George bought two units in a ten unit condominium project. Within one week of the completion of this purchase some other condominium owners, the Smithe family, were killed in an accident in the Jacuzzi whirlpool. Mrs. Smithe was the sole survivor of this family. The pool is located on the common property in which George now owns an interest. Mrs. Smithe is suing the strata corporation and George is concerned about the extent of his liability for any damage award she may receive. Assuming that the strata corporation is found liable to Mrs. Smithe, which of the following statements correctly describes George’s liability?
A. George must pay his proportionate liability for any judgment registered against the common property of the strata corporation.
B. George will owe Mrs. Smithe absolutely nothing as the Strata Property Act contains provisions requiring all strata corporations to obtain and maintain liability insurance to insure against this type of occupiers liability.
C. The Strata Property Act requires the strata corporation to pay out Mrs. Smithe’s judgment from its contingency reserve fund. George will pay only his proportionate share of any amount left unpaid after the reserve fund is used up.
D. Because George has not owned the units for a minimum of two weeks before the accident occurred, he is not responsible to pay any proportionate amount of the judgment.
Which of the above statements correctly describe George’s liability?
(1) Only A.
(2) A and B are correct.
(3) A, B and D are correct,
(4) Only C is correct.
