Condo too aggressive; court awards no costs.

A condominium corporation commenced an application against unit owners seeking orders that they obey the rules, be quiet and leave others alone. The owner commenced a counter-application for the same relief against the condominium. Most of the dispute related to the costs of the proceedings. The condominium insisted upon full recovery, or near full recovery, of all of its costs (about $150,000.00) prior to a ruling by the judge. Neither the condominium or owners were successful in their applications. The condominium sought $30,000.00 in costs.

The ruling on costs is one of many made in the past few years where concerns were raised about a condominium’s aggressive stance toward an owner during a legal proceeding. This aggression seems to stem from the condominium’s confidence that it will be entitled to rely upon subsection 134(5) of the Act to recover all or almost all of its legal costs. Subsection 134(5) states: Continue reading

Want to put an end to your condo relationship? Terminate the condo!

There are a number of reasons why it may be desirable for a piece of property to no longer be a condominium. Sometimes buildings fall apart and need to be demolished. Sometimes part of the property needs to be expropriated by the municipality to widen a road or construct a public service. Sometimes it may be desirable to sell a piece of the property to a neighbour or developer. Sometimes the owners cannot agree on the management or direction of the condominium. In some of these cases, termination may be the best option.

Part VIII of the Condominium Act, 1998 outlines the various options for terminating a condominium. A condo may be terminated for any reason with the consent of the owners and those with registered claims against the property (s.122), upon substantial damage to the property (s.123), upon sale of part or all of the property (s.124) or by court order (s.128). Each section of the Act has its own requirements and process.

Although the Act permits terminations of condominium corporations, there have been only a handful completed in Ontario. The Superior Court recently approved the termination of Simcoe Condominium Corporation No. 32.  Continue reading