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Sales or Leaseback of Units and Common Elements

In some cases, developers have been treating what was thought to be common building elements (e.g., party rooms and gyms) as separate from the building.  After the expense of purchasing a unit, owners would be met with the unpleasant surprize of needing to spend more money to buy or lease these common elements in order to have access.

Regulations to the Condo Act will eliminate the practice as a standard and make future changes subject to the discretion of the own-elected board.  There are, however, occasions where a lease back is appropriate and exceptions will be granted, for example, in cases where the developer has purchased certain energy-efficient equipment that will benefit the condo corporation on a go forward basis – before and after it’s turned over to the owners. (more)