RTA · Condominium Property Regulation
Part 1 — .4
20.32 Release of trust money
in trust under section 14 of the Act except in accordance with this
section.
(2) A prescribed trustee may release money held in trust to a
developer where
(a) the money is applied to the purchase price as part of the
process of transferring title to the unit for which the
deposit money was paid,
(b) the money is secured by a purchaser's protection program,
as defined in Part 7, that has been approved by the
Minister under section 14(10) of the Act, or
(c) the developer is entitled under section 14(12) of the Act to
a reduction in the money held in trust equal to security
provided under an enactment referred to in section 14(12)
of the Act.
Section 20.32 AR 168/2000
(3) Despite subsection (2),
(a) a prescribed trustee shall not pay money held in trust
under section 14 of the Act to a developer until after the
expiry of the time period set out in section 13(1) of the
Act, and
(b) where the certificate of title to the unit is issued in th e
name of the purchaser and the unit or the common
property is not substantially complete, the prescribed
trustee may release money held in trust to a developer
only after a cost consultant provides a written opinion that
the unit or the common property, as the case may be, is
substantially complete.
(4) A prescribed trustee may release money held in trust to a
purchaser where the purchase agreement is terminated after
(a) the purchaser exercises a right of rescission under the Ac t
or this Regulation,
(b) a condition imposed by the pu rchaser or developer has not
been removed or satisfied within the time allowed by the
purchase agreement, or
(c) the developer exercises a right of termination under the
purchase agreement.
(5) A prescribed trustee may release money held in trust
(a) where the parties have mu tually agreed to the release,
(b) in accordance with a decision issued by a court ordering
the payment of the money,
(c) where the money is require d or permitted to be paid into
Court, or
(d) subject to subsection (6), to one of the parties, where th e
other party has breached the purchase agreement in a way
that results in a contractual right to treat the agreement as
ended.
(6) A prescribed trustee may release money under subsection
(5)(d) only if the following conditions are met:
(a) the party alleging the br each serves a notice of the alleged
breach on the other party and the prescribed trustee;
(b) the party served with the notice of the alleged breach doe s
not serve a response on the alleging party and the
Section 20.33 AR 168/2000
prescribed trustee within 30 days of service of the notice
of the alleged breach.
(7) A prescribed trustee may transfer the money held in trust to
another prescribed trustee.
(8) A prescribed trustee who makes a transfer under subsection (7)
shall notify the purchaser and developer of the transfer.
(9) Where money is paid to a prescribed trustee in error, the
prescribed trustee may refund the money and, after making the
refund, is not subject to any other provisions under this section.
AR 181/2017 s6