Condo Declaration May Not Impose An Obligation To Lease Parking In Perpetuity

In a recent decision, a judge ruled that a provision in a condo declaration which imposed on the corporation an obligation to lease back parking spots in perpetuity is unenforceable, against public policy and against the Planning Act. The condo corporation was permitted to terminate the lease.

Facts of this case

This case involved a dispute between a commercial condo corporation and the owner of the 251 parking-space parkade. Of interest, each of the 251 parking spaces were unitized but the parkade structure was comprised of common elements, to be managed, maintained and repaired by the condominium corporation.  The developer had retained ownership of all parking spaces and had entered into a 20-year lease by way of which it leased every parking spots back to the corporation. Eventually the 251 parking spaces were sold to the current owner.