15 Sep DID YOU KNOW THAT AS A CO-OWNER, YOU CANNOT OBJECT TO A SPECIAL CONTRIBUTION PROPOSED BY THE BOARD OF DIRECTORS?
Jihane has much to be proud of: after several years of planning, last July she bought her dream condominium and became a first-time homeowner. She has a wonderful three-and-a-half with a balcony that overlooks the downtown skyscrapers. Although the condo is not new, Jihane is usually very handy, and she is not afraid of renovation challenges. She has saved up $2,500 for this purpose. However, last week she was surprised to find a meeting notice in her mailbox. The main topic on the agenda was a budget for a special contribution. At the meeting, Jihane found out that the cost of the carpet replacement project for the whole building would be met through a special contribution of $1,500 per condo unit. The Board argued that they did not want to dip into the emergency funds.
Did you know that as a co-owner, Jihane is not able to object to the special contribution that the Board of Directors is proposing? Indeed, at the meeting, co-owners do not vote on the budget: they are simply consulted. They can ask questions, request clarifications, try to get answers or comment on the decision. However, the final decision rests with the Board of Directors, which may or may not take into account the suggestions heard at the meeting. Therefore, Jihane will very likely receive a notice of assessment for $1,500, and she will have to pay it within a specified time.
If Jihan and other co-owners consider themselves dissatisfied with the decision, they can convene a meeting of co-owners in order to see about the replacement or the removal of one or more members of the Board of Directors. It is important to refer to the provisions in the declaration of co-ownership as to the rules of convening such a meeting and removing directors.
If you face such a situation or need further advice, you should consult a lawyer.