Wednesday, March 13, 2013

Out of Gas....

The City's benevolent act to keep the gas on at a Hamilton apartment building when the former landlord stopped paying utilities, and its claim to recover the cost of doing so, has itself run out of gas. According to a Spec report (see it here or buy today's print copy), the city paid $80,000.00 to assist those living in the premises, from having their gas turned off. The city appears to have acted prudently by putting a lien on the property and it also began collecting rents directly from tenants to offset the $80,000.00 cash infusion. 

 But upon the sale of the property (which was left unobstructed as the city elected to let the courts decide the fate of the balance of the $80,000.00 owing), the amount of the sale was not not enough to satisfy the lien on the property.

Thus, the court ruled that the city has no recourse against the new landlord or its tenants. Clr. Merulla, as quoted in The Spec, characterized the court ruling as " a disgrace and a travesty". A lawyer for the mortgage holder characterized the decision as a decision that simply upheld the law. Unfortunately, the courts saw it that way too.

(for clarity, nice guys and gals, finish last :_ )

2 comments:

  1. It is never wrong to do something good.

    Severn

    ReplyDelete
  2. Real estate ain't my cup of tea, but wouldn't you wanna know the equity in a place before you did the lein? A lien against 0 equity is uh...zero.

    Mr. Sarc

    ReplyDelete

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