Failure to Pay Fees

March 2024

With condo fees and special assessments expected to increase, some will be surprised to find that failing to pay these fees can result in foreclosure.

The condominium corporation has many rights incorporated in their governing documents.  These rights are agreed to by a buyer before the purchase of a condominium is finalized.

One of these rights is to collect assessments and condo fees.  When assessments and fees are not paid, the condominium corporation has the right to initiate a lien, and possibly foreclose against the unit, regardless of its mortgage status.

A condo mortgage typically requires that the unit be insured, taxes are paid, and the mortgage holder be current in payment of condo fees and assessments.  When fees and assessments are not paid, it is likely the owner is in violation of their mortgage agreement.  The mortgagee, typically a bank, may choose to pay outstanding fees to retain their ownership of the condominium.  Defaulting on the mortgage can result in loss of the home to the bank or other financial institution.

Continuing to not pay condo fees and assessments leaves the condominium corporation with no option but to file for a lien against the property, and possibly initiate foreclosure actions, to collect money due to them.