Part 44 published on 01/11/13
Status certificate issued to purchaser was accurate. Special assessment was offset by proceeds of expropriation
Metropolitan Toronto Condominium Corporation No. 673 (MTCC 673) is a 56-unit commercial condominium. The applicant purchased one of the units, and received a status certificate stating, among other things, that the corporation had “no knowledge of any circumstances that may result in an increase in the common expenses for the unit, except due to the increased cost of utilities”.
The Toronto Transmit Commission had previously expropriated a portion of MTCC 673’s common elements. As a result, MTCC 673 was entitled to compensation from the Transit Commission. Ultimately, MTCC 673 received a payment from the Transit Commission in the amount of $745,232.41 and also levied a special assessment, in the exact same amount, for required roof replacement. Owners were given two payment options:
a) An owner could direct the condominium corporation to pay the owner’s share of the special assessment by using the owner’s proportionate share of the expropriation funds for this purpose; or
b) An owner could receive the owner’s proportionate share of the expropriation funds and separately pay the owner’s share of the special assessment.
The applicant took the position that the special assessment was not valid as against the applicant’s unit due to inadequate disclosure in the status certificate, and demanded payment of the unit’s share of the expropriation proceeds. The Court dismissed the claim. The Court said:
- “The Status Certificate was accurate when it stated that no increase in the amount of the common expenses was anticipated.”
- “The net effect of all of this is that the (special assessment) was not seeking any increase from unit owners; that it was a special assessment in name only and was used only for administrative purposes to allow for the two payment options.”