Question: If the OC has an arrangement with a lot owner to pass ongoing responsibility for common property to them, is this arrangement passed onto subsequent owners?
3 years ago, a lot had a burst pipe requiring the kitchen to be replaced. The insurer has approved $45,000 for repairs, however, the lot owner is elderly and doesn’t want the disruption associated with further work.
The insurer has offered the owners corporation a cash settlement. The OC wants to accept as it is hampering insurance until the claim is settled. The OC is having an agreement drawn up with the lot owner to ensure there is no further claim/comeback to the OC. Will this be sufficient to protect us from a new/subsequent lot owner?
Answer: It is difficult to bind successors in title in the absence of a by-law.
It is difficult to bind successors in title in the absence of a by-law, however, the Owners Corporation may pass a special resolution to determine that it is inappropriate to repair/maintain/renew/replace an item of common property provided that that determination will not affect the safety of any building, structure of any common property or detract from the appearance of any property.
If the proviso is satisfied, the Owners Corporation will not be liable for ongoing responsibility of the particular item of common property.
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