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ARTICLE · 12 MAY 2021

Condo Declaration Can Limit Uses Of A Unit

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A condominium's declaration can include restrictions on the uses that may be made of a unit. In residential developments, this usually takes the form of "single family use" ...

CanadaReal Estate and Construction
Justin McLarty
Justin McLarty
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A condominium's declaration can include restrictions on the uses that may be made of a unit. In residential developments, this usually takes the form of "single family use" to prevent short-term rentals. Commercial developments often use declarations to prohibit certain types of businesses, or to allow for only one of a specific type of business.

In a commercial condominium building, units can be leased for a higher rent if the tenants are confident that there will be no direct competition for their business in the same building. Owners will therefore pay a premium for units that can enjoy a "monopoly" on certain uses within a particular development. This reassurance is often provided through restrictive use provisions in the condominium's declaration.

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