Owner Chargeback

Purpose:

This policy outlines the process by which the Condominium Corporation of [Condo Name] (“the Corporation”) will chargeback owners for damages caused to common property or other units, up to the amount of the Corporation’s insurance deductible.

Applicability:

This policy applies to all owners of units in the Condominium Corporation of [Condo Name].

Definitions:

  • Chargeback: The process by which the Corporation recovers costs incurred due to damages caused by an owner.

  • Common Property: All portions of the condominium property that are not part of individual units.

  • Deductible: The amount of money the Corporation must pay before insurance coverage begins.

  • Damages: Physical harm or loss caused to the common property or other units.

  • Owner: The registered owner of a unit in the condominium.

Policy:

  1. Responsibility for Damages: Owners are responsible for any damages they cause to common property or other units. This includes damages caused by the owner, their family members, guests, tenants, or contractors.

  2. Insurance: The Corporation maintains insurance to cover damages to the common property and units. However, the Corporation’s insurance policy has a deductible.

  3. Chargeback Process:

    a. Notification: The Corporation will notify the owner in writing of the damages and the estimated cost of repairs. b. Investigation: The Corporation may investigate the cause of the damages. c. Invoice: The Corporation will invoice the owner for the lesser of the actual cost of repairs or the insurance deductible. d. Payment: The owner must pay the invoice within 30 days. e. Dispute Resolution: If the owner disputes the chargeback, they may follow the dispute resolution process outlined in the bylaws.

  4. Lien: If the owner fails to pay the chargeback, the Corporation may register a lien against the owner's unit.

  5. Enforcement: The Corporation may take legal action to enforce the chargeback and recover the costs of repairs.

Exceptions:

  • Normal Wear and Tear: Owners are not responsible for damages caused by normal wear and tear.

  • Acts of God: Owners are not responsible for damages caused by events beyond their control, such as natural disasters.

Amendments:

This policy may be amended from time to time by the Board of Directors.

Effective Date:

This policy is effective as of [Date].

Disclaimer:

This policy is a summary of the Corporation's chargeback policy. The full policy is available in the bylaws. If there is a conflict between this policy and the bylaws, the bylaws will prevail.

Please note: This is a sample policy. It is important to consult with legal counsel to ensure that your condo policy complies with local laws and regulations.