Don't Forget to Read Those Condominium Documents

Condo Units

Every condominium consists of a certain number of "units." It is important to review the condominium declaration to see that the unit that is described in the lease is the same as the condo unit mentioned in the declaration. For example, if you are leasing a commercial unit within the building and the declaration states that the space you are leasing consists of units C1 and C2, make sure that these unit numbers are specifically described in the lease as the space you are leasing. Besides giving an accurate description of the space you are leasing; the unit numbers are also important to mention in any lease where the tenant is responsible for all or a portion of the taxes that are due for the premises as each unit is separately taxed by the taxing authorities. A description of the unit in the declaration may also provide the square footage contained within the unit and, in the case of a garage unit, may also mention the number of parking spaces available within the unit. If a garage lease requires the tenant/garage operator to provide parking for no less than 50 spaces but the unit only allows for 48 spaces this could be a problem. Similarly, if the declaration provides that there is approximately 21,250 square feet of retail space but the lease states that the Premises has a smaller footprint, again, that is something that may require further review. The declaration should also mention the uses that are permitted within the unit, and, just as importantly, the uses that are prohibited. Carefully review the declaration to check that the use you intend to lease the space for matches what is contained in the declaration and that any use that is "permitted" under the lease is not prohibited in the condominium documents. You could be surprised as to what you find!