Liens and collection

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The lien regime to collect arrears against a defaulting unit owner is straightforward and codified in the Condo Act and common law – there’s a default in common expense payment, a lien arises automatically, a certificate of lien is registered against title to the defaulting unit and then enforcement may take place in the same manner as a mortgage.  That culminates in selling the unit via notice of sale if collection is otherwise unsuccessful.  This process works because there are avenues to collect and enforce even if the owner flat out ignores the condo’s efforts.  So long as the proper notices are given, the condo can proceed absent an owner.

But what can condos do when other condos are in arrears of shared costs and ignore communication and collection?

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Continue Reading Collecting unpaid shared condo costs

Common expenses are the life blood of condo corporations and section 85 of the Condo Act allows condos to register a lien to collect unit owners’ share. This section is vital to the functioning of condominiums in Ontario, but it also gives condo corporations enormous leverage to protect innocent unit owners from having to pay a disproportionate share of costs resulting from the unreasonable conduct of any single unit owner.

The court in CCC 56 v. Chreim recently considered the significant powers authorized by section 85 of the Condo Act and the responsibilities that come with those powers.

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Continue Reading Condominium liens – With great power comes great…accountability

The Superior Court of Justice recently raised an interesting question: can a condominium corporation foreclose on a unit to enforce its lien? While the Court didn’t answer the question, raising the question seemingly casts doubt on what a corporation can or can’t do to enforce a lien. Fortunately, we don’t have to wait for another case to get our answer: earlier decisions have made it clear that a condominium lien can be enforced through foreclosure.

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Continue Reading “Like a Mortgagee”: no uncertainty with condo liens and foreclosure/power of sale

When condo owners get hit with a lien, things typically go one of two ways: the owner pays the lien and everyone moves on with their life or the owner disputes the lien and a contentious battle ensues. A registered lien secures “reasonable legal costs and reasonable expenses incurred by the corporation to collect the lien” per section 85 of the Condo Act. Corporations often turn to their lawyers in lien battles and recoverable legal costs and expenses begin to mount.   One owner recently learned that lesson the hard way.

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Continue Reading Lien challenges: applying pressure doesn’t stop the bleeding