1. The condominium owner purchased a condominium in 2003, whereby there was new landscaping that was completed, however, about 10-15 of the trees planted by the developer did not survive.  When the Condominium Corporation’s Board of Directors, queried the management company with respect to the replacement of the trees, they were told that there was a $15,000 holdback that could be used to replace the trees.

2. The author of this letter, who sits on the Condominium’s Board of Directors, states that the Board has discussed and voted on the issue and has approved the replacement of the trees. However, to date the trees have not been replaced.

3. Another issue that the writer brought forth was the state of the walkway blocks put-in by the developer. Since their installation, the blocks have settled and no one has remedied the uneven walkway. Also of concern, is the water that pools on the walkway when it rains. Also, when it snows and melts, the water freezes and the area ices over.

In situations such as these, the Board of Directors is responsible for following up with these types of concerns on the common or managed property. The condominium manager can help facilitate this process by liaising with the developer and the condominium corporation. In many cases, landscaping is covered for a one-year period. The Board should begin the process by researching the condominium documents to identify whether or not there was a New Home Warranty in place when the units were purchased.

If there was a warranty in place, the Board should investigate the following:
1. Who the warranty is with and how it works;
2. What period of time the warranty covers – when did the warranty commence and when does it expire;
3. What items does the warranty include and what items does it exclude; and
4. How does the condominium corporation make claim on the warranty should deficiencies not be rectified to the Boards satisfaction during the warranty period.

More specifically, in this case (1) was there a warrantee in place and (2) did the damage to the trees and the settling of the walkway blocks occur during the warranty period? If so, were these deficiencies reported in writing to the appropriate parties within the warranty period.

If there is a warranty in place, the claims should be made in writing and in a timely manner, prior to the expiration of the warranty.

The reader makes mention of a holdback of $15,000.00. If there is indeed a holdback, the Board needs to ascertain the following:
1. Who is in possession of the funds;
2. The amount of money in the fund;
3. Is there sufficient money to cover the deficiencies;
4. The terms and conditions that apply to the use of the funds;
5. Who is responsible for administering the fund; and
6. How the corporation can access the funds?

If the warranty is in place, communication should be pursued with the developer. If the corporation is not satisfied with the results, they may wish to exercise their rights through the appropriate means, either through the use of the warranty program, if it is in place or by attempting to access the holdback fund.

The corporation should be relying on assistance throughout the process by using qualified individuals to identify the deficiencies and at the same time count on the experts to guide them through the process. The Board may wish to have the qualified individuals/experts do a comprehensive inspection of the building(s) and the grounds as part of their due diligence.  CL

Marc Bateman, BA, ACCI, CPM, is the President and Broker of Acclaim Condominium Managers.
Ana Bateman, BSc, MEd, is an Agent and the Managing Director with Acclaim Condominium Managers.