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REAL ESTATE McLeod & Co. LLP in Calgary who has been asked to participate in this consulta- tion, says there could be some improve- ments in the legislation, but maintains it already has strong consumer protection provisions. She says consideration could be given to issues such as the length of time owners can be expected to wait for a building to be finished. With respect to shoddy construction, however, she says, "I'm not sure that you can legislate quality." What's most important, she says, is for lawyers and their clients to review condominium documents carefully and do due diligence before entering into a purchase agreement. In Ontario, Harry Herskowitz, sen- TitlePlus_CL_Mar_10 2/11/10 12:54 PM Page 1 ior real estate counsel at DelZotto Zorzi LLP, is seeking a legislative amendment to deal with what he sees as a loom- ing problem facing many developers: the consequences of the province's move to harmonized sales tax. The HST will mean that provincial sales tax will effectively increase the cost of condo units by eight per cent; add this to the normal inflation- ary increases in costs that occur over a two- or three-year construction period, and there may be price increases of 16 to 19 per cent. This could well be construed by a court as a "material change" in the development and, as such, it will allow unit holders to get out of their contracts and demand their deposits back. Herskowitz is afraid that in a less vibrant economy many purchasers will want to take this way out, leaving developers and their creditors in the lurch. He says a short-term legislative amendment is all that's needed because the problem only applies to developers who made up their budgets before any- one knew about the move to HST. New Brunswick, which had not made significant changes to its condo legisla- tion in 30 years, has now enacted a com- pletely new Condominium Property Act designed to make condo development Everything you need Together we have all the tools The TitlePLUS® protect your clients from title risks.1 Program works with you to help With the right tools we assist you, through our legal serv- ices coverage2 , by reducing the inconven- ience of dealing with a loss as the result of an error or omission in your real estate transac- tions. To ensure your clients get the most compre- hensive coverage in one policy, take a look at the TitlePLUS Program, your Bar-related® estate partner! real PROTECTION AS GOOD AS IT GETS 1-800-410-1013 1 titleplus.ca Please refer to the policy for full details, including actual terms and conditions. The TitlePLUS policy is underwritten by Lawyers' Professional Indemnity Company (LAWPRO®)/ Assurance LAWPRO®. Assurance LAWPRO is a registered name used in Québec by Lawyers' Professional Indemnity Company. Contact LAWPRO for brokers in Manitoba, Alberta and Québec. 2 Excluding OwnerEXPRESS® policies and Québec policies. ® TitlePLUS, the TitlePLUS logo, OwnerEXPRESS, LAWPRO and Assurance LAWPRO are registered trademarks of Lawyers' Professional Indemnity Company. ® BAR-RELATED Mark is a registered Mark of North American Bar Related Title Insurers used by LAWPRO under License. 24 M ARCH 2010 www. C ANADIAN Law ye rmag.com