Declarations can be unreasonable

The courts have, so far, upheld that condominium declarations can be unreasonable but why add wording to Section 7 (5) to the Condominium Act confirming this unless this is done solely to help developers sell units to landlords and persons and companies running unregulated hotel rooms?

Bill 106 would change the Condominium Act by adding this clause to the start of Section 7(5): "A declaration need not be reasonable but" if any provision in a declaration is inconsistent with the provisions of this Act, the provisions of this Act prevail ..."

Unreasonable sections that are added to a declaration tend to favour the developer and the owners of the commercial or the retail units, not the residential owners. After all, it is the developer that writes the declarations and who can tell what "unreasonable" language the developers' lawyers will add to future declarations and how will that wording harm the best interests of the owners?

One example of unreasonable wording in a declaration preventing the condo corporation to do anything to restrict short-term rentals of residential units. This allows the the developer, and individual owners, to rent their residential units like hotel suites.

Read this from the Declaration from one Tridel-built condo in Toronto:

Section 33—Use of the Dwelling Units
a)    Save and except as otherwise provided in paragraph 33(b) hereof, each dwelling shall be occupied and used only for residential purposes, and for the business of providing transient residential accommodation on a furnished and/or unfurnished suite basis (with or without ancillary maid, cleaning and/or laundry services), through short term or long term licence/lease arrangements, in accordance with the provisions of the applicable zoning by-law(s) of the Government Authorities, as may be amended from time to time, and for no other purpose whatsoever, provided however that the foregoing shall not prevent or in any way restrict:

ii) any unit owner, or any property manager acting on behalf of any unit owner or group of unit owners, from leasing or renting any dwelling unit(s) in this Condominium from time to time, for any duration and on any number of occasions, and whether in a furnished or unfurnished state, with or without ancillary maid, cleaning and/or laundry services.
Emphasis added.

Check out breather, a website that will rent out your condo by the hour. So you, or your next-door neighbour, can rent out your residential unit as a red-light motel room and there is nothing the board can do about it.

If the Section 7.(5) wording is passed by the legislature, any unreasonable wording in the declaration cannot be overturned by the courts but only by having the Act amended, something that occurs every twenty years or so.

I don't see how adding this is suppose to protect the consumers. Does a great job of protecting the developers though.


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