COLCO News Release

5 January 2001

Ellis Nauss Jones By FAX to 604-734-0206
600 - 1665 West Broadway
Vancouver, B.C., Canada V6J 1X1

Attention: Leslie K. Jones

Dear Ms. Jones:

Re: Your file No. 5691.02 - 870 West 7th Avenue, Vancouver

We have your letter, by FAX, dated January 4, 2001.

You will remember our telephone conversation several weeks ago in which you told us you would be sending a letter demanding that 870 West 7th Avenue be removed from our Leaky Rotten Condo List. We directed your attention to the LRC List at our website www.myleakycondo.com and drew attention to the definition published as part of the list.

You write, "In fact, the building has never had a water leakage problem due to the 'premature failure of the building envelope'." We draw your attention to the complete definition published with the List: COLCO's definition of "Leaky Rotten Condo" includes, but is not limited by, the Homeowner Protection Office's definition of "premature building envelope failure." We believe that the building has experienced 'premature building envelope failure.' We believe repairs have been undertaken from time-to-time to prevent water ingress and to replace portions of the building envelope, etc., including re-placing several sections of the roof (sloped and flat).

We would be pleased to meet with your clients and discuss the details. We are open to modifying our opinion regarding the building based upon such a discussion. We want a true and accurate List of Leaky Rotten Condos, including repairs. Your client's assistance will be appreciated. The next (8th) edition of the List is scheduled for release this month. An early exchange of information in your office is advised.

We are puzzled by your request that we "Deliver to the Real Estate Board of Greater Vancouver a letter to confirm that the Building should not have been listed on your website." We are not responsible for action - or lack of action - by the Real Estate Board or any of its members. Complaints should be directed to the B.C. Real Estate Council.

Yours truly,

COLCO

James Balderson

The letter below is a retyped copy of the letter received from Leslie K.

Jones. All misspellings are in the original.

File No. 5691.02

Coalition of Leaky Condominium Owners By fax to 739-4109
P.O. Box 16041
New Westminster, British Columbia
V3W 6W6

Attention: James Balderson

Dear Sirs:

Re: Building located at 870 West 7th Avenue, Vancouver

Listing on "Leaky Condo" website

We are solicitors for the strata corporation known as The Owners, Strata Plan VR546. The members of this strata corporation are the owners of the strata lots in the building located at 870 West 7th Avenue, (the "Building").

It has come to the attention of my client that the Building is listed as a "leaky condomium" on the website, www.myleakycondo.com. In fact, the Building has never had a water leakage problem due to the "premature failure of the building envelope."

This is a serious misrepresentation that affects the marketability and value of the strata lots. The registered owners of the strata lots have suffered significant damages as a result of this misrepresentation.

I am writing to you to demand that you do the following by Friday, January 12, 2001:

1. Remove the Building from the list of leaky condominiums on your website;

2. Deliver to the Real Estate Board of Greater Vancouver a letter to confirm that the Building should not have been listed on your website;

3. Deliver to this office written confirmation of the removal of the building from your website, together with a copy of the requested letter to the Real Estate Board.

Would you also provide me with the following information as soon as possible:

1. The name of the person or persons who submitted to you the incorrect information about the Building;

2. The due diligence process you undertake to verify the information that is submitted to you.

If the requested action is not taken by January 12, 2001, we have been instructed to immediately commence legal proceedings with respect to this matter without further notice to you.

Yours truly,

ELLIS NAUSS JONES
PER:
(signed)
Leslie K. Jones

Updated October 10, 2002
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