18/02/2022 – Jurisdiction Saskatchewan
Part 77 published on 01/03/2022
Condominium corporation did not require leave before commencing foreclosure action
The condominium corporation had commenced a foreclosure action under liens which it had registered against thirteen units owned by the defendant. The condominium corporation had not sought leave from the Court before commencing the foreclosure proceeding. The defendant asserted that leave of the Court was required (before commencing the foreclosure action) under The Land Contracts (Actions) Act (LCAA) because the units in question had been rented to residential tenants, and therefore were not used “solely for commercial purposes”.
The Court held that the units in question were used solely for commercial purposes (for purposes of the LCAA). The Court said:
…I am of the view that the protections offered under the LCAA were intended to provide protection to the “borrowers” or “homeowners” and were not intended to consider or protect the use by tenants. The reference to searching for new accommodations, if required through the foreclosure process, is specific to homeowners and not to tenants. This suggests the relevant focus for the use of the property is on that of the borrower or homeowner, not the use by the tenant.
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A corporation renting out 13 condominium units does not meet the stated purpose of the LCAA: protecting homeowners by allowing them time to retain their current residence or find alternative accommodations prior to having an action commenced against them.
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The fact that these units were rented out to tenants does not change their character for Southshore from a commercial purpose to a residential one. At all material times, based on the evidence before me, the use of these units was for a commercial purpose.
Prairie Heights Condominium Corporation v Soutshore Group of Properties