Large Renovations Require Expert Advice

By: Evan Holt

Over the past few years, many of our condominium corporation clients have experienced an increase in the number of renovation requests submitted by unit owners. Frequently, and especially in older condominium properties, the proposed renovations are substantial and include material changes to the common elements, for example, where an owner requests to core though the concrete floor or ceiling slab to create a new conduit for wires or other services, or to tie-in new kitchen plumbing to a riser.

Unfortunately, we are also seeing an increase in matters where a board has approved a substantial renovation without a full understanding of the impacts the proposed renovation may have on the common elements and other units - sometimes the board only becoming aware of problematic renovations after approval of same and work already having been completed. These sorts of instances often result in a corporation incurring legal expenses that it is unable to recover from the owner.

When a proposed renovation is substantial, it is particularly important for a board to pause and carefully consider what input and advice it may require from professionals before engaging in further discussions with the owner about the approval of the proposed renovation and the execution of a Section 98 Agreement.

Put simply, this means that after an owner presents a board with proposed renovation documents, the board may need to forward the proposed renovation documents to an engineer or other professional to provide their input and comments. Generally, a board will require their professional advisor to confirm that the proposed renovations will not have any adverse affect on the structural integrity of the unit or common elements, that the proposed renovation will not interfere with the corporation’s maintenance and repair obligations, or otherwise interfere with the use and enjoyment of the condominium property by other unit owners. Specific input is also sometimes sought as to the impact of the renovations on noise transmission to other units, such as when a floor is being replaced.

The input and comments that the board receives from its professional advisors will then inform the dialogue between the board and owner regarding any necessary revisions to the scope of the proposed renovation. 

It is only once the scope of the renovation has been finalized that a Section 98 Agreement can be circulated for execution and registration.

It is important to remember that, while a corporation must act reasonably and engage with the owner with respect to the proposed renovation in a timely manner, a board is under no obligation to approve an owner’s proposed renovation requests in the time period demanded by the owner. A board is entitled to be satisfied that the proposed renovation is suitable for the condominium property and to make reasonable investigation to do so. Further, it should be clearly communicated to the owner requesting to make the renovation that the costs incurred by the corporation in considering the proposed renovation are to be paid for by the owner. The corporation should consider whether a deposit in respect of the anticipated costs to be incurred by the corporation should be collected as part of the renovation application process.

By engaging the relevant professionals to review and comment on proposed renovation plans and descriptions, a board can gain a clearer understanding of the proposed renovation, ensure that the condominium property is not adversely affected by the proposed renovation, and avoid approving unwanted or troublesome renovations.