r/OntarioRealEstate

This investigation reveals systemic issues in Australia's strata industry: hidden fees, massive conflicts of interest with insurance brokers, corporate consolidation killing competition, and even regulators with undisclosed ties to the industry. They were charging owners $100+ to chase petty debts and steering insurance to sister companies at double the price.

As we push for more high-density living in Ottawa, condo buyers and investors need to be aware of these exact risks. Management fees, special assessments, and opaque procurement practices are already major headaches here. This doc is a great primer on why scrutinizing condo financials, management contracts, and insurance procurement is non-negotiable before purchasing.

Watch this, then ask your property manager the hard questions about disclosure and kickbacks.

https://www.youtube.com/watch?v=LdbCTFWAR5Y

Has anyone in Ottawa had similar suspicions about their condo corp or management fees?

I’m looking at a contract for a new build (Avalon in Caledonia by Empire builds). The contract states:“the purchase price is inclusive of HST, net of the Ontario new housing HST Rebate”. what does this mean?

My interpretation was that, the sticker purchase price we are seeing already includes the HST and the rebate. So, on closing…I’m not going to see an additional 8% reduction from the purchase price.

The contract does have a clause accounting for the proposed new build rebate (the other 5% making up 13%).
My real estate agent says she is 100% sure that the purchase price at closing will have a 13% reduction, either assigned as a rebate to the developer or I apply for the rebate myself to the CRA to get it back.

So am I right or is my real estate agent right because obviously this is a big difference.

Here’s the actual contract paper attached….i think it’s saying the proposed new rebate (the additional 5%) will be reduced from the final purchase price if everything checks out or is it saying that this too will be already accounted for in the purchase price meaning the price I see is what I get? Edit: I’m not a first time home buyer so that doesn’t apply to me.

The Ontario rent increase guideline maximum percentage for 2027 has been announced. Allowable increases for eligible units will be a maximum of 1.9%.

This is the maximum increase allowed for any increases that become effective on or after January 1st, 2027. Of course a proper 90 days notice must be given using an LTB approved form called an N1.

This cap excludes all those units that are exempt by Ford's post-November 2018 cutoff date.

https://www.ontario.ca/page/residential-rent-increases

TL;DR: Claridge Homes forced new condo owners at Claridge Moon (and likely Claridge Royale) into oppressive Shared Facilities Agreements (SFAs) that were signed before the condo corporation was turned over to owners. The agreements are incomplete, unclear, and one-sided. The Moon condo board filed a court application to terminate the SFA, but has done nothing to move the issue forward in court. If you’re looking at a new Claridge build, RUN unless you’ve reviewed the SFA with a lawyer – and even then, think twice.

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The backstory

I’m a unit owner at Claridge Moon – the 27-storey tower at 340 Queen St. The legal trap I discovered after moving in is unreal.

Claridge Homes (through their declarant, Claridge Homes (Moon) Inc.) controlled our condo board before turnover (that’s normal for new builds). But during that pre-turnover period, they quietly signed a Shared Facilities Agreement between our condo corporation (OCSCC No. 1106) and other Claridge entities – specifically:

• Claridge Homes (Albert) Inc.
• Claridge Homes (Albert) Limited Partnership

This agreement was registered on February 12, 2024 – before owners had any say. It gives Claridge-related businesses rights over our property (access, easements, shared costs) and binds us to cost-sharing terms that are frankly unreasonable and oppressive.

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What’s actually wrong with the SFA? (from the court filing)

Our condo corporation filed a Notice of Application with the Ontario Superior Court on May 12, 2025. You can read the key allegations yourself, but here’s the summary:

“The provisions of the Shared Facilities Agreement are incomplete, unclear, unreasonable, and oppressive to OCSCC 1106 and its owners.”

Also – the Disclosure Statement given to buyers (under Section 72 of the Condominium Act) failed to clearly or adequately disclose the SFA’s terms. So most of us had no idea what we were walking into.

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Why this should worry prospective buyers

If you buy at Claridge Moon or Claridge Royale (which appears to have a similar structure), you could be inheriting:

• Unclear cost-sharing obligations – You might be paying for facilities or services on Claridge’s property (or vice versa) with no fair formula.
• Perpetual easements/access rights – Claridge entities can use your condo’s land or amenities, and you have little control.
• No ability to renegotiate without going to court – Because the SFA was signed before owners had a board, it’s heavily skewed in Claridge’s favor.

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What the court application is asking for

From the filing:

An Order that the Shared Facilities Agreement… be terminated and replaced with a new agreement that is reasonably acceptable to the parties.

If the judge agrees, it’s a win for owners. But the fact that we had to go to court at all – less than a year after turnover – tells you everything about how Claridge does business.

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My advice to anyone looking at buying new Condo builds in Ontario

1. Ask for the Shared Facilities Agreement (if one exists) BEFORE you sign a purchase agreement. If the sales office says “it’s standard” or “it’s not ready yet” – walk away.
2. Hire a lawyer to review any mutual use agreement. Do not rely on the disclosure statement alone.
3. Check if the SFA was signed before turnover – that’s a huge red flag. It means owners had no say.
4. Look for Section 113 applications on the court registry to determine if the condo corporation has challenged the SFA after turn-over from the developer.
5. Consider other builders who don’t need to trap owners in oppressive agreements to make their numbers work.

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Current status

The Notice of Application was issued May 12, 2025. Despite this, the Moon BOD has taken no action to bring this application to a hearing. Without any further action on this court action, we may be stuck with an oppressive SFA for years, maybe even decades.

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Final thoughts:

Had I known about this SFA nonsense before closing, I would have walked. Don’t make my mistake.

Ask questions. Demand documents. And if the developer's salesperson says “don’t worry about the Shared Facilities Agreement” – worry a lot.

Happy to answer questions in the comments. And if you own a unit at the Claridge Royale condo in Ottawa and are seeing the same thing, contact me so we can compare notes.

Archived Web Link to Court Application:

https://archive.org/details/2025-05-12-issued-notice-of-application