28/07/2022 – Jurisdiction Manitoba
Part 79 published on 01/09/2022
Purchaser responsible for rectification of deficiencies in the purchased unit
In 2015, the owner purchased a storage unit which had been converted to a residence. After the purchase, the City issued an order requiring correction of deficiencies in the unit and requiring issuance of an occupancy permit. These matters were ultimately addressed by the condominium corporation at over $50,000 (including a related fine and administrative fee levied by the City).
The owner claimed against the vendor for breach of contract, negligence, negligent misrepresentation and unjust enrichment. The owner also claimed against the condominium corporation for negligence and breach of contract, including alleged rights flowing from the status certificate issued to the owner. These claims were all dismissed.
In terms of the claim against the condominium corporation, the Court said:
In this case, the status certificate speaks only to compliance with the Declaration and by-laws, and does not contemplate any issues relative to municipal permits or compliance with municipal by-laws. The status certificate as written, therefore, was accurate, because there is no evidence that Lehmann was occupying or using the Unit for anything other than a private single family dwelling.
The condominium corporation asserted a counter-claim against the owner for the costs incurred by the condominium corporation (to address the City’s order). The Court granted judgment to the condominium corporation. The Court said:
It is clear to me that s. 181(1) of the (Condominium Act) permitted WCC 505 to rectify the Deficiencies in this case, because the plaintiff failed to maintain the Unit by not acting upon the orders issued by the City.Smith v. Lehmann et al. – Court of Queen’s Bench of Manitoba