Part 28 published on 01/11/09
Under Section 112 of Condominium Act, 1998, condominium corporation can terminate agreement to purchase super suite, parking unit and locker unit
The corporation’s declaration included the following provision:
The corporation shall purchase from the Declarant the ownership interest in the residence manager unit, one parking unit and one locker unit for a purchase price of $240,000.
This intended purchase transaction was also disclosed to all prospective purchasers in the Declarant’s Disclosure Statement.
Prior to turnover, the corporation passed a by-law to authorize the purchase and entered into a purchase agreement (for the three units) with the Declarant.
After turnover, the new Board passed a resolution to terminate the transaction, pursuant to Section 112 of the Condominium Act, 1998. The Declarant challenged that determination.
The Court held that the agreement was for the “provision of facilities to the corporation on other than a non-profit basis” within the meaning of Section 112(2).2 of the Act and was properly terminated within 12 months of turnover.