A potential buyer, Emily, is reviewing a Land Titles Certificate for a commercial condominium unit in Calgary. She notices a caveat registered by 'Condo Corp. Plan No. XXXXX' indicating unpaid condominium fees. What is the significance of this caveat for Emily?

Question: A potential buyer, Emily, is reviewing a Land Titles Certificate for a commercial condominium unit in Calgary. She notices a caveat registered by 'Condo Corp. Plan No. XXXXX' indicating unpaid condominium fees. What is the significance of this caveat for Emily?

Answer options:

• The caveat is merely an informational note and does not affect the property's title. ✅ The Condo Corporation is claiming a financial interest in the property, and this claim will likely need to be settled by the seller before or at possession to provide clear title.
• It means the Condo Corporation is attempting to purchase the unit.
• The caveat allows Emily to negotiate a lower purchase price, but she will be responsible for the unpaid fees after closing.

Correct answer: The Condo Corporation is claiming a financial interest in the property, and this claim will likely need to be settled by the seller before or at possession to provide clear title.

Explanation: A caveat is a notice on a Land Titles Certificate indicating a claim against the property, often for a financial interest, such as unpaid condominium fees as per the Condominium Property Act. It must usually be addressed by the seller to provide clear title.