A condominium corporation sought a declaration that a developer agreement and related by-law limiting the developer’s liability for construction deficiencies were void and ultra vires under the Condominium Act, 1998.
The impugned agreement limited claims against the developer to those available under the Ontario New Home Warranties Plan Act and had been disclosed to purchasers and registered on title.
The court held that the pre-turnover board had authority to enter into such an agreement and that limiting developer liability in this manner was not inconsistent with the Condominium Act.
The arrangement was part of the commercial framework under which the condominium project was developed and sold, and purchasers had notice of the limitation.
The application was dismissed and costs awarded to the respondent.
