Part 50 published on 01/05/15
Condominium corporation’s claim for recovery of amounts under shared services agreement subject to 10-year limitation period under Real Property Limitation’s Act
The condominium corporation applied for summary judgement of its claims for amounts owed to it under a shared services agreement. The defendants asserted that the claim was out of time due to expiry of the typical two-year limitation period.
The Court held that the limitation period had not expired because the claim was subject to the ten-year limitation period under Section 23 (1) of the Real Property Limitations Act.
[Note that the Shared Services Agreement included provision for a lien (against the land of the defaulting party) securing recovery of any arrears under the agreement.]
The Court said: “the action is governed by s. 23 (1) of the (Real Property Limitations Act), which sets a ten-year limitation period for an action to recover out of any land any sum of money secured by a lien or otherwise charged upon or payable out of the land”.