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Residential TradingCondominium LeasingONMEDIUM

An owner who leases her unit for $2,400 a month is $1,500 behind in common expenses. The corporation serves the tenant a written notice under s. 87 of the Condominium Act, 1998. What must the tenant do?

Correct Answer

B) Pay $1,500 to the corporation, which counts as rent paid under the lease

Section 87(1) lets the corporation, by written notice, require the lessee to pay it the lesser of the owner's default and the rent due under the lease: the lesser of $1,500 and $2,400 is $1,500. Section 87(6) says the payment counts as rent under the lease, so the tenant is not in default for paying the corporation.

Answer Options
A
Pay the full $2,400 rent to the corporation until the owner's arrears are cleared
B
Pay $1,500 to the corporation, which counts as rent paid under the lease
C
Pay nothing, because the tenant has no contract with the corporation
D
Pay $1,500 to the corporation in addition to the full rent owed to the landlord

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Key Terms

section 87common expense defaultrent diversiontenant
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