The pitfalls of a leasehold agreement are becoming ever-more apparent to a group of Richmond leaseholders who are being threatened with court action for failing to pay $40,000 per unit for building repairs.
Richmond New previously reported that the residents of 6420 Buswell St. (many of whom are seniors and lower-income families) had been told by their landlord that they were required to invest on average $40,000 per unit (depending on condo size) to repair the building’s exterior.
Daniel Chen, 80, one of the residents, told the Richmond News Wednesday that 28 of the 51 unit owners in his building received a lawyer’s letter on March 31 stating that if the owner didn’t pay the full amount plus interest by April 30, they could be evicted or taken to court. Chen added that they were supposed to pay money to the landlord by January 2020.
“If you don’t pay the arrears by April 30, 2020, Westpark will seek to enforce its remedies pursuant to the Lease in the B.C. Supreme Court, including, amongst other things, an action seeking to cancel the subject leasehold interest that you have. We reserve the right to bring this letter to the attention of the court in the event that it’s necessary to seek orders against you for non-payment of the aforementioned arrears,” read the letter.
Leasehold property contracts are unique in that who decides what repairs are done and who pays them is determined by each specific contract. There is no overarching legislation as there is with strata or rental agreements.
Chen said he would pay for the repairs if he could, but the cost is far beyond his financial capacity -- and he’s not alone.
“We are all lower-income people who barely make $2,000 a month. Where do we come up with this money? We can’t rob a bank,” said Chen.
Another resident, Ding Li, said it would have been difficult to come up with the money anyway, but the COVID-19 pandemic has further pushed them to the edge.
“Some residents I spoke to are having trouble lining up a job because of the pandemic. They are unable to afford basic living expenses, not to mention a $40,000 bill,” said Li, who moved into the apartment three years ago.
Leaseholders started receiving letters from the landowner in October last year. The letter stated that people who couldn’t pay it off in full can make 24 or 48 equal monthly payments at six percent interest. It also explained that the repair project would costs up to $2,150,000.
However, Chen noted, the installment plan isn’t much of a reprieve. Moreover, the owners still haven’t seen a detailed breakdown of the cost.
“The project expense lacks transparency. Therefore, we hope the landlord can list which parts of the building must be repaired,” said Chen.
In response to the lawsuit filed by the landlord on May 21 (because of the civil claim court has been delayed due to COVID-19), Li said they are prepared to go to the court if necessary.
“Sadly, there is no specific legislation available right now to protect leaseholders. We need to stand tall and fight for ourselves,” said Li.
