Condo Parking and Locker Ownership Problems in Ontario

Many buyers assume a parking spot or locker simply comes with the condo. Then a sale falls apart, a board sends a notice or a neighbour parks in your space, and it turns out nobody is sure what you actually have.

A spot can be set up in different ways, and the label matters. This article explains the common arrangements in plain terms, where to look for the answer, and what to do when the paperwork is unclear.

Owned, exclusive use or rented: what the words mean

People use the words owned, exclusive use and rented loosely, but they can describe quite different arrangements. Your building's declaration and by-laws are registered, while rules do not need to be registered, so those documents are the place to start rather than a listing, a brochure or daily habit. How each arrangement works in your building depends on your situation, so it is worth confirming with a lawyer who has read your documents.

Which one applies in your building depends on how the project was set up and what your agreement and the condo documents say. A lawyer can read them and tell you. Do not rely on a sales brochure, a listing or what a previous owner told you.

Where the answer is found

The declaration is the main governing document. It is registered, and it is not held to any legal standard of reasonableness. Rules, by contrast, do not need to be registered. Rules must aim to promote safety and welfare or to prevent unreasonable interference with use of units, common elements or assets, and they must be reasonable and consistent with the Condominium Act, the declaration and the by-laws.

• Your agreement of purchase and sale, and any schedules.
• The declaration and by-laws, which show how the property is divided.
• The building's rules, which may control how spaces are used.
• Your closing documents and statement of adjustments.
• Any written parking or locker rental agreement.

For a new condo, extra charges and expected adjustments must be listed with dollar values in Schedule B of the Tarion Addendum. If you were charged separately for a spot or locker, check how your documents describe what you paid for.

Common problems and how they arise

• A seller advertises a spot as owned when it is exclusive use or rented.
• A new rule limits how a space may be used, such as storage or vehicle type.
• A board changes parking practices that owners thought were permanent.
• Fees for the space are unclear or unpaid.
• Insurance for items in the locker is assumed to be covered by the corporation.

On rules, the board must send owners the proposed rule, its suggested start date, a reminder of the right to requisition a meeting, and copies of sections 46 and 58 of the Act. The rule takes effect 30 days after notice unless owners requisition a meeting. If they do, the board must hold the meeting and a vote within 35 days, decided by a majority of votes cast. A requisition must be in writing, state the topics and be signed by owners of at least 15% of the voting units. Tenants cannot sign, and neither can owners 30 days or more in arrears.

Permanent changes to the declaration are harder. Amending it needs 80% of the units to consent, or 90% for changes to cost-sharing proportions, access to common elements or maintenance responsibilities. That is why a rule cannot always do what a declaration change can.

Fees, liens and insurance

Condo fees pay for maintaining the common elements, cleaning, building maintenance, management and reserve fund contributions. The declaration sets each unit's share as a percentage, which may vary with unit size. Whether a spot or locker affects your share depends on the declaration.

If common expenses go unpaid, the corporation automatically has a lien on the unit. It expires after three months unless the corporation registers a Certificate of Lien. A lien can complicate a sale, so confirm there is nothing owing before you list.

The corporation's policy does not cover improvements or non-standard parts of a unit. Fixtures, furnishings, equipment and personal property are not part of a standard unit, and owners should insure them themselves. Items stored in a locker are worth discussing with your insurer.

What to do next

• Find the exact wording in your agreement, declaration and closing documents.
• Ask the seller or board for written confirmation of how your spot or locker is held.
• If you are buying, have a lawyer review the documents before conditions are waived or removed.
• If you are selling, confirm what you can actually transfer before advertising it.
• Raise rule concerns in writing and note the notice dates.

If the paperwork contradicts what you were told, speak to a real estate lawyer before you close, sign or move out.

Frequently asked questions