Since their peak in 2022, home prices in the GTA have declined by more than 24% coupled with the lowest volume of home sales in years. The decline has led to builders being unable to obtain project financing causing years-long construction delays, and home buyers receiving a home value appraisal before closing that leaves them with a mortgage shortfall. For purchases of pre-construction homes, home buyers and sellers are now facing a real risk that their purchase and sale of a home will not close, raising the threat of a legal dispute. Navigating a party’s potential early exit from a purchase and sale agreement of a pre-construction condo or house can be a challenging and stressful financial event. Common scenarios that lead to a party considering an early exit include: appraisal or re-appraisal of the property value delayed construction by the builder buyer shortfall in mortgage financing changes to the … Read More
Can The Condo Corporation Register A Lien On My Condo Unit?
A recent Divisional Court decision, Amlani v. YCC 473, 2020 ONSC 5090, confirmed that there are two separate ways to register a condo lien depending on whether the amount is related to common expenses (or “condo fees”), or related to compliance and enforcement expenses. A condo lien may be registered without a court order when the condo corporation seeks to recover unpaid condo fees. However, condo corporations are generally required to obtain a court order to register a lien when seeking to recover legal fees and expenses incurred for compliance and enforcement matters. Background The condo owner, a smoker for 56 years, purchased the unit after confirming that smoking was allowed in the building. A few years later, the neighbour complained about the smell of smoke but the issue was resolved after the condo corporation sealed certain openings at its own cost. When new complaints about the smell of smoke … Read More