Introduction
Parking should be an important consideration for purchasers buying a condominium. Firstly, not all condominium projects have parking – thereby forcing condo owners to find alternative means for parking their vehicle. When a parking stall is available, the way the stall is owned and allotted to their respective owners can greatly vary thereby affecting a condo unit owner’s rights over the stall. As such, real estate professionals must understand the various forms of ownership of condominium parking stalls to ensure their clients are well advised and protected and that residential condominium purchase contracts are carefully drafted to address the particular type of ownership.
Ownership Form #1 - Titled Condominium Parking Stalls
An owner of a titled parking stall has legal ownership over the stall. They, essentially, own the physical space just like their condominium unit. Similar to their unit, the owner of the stall will pay monthly condominium dues and real estate taxes to their municipality. As such, the owner can sell, lease or mortgage their titled parking stall.
Ownership Form #2 - Leased Condominium Parking Stalls
In this scenario, the unit owner does not own the condominium parking stall. Rather, their right to use the stall is derived from a lease. There are 2 types of leased condominium parking stalls – delineated and non-delineated. Delineated stalls can transfer to a new owner without the prior approval of the condominium board. Conversely, with non-delineated stalls, the lease is only valid while the lessee is the legal owner of their condominium unit. Once their unit is sold, the lease ends and the new condominium unit owner (i.e. the buyer) must renegotiate the terms of a new lease with the condominium corporation.
Ownership Form #3 - Assigned Condominium Parking Stalls
Assigned condominium parking stalls are the least desirable form of ownership for condominium owners. The condo board or condo management company assigns an owner with a condominium parking stall. These stalls can be reassigned at the pleasure of the condominium board or management company. As such, when a condominium is sold, the condo board or management company can reassign the stall to a different individual other than the new condo owner (i.e. the buyer), if they wish.
Conclusion
A prospective buyer must understand the type of the condominium parking stall they are about to purchase. If they don’t, then there can be numerous issues that can arise during the conveyancing process, which will hold up or collapse the real estate deal.
If you have any questions concerning condominium parking stalls, please don’t hesitate to contact Khemka Law or counsel of your choosing. If there’s a topic you’d like us to cover, please let us know! We are always here to assist you and your clients. Thank you for your time and consideration.
Sincerely,
Pranav Khemka
Pranav Khemka, Barrister & Solicitor
T: (403) 457-9577 | F: (403) 457-9578
E: pkhemka@khemkalaw.com
Suite 202, 5403 Crowchild Trail NW, Calgary, AB T3B 4Z1