May 2021
I was not working because of COVID and fell behind in paying my condo fees which have since been paid. I have received a demand letter stating I owe more. Why are they demanding more money?
M. R.
Response from Toronto Condo News
COVID has impacted on everyone to some extent. While falling behind in paying condo fees is not unexpected during these unprecedented times, this forces other unit owners in a condominium corporation to financially support you – an unreasonable and unsustainable expectation.
There is an expectation in the Condo Act that the corporation seek recovery of the full amount of unpaid condo fees due plus legal and other fees. When corporations follow the rules, they have a powerful debt collection mechanism.
The first step is often a late payment fee applicable once the due date has passed. When outstanding and late payment fees are paid the matter ends. Should fees remain unpaid, condominium corporations have a limited time to ensure their proper collection by filing a condo lien.
Registering a condo lien is a last resort that protects owners by ensuring that the defaulting owner’s condo fees are recoverable. Should the individual remain unable to make payment of their condo fee debt, they may be forced to sell their suite. Once filed, collection costs including legal fees can be charged back to the owner.
For more information see the following Condo Archives articles:
- Condo Fee Obligations
- Failure to Register a Lien
- Condo Liens
- When Common Expense Fees are not Paid – The Condo Lien Process
