Reserve Fund Study Report Card - Section 98 Agreements

The article emphasizes the importance of Section 98 agreements in condominiums, particularly concerning balcony finishes. In a case study of a 15-storey residential condominium with tiled balconies, it was discovered that not all unit owners had Section 98 agreements on title for their balcony finishes. This lack of agreements placed the responsibility of repairs on the condominium corporation, including the cost of removing the tiles and reinstating a reasonable balcony finish. The article highlights the potential problems caused by the absence of Section 98 agreements, such as non-compliant guard heights and water-related issues. Reserve fund planners are advised to confirm the presence of Section 98 agreements and request sample agreements to understand owner versus corporation responsibility for repairs. The article also recommends having engineers review balcony finishes before approval to ensure compliance and address potential waterproofing needs.