Back to Basics: Changes to the Common Elements by Condominiums

One area that almost always causes debate among the owners is work done on the common elements, assets or services by their condominium. Often owners believe they are entitled to vote on major repair projects because the cost exceeds 10% of the budget. This is not the case for maintenance and repairs using materials reasonably close in quality to the original given current construction standards. A vote may be required for upgrades or new items, but this depends on the costs and a few other factors.

Section 97 of the Condominium Act, 1998, sets out the obligations a condominium must satisfy before making additions, alterations or improvements ("changes") to the common elements, assets or services. There are a few of important points to note about section 97 of the Act.

First, it applies to changes to the common elements, but also assets owned by the condominium or services provided by the condominium. This is often forgotten. This section should be consulted if a condominium wishes to sell any assets it owns, such as parking units, or change a service that it currently provides to the owners, such as bulk television services.

Second, you cannot read a particular subsection in isolation. A contract for work may exceed the 10% threshold for a substantial change, but it may not even require notice to the owners if one of the previous subsections applies. A good example is a major repair using materials that are reasonably close in quality to the original given current construction standards. Even if the project costs millions of dollars the owners are not entitled to vote on the project.

Third, even though notice may not be required by the Act, it is usually a good idea to notify the owners of important projects that are planned in advance so they are not surprised by the sight of construction when they arrive home from work one day.

We have prepared a diagram that we hope helps you consider section 97 of the Act when you are considering any work or change to the common elements, assets or services.