Corporations now required to keep real property register
Ontario corporations are now required to maintain a register of their ownership interests in land in Ontario, which shall document the date the property was acquired and, if applicable, when it was disposed. The register shall also be required to include a copy of any deeds, transfers or similar documents that contain any of the following:
i) municipal address, if any;
ii) legal description;
iii) registry or land titles division in which the property is located;
iv) property identification number (the “PIN
v) assessment roll number, if any.
Any Ontario corporation incorporated before December 10, 2016, has two years from that date to comply with this new requirement, being December 10, 2018. However, any Ontario corporation incorporated on or after December 10, 2016, must comply immediately. Failure to comply can result in:
i) a corporate fine of up to $25,000.00; and
ii) problems when entering into future agreements, such as loan agreements, which often require the corporate borrower to represent and warrant that it is in compliance with all applicable laws.
The real property register must either be kept at the corporation’s registered head office or at such other location as the corporation’s directors may determine. It would be advisable to maintain this information in the corporate minute book, to ensure that all information the corporation is statutorily required to keep is consolidated and easily traceable.