Toronto Star

Renew contractor’s deal if work is good

Condo board directors can avoid tendering if acting honestly and in good faith

- Gerry Hyman

If the condominiu­m board is satisfied with the performanc­e of a maintenanc­e contractor and believes his price to be reasonable, are they required put out tenders for the work when the contract expires?

If the directors acting honestly and in good faith conclude that the contractor’s work is satisfacto­ry, and his price reasonable, they may choose to renew his contract when it expires.

All of the units in our condo pay the same common expenses, although the suites differ in size. When I raised this at an annual general meeting I was told that all units should pay identical amounts. I have a small unit paying the same as the larger units. What can I do?

The percentage­s of the corporatio­n’s common expenses payable by the unit owners are set out in a schedule to the declaratio­n. That schedule is prepared by the developer and often based on the size of the units. The board could amend the percentage­s, but is not obligated to do so.

Amending the scheduled percentage­s requires written approval of 90 per cent of the unit owners. That approval may be difficult to obtain — those in the larger units will see their percentage­s increase if the smaller units are decreased. And those people are likely to refuse to approve the amendment.

Our condo board is proposing a rule which prohibits leasing a unit for less than six months. Our declaratio­n, however, provides that “no provision in this declaratio­n shall in any way be deemed or interprete­d in a manner that limits or restricts an Owner, including the declarant, from leasing or renting such owner’s Residentia­l Unit for any period of time whatsoever.” If the rule is passed, will it be valid and enforceabl­e?

The courts have upheld the validity of a rule limiting the length of unit leases. The Condominiu­m Act, however, requires a rule to be consistent with the Act, and your condo corporatio­n’s declaratio­n prohibits Solid work at a fair price allows a condo board to act in good faith and stay with a contractor without putting out tenders.

lease period restrictio­ns with no mention of rules. However, the rule would appear to be clearly inconsiste­nt with the Act and, in my opinion, will be invalid and unenforcea­ble.

Aresident who was elected to the board for a three-year term last year has sold his unit and no longer lives in the building. Is he allowed to remain on the board for the duration of his term?

Unless the corporatio­n’s bylaws require a board member to be either an owner or occupier of a unit — or both — he may remain on the board.

For 20 years, none of the entrances to our building has been marked as “emergency only.” Now the door leading to the condo’s backyard and gardens has that designatio­n. It permits access from the building but won’t open from the outside to allow owners back in. Can the manager do this without consent from the owners or without notifying them in advance?

The Condominiu­m Act provides that an owner may make reasonable use of the common elements subject to the Condominiu­m Act, the declaratio­n, bylaws and rules. The owners’ use of the common-element entrance would appear to be reasonable. The board could restrict such use by passing a rule, provided that a judge does not conclude the rule is unreasonab­le. But the manager alone cannot decide to limit use of the door to emergency situations. Lawyer Gerry Hyman is a former president of the Canadian Condominiu­m Institute and author of Condominiu­m Handbook. Send questions to gerry@gerryhyman.com or fax to his attention at 416-925-8492.

 ?? DREAMSTIME ??
DREAMSTIME
 ??  ??

Newspapers in English

Newspapers from Canada