Section 98 Agreements: What Are They and When/Why Are They Necessary?
FEATURE
Stephanie Sutherland Cohen Highley LLP
Section 98 Agreements: What Are They and When/Why Are They Necessary?
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n every condominium corporation, the land and structures are divided into units or common elements. What is ‘unit’ and what is ‘common element’ is set out in the Declaration and the Description for each condominium. Section 97 of the Act addresses changes to be made by the condominium corporation, at the direction of the elected Board of Directors. Generally speaking, owners are not permitted to make changes to the common elements; only the condominium corporation may do so. However, section 98 of the Act deals with changes made by owners to the common elements, and how and when those changes may be permitted by the condominium corporation. According to section 98(1), an owner may make a change (referred to in the Act as an “addition, alteration or improvement”) to the common elements if four conditions are met: 1) The Board has made a resolution to approve the change; 2) The owner and the condominium have entered into an agreement that contains certain provisions (this agreement is discussed in more detail below);
Condo News – FALL 2020
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