Darby et al v. Lorchrist Properties Ltd. and Waterloo Standard Condominium Corporation No. 424 (Ontario Superior Court of Justice)

Owners of units in the condominium made Application for the appointment of an inspector and administrator.  This requested order was granted.  The Court’s reasons for granting the order included the following:   

• Representatives of the builder, Lorchrist, remained on the Board and retained control of the condominium corporation.  The builder had not arranged for election of additional directors as required by the Condominium Act, 1998.
• There were numerous, very serious building defects.  Furthermore, there was an immediate threat that owners would be required to vacate their units as a result of some of the defects.
• The condominium corporation had levied special assessments against all owners, in order to cover costs which were properly the responsibility of the builder.
• There was no evidence of a bank account for a reserve fund.
• There also appeared to be other discrepancies in the financial records of the condominium corporation.