaw and a plan of the property to the registrar. The declaration describes how the condominium is organized and operated, such as the percentage of ownership of each unit and the proportion in which owners are to contribute to the common expenses. The plan shows the layout and location of the development and delineates the boundaries of each unit. The bylaw stipulates how the condominium is basically governed and the rights and obligations of the unit owners.
Once these documents are registered, a leasehold title is issued for each unit. The condominium corporation is created, which is now a legal entity.
Sale of Units
What rules does the developer have to follow when selling units?
What documents is the developer obliged to provide to the buyer?
What documents must a condominium corporation provide a purchaser of a re-sale condominium?
Estimating Operating Costs
Are there legislation/regulations that stipulate what happens if a developer has inaccurately estimated the operational costs of a condominium?
Rules for Initial Reserve Fund Savings
Is the developer of a new condominium obligated to put aside reserves as soon as the condominium is registered?
Does Nunavut require a condominium to impose any bylaws and rules?
No, the legislation does not require this, but a condominium corporation can make or amend a bylaw provided this is approved by members who own at least 66 2/3 percent of the common elements. Through its bylaws, a corporation can make reasonable rules around the use of common elements.
Does condominium legislation authorize the condominium to borrow money?
Can a condominium corporation place a lien on an individual unit?
Yes, it can if the unit owner has not paid his or her condominium fees or owes money for work or repairs that the corporation has been required to do on the owner’s behalf.
The corporation can enforce a lien in the same way a mortgage is enforced.
Elections & Meetings
What are the requirements for electing the board of directors and for its meetings?
Each condominium’s declaration or bylaws sets out details about the board of directors, such as how many owners sit on the board, their qualifications, term in office and pay. A condominium’s declaration may also include details about the board’s meetings.
Changing the Governing Documents
How does a condominium corporation change its governing documents?
A condominium can change its declaration and plan if it has the written consent of all owners and all people having registered encumbrances (such as a mortgage) against the units and the common interests.
A condominium can change a bylaw by a vote of members who own at least 66 2/3 percent of the common elements.
Changes to the declaration, plan and bylaws take effect once registered.
Can an owner stop paying condominium fees if he/she is unhappy with the condominium’s board of directors and/or property management?
Rules Regarding Special Assessments
Do Nunavut legislation/regulations have rules regarding special assessments? If so, what are they?
Expanding the Scope of the Condominium's Assets and Services
What about additional recreational facilities/services? Could a condominium corporation buy a golf course, for example? Could it change the services an owner expects to receive?
Yes, a condominium corporation can make substantial changes to its common elements and assets. Substantial changes include adding to, altering, improving or renovating the common elements. These changes must be approved by members who own at least 66 2/3 percent of the common elements.
Owners who disagree with these changes can ultimately request the condominium corporation to purchase their units and common interests. The corporation may be obligated to do so, depending what is in its declaration.
Less substantial changes to the condominium’s common elements or assets may be voted on by a majority of members.
Other Important Things About Buying a Condominium in Nunavut
Do Nunavut legislation/regulations govern renting or leasing a condominium unit?
The Consolidation of Condominium Act does not cover this. The Residential Tenancies Act applies. For information on landlords’ and tenants’ rights and responsibilities in Nunavut, see Your Guide to Renting a Home, Territorial Fact Sheet — Nunavut.
What other constraints do Nunavut legislation/regulations put on condominium corporations, their boards of directors, bylaws and management?
Is There a Process for Handling Complaints or Disputes?
An owner can file a written complaint with the board of directors if he or she has a dispute that involves the condominium’s bylaws, the Act, the regulations or the corporation. If the matter remains unresolved, the owner may want to consult a lawyer.
An owner may choose to resolve the matter in court if he or she believes there has been improper conduct by the developer, the corporation, a director, an owner or an employee of the corporation.
Canadian Condominium Institute (CCI), contact Manitoba
An independent organization that deals exclusively with condominium issues and represents all participants in the condominium community.