Post by: Evan Holt
Part 1 of this series discussed the new mandatory provisions for condominium declarations. Now, in Part 2 of this series, the discussion focuses on additional (optional) provisions that may be included in the declaration.
Section 7 (4) of the Condominium Act describes additional contents that may be contained in condominium declarations. Although this is a rather open ended category, the revisions to the Condominium Act provide detail with respect to the type of provisions that a developer may wish to include.
Section 7 (4) (a) of the Condominium Act currently states that a declaration may contain a statement specifying the common expenses of the corporation. Bill 106 proposes to amend this section adding that a declaration may contain a statement specifying the common expenses of the corporation and the circumstances that may result in the addition of any amount to the contribution to the common expenses payable for the owner’s unit to indemnify or compensate the corporation for,
(i) an actual loss, as is prescribed, that the corporation has incurred in the performance of the corporation’s objects and duties, or
(ii) any other purpose, if any, that is prescribed.
As with the alterations to the mandatory declaration provisions, this subtle change will provide clarity to a purchaser with respect to how and why common expense fees may fluctuate over time should the declarant choose to include a statement specifying common expenses.
In addition, Bill 106 proposes to also add section 7 (4) (f) which states that the regulations will contain additional optional items that will be permitted to be included in condominium declarations.
To view Bill 106 click here