Part 34 published on 01/05/11
Use as a resort club violates corporation’s by-laws
This case concerned a 40-unit condominium, consisting of two buildings, each having 20 units. Each building was a separate phase of the development.
The developer’s original plan was that all 40 units would be single family dwellings. However, when the second phase did not sell, the developer sought to develop the second building as a resort club. The owners in Phase I objected.
The Court held that the proposed resort club violated the rules (contained in a schedule to the by-laws) of the condominium corporation. In particular, the Court said that the proposed resort club would violate the rule prohibiting use of the units for any purpose other than a single family dwelling. Furthermore, the proposed resort club would violate the rule prohibiting use of the units for commercial purposes. The Court said:
“The activities involved in a resort club as proposed such as on-going marketing, key pick-up, some sort of reservation and accounting system to keep track of time periods and units, trading of units as well as cleaning services for the units, together with possible collection and remittance of GST payments, all bring an air of commercialism to the use of these units…”