Construction Archives - Levy Zavet Law

Everyone’s a “Builder”, but what does that mean in terms of HST?

For purposes below referring to a “house” includes a condo as well. Did you know that CRA will consider you a “Builder” if:1) You are an individual or corporation;And you own or co-own with others a house or piece of land without the primary or secondary intention to live in it;And you on your own or together with others contribute monies OR materials OR land OR services OR any combination thereof to the building or substantial renovation of a house;2) OR You are an individual or corporation;And you enter into an agreement of purchase and sale to purchase a house while it is under construction and before it can be legally occupied without the primary or secondary intention to live in it; (in this case legally occupied will include circumstances where condos although not yet registered have not yet reached occupancy)

CONSTRUCTION LAW UPDATE: The Meaning of Builder Under the Ontario New Home Warranty Plan Act

In Ontario, Tarion Warranty Corporation (“Tarion”) is responsible for administering the Ontario New Home Warranties Plan Act R.S.O. 1990, CHAPTER 0.31 (the “Act”) and is remedial, consumer protection legislation that primarily seeks to protect new home buyers from construction deficiencies and delayed closings. To paraphrase from the Tarion website, ONHWP describes the mandatory responsibilities of those who build and sell new homes in Ontario and outlines the warranty coverage that builders and vendors are required to provide to new house and condominium purchasers. However, the definition of “Builder” and “Vendor” can become skewed. Tarion Warranty Corporation v. Boros, 2011 ONCA 374 (CanLII) (“Boros”) is a recent case from the Ontario Court of Appeal that examines whether a person who undertakes to build a home for themselves but decides to sell it instead of moving into it, is required to be a registrant under Tarion.In Boros, the Defendant built a house that he and his wife were intending to live in. Circumstances had changed and the Defendant could not sell his old house and therefore decided to sell the newly constructed home they built instead. His wife had entered into the agreement of purchase and sale and acquired the property under her name alone while it was her husband who was the person involved in constructing the house. The wife also was the one who sold the newly constructed house.

CONSTRUCTION LIENS: Electronically Liening Registered Leases

It would appear that when registered leases are liened electronically, adherence to the rules is not as strict, sort of relaxation of rules is practiced, as would be seen from the case history below:Petroff: Liening Registered Leases ElectronicallyRegistration of title documents electronically has made it easier for lawyers to representing lien claimants wishing to lien leasehold premises where the lease is registered on title. Petroff Partnership Architects v. Mobius Corp is a lawsuit based on the applicability of the curative

Construction Liens: Obtaining Liens and Restrictions Placed on Them

We have discussed earlier one of the two methods by which a contractor working for a tenant is able to get a lien on the freehold of the property. The second method will now be discussed.The Freehold Owner Deemed “Owner” Under the CLAWithin the meaning of the CLA, there are circumstances, when the owner of the freehold may be considered an “owner”, even if the work was performed on leased premises. The definition of “owner” given in Section 1(1) of the CLA is as follows:

Liens and Commerical Tenants

OverviewRegardless of the fact that the individual is a landlord, a tenant, or a lien claimant, it is important for each of them to be aware of the unique issues raised when construction liens are registered against leasehold premises. Firstly, there is the need to determine for whom the construction work has been carried out, either the landlord or the tenant, and whether or not the landlord, the tenant, or both are the owner” within the meaning of the Construction Lien Act (“CLA”), R.S.O. 1990. Secondly, it is necessary to review the possibility of binding the

COMMERCIAL LEASING: Fundamental Breach and Exclusion Clauses

The second instalment in our review of the emerging trends in commercial lease jurisprudence is evident in the lawsuit relating to HREIT Holdings 45 Corp. v. R.A.S. Food Services (Kenora) Inc., where the court held that the new Landlord had lost its right to collect a higher amount of rent due to two reasons: 1) It’s conduct ; and/or 2) It was estopped on the basis of equity.While operating a restaurant in the complex in 1999, the tenant got the previous landlord to agree to waive the increase in basic rent for years 6-10 of the lease. The leased premises changed hands in 2005, and the purchaser became the landlord.

A Note to Condominium Developers

Condominiums are becoming increasingly important as more people choose to live in condos. In recent years, the condo industry has been booming in Canada with new condo towers being erected each year. Moreover, condominium development has steadily increased in Ontario for several years.

CONSTRUCTION LIEN: Basics

Basically, a construction lien is a remedy available for someone who improves someone else’s property by way of supplying materials and or labour. If that person is owed monies for their product and or service, he/she may have a right to securitize his interest in the property that was improved until he/she is paid what they are owed.

COMMERCIAL DEVELOPMENT AGREEMENTS

A real estate development agreement is an agreement between two parties; a developer or a construction company and the owner of the land. This agreement refers to the construction and development of a commercial or retail project on the property. The developer is usually named as the construction or the development manager of the project. The developer’s duty is to be responsible for the negotiation with

COMMERCIAL REAL ESTATE: A Brief on Real Property Acquisition & Disposition

Since the onset of the global economic struggles that hit the international business scene; trade and industry have been greatly affected. Commercial real estate in Canada is not spared from the global economic crisis. These economic challenges tend to lower the growth of business establishments that affect the acquisition and disposition of properties for commercial purposes.

Tag: Construction