A Buyer Of A Resale Condo To Assume HVAC, Rental (If Any)

More frequently now, builders are setting up (in high-rise condos being built) a heat pump OR heating/cooling equipment as a RENTAL. This means that if the builder constructs 350 condo units, the builder spends nothing for all the heating/cooling equipment in the apartments which can increase the builder’s profit per suite.

THE PROBLEM

When the person (who bought such a condo from the builder) resells, WATCH OUT, since, typically, a lien has been registered on the condo apartment for the rental equipment. If the offer to purchase from the buyer refers only to buyer assuming hot water tank (if rental), then the HVAC rental is not being assumed and the buyer’s lawyer (when searching title) will insist that:

1) buyer only agreed to assume a hot water tank on rental and NOT a heat pump or HVAC on rental;
2) the lien for the rental must be removed by the seller (and the cost to pay off the rental heating/cooling unit will be thousands of dollars).

(An excerpt from the updates prepared by Stephen Shub, LLB)

 

Antony Chan

Antony Chan

Broker
CENTURY 21 King's Quay Real Estate Inc., Brokerage*
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