Indemnification Agreements, or User Fee bylaws?
Stratas are not relieved of their responsibilities under the SPA by Indemnification Agreements, however, assumptions of liability can seriously interfere with sales when prudent purchasers look elsewhere. Indemnification bylaws are unenforceable to the extent that they contravene the SPA. This is particularly true in regard to the strata's responsibilities for common property and insurance coverage. This strata's past history has also proven that when it comes to major expenses such agreements are not worth the paper they're written on due to loss, confused responsibilities, and enforcement, administration, or litigation issues . Provisions to fund alterations effectively without confusing responsibilities are made in s.6.9 of the Strata Property Regulation. That section prescribes the terms for User Fee bylaws. Unlike Indemnification Agreements, User Fee bylaws are a statutory provision of the governing enactment. User fees can be i...