Housing Market & Permits

Toronto Building Department

The City of Toronto Building department have to be extremely careful with issueing building permits to condo owners.    Many times Condo Owners may approach the Municipalities for a building permit however according to their Condo Declaration, they must obtain Board of Director approval prior to any renovations.  Unfortunately the Municipal structure within the buildings do not check to ensure that the owners have proper authorization and they proceed with the issuance of a permit.


This situation is a huge problem within in the Municipalities because if the owner proceeds with the renovation, they can be requested in accordance with the Condo Act and Declaration to have the unit returned to the natural state prior to the renovation at the full expense of the owners.


Housing Market March 30, 2018

The housing new construction market has not slowed down.  The latest changes in regulation on stress tests for mortgages will not see an impact til a few months down the road.  The GTA and preconstruction prices on the condo side were thought to be slower however that is not the case.  Single family homes used to be the interesting commodity but now it is all Condos and there is a significant slow down on single detached homes.  Condo apartments are in high demand in terms of stronger sales for condominiums

The stress test seems to interesting on the impact.  There is a depression on sales but it is hard to argue when you look at the resales when you look at January which has been relatively week" says Linda Pinizzotto.  As far as ultimate impact on stress test, the dominant effect was late 2017 but spring is approaching and it is time to see where we are headed.


LIVE-WORK UNITS - are NOT Commercial Units

Operating in non-compliance of the Declaration

Avoiding Commercial Taxes


The majority of Live-work units in Toronto are zoned residential.  In most cases they are main floor condo units having a door with direct street access and a common element door.  The Condo Declarations stipulate that the owners or occupants must live in the unit to work in it.  These properties are zoned "residential" therefore taxes are assesssed on a residential basis.  The City of Toronto has been notified of this problem and Condo Corporations should beware of non-compliance to their declaration.  Owners across the City are operting these live-work units as a full scale commercial business and registering with local BIA groups as a commercial business.  Taxes for commercial properties are substantially higher than residential.  The market value of a commercial unit is also considerably higher than a residential condominium unit.    At the present time, these business are operating under the radar, all condo owners should recognize that this situation is not in the best interest of your corporation.


HIGHER UTILTY COSTS FOR CONDO OWNERS These units were not constructed as a commercial unit and the added utility costs of a 9:00 am - 5:00 pm  full scale business could be increasing your common element utility costs.