Owners are personalizing their condo communities like never before, adding deck expansions, landscaping upgrades, EV chargers, hot tubs, pergolas, hardscaping, basement walkouts, and beyond. Yet every improvement that touches the common elements brings legal and operational consequences.
In Ontario, these changes fall under Section 98 of the Condominium Act, 1998, which requires two criteria before an owner can alter the common elements: board approval and a registered indemnity agreement between the owner and the corporation. This agreement defines who maintains, repairs, insures, and pays for the alteration, thereby protecting the corporation and ensuring fairness between owners.
But what happens when a corporation has dozens of historical alterations, incomplete records, or owners eager to make improvements? That’s where bulk indemnity agreements have become a powerful, cost‑effective solution.
Why Section 98 Agreements Exist
An indemnity agreement ensures the corporation isn’t stuck repairing or replacing owner‑installed improvements. Without one, courts have consistently ruled that if an alteration sits on the common elements, even if made by a previous owner, the condo may be on the hook for costs.
Here is a classic example shared by condominium lawyers: A beautifully designed but unauthorized decorative feature was installed on an exclusive‑use common element backyard space. When it later deteriorated and caused damage, the new owner demanded repairs, and without an agreement in place, the corporation was liable.
Types of Indemnity Agreements: Individual vs. Bulk
Individual agreements are prepared and registered for each unit whenever a change is approved. They are useful for one-off requests but can become costly, repetitive, and difficult to manage if the number of requests increases.
Bulk indemnity agreements allow a corporation to register one agreement on all units, even if not all owners are altering the common elements that day. This provides blanket coverage for historical improvements, future alterations, turnover of unit ownership, and long‑term risk management. Economies of scale also make it more affordable than processing dozens of individual agreements.
How A Sample Bulk Indemnification Process Could Work?
1. Board decision plus management initiates the process: Once a board chooses to proceed, management contacts the law firm to prepare draft materials and confirm the condo’s unit count.
2. Law firm prepares the package: Drafts typically include owner correspondence, the indemnity agreement, and unit‑specific signature forms. These are reviewed by the board and revised as needed.
3. Owner notification and participation window: Owners receive an explanation of the bulk agreement and a deadline to return their signature form. Condos often increase participation by mentioning the initiative at AGMs or in newsletters before the law firm’s mailing goes out.
4. Collection, follow‑up and reminders: After the deadline, management reports who submitted the forms. The board may choose to register the agreement with participating units only, issue legal reminders, and have management conduct follow‑ups.
5. Final checks and registration: The law firm will confirm current ownership, which is important if a unit is sold mid‑process. The firm then prepares final documents, registers the agreement on title and sends the corporation a copy of the registered notice.
Once the bulk agreement is registered, no additional units can be included. Any future additions would require individual agreements.
When Bulk Agreements Are Especially Valuable
1. Historical clean‑ups: Many condos discover old alterations that were approved but undocumented, unapproved changes still present, and unclear Section 98 compliance on status certificates. Bulk agreements help bring the community back into compliance efficiently.
2. Communities with recurring alterations: Bulk agreements greatly benefit townhome complexes, communities with rear yards, units with outdoor spaces, and buildings with high demand for EV chargers.
3. Boards wanting stronger governance and clarity: A bulk agreement ensures consistency, reduced legal risk, clear enforcement mechanisms and simpler resale processes.
Benefits for Boards, Managers, and Owners
Bulk agreements can reduce future legal exposure for boards, ensure compliance with the Condo Act, and standardize approval requirements. For condominium managers, these agreements minimize administrative burden, simplify status certificate disclosures, and improve record-keeping They also speed up alteration approvals for owners, clarify maintenance and insurance responsibilities, and make the resale process smoother.
Cost Considerations
A typical fee depends on the number of participating units (e.g., $2,500 to $5,000) plus disbursements and taxes. The fee includes preparation and registration. Compared with issuing 20 to 50 individual agreements over several years, bulk agreements often represent substantial savings.
Key Takeaways for Condo Corporations
Every change to the common elements requires a Section 98 agreement. Bulk agreements offer long-term protection and cost-efficiency, help resolve historical issues, and streamline future requests. Clear communication boosts owner participation and reduces delays. Once registered, only participating units are covered, making thorough outreach essential.
Shane Haskell is the owner/founder of Lionheart Property Management Inc.., where he is responsible for the day-to-day operations. Lionheart is an ACMO2000 organization.
Shane has several years’ experience in the financial industry, marketing, project management, real estate and property management industry. He is a principal condominium manager (PCM) and general licensed manager (OLCM) with CMRAO, a registered condominium manager (RCM) with ACMO, and a leader of The Condominium Institute (LCCI). He is a member of CMRAO’s discipline hearing committee and also sits on the board of directors and chairs the marketing committee of the Canadian Condominium Institute Toronto Chapter. He previously sat on CCI’s national executive board and is current chair of the CCI national advertising, resources and communication committee. He is also the president and realtor of Lionheart Realty Brokerage.
