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Shared Amenities Agreement

Shared Amenities Agreement

As a general rule, agreements include a cost-sharing formula, establish a technical commission that sets out budgets for the payment of shared equipment, and sets out voting rules and dispute resolution procedures. In most cases, they are executed by developers on behalf of condo companies that are not yet registered. These condominium companies then make the commitments of the developer concerned after being registered at a time when the developer controls the board (and before the “revenue meeting”, i.e. the meeting at which the directors elected by the owner take over the board). The way to avoid litigation is to know what is in the agreement and to implement its terms. It is better to respect the terms of the agreement rather than, for example, to bear multi-year surpluses and then decide that you want to take legal action to recover the overpayment. It is wise to have the agreement reviewed by a lawyer who can give his opinion on what is shared, how the parties should contribute and how decisions should be made. It is useful to have the description sheets and/or reference plans applicable in color and to display in different colors what belongs to each party and what is shared. Common amenities agreements contain provisions that define the operation of common amenities. Owners and buyers have relied on them to create access and work organization for the continued provision of amenities. Some agreements also include services and facilities that do not offer equipment such as.B. ramps with common access, fire exits, stairs and a host of other such issues that may be essential to the operation of one or more phases of development.

The termination (or modification) of these agreements can therefore have very serious consequences for the other parties. It is not easy to terminate an agreement on common amenities, but it is not supposed to be easy. The provisions of the law seem to recognize the importance of the day-to-day operation of the agreement to the other parties – imagine if the remaining parts of the agreement have to pay for the day-to-day operation of a much larger pool than they would otherwise ask for, because one of the parties unilaterally terminated the agreement. The law also requires that owners have not been sufficiently informed of the provisions of the agreement to be eligible for a decision to terminate or modify the contract. If the owners (as buyers) were aware of the details of the agreement following receipt of their disclosure documents, their board of directors is not authorized to terminate or amend the contract simply because the owners of this condo have changed their minds. In many cases, the most effective solution is to reach a new or amended agreement on common agencies, in which shared services and facilities are properly identified, costs are distributed equitably and decision-making is appropriate. Given that many agreements are deficient when the opportunity arises and the organs can cooperate, it is time to act. Long-term relationships within the Community are more important than for one entity, in order to benefit from them at the expense of another person. Potential negative effects on market value when there are problems in a community should always be considered. If there is agreement on common institutions, it means that there is a long-term relationship.

2021-04-12T09:59:57+00:00