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Condo Rules versus City and Provincial Rules - What Prevails?

Mike Milovick

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REIN Members;

I have a client that owns a condominium in Waterloo, Ontario.

1. He bought the property in 2002

2. He licensed the property as a Lodging House in 2005 under The City`s By-Laws

3. The condo Board`s Rules and Regulations (circa 1975 - prior to the existence of the lodging house by-law) forbid any habitation arrangement other than single family residences.

4. The condo Board`s rules also forbid owners from interfering with other Unit Owners rights under municipal and provincial legislation.

5. He has been told by the property manager that the transfer of the City-issued lodging license would not be permitted under ownership change.

There are other lodging houses in the complex. There are other units registered under provincial legislation as having an accessory apartment.

Does anyone have a legal precedent or know of a situation in Ontario on a situation where a condominium corporation or home owner`s association attempted to impose their rules and regulations on a unit owner regarding a similar situation or perhaps tried to impose a restriction on renting that they could share with me? In Waterloo, there are condo corporations which specifically forbid "students" to rent units - which is obviously voidable due to discrimination.

In perfect world, buyer`s lawyer would have identified potential for conflict when reviewingg the status certificate. My role now is picking up the pieces and furthering my clients interests. I am not looking for an opinion in this case. I am looking for a specfic example.

Any help would be appreciative.

Mike
 
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