This case reminds us once again of the importance of condo companies and owners entering into a Section 98 agreement. As an occupant of common elements, a company`s inability to insist on such an agreement may lead to possible liability. A Section 98 agreement defines the owner`s rights and obligations to the business and ensures predictability. In the end, owners cannot unreasonably refuse to enter into a Section 98 agreement; Otherwise, consequences are imminent. The „bulk“ contract must benefit all unit owners: Section 98 of the Condominium Act provides condo companies with the opportunity to protect themselves from damage that could be caused by the additions to the common elements by the owners of the unit, and also to ensure that the responsibility for the insurance, maintenance and repair of the bill remains within the purview of the unit owner. The section limits the circumstances under which supplements can be made and contains a directive on the procedure for authorising the proposed supplements. This is an important tool to have in your arsenal. There have been some differences in this one, and some companies no longer contain a list of changes that they will accept and have instead added an „authorization“ section that describes the authorization. There are two different options when it comes to Section 98 agreements. In some cases, a unit owner may enter into an agreement with the company. Sometimes the agreement covers a certain proposed amendment, such as the installation of a ramp or pool, while at other times the agreement covers all changes made by the owner as long as the terms of Section 98 are met (i.e. board approval).
The main advantage of these agreements is that they can be adapted to the circumstances. For example, drawings or specifications may be attached to the agreement, so that the proposed amendment and any obligations that result from it are clearly described. When an owner has completed, modify or improved the common elements without the approval of the board of directors or to register an agreement in accordance with Section 98, the board may write the return of the amendments to their original status. At the end of the day, it`s best to check your condo documentation and check with your manager and/or board of directors before the project starts.