July 2025
It began with eggs forgotten on a stove, and ended with a condo owner losing his home. He refused to pay the deductible amount charged back to his unit.
The condominium corporation filed a lien to recover the outstanding amount.
When a condo owner of a mortgaged property fails to pay their condo fees a lien may be registered to protect the corporation’s interest by preventing unpaid fees from becoming uncollectible and a financial burden on other owners. Failing to address a lien can lead to loss of your home as one unfortunate condo owner learned.
The owner forgot about eggs cooking on the stove. Another owner smelled smoke in the stairwell and heard the in-suite fire alarm. The building superintendent entered the unit, found the burning pot, turned off the stove and opened windows.
Remediation of the building’s hallways and staircases to eliminate lingering odour was approximately $8,600. A business decision was made not to pursue an insurance claim. A $5,000 deductible was charged to the unit owner, as required, and the corporation paid the difference.
The owner refused to submit the claim to his insurance company or pay the deductible, which would have reduced his out-of-pocket expenses from $3,600 to $1,000. The owner was served with a lien which he also refused to pay.
About a year later, his mortgage came up for renewal and the owner was unable to provide proof that the lien had been discharged. He was unable to refinance his mortgage nor repay the outstanding amount. The mortgagor forced a power of sale proceeding and the unit was sold.
Condo corporations rely on a lien to recover legitimate charges incurred. They can be discharged by paying the outstanding amount or having a court decide that the lien is inappropriate.
