With the value of the land exceeding the collective worth of some units, usage may increase, says Craig Garbe
By Julius Melnitzer | September 27, 2022
Condominiums, albeit a relatively new legal phenomenon, are showing their age. The value of the land on some older developments now exceeds the collective worth of the individual units.
“It was only in the 1960s that Ontario law allowed for this unique form of land ownership,” says Craig Garbe, a corporate and commercial partner in Bennett Jones LLP’s Toronto office focusing on commercial real estate transactions. “So it’s just recently that we’re seeing condo owners looking for an exit mechanism where the buildings are showing signs of obsolescence and land values have increased.”
Buying individual units in the hope that all owners will eventually sell is a process too cumbersome and risky for those interested in redevelopment. Fortunately, s. 124 of Ontario’s Condominium Act, 1998 provides a mechanism that permits the termination of a condominium with the sale of the entire property.
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Julius Melnitzer is a Toronto-based legal affairs writer, ghostwriter, writing coach and media trainer. Readers can reach him at [email protected] or https://legalwriter.net/contact.