Mark Giavedoni
Partner
Leader - Canadian Real Estate Practice Group; Certified Specialist (Real Estate Law)
Video
Before any loan is committed to a condominium corporation, there are several discussions a lender must have with the corporation before signing an agreement.
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I am Mark Giavedoni, a commercial real estate and lending lawyer at Gowling WLG.
This video is part of our Real Estate Topics for Lenders Series.
In this video we will be discussing Lending to a Condominium Corporation.
While there are many different types of condominium structures, typically a condominium corporation has the following elements:
Before any loan is committed to a condominium corporation, the lender should:
Does the condominium have authority to borrow money? It needs a specific bylaw authorizing the specific loan and likely approval of its members, not just its board of directors
What type of security is possible? Can the condominium pledge its common expense receivables? Are they capable of being the subject of a security interest or mortgage registration?
Does the condominium corporation own a unit that could be given for a collateral mortgage security?
Can the lender access the revenue stream of the corporation or take a security interest in these assets?
Will the condominium corporation require a special assessment of its members to make payments against a loan or mortgage obligation?
These questions and more should be discussed with counsel BEFORE any commitment to lend is signed by a lender.
This presentation was a high level overview; however, if you find that you have more specific questions about any of the points discussed or their application to a specific fact situation, please reach out to any member of our lending team and I am also available through my email mark.giavedoni@gowlingwlg.com.
Before any loan is committed to a condominium corporation, there are several discussions a lender must have with the corporation before signing an agreement.
In this video, we discuss:
Watch more videos | Go to our lending resource hub
If you have any specific questions about the points discussed or it's specific application, please reach out to our Banking & Finance Group or Mark Giavedoni.
This series will address some of the most common real estate questions that keep bankers up at night. For example: What should I do about contaminated property? What am I supposed to review when looking at a lease? How should I approach a construction lien issue? In general, real estate may be new territory for bankers, so this series will offer a simple, topic-based seminar approach, focusing on issues that could stump even the most seasoned financial professionals.
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