What is a Section 98 Agreement?

stencil-default-5In my last post, I wrote about section 98 of the Condominium Act, 1998, which permits owners to make changes to the common elements if: the board approves the proposed change; they enter into an agreement with the corporation; and notice is provided to all owners (if applicable). Today I’ll discuss the agreement in more detail.

Section 98 of the Act requires an owner to enter into an agreement with the corporation before making any changes to the common elements. The agreement must, at a minimum, do the following:

  1. Allocate the cost of the proposed change between the owner and the corporation;
  2. Set out the responsibilities for maintenance, repair after damage, and insurance of the proposed change; and
  3. Set out other matters required by the regulations, which currently adds a requirement that the agreement state who owns the change.

The agreement may be referred to as a “section 98 agreement”, “indemnity agreement”, or “alteration agreement”. The term used is not important; it is simply a preference of the lawyers and managers in the area. For instance, in Waterloo and surrounding areas the term “indemnity agreement” is often used, whereas toward London the term “alteration agreement” is more common.

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