AZ Real Estate Partners
Seven Must-Have Clauses in a Condo Renovation Contract
Hiring a contractor to renovate a condo is more than signing a quote. Condo work involves board approval, neighbour coordination, and insurance interlocks — miss one clause and you’re exposed when problems arise.
Why condo renovations need specialized contract terms
Condo owners own unit interior space only; walls, floors, ceilings, plumbing, and electrical may touch common elements or standard units.
Key point: renovations without condo board approval can be ordered reverted and you may be liable for neighbour damages. Contract clauses are the baseline protection.
Clause 1: Condo Renovation Approval Condition
Specify in the contract: all work is contingent on written Condo Corporation approval, no work begins prior to approval, and the owner may terminate (less prepaid design fees) if approval is denied or significantly restricted.
Clause 2: Construction Hours Restriction
Every condo has work-hour rules — commonly Mon-Fri 9:00-17:00, weekends prohibited; loud trades like drilling and sawing limited to specific days. Contract must require contractor compliance; non-compliance is a breach.
Clause 3: Elevator Use and Protection Fees
Condo renovations require elevator booking, often with $500-$2,000 deposit plus usage fee. Contract should clarify whether owner or contractor pays.
Clause 4: Waste Removal Path
Construction waste cannot enter the condo’s garbage room. Contractor must remove daily to off-site bin. Contract specifies: contractor handles removal; no staging in corridors, storage rooms, or outdoors. Fines fall on contractor.
Clause 5: Insurance Requirements
Condo boards may also require a renovation deposit
Boards commonly hold $1,000-$5,000 owner deposit, refundable after successful final inspection. Contract should clarify which party funds this deposit.
Clause 6: Scope of Damage Liability
If renovation damages common elements (elevators, hallways, neighbour units), contractor bears the cost. Contract should specify: 1) normal wear and tear excluded; 2) 100% liability for damage by contractor or subs; 3) neighbour unit damage (upstairs leaks, structural vibration) covered by contractor insurance or contractor directly.
Clause 7: Permit Responsibility
Five things to verify before signing
FAQ
How long does condo board approval take?
Generally 2-6 weeks. Complex work (wall removal, plumbing changes) may require condo engineer review, taking 6-8 weeks. Submit promptly after signing contract.
Do Toronto condo renovations require Building Permits?
Flooring, painting, cabinet replacement — no. Wall removal (even non-load-bearing), electrical, plumbing, kitchen layout — yes. Either owner or contractor may file, but responsibility must be clear in contract.
What if contractor skips ESA inspection?
Short term: future buyer's lawyer flags missing ESA certificate; price reduction or remediation. Long term: insurance denies fire or electrical claims. Mandatory: many condos require ESA certificate retention.
Can the contractor subcontract work?
Contract should require: written owner approval for subs, plus independent WSIB and insurance for sub. Otherwise owner risks shared liability for sub injuries.
How long until the condo renovation deposit is refunded?
Typically 30 days after final inspection (usually 2 weeks post-completion). Board verifies: 1) no common-element damage; 2) all permits passed; 3) no neighbour complaints.
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