19/10/2017 – Jurisdiction Alberta
Part 60 published on 01/12/2017
Court deals with distribution of sale proceeds following sale of entire condominium property
A special resolution pass by the unit owners had determined that the entire condominium property would be sold. The property had then been sold for approximately $13.3 million.
The lower Court had determined that the proportion of the sale proceeds payable in relation to 14 of the 188 units should be reduced because of the state of disrepair (of those units).
On appeal, the Court of Appeal held that there should be no adjustment (due to the condition of the particular units); and that the sale proceeds should accordingly be distributed based upon unit factors. The Court of Appeal said:
In our view, the Court could not take judicial notice of the fact that a condemned unit would be worth less than a non-condemned unit given the factual matrix of this case. Specifically, the purchaser was acquiring the complex for renovation and upgrade.