If you own an apartment building with defined units, you may have been struck by the high property tax bill this year. In some cases, the solution is to cancel the owner’s declaration.
If you own an apartment building with defined units, you are likely to pay more tax than if it were an apartment building with undefined units. Therefore, in some cases, it may be more advantageous to cancel the owner’s declaration (condominium) and revert back to a house with non-designated units.
This may apply to you, for example, if you have previously demarcated units purely for practical reasons – for example, to take out a loan to mortgage only some units instead of the whole house – and these reasons have now passed. It can also be advantageous if you are the sole owner of all the units or if you agree with the other co-owners.
Residential co-ownership can be dissolved by joint agreement of all owners or by declaration of a single owner, both in writing. If there are no third-party rights (e.g. liens or easements) on the units, such a procedure is relatively simple and nothing more is required apart from the declaration/agreement. If any of the units are encumbered, the agreement or declaration requires the consent of the person entitled to the easement, again in writing, to be valid.
This article is for informational purposes only and does not constitute legal advice or guidance for any particular case.
If you would like more information in this regard, please do not hesitate to contact us.