Condo Fee Arrears

June 2017

Some condo boards are reluctant to take legal action against owners behind in paying their condo fees.

Perhaps this is viewed as allowing the owner time to address their deficiency.  Making a legal demand for payment may be deemed too harsh or unneighbourly.

This is a common mistake.

Condo boards have a fiduciary responsibility to collect all money owed to the corporation.  In Ontario this is called the condo lien process.  There is an expectation in the Condo Act that the condo corporation will seek recovery of the full amount of condo fees due plus legal and other fees.  Delaying collection makes it less likely that the monies will be collectible.  Condo boards and management that fail to make proper collection filings may be held personally liable for monies not collected.

The legal right to collect condo fees owed is dependent on the proper filing of notices and a certificate of lien being registered within 90 days of default. The rules are simple but missing a deadline or improper documentation can jeopardize the condo corporation’s priority in collecting these funds.

For more information on the condo lien process, see When Common Expense Fees are not Paid in the Condo Archives – Financial Management, subheading Condo Fees