Copper Sky is multi-family development over looking Lake Okanagan and located on Old Okanagan Highway (Developers Website).
- What is the term? Unless earlier terminated, the sublease expires: July 29, 2106. At the end of the term, your leasehold interest will expire and you must remove all belongings and leave the premises in good condition.
- Is the lease entirely prepaid? YES – The rent is pre-paid however, there are additional components which you are responsible for paying on a monthly ongoing basis being: Additional Rent and Home Owners Association dues, which will include common costs for property taxes, utilities, common area maintenance, common area insurance, and common area utilities.
- Other financial obligations under the lease? Although the rent is pre-paid however, there are additional components which you are responsible for paying on a monthly ongoing basis being such items as: Property Taxes, Charges and Utilities are payable to the WFN and Home Owners Association dues are payable (similar to strata fees, and include a 15% administration fee) which will include common costs for property taxes, utilities, common area maintenance, common area insurance, and common area utilities.
- Does the lease allow the owner to assign (sell) to a third party? YES – but, prior to assignment (sale) to any third party a certificate of good standing will have to be obtained and a transfer fee may be payable. The Assignment must be registered with WFN. If the owner is a holding corporation a change of control (share sale) of this holding corporation is deemed to be an assignment.
- Does the lease permit the owner to obtain a mortgage from a bank? Yes – on the condition that the mortgage is registered in the WFN Registry, the lease will permit the mortgaging of the Tenant’s interest without consent of the Landlord. The lease also contains those provisions which are required by the CMHC to provide insurance to lenders and will provide the lender with an opportunity to cure a Tenant’s lease default.
- Does the lease restrict the use of the property? YES – Your use of your property is restricted to residential uses and home office used which are ancillary to your residential use.
- Are there unique insurance requirements? YES – the Tenant must obtain a Personal Liability Insurance policy in the amount of $2,000,000 which names both the Home Owners Association and Sub-landlord as additional insured and maintain an All Risks policy.
- Are there provisions for a homeowners association? Operating similar to a Strata, The Home Owners Association or Sub-landlord may levy fees and create bylaws and rules and fines may be imposed if you fail to pay your homeowner association fees or breach those bylaws or rules. The Bylaws are incorporated by reference into the lease.