Part 50 published on 01/05/15
Court determines collection rights of condominium corporation
The bank had a first mortgage on a residential condominium unit, and took steps to enforce the mortgage. The condominium corporation had registered a caveat against the unit, and applied pursuant to sections 39 and 41 of the Condominium Property Act for an order determining its priority rights over the mortgage. The Court decided as follows:
a) Based upon the by-laws of the condominium corporation, insurance and repair costs (in relation to two water losses) that had been included in the caveat were “contributions” within the meaning of sections 39 and 41 of the Act. Those amounts took priority over the mortgage.
b) Interest on the insurance and repair costs also took priority over the mortgage, by virtue of sections 40 and 41 of the Act.
c) “The reasonable legal expenses incurred with respect to the preparation, registration, and enforcement and discharge of the caveat as set out in section 42 (b) are included in that priority interest.”
d) “All other solicitor-client costs on a full indemnification basis that are awarded herein do not achieve a super priority status and are collectable as an in personam debt.”