More about Chargebacks
CAO’s new Condo Guide includes the following:
Some chargebacks are specifically authorized by the Condo Act. For example, section 92 (4) of the Condo Act allows condo corporations to add repair costs to a unit’s common expenses fees, where repairs were completed on an owner’s behalf after they failed to complete them within a reasonable time. Condo corporations may also have provisions within their declaration that require owners to indemnify the condo corporation for certain costs, called an indemnification clause.
Note that this extract doesn’t say that a Court Order is necessary to charge back enforcement costs (as stated in the Amlani case discussed in our blog of September 8, 2020).
This makes me think that CAO may be anticipating the amendments to Sections 7 and 84 of the Condominium Act. Again, those amendments will in my view confirm the rights of a condominium corporation to chargeback for enforcement costs in appropriate cases (even without a Court order).
In summary, the new Condo Guide appears to be in step with our thinking on this issue.
That said, we’re still waiting for the particular amendments to the Condominium Act to be proclaimed in force. Hopefully that will happen soon!
We’re watching this closely, and we’ll keep you posted.