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I've been a condo association President for a couple of years now and I keep finding older residents that have come up with their own interpretations over the years, so if something isn't clear, I do my own research.

Our apparently boilerplate condo declarations state this:

"The consent of the Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are allocated, the approval of First Mortgagees holding mortgages on Units which have at least fifty-one percent (51%) of the votes of Units subject to mortgages and, upon written request, notice to all First Mortgagees holding mortgages on Units shall be required to add or amend any material provisions to this Declaration or to the By-Laws"...

What exactly does this mean: "the approval of First Mortgagees holding mortgages on Units which have at least fifty-one percent (51%) of the votes of Units subject to mortgages"

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A "first mortgagee" is a person who has a lien over the property and if there is more than one, the one with the highest priority. Usually, this is a lender who holds a mortgage as security for the loan.

Some Units will have first mortgagees and some will be unencumbered. Those with first mortgagees will have a certain number of votes. To change the by-laws, you need enough first mortgages to agree so that at least 51% of the votes of Units with mortgages agree and 67% of the total votes.

For example, if there are 100 votes and 60 of those votes have mortgages then you need agreement from owners with at least 67 votes and agreement from the first mortgagees with interests in at least 31 votes of the 60 with mortgages.

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  • Do I get this right: if one and only one unit had a mortgage, the “First mortgagee” of that unit would effectively have a veto right? – gnasher729 Mar 31 at 9:59
  • And same with two units, because 51% of 2 = 1.02 so both have to agree. – gnasher729 Mar 31 at 10:00
  • @gnasher729 yes – Dale M Mar 31 at 10:49

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