Section 98 Agreement Condominium Act

Section 98 Agreement Condominium Act: What You Need to Know

If you`re a homeowner who`s part of a condominium community, you might have heard of something called a section 98 agreement. It`s a crucial document that outlines the transfer of common elements to individual unit owners. However, it`s often misunderstood, causing many people to overlook its importance.

In this article, we`ll break down what a section 98 agreement is and why it`s necessary.

What is a Section 98 Agreement?

Under the Condominium Act of Ontario, every condo unit owner shares ownership of the building`s common elements, including recreational facilities, parking lots, and lobbies. These common elements are what attracts many individuals to the condominium lifestyle; however, they also come with responsibilities.

When a unit owner wants to make changes to the common elements assigned to their unit, such as installing a new door or window, they must first get approval from the Condominium Corporation. Once approved, the owner must sign a section 98 agreement to transfer ownership of the common element in question from the corporation to themselves.

The agreement is necessary because it clarifies the ownership of the common element, making the owner responsible for its maintenance and repair. The agreement also outlines the homeowner`s obligations to the corporation regarding any damage caused by the unit owner`s use of the common element.

Why is a Section 98 Agreement Important?

A section 98 agreement is an essential legal document for several reasons. Here are some of them:

1. Clarification of ownership: This agreement clearly outlines the ownership of the common element in question, making it easier to identify who`s responsible for its maintenance, repair, and replacement.

2. Liability protection: The agreement protects both the owner and the condominium corporation from any liability related to the common element.

3. Smooth transfer of ownership: By signing the agreement, the owner and the corporation agree to the transfer of ownership of the common element, making the process smooth and straightforward.

4. Avoiding legal disputes: A section 98 agreement can prevent legal disputes between the owner and the corporation regarding ownership, maintenance, and repair of the common element.

Conclusion

In conclusion, a section 98 agreement is a vital legal document that outlines the transfer of ownership of common elements from the condo corporation to unit owners. By signing the agreement, the homeowner agrees to take responsibility for the maintenance, repair, and replacement of the common element. It`s crucial to understand the importance of this agreement and to ensure that it`s signed correctly to avoid any legal disputes.

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