Ontario Corporations Will Soon Be Required to Maintain Real Property Holdings Registry
In an effort to make it easier for the Province of Ontario to locate the assets of dissolved corporations, the Province has enacted the new Forfeited Corporate Property Act, which comes into effect on December 10, 2016. Of particular interest to many of our clients, the Forfeited Corporate Property Act amends the Ontario Business Corporations Act (OBCA) to impose new record keeping obligations on Ontario corporations. These OBCA amendments also come into force on December 10, 2016.
Pursuant to the newly added section 140.1 of the OBCA, Ontario corporations formed on or after December 10, 2016, will immediately be required to maintain and update, at their registered office, a register of their ownership interests in Ontario lands together with certain supporting documentation. Ontario corporations formed before December 10, 2016 will have a two-year grace period within which they will also be required to establish such a register. Notwithstanding the grace period, it is recommended that corporations, especially those with significant ownership interests in Ontario real property, begin complying well before December 10, 2018, as it may take considerable time to gather the information and documentation required.
Register Requirements
The register may be maintained and updated in paper or electronic form. It must include the dates on which the Ontario corporation acquired the real property and, if applicable, the dates the corporation disposed of such lands. Supporting documents required to be kept along with the register include copies of deeds, transfers or similar documents containing any of the following information relating to the Ontario lands listed in the register:
- municipal address
- registry or land titles division and the property identifier number
- legal description
- assessment roll number
While the legislation does not define “ownership interest,” the prudent view is that the register should include registered and beneficial ownership interests in Ontario real property as well as mortgages over Ontario lands held by Ontario corporations, in which case copies of such mortgages should be added to the register.
Risks of Non-Compliance
While compliance with these new record keeping obligations may be burdensome for Ontario corporations with significant ownership interests in Ontario real property, non-compliance could have negative consequences. Fines could be assessed against a non-complying Ontario corporation and against its directors and officers. Further, in the context of third party transactions, representations and warranties made by a corporation may require the determination of a corporation’s compliance with relevant statutes. Therefore, Ontario corporations will need to consider their state of compliance with the new record keeping obligations when making such representations and warranties.
Expertise
Authors
Insights
-
Municipal and Land Development
Shifting Sands – Ontario Proposes More Changes to the Land Use Planning Framework through Bill 185
On April 10, 2024, the Province of Ontario introduced the Cutting Red Tape to Build More Homes Act, 2024, which proposes a number of amendments to the Planning Act and related legislation that would… -
Private Equity and Venture Capital
The Real Estate M&A and Private Equity Review 8th Edition - Canada Chapter
Brenda Gosselin and Stephen Pincus co-authored the Canada Chapter of The Law Reviews' Real Estate M&A and Private Equity Review 8th Edition. The Real Estate M&A and Private Equity Review is a… -
Real Estate
British Columbia Real Estate Law Guide April 2023: What You Need to Know Re: The New Prohibition on Foreign Purchases of Real Estate
The Government of Canada has enacted the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) which came into effect January 1, 2023. The Act prohibits the… -
Real Estate
Amendments to Prohibition on the Purchase of Residential Property by Non-Canadians Act and Regulations
After significant lobbying by the real estate industry, in the stated effort to “enhance the flexibility of newcomers and businesses looking to add to Canada’s housing supply”, the Honourable Ahmed… -
Real Estate
What You Need to Know Re: The New Prohibition on Foreign Purchases of Real Estate
The Government of Canada has enacted the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) which came into effect January 1, 2023. The Act prohibits the “purchase… -
Private Equity and Venture Capital
The Real Estate M&A and Private Equity Review 7th Edition - Canada Chapter
Brenda Gosselin and Stephen Pincus co-authored the Canada Chapter of The Law Reviews' Real Estate M&A and Private Equity Review 7th Edition. The Real Estate M&A and Private Equity Review is a…
Featured Work
-
Mergers and Acquisitions
Apotex to acquire Searchlight Pharma
Goodmans LLP is acting for Apotex Inc. in connection with its acquisition of Searchlight Pharma Inc… -
Mergers and Acquisitions
Tricon Residential Inc. to be acquired by Blackstone Real Estate
Goodmans acts for Tricon Residential Inc. in connection with its arrangement agreement with Blackstone, pursuant to which an affiliate of Blackstone, Inc. will acquire all outstanding common shares of… -
Mergers and Acquisitions
Yellow Corporation Files Voluntary Chapter 11 Petitions
Goodmans LLP is acting as Canadian counsel for Yellow Corporation and its subsidiaries in connection with their ongoing recognition proceedings under Part IV of the Companies’ Creditors Arrangement… -
Real Estate
Waterfront Toronto partners with Quayside Impact Limited Partnership
Goodmans LLP advised Quayside Impact Limited Partnership (“QILP”), a partnership between Dream Unlimited and Great Gulf, in connection with Waterfront Toronto’s international search for a development… -
Real Estate
Redevelopment of the “Don Sommerville” property
Goodmans LLP acts for a joint venture redeveloping a large track of land referred to as the “Don Sommerville” property at 1555-1575 Queen Street… -
Real Estate
Redevelopment of Canada Square
Goodmans continues to act on behalf of CT REIT in connection with the redevelopment of Canada Square, including negotiating key documents with stakeholders…
News & Events
-
Banking and Financial Services
The Canadian Legal Lexpert Directory 2024 Continues to Recognize Goodmans
We are proud to announce Goodmans LLP has once again been recognized in the 2024 edition of The Canadian Legal Lexpert Directory.91 Goodmans lawyers have been recognized as top-tier in their… -
Banking and Financial Services
Who's Who Legal Continues to Recognize Goodmans in the Canada 2023 Guide
We are pleased to share Goodmans lawyers have been recognized across Who's Who Legal's National Guide: Canada 2023. WWL National Guides identify national or regional leaders in a sector, industry… -
Banking and Financial Services
Goodmans Continues to Receive Top Tier Recognition from The Legal 500 Canada
We are pleased to announce Goodmans LLP has once again received top tier recognition from The Legal 500 Canada in their 2024 Guide released today. Recognition from The Legal 500 is based on…