Does Your Condo Have a Leaky Neighbour?

As is usually the case for me, I require an event, circumstance,  and/ or occurrence in my business to spawn an idea for a blog post. If something out of the ordinary does not happen then my mind is typically as dry as a desert (literarily speaking) and chunks of time go by without a post.

Last week I read an article that reminded me of something that happened earlier this year. I was slated to list a condo for some Clients when (just prior to listing) their ceiling began to form a nice yellow/ brown stain consistent with a water leak from above… <fast-forward> …turns out it actually wasn’t a leak but an overflowing A/C unit catch tray. The tenants above left their A/C unit running unattended while away for the weekend…you know the rest.

To make a long story short, my Clients are still struggling with the owners of the condo unit above to get the appropriate repairs made to their ceiling.

The article that reminded me of this event is included in it’s entirety below. The author is Stan Galbraith of Galbraith Law  and he has graciously granted me permission to re-publish his article here on my blog.

When someone buys a condominium, they take on potential liability that extends far beyond their particular unit. Both under the Condominium Property Act and the bylaws of the condominium, an owner can become liable for matters well beyond their particular unit. For example, if they do not maintain their plumbing and this leads to water damage to surrounding units, the condominium owner will be facing a bill for the entire cost of repairs to adjoining units. Obviously, this can amount to a substantial amount of money.

The Condominium Corporation can enforce payment of this money by filing a Lien against the title to the property. This Lien must be addressed when the unit is sold. If the Lien is not paid, the Condominium Corporation can actually institute proceedings against the unit to force a sale.

In most cases, a unit owner will have insurance to cover this potential liability. This is where proper insurance coverage is vitally important. Sometimes, condominium owners, especially those just moving from the world of rental, will take their tenant’s coverage and believe they have adequate coverage. This type of policy only covers their personal contents and public liability coverage that would apply to a tenant. Every condominium unit owner must ensure they obtain insurance coverage specifically designed for condominium unit owners. This type of policy will cover inadvertent damage to adjoining units or common property.

{Legal stuff: The comments expressed in this article are for information purposes only and serve to highlight general principles. Each situation is different and you should seek legal counsel before pursuing any particular course of action. This article does not create a client/ lawyer relationship and does not constitute legal advice.}

Thanks for letting me re-publish your article Stan!

///…CP