Legal Updates

TAMA 38 project may be approved despite objection of recalcitrant unit owners who are in minority

January 18, 2016
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Most of the unit owners in a building signed an agreement with an entrepreneur for overall renovations of the building under the TAMA 38 scheme. Some unit owners refused to sign and the other sought to force them.

The Court held that in a condominium the parties lose their autonomy and the minority must comply with the majority in any matter that is meant to promote an interest concerning all unit owners. The Commissioner of Condominiums is empowered to approve works against the wish of opposing owners provided each unit owner had an opportunity to raise objections. The authority to approve works is not the authority to formulate the contract instead the parties or to get to the bottom of any term and condition in the contract but only the review of the reasonableness of the contract sought to be imposed on objecting owners. In this case, the Court held that the contract signed with the entrepreneur is reasonable and drafted by lawyer who properly ensured the rights of the unit owners.