Hi

When we took over the condo building from the developer we found that the original chanote was not transferred as part of the transfer documentation.

The old managing agent said this was normal practice until all the condos had been sold as part of the land still remains with those unsold condos.

This makes no sense.

Surely it is illegal for the developer to hold the chanote after transfer of the building as this chanote will be in the name of the juristic office.

My guess is they are still holding mortgages on the land, which I assume is also not legal.

Anybody else had this problem,

Thanks

The relevant paragraphs of the Condominium Act are ;

Upon the Competent Official having considered that the land is free from any binding obligations or in the case the land is under mortgage but the mortgagee has given consent to register as condominium, the official shall accept the application.

In the case where the building is under mortgage which does not include the land, it is prohibited to accept the registration of the condominium. In this case the official shall notify without delay the application of the reasons denying the application.

Therefore, according to this , a mortgage on the land is acceptable .

Possibly the developer cannot pay off this mortgage until most or all of the units are sold.

In which case(and this is my assumption ) the developer’s company will retain the responsibility to pay the mortgage and retain the chanote.

Thanks.

Very informative reply.