10/11/14 – Jurisdiction Alberta
Part 42 published on 01/05/13
Lease of common property declared invalid
Part 42 published on 01/05/13
Lease of common property declared invalid
The condominium corporation granted a lease of part of the common property (to a neighbour) at a time when the sole Director and owner was a representative of the developer.
The Court held that the necessary unanimous resolution of the owners (to authorize the lease) was not passed before the lease was signed. Furthermore, the developer had, at the time, entered into agreements for the sale of units, and the written consents of the purchasers (being persons with an interest in the land) were also required.
The Court added that the condominium corporation was still obligated to negotiate a lease with the neighbour, because the neighbour required such a lease for emergency access.