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ARTICLE · 13 JANUARY 2017

Indemnification In Condos - A Potential Double-Edged Sword

Condominium owners and residents have an obligation to comply with their governing Rules and Regulations, By-laws and Declaration.

CanadaReal Estate and Construction

Condominium owners and residents have an obligation to comply with their governing Rules and Regulations, By-laws and Declaration. If an owner or resident breaches any of the governing documents, and the condominium corporation is required to incur costs to enforce compliance, then most Declarations require that the owner indemnify (or "reimburse") the Corporation for the costs that it has incurred.

The rationale for this indemnification is sound. If one owner in a condominium building is not complying with the governing documents, then it is not equitable for the other owners to have to contribute to the enforcement costs.

The challenge for condominium Boards, lawyers and property management is that a "breach" of the governing documents is not always so clear. If an owner has been living for a year with a dog in a "non-pet" building, and has tried to conceal the animal from property management, then the breach of the governing documents would be clear and

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