Part 6 published on 01/05/04
Pre-Incorporation agreements not binding on Condominium Corporations
The builder had entered into a “television service agreement” with ATOP Communications Inc. prior to creation of the condominiums. The applicant condominium corporations were not parties to the agreement. The Court found that the agreement was not binding upon the condominium corporations. The question was whether or not the condominium corporations had entered into fresh agreements with ATOP Communications Inc. following creation of the condominiums. The Court ordered a trial to determine this issue.
Editorial Note: Condominium corporations can be bound by agreements that “run with the land”. This can include easement agreements, certain agreements with the municipality, and other agreements that properly “run with the land”. The question of whether or not an agreement “runs with the land” can be a complex issue requiring careful review. See the important decision in Amberwood Investments Ltd v. Durham Condominium Corporation No. 123.