Part 7 published on 01/08/04
Parking spaces not validly created or transferred
The Developer, Carrington, wished to sell certain surplus outdoor parking spaces as extra parking. Purchasers were advised of this intention in their Agreements of Purchase and Sale.
However, Carrington did not designate the surplus parking spaces as parking units or as exclusive-use common elements. Instead, while in control of the condominium corporation, Carrington arranged for the corporation to execute a “License for Exclusive Use of Parking” in favour of Carrington. Under this “Exclusive Use Agreement”, Carrington was granted exclusive use of the surplus parking spaces for a term of one hundred years. Carrington then purported to enter into separate purchase agreements under which purchasers were granted exclusive use of particular spaces.
The Court found that the Exclusive Use Agreement was not created in accordance with the requirements of the Condominium Property Act in that required approvals were not obtained from all purchasers and from others who had an interest at the relevant time, and because the boundaries of the areas to be “leased” under the Exclusive Use Agreement had not been delineated.