Notice requirements

Condominium conversions of existing tenured rental units

 

NOTE: All references to Section numbers refer to sections in The Condominium Act (SM 2011, c. 30, Sch. A).

What is a condominium conversion?
A condominium conversion is the creation of one or more condominium units in a building previously occupied by any person, including a tenant. An example is the conversion of an apartment building or a warehouse into condominium units.

Note: This does not include a building that is occupied:

• for the purpose of selling proposed units (ex: a sales office set up in part of the building to show and sell units)
• under an interim occupancy – where the buyer of a unit moves in before the condominium declaration and plan are registered.

      Section 1(1)

What is an existing tenured rental unit?
This is a rental unit that becomes (or will become) a condominium unit under the act, and once the declaration is registered, is (or will be):

• occupied by a tenant under a tenancy agreement
  or
• the subject of a right of first refusal under The Residential Tenancies Act (This is the right of a former tenant to return to a rental unit after renovations are complete.)

“Tenured” refers to the right of the tenant of the rental unit to continue to occupy it.

What does a declarant (the person who owns the land) need to do to before submitting a declaration for registration?
In a property that has one or more existing tenured rental units, the declarant must give written notice of the proposed registration at least six months before submitting a declaration for registration to:

• each tenant who occupies a rental unit or has entered into a tenancy agreement to occupy a rental unit
  and
• each person who holds a right of first refusal for such a rental unit.

      Section 28(1)

What does the written notice of the proposed registration include?
The notice must include:

• the name of the tenant or holder of a right of first refusal
• the address of the rental unit and the residential complex or building(s)
• a statement that the owner intends to change the rental unit and the residential complex to condominium ownership
• the approximate date the declaration will be submitted for registration (must be within 12 months after the date the notice is given to the first tenant)
• the statement set out in Schedule A of the Condominium Regulation about the tenant’s rental rights

Note: If the declarant wants to rent out a unit in the complex after the notice of proposed registration is given, but before the declaration is registered – each prospective (potential) tenant must get a notice of the proposed registration before entering into a tenancy agreement.

      Section 28(2) and (3)
      Section 3 of the Condominium Regulation

When submitting a proposed declaration for a condominium conversion, what additional information does a declarant have to give the Land Titles Office?
Declarants must submit whichever of the following statutory declarations apply:

• If the proposed property has included one or more rental units in the last 12 months - a statutory declaration from the landlord that says the landlord has not terminated (ended) any tenancies within that 12-month period, except for cause.
• An example of cause may be that the tenant did not pay his/her rent, or failed to meet another obligation (under The Residential Tenancies Act or the tenancy agreement).
• If the proposed property includes one or more existing tenured rental units - a statutory declaration from the declarant that the required written notice of the proposed registration was given to every person entitled to the notice.
• A statutory declaration as to whether a certificate of approval (for the condominium conversion) is required from the municipality where the land is located.

NOTE: Registration of the declaration may be denied if the required declarations are not submitted.

      Section 28(4), (5), and (6)

What happens after a declaration has been registered?
As soon as possible after a declaration is registered, the owner of an existing tenured rental unit must give a written notice of the registration to each person entitled to the notice (see section 28(1) of the act).

The notice of the registration of a declaration must include:

• the name of the tenant or the holder of a right of first refusal
• the address of the rental unit and the residential complex
• the date the declaration was registered
• the length of time – after receiving the notice of registration – that the tenant or holder of a right of first refusal will be entitled to continue living in the rental unit
• a copy of sections 30(1) and (2) of The Condominium Act and the statement set out in Schedule B of the Condominium Regulation, about the length of time a tenant is entitled to continue to live in the rental unit      

      Section 4, the Condominium Regulation

Can a tenant of an existing tenured rental unit stay in the unit after the declaration has been registered?
Yes.  A tenant of an existing tenured rental unit, who occupies the unit when the declaration is registered, may continue to live there for at least:

• two years after receiving notice of the registration
  or
• the length of time the tenant has been in continuous occupancy of the rental unit on the date the tenant receives the notice

whichever is longer. (See “What is continuous occupancy?” below for more information.)

For example:

• A tenant moved into a rental unit on June 1, 2012. The tenant received a notice of the declaration’s registration on January 1, 2013. The tenant can continue to live in the unit for two more years until December 31, 2014.
• A tenant moved into a rental unit on January 1, 2010. The tenant received a notice of the declaration’s registration on January 1, 2013. The tenant can continue to live in the unit for three more years, until December 31, 2015.

NOTE: A unit owner may terminate (end) a tenancy even if the tenant has tenure under these provisions if the tenant breaches (does not meet) his or her obligations under The Residential Tenancies Act or the tenancy agreement (ex. not paying rent, causing damage).

      Section 30(1)

What rights of occupancy does a holder of a right of first refusal have?
A person who exercises a right of first refusal on an existing tenured rental unit, may occupy the rental unit for at least:

• two years
  or
• the length of time the holder of the right of first refusal has been in continuous occupancy of a rental unit, as of the date the holder receives the notice of registration

whichever is longer.

This period begins on the date the holder is allowed to move into the unit under the right of first refusal.

      Section 30(2)

Can a tenant assign his or her right to occupancy to another person?
No. A tenant’s right to occupy a unit – because of tenure or right of first refusal – may not be assigned (given over) to another person.

      Section 30(4)

What is continuous occupancy?
A period of continuous occupancy includes:

• any period where a tenant sublets the unit to another person (under subsection 42(1) of The Residential Tenancies Act), if the tenant moves back in at the end of that period
• the period from the termination of a tenancy that results in a right of first refusal (ex: termination due to renovations), to the date the holder of that right receives notice of the registration of the declaration

A person is said to “continuously occupy” a rental unit if he or she occupies, for any number of consecutive periods, any of the rental units owned by the same owner and located on the same property.

      Section 30(5)

Are there any restrictions on selling a unit or proposed unit that is an existing tenured rental unit?
Yes. Before selling it to another person, a declarant must first offer to sell an existing tenured rental unit to the tenant, or holder of a right of first refusal, as long as they meet the continuous occupancy requirements of section 31. This offer of sale must be made at the same price the unit is sold to any other person, and on terms as favourable.

      Section 31(1) and (2)

How long must an offer to purchase remain open?
A tenant or holder of a right of first refusal for a unit or a proposed unit must have at least 30 days to accept an offer to purchase.

      Section 31(3)

Need more information?
For further information on tenant rights, visit the Residential Tenancies Branch website at www.manitoba.ca/rtb.

For information on protection for tenants of existing tenured rental units, see:

• Sections 26 - 31 of The Condominium Act
• Section 3 and 4 of the Condominium Regulation

If you are looking for information on condominium registrations, see:

• Part 2 of The Condominium Act

 

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