Standard Unit By-Law

The Standard Unit By-Law describes in detail what in each suite is “standard,” that is, what is not an upgrade (or an improvement). Standard means what was specified and sold by the builder as part of the regular sales package.

What is an upgrade? It is, for instance, a higher-quality carpet than what was offered by the builder or that an owner later installed while renovating her suite. In some developments, marble floors and hardwood floors are standard but, in others, they are upgrades and owners incur additional costs to have them installed. Cabinets that are specifically designed for an owner constitute an upgrade. Ceiling lights in bedrooms and living areas may be upgrades. An additional shower enclosure is another example as are higher-grade paints and wallpapers.

Therefore, this by-law describes the standard type of carpeting, tile, or marble, tub, countertop material, cabinetry and faucets/taps that came with the unit or would have come with the unit if upgrades had not been paid beyond the price of the regular or standard features.

The other purpose of this by-law is to specify what is covered by the condo’s insurance and the owner’s insurance. When an accident, such as a pipe bursting, occurs and damage results, damage to upgrades in a suite is never a condo’s responsibility but solely that of owners and their insurance.

 In some condos, when time came to draft this by-law, it was specified that no flooring and no countertop were to be the responsibility of the condo corporation, but were strictly owners’ responsibility. The rationale behind this, as explained by lawyers, is that floors and countertops, when they are worn out or damaged, are the two items that are the most susceptible of being purposely damaged by owners in a staged “accident” so as to make the condo responsible to pay for their replacement.

Obviously, when this happens, a condo can investigate but it is difficult to prove that an owner or a tenant has damaged their flooring or countertop purposefully. As a result, the condo may have to pay the $2,500 deductible (or whatever deductible) and more. If five such deductibles occur in a year, this means $12,500 for the condo and the possibility of the insurance premium going up.

In such a situation, all owners have to pick up the tab for these deductibles and the subsequently raised insurance premium.

It is understandable that upgrades would complicate a condo’s finances if the condo were responsible for their replacement in the event of a water leakage or fire. In many cases, it would be difficult to replace them at cost because original proof of sale may no longer exist. As well, there would be a great deal of bickering on the part of owners as to the quality of the replaced upgrades. In addition, when fire destroys a room, proof of upgrades may vanish.

This is why upgrades are like furniture and personal possession: They are the responsibility of owners’ insurance.