Under the Condominium Property Act, condo corporations are allowed to terminate management agreements and other agreements entered into by the developer. The following page has more information on how this works. If you have any concerns as a board over ending any agreements entered into by the developer, seek legal advice.
Developer’s management agreement
After the first board election, a condo corporation can terminate a management agreement entered into by the developer (also known as a “developer’s management agreement”) – as long as one year has passed from the day that it was entered into. The agreement may allow for an earlier termination date. The corporation must give 60 days’ written notice (or any shorter notice if allowed in the agreement).
A condo corporation may terminate an agreement entered into by the developer within 12 months of the first board election. The corporation must give at least 60 days written notice (or any shorter notice allowed if in the agreement). There are certain agreements that the condo corporation cannot terminate such as:
- Restrictive covenants
- Exclusive possession agreements made under a bylaw
- Mutual use agreements
- Agreements for the provision of electricity or natural gas service for a term of less than 5 years and telecommunication services
- Agreements for alternative or renewable energy systems
Last updated: March 2018