What should a buyer do when the status certificate for their condominium purchase shows that the corporation is involved in litigation?
That was the question a client of mine faced last month after I reviewed a status certificate for his intended purchase of a unit on Dundas St. E. in Toronto.
Constructed around 1940, the building was originally a factory that later became the Imperial Optical lens factory, and was eventually converted to 41 brick-and-beam-style loft condos in 2000.
The status certificate disclosed that, in 2006, discovered beneath the building was a tunnel built for utilities. At about two metres high and 20 metres long, it requires major structural repairs. Until they can be undertaken, the corporation has temporarily shored it up to prevent damage to the building above it.
When residents noticed a bad smell throughout the building about a dozen years ago, they discovered the tunnel.
The owners sued the builder, two engineers, Enbridge Gas, the architect and the City of Toronto for as much as $3 million. They allege the tunnel has compromised the structural integrity of their building.