Aging Condominiums: Repair or Terminate?

Aging Condominiums: Repair or Terminate?

The article discusses the aging of condominium properties in Canada and the possibility of termination of the condominium corporation. Due to increasing costs of capital repairs and replacements, termination of the corporation becomes an attractive alternative in some instances. In Alberta, there are two ways of terminating the corporation: passing a special resolution of the owners or applying to the court. The termination process requires complex and detailed notice packages, and obtaining sufficient consents is a significant factor in the process. Once a condominium is terminated, a single parcel of land is created, and all former unit owners become tenants in common. The proceeds of sale are to be applied first to payment of debts and liabilities of the corporation and second to the unit owners. The article recommends consulting with a lawyer early on in the termination process due to the number of issues that may arise.